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CNG compressors are used to compress natural gas into a transportable cylinder at high pressure, typically between 2,000–3,600 psi depending on the vehicle.They are primarily used at CNG fueling stations to compress natural gas from low pressure to high pressure that is suitable for storage and dispensing into vehicular fuel tanks. Key end uses of CNG compressors include light & heavy-duty vehicles, buses, industrial units, and residential applications.
The CNG Compressors Market is estimated to be valued at US$ 3.46 Bn or 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 Dynamics:
Rising adoption of natural gas-based vehicles is a major driver of the CNG compressors market growth. Natural gas vehicles provide several benefits such as affordable operational costs, reduced carbon emissions, and energy security which has encouraged OEMs and governments across regions to promote the use of CNG vehicles. According to NGV Journal, around 25 million natural gas vehicles were plying on roads globally by the end of 2020. Furthermore, growing infrastructure for CNG dispensing stations along highways and cities is also fueling the demand for CNG compressors. Various governments are actively supporting projects to set up CNG fueling stations which would require CNG compressors for dispensing compressed natural gas. For instance, the government of India plans to open CNG stations every 200–300 km along national highways to promote CNG vehicles adoption.
Segment Analysis
The CNG compressors market can be segmented into piston compressors, rotary compressors, and centrifugal compressors. The centrifugal compressors segment currently dominates the market as these types of compressors can deliver a high volume of CNG at high pressure, which makes them suitable for large CNG filling stations.
PEST Analysis
Political: Governments across various countries are supporting the adoption of CNG vehicles by providing subsidies and tax benefits to promote cleaner automotive fuels, which is augmenting the installation of CNG fueling stations and compressors.
Economic: The lower operational cost of CNG vehicles compared to gasoline/diesel vehicles and price stability of CNG is stimulating its demand in the transportation sector. This is positively impacting the demand for CNG compressors.
Social: Rising environmental concerns due to vehicular emissions and increasing health hazards are encouraging a shift toward less polluting fuels like CNG. This is driving the sales of CNG vehicles and associated infrastructure like compressors.
Technological: Advanced centrifugal compressor designs with higher flow rates and efficiencies are gaining traction. These enable setting up of large CNG filling stations to cater to more vehicles in less time.
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. These players are focusing on developing energy-efficient compressor solutions to strengthen their market positions.
Market Name and Data Given: Market Name- CNG Compressors Market; CAGR: 8.0%; Forecast period is: 2023 to 2030; Market Size for 2023 is US$ 3.46 Bn; Key players: Atlas Copco, Ariel Corporation, Siemens Energy, Galileo Technologies, Bauer Compressors, Ingersoll Rand, ANGI Energy Systems, Bauer Group, Clean Energy Compression, CIMC Enric Group
Key Takeaways
The global CNG compressors market is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing automotive and industrial gas consumption. The market size for 2023 is estimated at US$ 3.46 Bn.
Asia Pacific currently captures the largest share of the global market and is expected to maintain its dominance during the forecast period. This can be attributed to rapid industrialization and rising automotive sector in China and India.
*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.
