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CNG Tank Market

CNG Tank Market Size, Share & Trends Analysis Report By Type (Type 1 (All Metal), Type 2 (Metal with Wire or Hoop Wrapped), Type 3 (Fully Wrapped Composite), Type 4 (Full Composite)), By Vehicle Type (Passenger Car, Commercial Vehicle), By Capacity (Below 40Ltr, 40Ltr to 45Ltr, 50Ltr to 55Ltr, 55Ltr to 60Ltr, 60Ltr to 65Ltr) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SREP851DR
Study Period 2020-2032 CAGR 9.25%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 1.80 billion
Forecast Year 2032 Forecast Year Market Size USD 3.99 billion
Largest Market Asia-Pacific Fastest Growing Market North America
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Market Overview

The global CNG tank market size was valued at USD 1.80 billion in 2023. It is estimated to reach USD 3.99 billion by 2032, growing at a CAGR of 9.25% during the forecast period (2024–2032). In recent years, there has been a growing environmental concern due to a rise in greenhouse gas emissions, especially carbon dioxide, which has led to a rise in the demand for cleaner energy sources, thereby driving the demand for CNG as a clean and efficient gas. This is estimated to drive the global CNG tank market. Moreover, as more CNG-powered vehicles are launched in the market, there is an increasing demand for CNG tanks, thereby creating opportunities for market growth.

CNG stands for Compressed Natural Gas. CNG tanks, also known as CNG cylinders or CNG storage vessels, are containers used to store natural gas compressed to a pressure of up to 250 bar (3,600 psi), typically for use as fuel in vehicles. These tanks are made of high-strength materials such as steel, aluminum, or composite materials, and they are designed to safely withstand the high pressure of the compressed gas.

CNG tanks are commonly used in vehicles powered by natural gas, such as cars, buses, trucks, and trains. The gas is compressed to reduce volume, storing more gas in the tank and enabling vehicles to carry adequate fuel for their intended range. CNG is considered an environmentally friendly alternative fuel compared to traditional gasoline or diesel, as it produces fewer emissions when burned. It is also often cheaper than conventional fuels and helps reduce dependence on imported oil.


  • Asia-Pacific is the highest shareholder in the global market

Market Dynamics

Global CNG Tank Market Drivers

Environmental Concerns and Emissions Reduction

Due to increasing environmental awareness, both governments and consumers are placing greater emphasis on cleaner energy alternatives. Emission performance standards worldwide establish a threshold for automobile manufacturers and users about the acceptable level of contaminants in exhaust emissions. Although these approaches have been employed to control the thresholds for pollutants like nitrogen and sulfur oxides, they can also be utilized to monitor the proportion of greenhouse gases, namely carbon dioxide, in exhaust discharges.

Moreover, CNG vehicles substantially mitigate greenhouse gas emissions, rendering them a compelling option for environmentally conscious individuals and fleet operators. As per the UNFCCC, passenger vehicles that run on CNG release 5-10% less carbon dioxide (CO2) compared to similar passenger vehicles fuelled by gasoline. CNG-fueled vehicles exhibit significantly reduced NOx and soot emissions compared to diesel-driven vehicles. The implementation of CNG in the transportation industry is a favorable catalyst for biogas utilization. Biogas can reduce CO2 emissions by about 75%. The desire for improved air quality and less carbon emissions motivates the adoption of CNG tanks.

Cost Efficiency and Fuel Savings

CNG is a more economically efficient option compared to gasoline or diesel. Despite the volatility of crude oil prices, CNG remains a reliable and cost-effective choice for fuel. Fleet operators and commercial vehicle owners value the enduring financial benefits linked to vehicles fuelled by compressed natural gas (CNG). As per the U.S. Department of Energy's Alternative Fuel Price Report, the average cost of gasoline and diesel was USD 3.72 per gallon and USD 4.52 per gallon, respectively, while Compressed Natural Gas (CNG) was priced at USD 2.85 per Gasoline Gallon Equivalent (GGE) from October 1-15 in the year 2023. The economic benefit drives the market demand for CNG tanks.

Global CNG Tank Market Restraint

Safety Concerns

Although CNG is generally deemed safe with correct handling, there are concerns about the safety of CNG tanks in case of accidents or collisions. The frequency of such instances is rapidly escalating. For example, in October 2023, two individuals perished in a tragic incident in Kannur, Kerala. The tragedy occurred when the CNG-powered auto-rickshaw they were riding in collided and subsequently ignited, resulting in their deaths due to severe burns.

In September 2023, a similar incident took place in Matunga, Mumbai, in which two brothers lost their lives, and three individuals sustained injuries after the automobile they were traveling in became engulfed in flames. The incident occurred after the collision of the CNG car with a road divider. Customer sentiments and market growth may be constrained by how individuals perceive the safety concerns associated with CNG tanks.

Global CNG Tank Market Opportunities

Increasing Launch of CNG-powered Vehicles

CNG tanks are a critical component of CNG-powered vehicles, storing the compressed natural gas that fuels the engine. As more vehicles designed to run on compressed natural gas (CNG) are launched, the demand for CNG tanks will naturally increase. For instance, in January 2024, Mahindra introduced a pioneering vehicle to their range, specifically developed to cater to customers' evolving requirements in the transportation industry. The Mahindra Supro Profit Truck has been reintroduced in Pune. This environmentally friendly option is distinguished by its remarkable 500-kilometer range on a single refill of the CNG tank, which is made possible by including three CNG tanks.

Additionally, in August 2023, Tata Motors unveiled the Tata Punch CNG. The business has implemented its breakthrough dual-CNG-cylinder technology in the Punch CNG, resulting in an exceptional feature of maximized cargo capacity. Specifically, the Punch CNG offers a boot space of 210 liters. The positioning of the CNG cylinder in most CNG-powered cars sometimes poses a significant challenge to the practical usability of the boot, resulting in limited boot capacity. Tata Motors' twin-CNG-cylinder technology intends to address this problem by using two CNG cylinders with a water capacity of 30 liters each. Therefore, the more CNG vehicles there are on the road, the greater the demand for CNG tanks, thereby creating opportunities for market expansion.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global CNG tank market is bifurcated into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global CNG tank market shareholder and is expected to expand substantially during the forecast period. The region, driven by nations such as China and India, has developed strongly in adopting compressed natural gas (CNG). Favorable policies drive the growth of the CNG tanks market in this region, the increasing rate of urbanization, and a growing awareness of its benefits. According to the US Energy Information Administration, the use of natural gas in non-OECD nations, including China, India, Bangladesh, Thailand, and Vietnam, is expected to exceed the amount produced in the region by 2050. Moreover, the increasing usage will positively affect CNG tank manufacturing in the region. As per the International Energy Agency, the proportion of Compressed Natural Gas (CNG) used for transportation in China was approximately 6% and is projected to increase to 20% by 2030.

Furthermore, the regional market expansion is propelled by the government's initiatives, which have led to a change in customer preference towards CNG-fueled vehicles. The National Green Tribunal in India has issued a directive requiring all commercial and passenger vehicles in Delhi to transition to CNG, expecting the rest of the country to adopt this measure. An important obstacle to expanding the business in India is the scarcity of filling stations. As per the International Association for Natural Gas Vehicles (IANGV) estimates, China and India are the top countries globally regarding natural gas vehicle usage, with China accounting for 21.9% and India accounting for 12.4%.

Moreover, in 2016, the Indian Government announced its plan to circumvent the Bharat Stage V pollution regulations and adopt the Bharat Stage VI emission standards by 2020. In 2020, the Supreme Court published a ruling that banned the sale and registration of vehicles that comply with BS-IV norms in the country, effective April 1, 2020. Therefore, these emission regulations lead to a higher demand for natural gases than conventional ones, potentially expanding the CNG tank market in this region.

The North American CNG tank market has experienced early adoption of CNG technology because of government subsidies, strict pollution laws, and a strong emphasis on sustainable transportation. In addition, the government and regulatory authorities are implementing new emission guidelines to mitigate the detrimental effects of pollution. For instance, in April 2023, the EPA introduced more stringent proposed regulations to decrease the release of dangerous air pollutants from light-duty and medium-duty cars, beginning with the 2027 model year.

Moreover, the proposal expands on the EPA's established regulations for federal greenhouse gas emissions standards for passenger vehicles and light trucks from 2023 to 2026. It utilizes advancements in clean car technology to provide various advantages to Americans, including reducing climate pollution, enhancing public health, and cost savings for drivers due to decreased fuel and maintenance expenses. The suggested standards would be gradually implemented between the model years 2027 and 2032. These guidelines promote the utilization of CNG, which stimulates the growth of the North American CNG tank market.

Report Scope

Report Metric Details
By Type
  1. Type 1 (All Metal)
  2. Type 2 (Metal with Wire or Hoop Wrapped)
  3. Type 3 (Fully Wrapped Composite)
  4. Type 4 (Full Composite)
By Vehicle Type
  1. Passenger Car
  2. Commercial Vehicle
By Capacity
  1. Below 40Ltr
  2. 40Ltr to 45Ltr
  3. 50Ltr to 55Ltr
  4. 55Ltr to 60Ltr
  5. 60Ltr to 65Ltr
Company Profiles Faber Industrie S.p.A Hexagon Composites ASA Luxfer Gas Cylinders Ullit SA Worthington Industries, Inc. Owens Corning Andy-Tec Quantum Fuel Systems LLC. NGV Technology Everest Kanto Cylinder Limited We R CNG Beijing Tianhai Industry Co. Ltd. Rama Cylinders Private Limited Ratermann Manufacturing American CNG Elpigaz Energia Alliance Waco Switches & Sensors AMETEK, Inc. Hy-Lok Europe B.V. TomasettoAchille Spa Omkar Brass Industries
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global CNG tank market is segmented by type, vehicle type, and capacity.

Based on type, the global CNG tank market is divided into type 1, type 2, type 3, and type 4.

Type 1 Compressed Natural Gas (CNG) tanks are specialized CNG storage tanks primarily employed in natural gas-powered vehicles. These tanks are produced exclusively from metal, typically aluminum or steel, and are engineered to endure elevated pressures. These tanks are specifically engineered to contain compressed natural gas at elevated pressures, typically between 3,000 and 3,600 pounds per square inch (psi). However, this range may vary based on usage and regulatory requirements. Moreover, Type 1 CNG tanks undergo thorough examination and certification to guarantee compliance with safety regulations. These devices are designed to endure high-pressure levels and are equipped with safety mechanisms to avoid any leakage or breakage.

Based on vehicle type, the global CNG tank market is divided into commercial vehicles and passenger vehicles.

Commercial vehicles are motor vehicles specifically employed for conducting business activities instead of being utilized for personal reasons. They are specifically engineered and outfitted to facilitate the conveyance of merchandise, substances, or individuals to conduct business operations. These vehicles are frequently employed in diverse industries such as transportation, logistics, construction, agriculture, and public services. Moreover, compressed natural gas (CNG) tanks in commercial vehicles present a compelling amalgamation of financial savings, ecological advantages, and adherence to regulations, rendering it an appealing choice for numerous enterprises that manage fleets of trucks, buses, and other commercial vehicles.

Based on capacity, the global CNG tank market is bifurcated into below 40Ltr, 40Ltr to 45Ltr, 50Ltr to 55Ltr, 55Ltr to 60Ltr, and 60Ltr to 65Ltr.

CNG tanks are available in various sizes and capacities, typically quantified in liters or cubic meters. Smaller CNG tanks are available for vehicles or applications that need a capacity of less than 40 liters. These small tanks are often used in compact automobiles, motorcycles, scooters, or other small vehicles where space is constrained and a reduced fuel capacity is satisfactory. These tanks are specifically engineered to store compressed natural gas at elevated pressure levels, intended for utilization as fuel in vehicles equipped with CNG engines.

Market Size By Type

Recent Developments

Top Key Players

Faber Industrie S.p.A Hexagon Composites ASA Luxfer Gas Cylinders Ullit SA Worthington Industries, Inc. Owens Corning Andy-Tec Quantum Fuel Systems LLC. NGV Technology Everest Kanto Cylinder Limited We R CNG Beijing Tianhai Industry Co. Ltd. Rama Cylinders Private Limited Ratermann Manufacturing American CNG Elpigaz Energia Alliance Waco Switches & Sensors AMETEK, Inc. Hy-Lok Europe B.V. TomasettoAchille Spa Omkar Brass Industries Others

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the CNG Tank Market?
CNG Tank Market size will grow at approx. CAGR of 9.25% during the forecast period.
Some of the top prominent players in CNG Tank Market are, Faber Industrie S.p.A, Hexagon Composites ASA, Luxfer Gas Cylinders, Ullit SA, Worthington Industries, Inc., Owens Corning, Andy-Tec, Quantum Fuel Systems LLC., NGV Technology, Everest Kanto Cylinder Limited, We R CNG, Beijing Tianhai Industry Co. Ltd., Rama Cylinders Private Limited, Ratermann Manufacturing, American CNG, Elpigaz, Energia Alliance, Waco Switches & Sensors, AMETEK, Inc., Hy-Lok Europe B.V., TomasettoAchille Spa, Omkar Brass Industries, etc.
In the CNG Tank Market, Asia Pacific has established itself as the market leader with a significant market share.
The North America region is projected to exhibit the highest rate of growth in the CNG Tank Market.
The global CNG Tank Market report is segmented as follows: By Type, By Vehicle Type, By Capacity.

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