Compressed Natural Gas (CNG) Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

Compressed Natural Gas (CNG) Industry Prospective:

The global compressed natural gas (CNG) market size was evaluated at $201 billion in 2023 and is slated to hit $301 billion by the end of 2032 with a CAGR of nearly 10.1% between 2024 and 2032.

Request Free Sample

Compressed Natural Gas (CNG) Market: Overview

Compressed natural gas is mainly composed of methane and stored at high pressures ranging between 200 bars and 250 bars. This compression minimizes its volume lesser than 1% that it occupies at standard atmospheric pressure, thereby making it an efficient fuel source in a spectrum of applications, such as transport.

Key Insights

• As per the analysis shared by our research analyst, the global compressed natural gas (CNG) market is projected to expand annually at the annual growth rate of around 10.1% over the forecast timespan (2024-2032)
• In terms of revenue, the global compressed natural gas (CNG) market size was evaluated at nearly $201 billion in 2023 and is expected to reach $301 billion by 2032.
• The global compressed natural gas (CNG) market is anticipated to grow rapidly over the forecast timeline owing to supportive government schemes along with surging environmental concerns.
• In terms of source, the non-associated gas segment is slated to register the highest CAGR over the forecast period.
• Based on end-use, the transportation segment is predicted to contribute majorly towards segmental space in the upcoming years.
• Region-wise, the North American compressed natural gas (CNG) industry is projected to register the fastest CAGR during the assessment timespan.

Compressed Natural Gas (CNG) Market: Growth Factors

Favorable government policies and growing ecological issues to boost the global market upsurge by 2032

Supportive government schemes, along with surging environmental concerns, are projected to promulgate the scope of the global compressed natural gas (CNG) market. In addition, a reduction in fuel costs and maintenance charges is anticipated to impel the global market space.

Furthermore, the need for saving costs and minimizing operating charges is likely to proliferate the expansion of the market globally.

Moreover, infrastructural growth, along with a rise in the allocation of funds to CNG vehicle systems, will promote the market surge across the globe.

Additionally, the surging shift towards renewable energy trends has translated into a need for cleaner fuels such as CNG, thereby charting a profitable roadmap for the global market.

Compressed Natural Gas (CNG) Market: Restraints

Oscillating prices of natural gas and easy availability of product substitutes can hinder the global industry surge over forecast period

Limited infrastructure facility and surging initial costs, along with the need for huge investments, are expected to retard the global compressed natural gas (CNG) industry.

Moreover, fluctuating natural gas costs and cut-throat competition from electric vehicles are projected to halt the global industry surge in the ensuing years.

Compressed Natural Gas (CNG) Market: Opportunities

Growing demand for proficient modes of transportation to generate new avenues of growth for the global market

Development of effective CNG storage tanks, along with the need for enhancing fuel delivery systems to improve the efficacy of CNG vehicles, will chart a profitable roadmap for the global compressed natural gas (CNG) market.

Additionally, the need for effective transport facilities will open new growth avenues for the market across the globe.  

Compressed Natural Gas (CNG) Market: Challenges

A surge in product prices can put brakes to the global industry growth over the analysis period

An increase in the costs of CNG and lack of CNG refueling stations can challenge the global compressed natural gas (CNG) industry expansion in the years ahead.

In addition to this, a rise in the demand for electric vehicles and the growing use of liquefied natural gas, as well as hydrogen gas, are expected to put brakes on the industry across the globe.

Compressed Natural Gas (CNG) Market: Segmentation

The global compressed natural gas (CNG) market is divided into source, end-use, and region.                                             

In terms of source, the compressed natural gas market across the globe is segmented into associated gas and non-associated gas segments.

Apparently, the non-associated gas segment, which gathered nearly half of the global market earnings in 2023, is expected to record the fastest CAGR in the coming eight years due to the rise in the non-associated gas reservoirs across the globe.

Furthermore, an increase in the use of CNG in power generation, transport, and industrial processes will steer the segmental surge.     

Based on end-use, the global compressed natural gas industry is divided into transportation, industrial applications, and power generation segments.

Apparently, the transportation segment, which dominated the global industry share in 2023, is projected to contribute majorly towards the segmental expansion in the analysis timeframe. This can be a result of the escalating use of CNG in light-duty vehicles used in transportation.

Moreover, humungous penetration of the product in personal vehicles, along with surging environmental concerns, will propel the segmental surge.

Supportive government policies and incentives offered by it have enhanced the use of CNG vehicles, thereby driving the segmental surge.   

Compressed Natural Gas (CNG) Market: Report Scope

Compressed Natural Gas (CNG) Market: Regional Insights

Asia-Pacific is likely to maintain leading status in the global market over the assessment period

Asia-Pacific, which contributed for about half of the global compressed natural gas market size in 2023, is slated to establish a leading position in the global market in the analysis timeline.

Furthermore, the regional market expansion in the coming decade can be due to swift urbanization, abundant natural gas reservoirs, and government support.

Large-scale use of CNG in automotive in countries such as India and the rise in the presence of key players in Asian countries will surge the expansion of the market in APAC.

North American compressed natural gas industry is expected to register the highest compound growth rate yearly in the prognosis timeline.

The elevation of the industry in the region can be a result of strict emission laws and rapidly expanding infrastructure in the countries of North America.

Reportedly, the shale gas revolution in the U.S. and rising prices of diesel & gasoline have enriched the demand for CNG in the North American countries.

Compressed Natural Gas (CNG) Market: Competitive Space

The global compressed natural gas (CNG) market profiles key players such as:

• Trilllium Energy
• Equinor ASA
• Mahanagar Gas Limited
• Indraprastha Gas Limited
• China Natural Gas Inc.
• Royal Dutch Shell plc
• BP Plc
• Chevron Corporation
• TotalEnergies SE
• ExxonMobil Corporation
• ConocoPhillips Company
• Eni S.p.A.
• ANGI Energy Systems
• Clean Energy Fuels Corp.
• OAO Gazprom

The global compressed natural gas (CNG) market is segmented as follows:

By Source

• Associated Gas
• Non-Associated Gas

By End-Use

• Transportation
• Industrial Applications
• Power Generation

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa