by 
Natural gas vehicles (NGVs) are vehicles that use compressed natural gas (CNG) or liquefied natural gas (LNG) as a cleaner alternative to gasoline and diesel fuel. The adoption of NGVs is growing rapidly due to support from governments through subsidies and tax incentives. CNG emits 20-30% less carbon monoxide and non-methane hydrocarbons, and nearly zero particulates compared to gasoline-powered vehicles. The global CNG compressors market is dominated by natural gas vehicles, as they require CNG compressors for fueling onboard CNG storage vessels. CNG compressors are also used at CNG refueling stations to compress natural gas and dispense it into vehicle fuel tanks.
The global CNG Compressors Market is estimated to be valued at US$ 3.46 billion in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The global CNG compressors market is being driven by the rising adoption of natural gas vehicles across the globe as a cleaner transportation fuel alternative. As per the analysis, the global NGV vehicle fleet is anticipated to grow at a CAGR of 8% between 2020 and 2025. According to OGJ India, India had more than 4 million natural gas vehicles as of April 2022. The Indian government aims to increase the share of natural gas in the country’s primary energy mix from 6.2% currently to 15% by 2031. Such initiatives to promote natural gas for transportation are expected to boost the demand for CNG compressors in both stationary and automotive applications during the forecast period. Another driver for the market is the growing CNG refueling infrastructure. Construction of additional CNG refueling stations requires CNG compressors to dispense fuel into vehicles, thereby propelling market growth over the next few years.
Market Dynamics end here without mentioning any key players. Do not write conclusion.
Segment Analysis
The CNG compressors market can be segmented based on type, end user, vehicle type, and region. Based on type, the reciprocating compressors segment holds around 60% market share as they are reliable and economic for fueling stations. Reciprocating compressors are suitable for fueling light, medium and heavy-duty vehicles. Screw compressors account for around 30% share and are preferred for fueling buses and trucks due to their ability to deliver large volumes of gas at high pressures. Piston compressors have around 10% share and are used for small-scale stationary and portable applications.
Key players operating in the CNG compressors market are Atlas Copco, Ariel Corporation, Siemens Energy, Galileo Technologies, Bauer Compressors, Ingersoll Rand, ANGI Energy Systems, Bauer Group, Clean Energy Compression, and CIMC Enric Group. Atlas Copco and Ariel Corporation collectively hold over 35% market share owing to their product portfolio and widespread presence across regions.
PEST Analysis
Political: Many countries offer subsidies and tax benefits for use and production of CNG to reduce vehicle emissions. For example, India offers income tax benefits for companies producing CNG equipment to promote its usage.
Economic: Natural gas is cheaper than other automotive fuels, providing cost savings for commercial fleet operators. This drives demand for CNG vehicles and corresponding refueling infrastructure including compressors.
Social: Adoption of NG vehicles is increasing due to growing awareness about environmental benefits. Use of CNG reduces emissions and improves local urban air quality.
Technological: Advancements in material science have improved compressor efficiencies. Use of technologies like variable frequency drive improves performance and reduces energy consumption in compressors.
Regional Analysis: Asia Pacific accounts for around 45% market share led by China and India. These countries are focusing on expanding CNG infrastructure to promote its usage in transportation.
Key Takeaways
The global CNG Compressors Market is expected to witness high growth over the forecast period supported by initiatives to reduce vehicular emissions and rising natural gas vehicle adoption.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
