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The Compressed Natural Gas (CNG) Compressors Market size is forecast to increase by USD 1.30 billion, at a CAGR of 3.71% between 2023 and 2028.
The market growth analysis trajectory is influenced by various factors, including the rising adoption of CNG-powered vehicles, driven by the growing awareness of environmental sustainability and the economic advantages of using as a fuel source. Additionally, the stability and affordability of global natural gas prices play a significant role in shaping compressed natural gas compressors market dynamics, as they impact consumer preferences and purchasing decisions. Moreover, there is a heightened focus on energy efficiency across industries, prompting organizations and governments to prioritize cleaner and more efficient energy solutions such as natural gas. These factors collectively contribute to the steady growth of the market, creating opportunities for stakeholders to capitalize on the increasing demand for CNG-powered vehicles and sustainable energy solutions in a rapidly evolving global landscape. Our report examines historic data from 2018-2022, besides analyzing the current and forecasted market scenario.
Study Period |
2024-2028 |
Base Year For Estimation |
2023 |
CAGR |
3.71% |
Forecast period |
2024-2028 |
Fastest Growing Region |
APAC at 37% |
Largest Segment |
Product |
Furthermore, the growth in demand for CNG in APAC is driven by countries such as Japan, Pakistan, China, South Korea, India, and Taiwan. Pakistan is one of the largest users of CNG across the world. There has been significant demand for CNG in China, which is expected to grow rapidly during the forecast period. Additionally, Ariel Corp. company offers CNG compressors for vehicle fueling which are derived from the same advanced design and industry experience as the products manufacturer for field gas, process, and transmission applications. Also, Atlas Copco AB company offers CNG compressors such as Natural gas compressor BBR and CU gas compressors.
Market Forecast 2024-2028
The market is experiencing significant growth driven by the rising adoption of CNG stations for various applications, including buses, trucks, taxis, and personal cars, in response to stringent emission control regulations. These compressors play a crucial role in the lubrication method and operation of reciprocating, rotary screw, and rotary centrifugal compressors, ensuring efficient compression of methane for use as a cleaner alternative to fossil fuels. Industries such as oil and gas are increasingly investing in green energy solutions like CNG, emphasizing the importance of reliability and durability in compressor performance. With a focus on residential, food and beverage, and home appliances, the compressed natural gas compressors market is witnessing growing demand for compact and efficient compressors suitable for various applications, including pipeline transportation and storage facilities. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the compressed natural gas (CNG) compressors market.
As natural gas remains relatively inexpensive and indicates less volatility in prices, businesses and consumers are increasingly turning to such solutions as a cost-effective alternative fuel in transportation and industrial applications. For example, in regions where natural gas prices are lower than gasoline or diesel, the cost savings associated with using CNG can be substantial.
Moreover, economic factors such as government incentives, subsidies, and tax breaks further bolster the attractiveness of CNG as a fuel option. For instance, in countries like India and China, government policies that promote the use of natural gas in the transportation industry include subsidies for CNG vehicle purchases and tax incentives for CNG infrastructure development. Thus, such factors will drive the growth of the market during the forecast period.
Government initiatives worldwide, which are aimed at reducing emissions are playing a pivotal role in driving the growth of the market. For instance, in countries like China and India, where air pollution is a significant concern, governments have been promoting the adoption of NGVs as part of their efforts to combat air pollution and reduce greenhouse gas emissions. In Europe, the European Union has set ambitious targets to reduce carbon emissions, prompting governments to incentivize the use of cleaner fuels like natural gas, including CNG.
Similarly, in North America, government initiatives at both the federal and state levels are aimed at reducing emissions from the transportation sector. Programs such as the US EPA's Clean Cities initiative provide funding and support for the deployment of alternative fuel vehicles, including those powered by CNG. Overall, these government initiatives create a favorable environment for the growth of the compressed natural gas compressors market by stimulating demand for CNG as a transportation fuel and encouraging investments in such infrastructure. Hence, these factors will drive the growth of the market during the forecast period.
One of the primary challenges is the lack of adequate refueling infrastructure, particularly in regions where the adoption of CNG is still in its nascent stages. The limited availability of CNG refueling stations can deter consumers and businesses from investing in CNG vehicles, thereby reducing demand for CNG compressors that are needed to support refueling infrastructure expansion. Moreover, the high upfront costs associated with establishing such stations present a barrier to market entry for potential investors and operators.
Furthermore, logistical challenges related to supply chain management and fuel distribution can impact the feasibility of refueling infrastructure projects. Ensuring a reliable supply of natural gas to refueling stations requires coordination with natural gas suppliers, pipeline operators, and distribution networks, and CNG refueling operators may face logistical constraints and infrastructure limitations in remote or underserved areas. Thus, such factors will hinder market growth during the forecast period.
The market caters to diverse needs in transportation and industry, with reciprocating compressors and rotary screw compressors playing pivotal roles. Especially vital for buses, trucks, taxis, and personal cars, they adhere to stringent emission control regulations while ensuring efficient compression. In the oil and gas industries, these compressors manage large volume of methane, emphasizing the importance of proper lubrication methods for optimal performance and longevity.
The reciprocating compressor segment will account for a major share of the market's growth during the forecast period.?Reciprocating compressors are pivotal in the market, offering efficient solutions for storage and transportation. Their ability to handle varying flow rates and pressures makes them versatile for refueling stations, industrial operations, and vehicle fleets. Ariel Corp. and J.P Sauer and Sohn Maschinenbau GmbH are key players, known for their high-performance compressors.
The reciprocating compressor segment was valued at USD 2.52 billion in 2018. Additionally, other notable major CNG compressors market players include MAN Energy Solutions and Atlas Copco AB, providing reliable solutions for the growing demand in natural gas compression infrastructure. With advanced technologies and extensive experience, these companies drive the growth of the reciprocating compressor segment in the market during the forecast period.
Based on application, the market has been segmented into industrial, and commercial. The industrial?segment will account for the largest share of this segment.? Such compressors are vital across industries like pipelines, storage, and power generation, efficiently compressing natural for various uses. They maintain pipeline pressure, enable gas storage, and facilitate power generation in natural gas-fired plants. Siemens AG and Ariel Corp. offer tailored compressors for these applications, ensuring reliability and efficiency. As demand for clean energy rises, investments in natural gas infrastructure drive the growth of the CNG compressors market segment, fueling advancements in compressor technology.
APAC is estimated to contribute 37% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. CNG infrastructure developments are also being undertaken in China to fulfill the demand for CNG. By 2020, Zhuzhou in China had ten new CNG fueling stations as a part of the Zhuzhou City Gas Development Plan. This development is in line with Zhuzhou's plans to increase its refueling infrastructure to 18 stations by 2030. Further, there has been significant adoption in the transportation sector in India. The government of India has been supporting infrastructure developments to ensure the availability of CNG. Consequently, the market in APAC is expected to grow rapidly during the forecast period due to the demand for clean fuels and the development of related infrastructure to support the adoption as a transportation fuel.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABC Technologies Inc., China National Offshore Oil Corp., CNPC Jichai Power Co. Ltd., Delta Compression SRL, Dover Fueling Solutions, Fornovo Gas S.p.A., Galileo Technologies, General Electric Co., Indian Compressors Ltd., Ingersoll Rand Inc., J.P Sauer and Sohn Maschinenbau GmbH, J W Power Co., Parker Hannifin Corp., Siemens AG, Sollant, Sopan O and M Co. Pvt. Ltd., Volkswagen AG, Wabash Power Equipment Co., Wartsila Corp., and Westport Fuel Systems Inc.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The CNG compressor market is influenced by several factors, including the abundance of shale gas and the expansion of natural gas pipeline networks. With transit buses and waste collection trucks increasingly adopting to comply with stringent emission norms like BS-VI and Euro-VI, demand for high-pressure compressor systems and oil-free compressors is on the rise. Emerging technologies such as IoT and electrochemical compression are reshaping the industry, while advancements in metal-organic frameworks (MOFs) offer promising solutions. Despite challenges like high initial investment and limited natural gas infrastructure, the market shows potential growth driven by the need for alternative fuels and concerns over air quality. Further, the market is experiencing significant growth, propelled by factors such as the increasing availability of shale gas and the expansion of natural gas pipeline networks. Fleet operators are turning to comply with stringent BS-VI and Euro-VI emission standards, driving demand for high pressure compressor systems and magnetic bearing compressors.
Moreover, the rise of biogas and biomethane as renewable sources of energy further boosts the adoption of CNG. Emerging technologies like IoT are revolutionizing compressor operations, while the integration of hydrogen-natural gas blends and battery-powered electric vehicles in transportation infrastructure adds to market growth. The market also benefits from applications in various industries such as construction, mining, chemicals, pharmaceuticals, and food & beverages. As demand for cleaner fuel options increases, CNG emerges as a promising solution, supported by the establishment of refueling stations and advancements in hydrogen technology.
In addition, the market is thriving due to several key factors. The abundance of shale gas and the extensive natural gas pipeline network facilitate the widespread adoption of CNG as a cleaner fuel option. Advancements in IoT (Internet of Things) technology enhance compressor efficiency and monitoring capabilities. Demand for high-pressure compressor systems rises alongside the increasing popularity of battery powered electric vehicles. Additionally, the market benefits from the continuous growth of industries such as electronics, semiconductors, and pharmaceuticals, driving the need for efficient CNG refueling stations. Market insights from organizations like Contrive Datum Insights contribute to informed decision-making in this dynamic landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.71% |
Market Growth 2024-2028 |
USD 1.30 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.47 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 37% |
Key countries |
US, Canada, China, Australia, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABC Technologies Inc., Ariel Corp., Atlas Copco AB, Bauer Comp Holding GmbH, China National Offshore Oil Corp., CNPC Jichai Power Co. Ltd., Delta Compression SRL, Dover Fueling Solutions, Fornovo Gas S.p.A., Galileo Technologies, General Electric Co., Indian Compressors Ltd., Ingersoll Rand Inc., J.P Sauer and Sohn Maschinenbau GmbH, J W Power Co., Parker Hannifin Corp., Siemens AG, Sollant, Sopan O and M Co. Pvt. Ltd., Volkswagen AG, Wabash Power Equipment Co., Wartsila Corp., and Westport Fuel Systems Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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