Compressed Natural Gas (CNG) Tanks/Cylinders Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2022-2027

Report Code: CMR 0751 Report Format: PDF + Excel

Compressed Natural Gas (CNG) Tanks/Cylinders Market Overview

The Compressed Natural Gas (CNG) Tanks/Cylinders Market size is projected to reach a value of US$2.6 billion by the end of 2027 after growing at a CAGR of 8.5% during the forecast period 2022-2027. Compressed natural gas (CNG) tanks/cylinders are composed of various materials which include metals such as steel or aluminum, glass fiber and carbon fiber. They are primarily used for CNG gas storage in various applications which include automotive, marine and locomotive transports capable of operating on CNG. In 2020, the COVID-19 lockdown significantly reduced automotive production activities as a result of the country-wide shutdown of manufacturing sites, shortage of labor and the decline of the supply and demand chain all across the world, thus, impacting the automotive industry. This, in turn, reduced the production of CNG-fueled vehicles as well, thus, affecting the compressed natural gas (CNG) tanks/cylinders industry. However, a steady recovery in automobile production has been witnessed across the world since 2021. Compressed natural gas (CNG) tanks/cylinders are primarily used in the automotive industry for onboard storage of gas in CNG vehicles required for its operation. For instance, the total number of CNG-powered vehicle registration in India increased to 1,63,696 units in 2021 as compared to 41,572 units in 2020. An increase in automotive production along with the surging developments associated with CNG-fueled locomotives is expected to drive the growth of the compressed natural gas (CNG) tanks/cylinders market size in the upcoming years. On the other hand, limitations associated with CNG vehicles may confine the growth of the market.

Compressed Natural Gas (CNG) Tanks/Cylinders Market Report Coverage

The “Compressed Natural Gas (CNG) Tanks/Cylinders Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Compressed Natural Gas (CNG) Tanks/Cylinders Market.

By Material Type: Metal (Steel and Aluminum), Glass Fiber and Carbon Fiber.
By Application: Automotive [Passenger Cars, Light Commercial Vehicle, Heavy Commercial Vehicles (Trucks and Bus)], Marine, Locomotive.
By Geography: North America (USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Denmark, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East and Africa).

Key Takeaways

  • The carbon fiber segment held a significant share in the Compressed Natural Gas (CNG) Tanks/Cylinders Market in 2021. Its wide range of characteristics and higher efficiency made it stand out in comparison to other types of materials in the market.
  • Automotive held the largest share in the Compressed Natural Gas (CNG) Tanks/Cylinders Market in 2021, owing to the increasing demand for CNG tanks/cylinders for onboard gas storage in vehicles required for its operation, owing to its properties such as high strength, durability and excellent corrosion resistance.
  • ·Asia-Pacific dominated the Compressed Natural Gas (CNG) Tanks/Cylinders Market in 2021, owing to the increasing demand for CNG tanks/cylinders from the automotive sector in the region.
  • A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Compressed Natural Gas (CNG) Tanks/Cylinders Market Report.

Figure: Asia-Pacific Compressed Natural Gas (CNG) Tanks/Cylinders Market Revenue, 2021-2027 (US$ Million)

Compressed Natural Gas (CNG) Tanks/Cylinders Mark

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Compressed Natural Gas (CNG) Tanks/Cylinders Market Segment Analysis – by Material Type

The carbon fiber material held a significant Compressed Natural Gas (CNG) Tanks/Cylinders Market share in 2021, owing to its increasing demand due to the benefits it offers over other types of materials. For instance, carbon fiber offers higher efficiency, safety and durability in comparison to metal and other types of materials. Moreover, they offer a wide range of characteristics such as low density, better thermal stability, high strength and modulus of elasticity as compared to other materials. They also offer better heat resistance, along with excellent abrasion resistance in comparison to other types of materials. Furthermore, CNG tanks/cylinders composed of carbon fiber offer higher mileage, owing to their lightweight and are more cost-effective, which makes them ideal for use in the automotive industry. Hence, all of these benefits of carbon fiber are driving its demand over other types of materials, which in turn, is expected to boost the market growth during the forecast period.

Compressed Natural Gas (CNG) Tanks/Cylinders Market Segment Analysis – by Application

The automotive application held the largest Compressed Natural Gas (CNG) Tanks/Cylinders Market share of over 25% in 2021, owing to its increasing demand for use in CNG vehicles from automotive sectors across the world. CNG-powered vehicles operate on lower operational costs and are eco-friendly in nature as they do not emit harmful emissions as compared to petrol or diesel-powered vehicles, which in turn, is driving its demand in the automotive sector. For instance, according to the European Automobile Manufacturers' Association, 14,313 units of CNG commercial vehicles were registered in Europe in 2019, an increase of 32.1% in comparison to 2018. Among these, Italy accounted for 6,293 units of CNG vehicle registration, followed by Spain with 1,858 registrations and Belgium with 1,281 registrations. Thus, such surging demand for CNG-powered vehicles is expected to increase the demand for CNG tanks/cylinders for onboard gas storage in CNG vehicles required for its operation, owing to its properties such as high strength, durability and excellent corrosion resistance. This is expected to expand the compressed natural gas (CNG) tanks/cylinders market size during the forecast period.

Compressed Natural Gas (CNG) Tanks/Cylinders Market Segment Analysis – by Geography

The Asia-Pacific held a dominant Compressed Natural Gas (CNG) Tanks/Cylinders Market share of around 30% in the year 2021. The consumption of CNG tanks/cylinders is particularly high in this region due to its increasing demand from the automotive sector. For instance, according to the IEA (International Energy Agency), the total production of CNG vehicles in China reached 6.72 million units in 2019. Moreover, in 2020, the sales volume of CNG vehicles in China reached 169,619 units, indicating an increase in demand and consumption of CNG vehicles in the country. The consumption of CNG vehicles was particularly high in provinces such as Hebei, Xinjiang, Shaanxi and Shandong. Furthermore, in March 2022, Maruti Suzuki, an automobile manufacturer, announced its plan to produce around 600,000 CNG vehicles in India by 2023, owing to the increasing cost of fuel and consumer preference for CNG-powered vehicles.

Compressed natural gas (CNG) tanks/cylinders are primarily used in the automotive industry for onboard gas storage in CNG vehicles required for its operation, owing to the increasing consumer preference toward CNG-powered vehicles due to its lower operational costs and eco-friendliness as they do not emit harmful emissions as compared to petrol or diesel-powered vehicles. Thus, the surging growth of CNG-powered vehicles in the automotive sector in the region is expected to increase the demand for CNG tanks/cylinders, which in turn, is expected to accelerate the market growth during the forecast period.

Compressed Natural Gas (CNG) Tanks/Cylinders Market – Drivers

An increase in automobile production

Compressed natural gas (CNG) tanks/cylinders composed of metals, glass fiber and carbon fiber are mostly used in the automotive industry for storing gas in the CNG vehicles required for powering the vehicle. Its properties such as high strength, durability, heat tolerance, and longer shelf life along with excellent resistance to tear, wear, abrasion and corrosion make them ideal for use in such automotive applications. For instance, according to the European Automobile Manufacturers' Association (ACEA), in 2019, France accounted for 1,147 units of CNG vehicle registration, an increase of 48% as compared to 2018, followed by Sweden with 1,081 registrations and Germany with 1,003 registrations. Furthermore, in April-September 2021, the sales of CNG cars reached up to 1,01,412 units in India, indicating a significant increase in consumption of CNG vehicles as compared to 51,448 units in April-September 2020. Hence, an increase in demand for CNG vehicles, owing to their eco-friendliness and lower operational costs is expected to increase the demand for CNG tanks/cylinders for gas storage in such vehicles. This is expected to accelerate the growth of the market in the upcoming years.

Surging developments associated with CNG-fueled locomotives

The locomotive industry consists of self-propelled vehicles that operate or runs on railways. Compressed natural gas (CNG) tanks/cylinders are mainly utilized in the locomotive industry involving CNG trains, particularly for storing gas in such trains. For instance, in 2020, G-volution Ltd. launched its first dual-fuel multiple unit train in the UK. The train is capable of operating on both diesel and compressed natural gas (CNG), which can help reduce fuel costs and CO2 emissions significantly. Furthermore, in February 2022, the Railway Ministry of Bangladesh announced its plans to convert Bangladesh’s diesel fuel-based railway locomotives into bio-fuels-powered railways including CNG, LNG and LPG, with the aid of UK-based manufacturing firm G-volution Ltd. Furthermore, the Indian Railways launched its CNG train that operates on the Rewari-Rohtak section of the Northern zone of the country, with the aim of reducing harmful emissions and adopting cleaner fuel options as compared to diesel-powered trains. Hence, such increasing developments associated with CNG-fueled railway locomotives are expected to increase the demand for CNG tanks/cylinders for onboard storage of gas in such locomotives. This is anticipated to drive the growth of the market in the upcoming years

Compressed Natural Gas (CNG) Tanks/Cylinders Market – Challenge

Limitations associated with CNG vehicles may confine the growth of the market

CNG vehicles have numerous limitations such as the limited availability of CNG fuel & gas stations, along with the need for a larger capacity for storing CNG tanks/cylinders in the vehicle. Moreover, CNG vehicles are relatively more expensive than petrol or diesel-powered vehicles. CNG-powered vehicles are generally less powerful, require frequent refilling and offer a shorter driving range as CNG fuel tanks are smaller in comparison to diesel or petrol tanks. Furthermore, CNG vehicles require frequent maintenance which adds to the additional costs while offering lower performance as opposed to petrol and diesel vehicles. Thus, such limiting factors of CNG vehicles may confine the growth of the compressed natural gas (CNG) tanks/cylinders industry.

Compressed Natural Gas (CNG) Tanks/Cylinders Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Compressed Natural Gas (CNG) Tanks/Cylinders Market. The top companies in the Compressed Natural Gas (CNG) Tanks/Cylinders Market are:

  1. Luxfer Holdings PLC
  2. Worthington Industries Inc.
  3. Quantum Fuel Systems LLC
  4. Hexagon Composites ASA
  5. Xinyi Beijing Tianhai Industry Co. Ltd.
  6. Praxair Technologies Inc.
  7. Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd.
  8. Avanco Group
  9. Everest Kanto Cylinders Ltd.
  10. Faber Industrie SpA

Recent Developments

  • In August 2020, Time Technoplast Ltd., based in India, developed its type-4 carbon fiber composite CNG cylinders. It is specifically designed for use in buses, passenger cars and trucks.
  • In May 2020, Agility launched its new and optimized ProRail CNG fuel systems. The ProRail offers a range of benefits such as high durability and lightweight and employs carbon fiber composite Type 4 CNG cylinders.

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1. Compressed Natural Gas (CNG) Tanks/Cylinders Market - Market Overview
    1.1 Definitions and Scope
2. Compressed Natural Gas (CNG) Tanks/Cylinders Market - Executive Summary
    2.1 Key Trends by Material Type
    2.2 Key Trends by Application
    2.3 Key Trends by Geography
3. Compressed Natural Gas (CNG) Tanks/Cylinders Market – Comparative analysis
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Compressed Natural Gas (CNG) Tanks/Cylinders Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Compressed Natural Gas (CNG) Tanks/Cylinders Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Compressed Natural Gas (CNG) Tanks/Cylinders Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Compressed Natural Gas (CNG) Tanks/Cylinders Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Compressed Natural Gas (CNG) Tanks/Cylinders Market – by Material Type (Market Size - US$ Million/Billion)
    8.1 Metal
        8.1.1 Steel
        8.1.2 Aluminum
    8.2 Glass Fiber
    8.3 Carbon Fiber
9. Compressed Natural Gas (CNG) Tanks/Cylinders Market – by Application (Market Size - US$ Million/Billion)
    9.1 Automotive
        9.1.1 Passenger Cars
        9.1.2 Light Commercial Vehicles
        9.1.3 Heavy Commercial Vehicles
            9.1.3.1 Trucks
            9.1.3.2 Bus
    9.2 Locomotive
    9.3 Marine
10. Compressed Natural Gas (CNG) Tanks/Cylinders Market - by Geography (Market Size - US$ Million/Billion)
    10.1 North America
        10.1.1 the USA
        10.1.2 Canada
        10.1.3 Mexico
    10.2 Europe
        10.2.1 the UK
        10.2.2 Germany
        10.2.3 France
        10.2.4 Italy
        10.2.5 the Netherlands
        10.2.6 Spain
        10.2.7 Denmark
        10.2.8 Belgium
        10.2.9 Rest of Europe
    10.3 Asia-Pacific
        10.3.1 China
        10.3.2 Japan
        10.3.3 India
        10.3.4 South Korea
        10.3.5 Australia and New Zealand
        10.3.6 Indonesia
        10.3.7 Taiwan
        10.3.8 Malaysia
        10.3.9 Rest of APAC
    10.4 South America
        10.4.1 Brazil
        10.4.2 Argentina
        10.4.3 Colombia
        10.4.4 Chile
        10.4.5 Rest of South America
    10.5 Rest of the World
        10.5.1 the Middle East
            10.5.1.1 Saudi Arabia
            10.5.1.2 UAE
            10.5.1.3 Israel
            10.5.1.4 Rest of the Middle East
        10.5.2 Africa
            10.5.2.1 South Africa
            10.5.2.2 Nigeria
            10.5.2.3 Rest of Africa
11. Compressed Natural Gas (CNG) Tanks/Cylinders Market – Entropy
    11.1 New Product Launches
    11.2 M&As, Collaborations, JVs and Partnerships
12. Compressed Natural Gas (CNG) Tanks/Cylinders Market – Industry/Segment Competition Landscape Premium
    12.1 Company Benchmarking Matrix – Major Companies
    12.2 Market Share at Global Level - Major companies
    12.3 Market Share by Key Geography - Major companies
    12.4 Market Share at Country Level - Major companies
    12.5 Market Share by Key Product Type/Product category - Major companies
13. Compressed Natural Gas (CNG) Tanks/Cylinders Market – Key Company List by Country Premium Premium
14. Compressed Natural Gas (CNG) Tanks/Cylinders Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    14.1 Company 1
    14.2 Company 2
    14.3 Company 3
    14.4 Company 4
    14.5 Company 5
    14.6 Company 6
    14.7 Company 7
    14.8 Company 8
    14.9 Company 9
    14.10 Company 10 and more
    * "Financials would be provided to private companies on best-efforts basis."
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