July 13, 2024
Ict

Rising demand for natural gas to drive the growth of CNG Compressors Market

CNG compressors are used to compress natural gas to higher pressure for storage and transportation. Natural gas or CNG has low emissions as compared to other fossil fuels and is emerging as a cost effective and cleaner alternative to gasoline and diesel. CNG use in vehicles reduces GHG emissions by around 25%. With growing need for cleaner energy for transportation and industrial applications, the demand for CNG is increasing globally which in turn is expected to drive the CNG compressors market during the forecast period.

The global 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 key trends:
One of the key trends in the CNG compressors market is the shift towards more efficient and cost effective compressor technologies. Manufacturers are focusing on developing compressor systems with reduced energy consumption, minimized wear and tear as well as less maintenance requirements. For instance, modular compressor packages that are pre-engineered and factory tested before delivery are gaining traction. These compact units have plug-and-play installation features for cost savings. Also, compressors integrated with variable frequency drives allow modulation of compression capacity according to demand for optimizing energy usage. Such efficient compressor technologies will support the increased adoption of CNG in coming years.

Porter’s Analysis
Threat of new entrants: The requirement of high initial investments for establishing manufacturing plants deters new players from entering the market. Bargaining power of buyers: The presence of multiple manufacturers allows buyers to negotiate lower prices by switching between suppliers. Bargaining power of suppliers: The availability of substitute raw materials limits the bargaining power of suppliers in the market. Threat of new substitutes: Technologies like electric compression pose potential threat to CNG compressors over the forecast period. Competitive rivalry: High as the market has the presence of both global as well as domestic players competing on factors like pricing, product offerings and services.

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. These players are focusing on product development and partnerships with distributors to strengthen their presence.

*Note:

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