Compressed Natural Gas Market Size, Share and Global Trend By Source (Associated Gas, Non-Associated Gas, Unconventional Sources), By Application (Light Duty Vehicles, Medium/Heavy Duty Buses, Medium/Heavy Duty Trucks, Others), and Regional Forecast, 2024-2032

Compressed natural gas is made by compressing natural gas to less than 1% of its volume occupied at standard atmospheric pressure. The rising carbon emissions due to the use of conventional fuels were the major contributors to the rise in greenhouse gases and the ozone depletion. This required a suitable replacement and compressed natural gas is being looked upon as potential replacement. There has been an increase in the number of vehicles running on compressed natural gas.

The advantages offered by compressed natural gas such as low cost and higher efficiency have been the major factors attracting various countries towards utilization of compressed natural gas. Compressed natural gas also eliminate the threat in case of any spill as compressed natural gas is lighter than air and it disperses quickly when released. Currently, the US is the only country to have exploited the available shale gas reserves.

Also, the government of various countries is increasing and promoting the utilization of compressed natural gas keeping in mind the advantages offered and the minimal hamper to the environment as compared to the damage caused by use of conventional fuels.

To gain extensive insights into the market, Request for Customization

On the basis of its source, the global compressed natural gas market can be segmented into associated gas, non-associated gas, and unconventional sources. Over the years there has been an increase in the production of compressed natural gas from non-associated gas and unconventional sources. The US has dominated the production of compressed natural gas from non-associated gases owing to the rapid increase in shale gas activities.

On the basis of application, the global compressed natural gas market has been segmented into light-duty vehicles, medium/heavy-duty buses, and medium/heavy-duty trucks. The light-duty vehicles segment dominated the market as there has been an increase in sales of light-duty vehicles owing to the increase in disposable income and the idea of owning a vehicle.

The major market driver for the global compressed natural gas market is the increasing demand for reduction in carbon emission across all countries over the world. This has led to the adoption of compressed natural gas as an alternative fuel for the automotive industry. Low price and greater efficiency of compressed natural gas are the other factors driving the growth of the compressed natural gas market.

The key market restraint for the global compressed natural gas market is the limited number of refueling stations available globally. The high initial cost incurred during installation and the space in the vehicle occupied by the compressed natural gas storage tank which cannot be used further also act as market restraints for the compressed natural gas market.

Key Players Covered

Some of the major companies that are present in the global compressed natural gas market are National Iranian Gas Company, JW Power Company, China National Petroleum, Indraprastha gas limited, Mahanagar Gas Limited, Neogas Inc, Gazprom, Trillium, Angienergy, ExxonMobil, Total, Eni, Royal Dutch Shell, BP, and Chevron Corporation.

SEGMENTATION

Regional Analysis

The global compressed natural gas market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Asia Pacific region has seen the highest growth and holds the maximum opportunities for the Compressed natural gas market. The major factors driving the growth in the region are the rise in the number of vehicles using compressed natural gas, and awareness regarding the reduction in carbon emissions. Indonesia, China, and India are the countries having most of the vehicles run on natural gas. North America region has seen a rise in the production of compressed natural gas production after the shale gas boom. The USA is the largest producer of shale gas in the region, and also is the country with highest shale exploration activities. Canada has also contributed significantly to the market with rising shale gas production. In the Middle East, after the stabilization of the oil and gas industry in 2017, the number of exploration activities taking place in the region has increased. With the increase in the exploration activities, there has also been an increase in the production of compressed natural gas from the associated gas. Europe and Latin America region has also seen a rise in the number of vehicles run on natural gas. In Europe, with the aim to reduce carbon emissions the compressed natural gas market is being strongly challenged by the adoption of electric vehicles in the region.

Key Industry Developments

• In June 2019, Jitendra Kukde the chairman of Nagpur Municipal Corporation’s transport committee announced that by the end of the year 2019 all the public transport buses in the city will be running on CNG. Almost 431 buses running on diesel will be converted to be running on CNG. The total expenditure on the project would be around 279 crores.


• In June 2019, Piaggio marked its entry into the 3 wheeler segment with the launch of new Ape city+. The vehicle would be available in fuel variants like LPG, CNG, petrol, and diesel. It has an engine of 230cc with 3 valve technology.


• In June 2019, Central Florida Regional Transport Authority announced about the contract issued for 75 heavy-duty transit buses running on CNG from New Flyer of America. These buses would be providing services for passengers in the greater Orlando area.