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CNG compressors play a key role in the storage and transportation of compressed natural gas (CNG) as it is used as an automotive fuel. CNG is considered an eco-friendly alternative fuel for automobiles as it emits lower greenhouse gases when compared to gasoline and diesel. Governments across countries are offering subsidies and adopting supportive policies to increase the adoption of natural gas vehicles. Such policy initiatives are expected to boost the demand for CNG compressors installed at fueling stations.
The global CNG Compressors Market is estimated to be valued at US$ 3.46 Bn 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 key trends:
The introduction of hydrogen-blended CNG fueling technology is emerging as one of the key trends in the global CNG compressors market. Mixing hydrogen with CNG provides benefits such as higher calorific value, reduction in methane emissions, increased vehicle range, and similar storage and pipeline infrastructure compatibility. Leading CNG compressor manufacturers are developing hydrogen-blended CNG compatible compressors in line with global decarbonization efforts. Additionally, the development of modular and mobile CNG compressor systems is gaining significant momentum. Modular and mobile compressors offer increased operational flexibility and faster deployment, especially in regions with growing but scattered CNG vehicle fleet. Their compact design also reduces infrastructure costs.
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, and CIMC Enric Group. Players are focusing on expanding their product portfolio and strengthening distribution networks across lucrative markets.
Porter’s Analysis
Threat of new entrants: The CNG compressors market requires large investments in R&D and manufacturing facilities. Strict emission norms also pose significant barriers for new players.
Bargaining power of buyers: Large fleet operators and refueling station owners hold significant bargaining power over compressor manufacturers due to their high purchase volumes.
Bargaining power of suppliers: Specialized component manufacturers like those producing compressors and stationary storage cylinders do not face significant threats from forwards/backwards integration.
Threat of new substitutes: LNG offers potential substitution but requires separate refueling infrastructure, limiting its impact in the short-run. Electric vehicles are a long-term substitute.
Competitive rivalry: The market comprises a few large global players and smaller regional players. Product differentiation and customer relationships characterize competition.
Regional analysis: Asia Pacific accounts for over 50% market share led by China, India, Pakistan, and Iran. The region is adopting stricter emission norms boosting demand for greener CNG compressors. Europe is the second largest market while witnessing rapid growth in Eastern Europe and Russia.
Key Takeaways
The global CNG Compressors Market is expected to witness high growth between 2024-2031, driven by supportive policies and growing natural gas vehicle fleets. Asia Pacific currently dominates the market owing to large vehicle fleets in China and India.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
