February 17, 2025
CNG Compressors Market

CNG Compressors Market Is Estimated To Witness High Growth Owing To Increased Demand For Natural Gas Vehicles

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:
Compressed natural gas (CNG) is being widely used as an alternative fuel for vehicles. CNG compressors are critical equipment required for dispensing CNG into vehicles at fueling stations. Key applications of CNG compressors include fueling stations, gas distribution, and industrial production. The increasing adoption of CNG as an economical and cleaner transportation fuel is driving the demand for CNG compressors globally.

Market Dynamics:
The growth of the CNG compressors market is majorly driven by the increasing demand for natural gas vehicles (NGVs). Natural gas emits 25% less carbon than diesel and reduces other toxic emissions by 75-90%. Hence, many governments are promoting use of NGVs by investing in CNG fueling infrastructure creation. For instance, the Indian government announced plans to convert 15% of its commercial fleet to CNG and establish 10,000 CNG stations by 2030. This rising focus on building CNG infrastructure is creating significant opportunities for CNG compressor manufacturers.
Additionally, growing natural gas production especially from unconventional reserves like shale gas is increasing supplies and making natural gas prices highly competitive against other transportation fuels. Transportation sector accounts for significant portion of global energy consumption. The price competitiveness of CNG over diesel and petrol is encouraging fleet owners to adopt NGVs, thereby boosting demand for CNG compressors.

SWOT Analysis

Strength: CNG compressors have low maintenance costs which reduces operating expenses for owners. They are more economical than diesel or gasoline vehicles in terms of fuel efficiency. CNG compressors produce fewer emissions making them more environmentally friendly.

Weakness: Setting up CNG refueling stations requires high initial investments which is difficult for newer companies. Manufacturing CNG compressors involves complex engineering which increases production costs.

Opportunity: Strong government support through subsidies and tax benefits for use of natural gas as an automotive fuel is boosting demand for CNG vehicles. Growing demand from public transportation sector to reduce carbon footprint is a major opportunity.

Threats: Fluctuations in raw material prices may increase compressor production costs. Developments of alternate clean energy sources like hydrogen fuel cells poses a threat to market growth.

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 investments by governments and private sector to expand CNG fuelling infrastructure for transportation sector. Countries like China and India are aggressively promoting use of natural gas vehicles which is driving market growth.

Regionally, Asia Pacific dominates the global CNG compressors market with a market share of over 35% in 2023. China and India have large vehicle fleet reliant on CNG fuel which is driving regional market. Government incentives for setting up CNG stations and use of natural gas vehicles in these countries are promoting regional market growth. North America and Europe are other major markets for CNG compressors owing to stringent emission norms forcing adoption of cleaner fuels.

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. Major players are focusing on developing high pressure compressors and expanding service network to strengthen market presence. Collaboration with OEMs is another key strategy being adopted.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Money Singh
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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, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

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, chemical and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →