CNG Tanks Market

CNG Tanks Market

The global CNG tanks market is valued at USD 2.9 billion in 2024 and is projected to reach USD 4.3 billion by 2029, growing at 8.5% cagr from 2024 to 2029. Based on projections, the market is expected to grow from the current valuation for 2024 of USD 2.9 billion to USD 4.3 billion by 2029. CNG tanks have an increasing demand due to the marked shift of vehicles toward the use of Compressed Natural Gas, which is cheaper and environmentally friendly. Increasing concerns on the global environment, improvements in tank construction, and demand for cost-effective fuel in transportation and industrial uses are forces driving the market. Governments are adopting strategies that include measures related to the limitation of the emission of harmful pollutants and improvements in the consumption of environmentally sustainable fuels. Thus, CNG tanks have high demand, which is leading to the augmented growth of the market and inventive evolution.

Attractive Opportunities in CNG Tanks Market

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Global CNG Tanks Market Dynamics:

Drivers: Favorable government policies for promotion of CNG vehicles and infrastructure

Government policies, especially the approval of favorable policies regarding the development of the market in the use of CNG-fueled vehicles and increase in the availability of CNG tanks, dramatically stimulates the growth of the market. As a result, governments across the globe are implementing policies and incentives to tackle emission discharge and enable better air quality, which is a direct driver of the consumption of cleaner fuels such as CNG. Subsidizing consumer purchases of CNG vehicles, tax credits for investments in CNG fueling stations, and low emission standards are some of the measures that have compelled consumers and businesses to shift toward the use of CNG vehicles. On the same note, many governments are funding projects for the increased development of CNG stations and research in improved CNG technologies, making CNG more appealing as a fuel. These policies do not only contribute to the economic significance of CNG vehicles, but also provide a better and more secure refueling network, and hence the demand for CNG tanks. Such regulations result in a domino effect where the supply capacities and the overall market value of the CNG tanks are boosted because there is a rising demand in the market.

Restraints: Scarcity of CNG refueling stations in emerging economies

The lack of CNG refueling stations also acts as a restraint for the CNG tanks market in emerging economies. This has remained a challenge for the use of CNG vehicles in many developing regions as the facility of refueling has not been as well developed as that for gasoline-run vehicles, thus, limiting the demand for CNG tanks. As much as there has been increased use and talk of CNG as a clean fuel, there is limited and often inaccessible refueling infrastructure, which deters both, the consumer and the fleet owner from purchasing vehicles that run on CNG. This infrastructure gap is common as significant capital is required to start the business, and complexities arise from siting refueling stations, especially in the developing world. As a result, the growth of CNG refueling services is slower due to the constraints that lead to discouraging potential users due to the inadequate refueling facilities. While this situation also has an influence on the sale of CNG tanks in the short-run, it hampers future market growth of the technology for CNG, which cannot be fully deployed due to the lack of infrastructure. Thus, further investments and policy inclinations toward refueling infrastructure are the solutions to this issue when it comes to the growth of the investment potential in CNG tanks in emerging economies.

Opportunities: Increasing support from governments for bio-CNG

Pressure from governments to fund bio-CNG provides the CNG tanks market with significant opportunities for development. Bio-CNG is made from waste material, food waste products, and organic waste material, such as agricultural residues. Governments around the world are waking up to the importance of bio-CNG as an environmentally friendly fuel and as an important economic driver and are implementing measures to encourage the adoption of the fuel. These measures comprise grants for bio-CNG liquefied production stations, tax credits for bio-CNG vehicles, and grants for advancements in the bio-CNG technology. Therefore, there is an increasing requirement for CNG tanks that are compatible with bio-CNG, given that these can be different from standard CNG tanks. The development of bio-CNG also involves support from governments to establish refueling stations and distribution networks for CNG tanks. The commitments to bio-CNG also correspond to widely prescribed objectives of lesser and contingent greenhouse emissions as well as greater energy security, making it persuasive for policy and consumer stakeholders. This shifting environment offers significant opportunities for the CNG tanks market as companies try to leverage the ongoing growth of the bio-CNG segment and its requirements.

Challenges: Development of electric cars and competition from alternative fuels

The fast growth in the demand for electric vehicles and increasing pressures from alternative fuels are major threats to the CNG tanks market. As the technological design of EVs changes, with specialization in battery life, charging provisions, enhanced engineering of vehicles and cars are gradually turning into financially positive initiatives that minimize emissions of polluting gases. The trend is further boosted by government incentives as well as significant investments in charging infrastructure for EVs, which reduces focus on CNG vehicles. The availability of other types of AFVs encompassing other cleaner energies, such as hydrogen and biofuels, which further diversifies the conventional CNG tanks market share. These other fuels usually receive their own infusion of technological developments and supportive policies, which can sometimes obscure the benefits of CNG. Reflecting the current state of the zones in which automotive and transportation industries are shifting to these new technologies, the CNG tanks market has to face two problems: relevance and competitiveness.

CNG Tanks Market: Ecosystem

Type 1 tank segment accounted for the largest share of the global CNG tanks market in terms of value and volume

Type 1 CNG tanks account for the largest market share of CNG tanks, in terms of volume and value. This is attributed to the fact that their construction includes only metal which provides them high durability, resistance, and stability for very high pressure storage and other operating conditions. Their reliability and proven record have made them popular in the car industry as well as for other industrial uses. The simpler process of creation and the general trend toward less expensive production of Type 1 tanks has helped maintain high demand in terms of quantity and monetary worth. Type 1 tanks being relatively cheaper, have high demand compared to the more specialized advanced composite tanks.

Carbon fiber material type to be the fastest-growing segment of the CNG tanks market

The market for carbon fiber CNG tanks is projected to grow at the highest CAGR in the CNG tanks market compared to metal and glass fiber tanks due to factors prompted by the efficiency, weight, and performance of CNG tanks. Carbon fiber tanks are much lighter and stronger than conventional composite tanks and are installed with improved safety and performance features. The light weight is by far the most influential factor, which adds up to higher fuel efficiency and increased range for vehicles, and therefore, carbon fiber tanks are uniquely suitable for automotive and commercial use. Furthermore, the non-corrosiveness and high pressure of carbon fiber also adds to its popularity in a market that is in constant search of a material that can result in high performance and efficiency.

Fuel tanks application is projected to lead the CNG tanks market

The fuel tanks application is expected to dominate the CNG tanks market due to the fact that they have a major contribution compared to transportation tanks in penetration in CNG-run vehicles. The automotive market also necessarily requires vehicles equipped with CNG fuel tanks to store and provide compressed natural gas, which is a primary factor for the growth of CNG-based automobiles. The high number of fuel tank applications is attributed to the fact that fuel tanks are the key enablers of CNG technology for practically all forms of mass transportation, including cars, buses, trucks, etc. These tanks are required to be of superior quality in terms of safety and performance and should enable performing under various conditions. Transportation tanks, which function as part of the overall process of moving CNG from one place to another, are, of course, useful, but the scale and constant rates of usage of fuel tanks for vehicles make for a larger and more constant consumer demand. This dominance continues with improvements in materials science and the design of tanks, which have made fuel tanks more effective and cheaper to manufacture. These factors continually strengthen their position in the CNG tanks market.

Light-duty vehicle segment to hold the largest share of the global CNG tanks market

Light-duty vehicles are set to dominate the market for CNG tanks due to the increasing utilization of compressed natural gas as a more efficient and environmentally friendly fuel. As a way of conforming to stringent pollution measures and also as a result of cheaper fuel costs of natural gas, an increasing number of vehicles, which may be automobiles or small trucks, are being fitted with CNG tanks. The large numbers of light-duty vehicles in urban and suburban areas invariably leads to the high demand for CNG tanks, especially those designed and developed for use in these regions. The largely favorable prospects for the use of CNG in light-duty cars are further boosted by advancements in technology and the expansion of refueling outlets. CNG has a high demand from fleet managers and owners of light-duty vehicles as a result of technological innovations, financial motivation, and environmental benefits. This has helped CNG maintain a lead in the market for CNG tanks. Thus, companies are undertaking extensive marketing, which has created awareness about CNG tanks among consumers.

Asia Pacific holds the largest share in the global CNG tanks market

Asia Pacific is the largest regional market for CNG tanks, noting the significant developments and crucial effects on the international market. This leadership is attributed to the increased urban population in the region, fast economic development, and increasing concerns about environmental pollution. The most notable pioneer in this regard is India, which has committed large amounts to CNG cars and related facilities in order to meet the obligatory emission standards and also due to severe air quality problems. Demand is enhanced by the mass production of automobiles, especially in the Asia Pacific region, together with policies that encourage the use of CNG. There is increasing business and industrial activity in the region, which also leads to the high demand for CNG tanks. These factors combine to strengthen the position of Asia Pacific as the leading region in the evolution of CNG tanks, locally and globally.

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CNG Tanks Market Players

Prominent companies in the CNG tanks market are Worthington Enterprises (US), Luxfer Holdings Plc (UK), Hexagon Composites ASA (Norway), Everest Kanto Cylinder Ltd. (India), CIMC Enric (China), and Quantum Fuel Systems LLC (US). These companies are attempting to establish themselves in the CNG tanks market by employing a range of inorganic and organic approaches. A thorough competitive analysis of these major CNG tanks market participants is included in the research, along with their company profiles, most recent advancements, and important market strategies adopted.

CNG Tanks Market Scope

This research report categorizes the CNG tanks market based on tank type, material type, vehicle type, application, and region.

By Tank Type:

• Type 1
• Type 2
• Type 3
• Type 4

By Material Type:

• Metal
• Carbon Fiber
• Glass Fiber

By Vehicle Type:

• LDV
• MDV
• HDV

By Application:

• Fuel Tank
• Transportation Tank

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Recent Developments

• In July 2023, Time Technoplast expanded its annual CNG Cascade manufacturing capacity by 300 cascades under phase 1. Under Phase 2, the total annual cascade manufacturing capacity increased to 480 cascades.
• In July 2023, Quantum Fuel System received a second order to deliver eight of its gas Virtual Pipeline Trailers to CORE Automated Fueling Solutions.
• In March 2021, Luxfer Group completed the acquisition of SCI (Structural Composites Industries, which is a business unit of Worthington Industries). This acquisition is aimed at enhancing the capabilities of the hydrogen and CNG gas businesses of the Luxfer Group.

Frequently Asked Questions (FAQ):

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