Global Statistics Representing CNG Tank Market
Compressed natural gas (CNG) tanks are used for storing CNG in vehicles.Over the last few years, the energy sector has been transitioning towards cleaner energy sources, which is expected to hamper the oil and gas industry. However, in recent times, the demand for oil and gas has been witnessing a significant surge to an extent where oil and gas producing facilities are damaging the environment. For instance, the U.S. has around 1.3 million oil and gas facilities; over 12 million people live within half a mile of these facilities, and most of them are exposed to water and air pollution.
Governmentsacross the globe are actively working to reduce greenhouse gas emissions (GHG). Europe leads the shift by agreeing to reduce GHG emissions by at least 85–90%. In line with this, the European Union (EU) and several other governments are undertaking initiatives to support the use of methane-based fuels in transportation through subsidies, tax breaks, and regulations.
Automobile manufacturers have been focusing on sophisticated emission control technologies, which is responsible for the increasing number of cleaner vehicles on the road across the globe. Automakers have made notable investments in developing automobiles that run on a diverse range of fuel sources such as CNG and hydrogen fuels, among others. Some examples of vehicles running on CNG include Honda Civic GX CNG and Opel Zafira CNG. Furthermore, governments are promoting the use of CNG in public transport. For instance, Ostrava, Czech Republic, signed a contract with DopravniPodnik Ostrava a.s. for 18 CNG buses.
CNG is one of the most viable alternative fuel sources as it is cost-effective, eco-friendly, and non-carbon emitting. Customers are increasingly taking cognizance of CNG and its advantages, which is encouraging CNG vehicle tank manufacturers to market their products as eco-friendly.
Target-based goals for reducing greenhouse emissions are providing impetus to the use of cleaner fuel alternatives. For instance, the U.S. government’s Vehicle Technologies Office has set a target to reduce petroleum use by 2.5 billion gallons a year by 2025, which highlights the importance of alternative fuels in the country.The CNG tank market was valued USD 1,275.94 million in 2019 and is projected to reach USD 2,587.86 million by 2027, with a CAGR of 9.5%.
Growing Adoption of Electric Vehicles (EVs)
Since the last couple of decades, the market players are heavily investing in the manufacturing of electric vehicles (EVs) that can offer performance similar to CNG and hydrogen fuel vehicles. Governments are supporting the shit to EVs by developing associated infrastructure such as charging stations. To date, the number of EV charging stations already surpasses that of CNG fueling stations, although EV technology is relatively newer.
The existing infrastructure does not have the capacity for efficient transportation of CNG. Thus, pipelines and storage trucks and tanks have to be laced with metal hydrides or other suitable materials to enable CNG transportation and storage. These storage requirements become cost-intensive in case of refitting cars with CNG tanks; for instance, a CNG car costs around 7–10% more than a petrol-powered car.CNG fueling stations cost more than EV charging stations. A 240-volt charger, including installation, costs approximately USD 2,000, and the cost for residential CNG fueling stations is about 50% higher than the electric charging points, further hampering the market growth.
Figure: Electric Car Deployment
Source: International Energy Association, 2018
Asia Pacific Accounts for More than Half of the Overall CNG Tanks Market Share
Asia-Pacific holds more than 58% of sharesin the CNG tanks market on account of supportive government schemes and lower EV penetration in countries like India, Thailand, Indonesia, and Malaysia. As compared to the Asia-Pacific (excluding China), Europe and North America have greater EV penetration.
China and India are significant contributors to APAC’s flourishing CNG tank market. As per the U.S. Energy Information Administration, the natural gas consumption of non-OECD countries such as China, India, Bangladesh, Thailand, and Vietnam are projected to outpace regional production by 2050. Developed economies in the region such as Japan, South Korea, Australia, and New Zealand are projected to record comparatively low demand for natural gas during the forecast period. The high consumption will positively influence the CNG tank manufacturing in the region. As per the International Energy Agency, CNG’s share of transportation in China was around 6% and will reach up to 20% until 2030.
Shifting consumer preference towards CNG powered vehicles due to government efforts drives the regional market growth. The National Green Tribunal in India has mandated all commercial and passenger vehicles in Delhi to convert to CNG, and the rest of the country is expected to follow suit. A prime hindrance concerningthe market growth in India is the limited number of fueling stations. As per reports by the International Association for Natural Gas Vehicles (IANGV), China (21.9%) and India (12.4%) are the world’s leading countries in natural gas vehicles. Asian countries of Pakistan, Thailand, and Uzbekistan are offering lucrative opportunities to the players in CNG fueled vehicles. The rise of Uzbekistan in terms of natural gas vehicles is phenomenal; the percentage of NGVs in Uzbekistan over the total number of vehicles was 40.8% in 2018.
- Faber Industrie S.p.A
- Hexagon Composites ASA
- Luxfer Gas Cylinders
- Ullit SA
- Worthington Industries, Inc.
- Owens Corning
- 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
- Energia Alliance
- Waco Switches & Sensors
- AMETEK, Inc.
- Hy-Lok Europe B.V.
- TomasettoAchille Spa
- Omkar Brass Industries
Hexagon Composites ASA is the world’s leading market player in the CNG tank market and aims to maintain the leadership in the market. In line with this, the company pursues strategic acquisitions to expand its footprint and strengthen its market position. It acquired Xperion Energy & Environment in Germany, one of the leading Type 4-cylinder manufacturers, to sustain in the raging competition. Apart from this, in 2016, it merged its CNG Automotive Products division with Agility Fuel Systems, the leading global provider of clean fuel solutions for medium- and heavy-duty commercial vehicles, to create agility fuel solutions (50% Hexagon owned). The company acquired the remaining 50% shares of Agility Fuel Solutions in 2019.
Luxfer Gas Cylinder has a robust strategic development but less market penetration as compared to Hexagon Composites ASA. The company is rigorously trying to attain a larger market share by implementing various strategies. The company is heavily investing in production facilities to meet consumer demand through solution-oriented and creative ideas. In 2018, it invested USD 580,060 in its Nottingham site to manufacture aluminum and composite gas cylinders. Recently, the company acquired Luxfer GTM Technologies to develop, manufacture, and sell or lease high-pressure, lightweight, gas transport modules.
Worthington Industries,based in Columbus and Ohio, operates about 77 manufacturing facilities in 22 states and 11 countries, of which 31 are wholly-owned subsidiaries. It aims to penetrate the global market to increase its sales volume. The company pursues strategic acquisitions to expand its production capacity in tandem with the growing demand for clean energy. The company acquired AMTROL to expand its operations in international markets. The acquisition gained Worthington manufacturing facilities in Rhode Island, Kentucky, and Maryland. Also, in 2017 the company added a new product to its alternative fuel systems business, a Type 3 Rail Mount CNG fuel system.
CNG Tank Market: Segmentation
- 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
o Light Commercial Vehicle
o Heavy Commercial Vehicle
- Below 40Ltr
- 40Ltr to 45Ltr
- 50Ltr to 55Ltr
- 55Ltr to 60Ltr
- 60Ltr to 65Ltr
- North America
- The U.K.
- The Rest of Europe
- South Korea
- The Philippines
- The Rest of APAC
- Latin America
- The Rest of Latin America
- The Middle East
- The UAE
- Saudi Arabia
- The Rest of ME
- South Africa
- The Rest of Africa