Compressed Natural Gas (CNG) Market by Application and Geography - Forecast and Analysis 2022-2026

The compressed natural gas (CNG) market share is expected to increase by USD 7.66 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 6.41%.

This compressed natural gas (CNG) market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers compressed natural gas (CNG) market segmentations by application (LDV and MDV and HDV) and geography (APAC, Middle East and Africa, South America, Europe, and North America). The compressed natural gas (CNG) market report also offers information on several market vendors, including Adani Total Gas Ltd., BP Plc, Chevron Corp., China National Petroleum Corp., Clean Energy Fuels Corp., CNG Fuels Ltd., E.ON SE, ENGIE SA, Eni Spa, Exxon Mobil Corp., Gazprom, Indraprastha Gas Ltd., Maharashtra Natural Gas Ltd., National Grid Plc, OG Clean Fuels, Shell plc, Snam SpA., TotalEnergies SE, Trillium Transportation Fuels LLC, and VERBIO Vereinigte BioEnergie AG among others.

What will the Compressed Natural Gas (CNG) Market Size be During the Forecast Period?

Download Report Sample to Unlock the Compressed Natural Gas (CNG) Market Size for the Forecast Period and Other Important Statistics

Compressed Natural Gas (CNG) Market: Key Drivers, Trends, and Challenges

The increase in the demand for cleaner fuel is notably driving the compressed natural gas (CNG) market growth, although factors such as fluctuation in oil and gas prices may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the compressed natural gas (CNG) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Compressed Natural Gas (CNG) Market Driver

The increase in the number of CNG vehicles is one of the key drivers supporting the compressed natural gas (CNG) market growth. CNG for automobiles has proved to be an eco-friendly technology, thereby providing better air quality and sustainability. This makes it ideal for the urban environment. Favorable government regulations coupled with CNG infrastructure development have increased consumer acceptance and cost competitiveness of CNG vehicles. With the need for sustainable and eco-friendly mobility solutions, CNG vehicles in India are expected to grow by 233.33% by 2024-2025 as compared to 2018, with the development of additional 5,000 CNG filling stations. This 10 million fleet will comprise buses, three-wheelers, and passenger vehicles. With regards to these factors, the number of CNG filling stations is expected to increase and thereby, fueling the market growth. 

Key Compressed Natural Gas (CNG) Market Trend

The increase in the supply of natural gas is another factor supporting the compressed natural gas (CNG) market growth. According to the IEA, the Middle East is expected to add 70 bcm of the world's natural gas production by 2022. Also, Russia, the second-largest global natural gas producer after the US, has substantially under-utilized natural gas production potential in the Yamal peninsula. In order to explore this potential, Russia has been working on increasing its E&P activities through projects such as the Yamal LNG, with a production capacity of 16.5 million metric tons per annum. However, the increase in natural gas production in countries such as the US and Russia will boost the supply of natural gas, thereby enabling to fulfill the growing demand for CNG as a transportation fuel across the world. Hence, this will propel the growth of the global CNG market during the forecast period.

Key Compressed Natural Gas (CNG) Market Challenge

The fluctuation in oil and gas prices is one of the factors hindering the compressed natural gas (CNG) market growth. CNG is being increasingly adopted in the transportation sector owing to its economic and environmental benefits over other fuels such as gasoline and diesel. However, since diesel and gasoline can substitute natural gas as transportation fuel, their consistently decreasing prices make it less attractive for the end-users to switch to alternate fuels such as CNG. Due to this CNG might lose its popularity and result in the extension of a payback period for the fleet operators owing to the high upfront capital costs involved. Hence, the volatility of crude oil prices can have an adverse impact on the availability and price of natural gas, thus restricting the growth of the market.

This compressed natural gas (CNG) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the compressed natural gas (CNG) market as a part of the global oil and gas exploration and production market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the compressed natural gas (CNG) market during the forecast period.

Who are the Major Compressed Natural Gas (CNG) Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• Adani Total Gas Ltd.
• BP Plc
• Chevron Corp.
• China National Petroleum Corp.
• Clean Energy Fuels Corp.
• CNG Fuels Ltd.
• E.ON SE
• ENGIE SA
• Eni Spa
• Exxon Mobil Corp.
• Gazprom
• Indraprastha Gas Ltd.
• Maharashtra Natural Gas Ltd.
• National Grid Plc
• OG Clean Fuels
• Shell plc
• Snam SpA.
• TotalEnergies SE
• Trillium Transportation Fuels LLC
• VERBIO Vereinigte BioEnergie AG

This statistical study of the compressed natural gas (CNG) market encompasses successful business strategies deployed by the key vendors. The compressed natural gas (CNG) market is fragmented and the vendors are deploying growth strategies such as focusing on improving their production capacity to compete in the market.

Product Insights and News

• CNG Fuels Ltd. - The company offers compressed natural gas that develops, owns, operates CNG refueling infrastructure and renewable biomethane that provides CNG directly to transport customers at our infrastructure as well as to customers looking for off-grid solutions, under the brand name of CNG Fuels Ltd.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The compressed natural gas (CNG) market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Compressed Natural Gas (CNG) Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the compressed natural gas (CNG) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Compressed Natural Gas (CNG) Market?

For more insights on the market share of various regions Request PDF Sample now!

45% of the market’s growth will originate from APAC during the forecast period. Iran, Pakistan, and China are the key markets for compressed natural gas (CNG) market in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The demand for clean fuel such as CNG and the development of infrastructure to support the adoption of CNG as a transportation fuel will facilitate the compressed natural gas (CNG) market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The COVID-19 pandemic in 2020 had a drastic impact on the production and distribution of natural gas, such as CNG, in the region. In 2020, supply chains in the region suffered from disruptions due to the lockdowns and restrictions implemented in various countries, such as India, China, South Korea, Australia, and Japan. However, the region is gradually ramping up its economic activities and simultaneously vaccinating its population with the newly developed COVID-19 vaccines. A complete resumption in oil and gas production activities in the region during 2021 is expected to fuel demand in the regional CNG market during the forecast period.

What are the Revenue-generating Application Segments in the Compressed Natural Gas (CNG) Market?

To gain further insights on the market contribution of various segments Request PDF Sample

The compressed natural gas (CNG) market share growth by the LDV segment will be significant during the forecast period. According to the US EIA, the LDV segment includes passenger and fleet cars and trucks with a gross vehicle weight rating (GVWR) of 8,500 pounds or less. Moreover, the annual purchases of vehicles made by public authorities for the operation of their own fleet should contain a minimum of 20% of cars powered by green technologies. Hence, owing to the significant emission of GHGs from gasoline-powered LDVs and the regulations to reduce the same, there has been significant adoption of CNG LDVs across the world, which will propel the growth of this market segment during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the compressed natural gas (CNG) market size and actionable market insights on post COVID-19 impact on each segment.

Request PDF sample

What are the Key Data Covered in this Compressed Natural Gas (CNG) Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive compressed natural gas (CNG) market growth during the next five years
• Precise estimation of the compressed natural gas (CNG) market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the compressed natural gas (CNG) industry across APAC, Middle East and Africa, South America, Europe, and North America
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of compressed natural gas (CNG) market vendors

We can help! Our analysts can customize this report to meet your requirements. Get in touch