by The CNG Compressors Market is estimated to be valued at US$ 3.46 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
CNG compressors are used to compress natural gas to higher pressures in order to facilitate its handling, storage, and transport in cylinders or pipelines. CNG compressors have advantages such as lower operating and maintenance costs, reduced emissions, increased efficiency and longer drive range. They are primarily used at CNG refueling stations and for transportation of natural gas through pipelines.
Market key trends:
The CNG compressors market is expected to witness significant growth owing to rising adoption of natural gas vehicles (NGVs). NGVs are gaining popularity as an alternative to gasoline and diesel vehicles due to advantages such as reduced emissions and fuel cost savings. According to data from International Energy Agency (IEA), the global natural gas vehicle fleet reached over 26 million in 2021 from over 25 million in 2020. Asia dominated global NGV stock, led by China, Pakistan and India. The increasing number of natural gas vehicles would augment demand for CNG compressors as more refueling infrastructure is developed. Additionally, growing natural gas production and investments in pipeline infrastructure is expected to boost usage of CNG compressors for transportation of natural gas.
Porter’s Analysis:
Threat of new entrants: Low capital requirements and lack of proprietary technologies pose low threats of new entrants in the CNG compressors market. However, established players have strong brand recognition and distribution networks.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes like gasoline and diesel vehicles. However, growing environmental awareness is increasing shift towards CNG vehicles.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of component suppliers and increasing indigenous manufacturing of compressors. However, technology leadership rests with few global players.
Threat of new substitutes: Threat from new substitutes like electric vehicles is low currently. Hydrogen fuel cell vehicles may emerge as substitutes in long run.
Competitive rivalry: Intense due to presence of global players and price wars to gain market share.
SWOT Analysis:
Strengths: Established infrastructure and distribution channels of key players. Growing environmental regulations favoring use of CNG.
Weaknesses: High initial installation and maintenance costs of CNG stations compared to gasoline/diesel. Range limitations of CNG vehicles.
Opportunities: Increasing number of fleet operators and public transport shifting to CNG. Growing population and urbanization boosting infrastructure development.
Threats: Fluctuations in oil prices affecting demand for CNG vehicles. Slow growth of supporting CNG infrastructure limiting widespread adoption.
Key Takeaways:
The Global CNG Compressors Market Growth is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing installation of CNG stations across regions. Asia Pacific dominates the market currently due to large vehicle fleet in China and India rapidly switching to compressed natural gas. The region is estimated to maintain its dominance, expanding at a CAGR of around 9.0% till 2030 on back of strong government support and increasing urbanization. North America is another major market for CNG compressors attributable to steady demand from freight and mass transit applications in the US.
Regional analysis: Asia Pacific accounts for more than 50% share of the global CNG compressors market led by China and India. China has over 23,000 CNG stations currently while India is aggressively promoting CNG with plans to increase the number of stations to 10,000 by 2023 from existing 2,500. Both countries are focusing on expanding CNG infrastructure to cut oil import bills and reduce vehicular emissions.
Key players: 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, CIMC Enric Group.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
