CNG Tank Cylinder Market Research Report 2024

CNG Tank Cylinder Market Synopsis

CNG Tank Cylinder Market Size Was Valued at USD 1823.45 Million in 2023 and is Projected to Reach USD 4229.75 Million by 2032, Growing at a CAGR of 9.8% From 2024-2032.

Compressed Natural Gas (CNG) tanks play a pivotal role in providing a cleaner and greener alternative to conventional fuels such as gasoline and diesel. They are primarily used in CNG-powered vehicles, including cars, buses, and trucks, contributing to reduced emissions and a lower environmental impact. As governments and industries worldwide focus on sustainable energy sources, the adoption of CNG tanks has risen due to their ability to reduce air pollution and greenhouse gas emissions.

• In the automotive sector, CNG tanks are integral to powering vehicles that rely on CNG as a primary fuel. This has become a popular option in regions with stringent emission regulations and high fuel costs, where the use of CNG provides a more cost-effective and environmentally friendly alternative. These tanks are also utilized in industrial applications, including metalworking, glass production, and textile industries, where CNG is used in heating processes to reduce reliance on traditional fossil fuels. CNG's use in these industries supports efficient energy utilization and contributes to lowering carbon footprints.
• Beyond industrial use, CNG tanks are essential in residential and commercial settings. The power appliances such as stoves and water heaters in homes, hotels, and restaurants, offer a cleaner alternative for cooking and heating. CNG is also utilized in commercial establishments to reduce energy costs and support sustainability initiatives. In remote or off-grid areas, CNG tanks power generator sets to provide electricity, ensuring energy access where conventional power sources are limited.

Top Active Players Involved Are:

“Luxfer Gas Cylinders (United Kingdom), Worthington Industries (United States), Hexagon Composites ASA (Norway), Beijing Tianhai Industry Co., Ltd. (China), Faber Industrie S.p.A. (Italy), Quantum Fuel Systems LLC (United States), Praxair Technologies, Inc. (United States), Everest Kanto Cylinder Ltd. (India), CIMC Enric Holdings Limited (China), Lianyungang Zhongfu Lianzhong Composites Group Co., Ltd. (China), Sinoma Science & Technology Co., Ltd. (China), NPROXX (Germany), CNG Cylinders International (Australia), Avanco Group (Germany), Advanced Composites, Inc. (United States), Changzhou Zhenghao CNG Cylinders Co., Ltd. (China), Ullit SA (France), Rama Cylinders Pvt. Ltd. (India), Beijing Jingcheng Machinery Electric Holding Co., Ltd. (China), Mahyco Pvt. Ltd. (India), EKC Industries (Thailand) Co., Ltd. (Thailand), PT. Genta Laras Semesta (Indonesia), Maruti Koatsu Cylinders Ltd. (India), Inflex S.A. (Argentina), VTC-Industries Ltd. (India) and Other Active Players.”

CNG Tank Cylinder Market Trend Analysis

Increase in adoption of natural gas in the automotive industry

• The increase in concerns about environmental contamination, CNG is being used as a cleaner and more sustainable option for fuel. This has resulted in a higher need for cars running on CNG, leading to a rise in the market for CNG tank cylinders.
• CNG tanks allow for the safe storage and transportation of natural gas, which is important for the wider adoption of CNG as a fuel source. They are typically made up of high-strength materials like carbon fiber or aluminum and can withstand high pressures and extreme temperatures.
• It is majorly used in the automotive industry for vehicles which is driven by several factors been driven by several factors like Government incentives, environmental regulations, and the desire of consumers to reduce their carbon footprint.
• CNG-powered vehicles are seen as a more affordable and accessible alternative to electric vehicles, as they can be expensive and require significant infrastructure investments. Hence in this way Increase in the adoption of natural gas in the automotive industry acts as a driver in the CNG tank Cylinder Market.

Innovation in the Design of CNG tank Cylinder

• The development of lightweight materials like carbon fiber composites has transformed the design of CNG tank cylinders. These products provide a strong weight ratio, which improves the longevity and safety of the cylinders by decreasing their weight. Using lighter cylinders helps improve fuel efficiency and increase the distance of traveling by making them more efficient for use in transportation.
• Design of innovations That enhance the safety concern by the use of advanced features like advanced pressure relief systems, improved valve mechanisms and the use of potential materials helps to reduce the risk associated with CNG storage.
• Innovations in the optimal storage capacity of the cylinder. Cylinders with increased storage capacity allow for longer travel distances without refueling, improving convenience for CNG vehicle owners. This is particularly being used in Commercial Vehicles.
• Integration of CNG tank cylinders into the overall vehicle design that helps to maximize the storage capacity and minimize the impact on vehicle performance which is mainly useful for space utilization, aerodynamics, and aesthetics. Hence, in this way, Innovation in the Design of CNG tank Cylinder acts as an opportunity in the CNG Tank Cylinder Market.

CNG Tank Cylinder Market Segment Analysis:

The CNG Tank Cylinder Market is Segmented on the basis of Material Type, Tank Type, Composite Type, Vehicle Type, and End-User.

By Composite Type, Carbon Fiber Segment Is Expected to Dominate the Market During the Forecast Period

• Carbon fiber is considered an eco-friendly and sustainable option when compared to metal. It will help in enhancing the Lifespan of CNG tanks. These carbon fiber CNG tanks can be fitted to various models. These tanks can store high-pressure, extending vehicles' diving range and also help in increasing the energy density.
• As it has resistance to corrosion and damage, this low maintenance needs to reduce the overall operating costs. It also releases low greenhouse gas emissions due to increased fuel efficiency. As the environment-friendly regulations are increasing nowadays Carbon Fiber can be the best solution.
• This Composite type has an exceptional strength-to-weight ratio compared to other materials like steel or aluminum allowing for the production of lightweight CNG tank cylinders without any compromise in their structural integrity.
• They provide greater design flexibility compared to other materials which can be molded into different complex shapes, allowing for the optimization of cylindrical structures. This design flexibility enables efficient space utilization, which is crucial for CNG tank cylinders to be installed in different types of vehicles or storage systems. Hence, in this way By Composite Type, Carbon Fiber Segment Is Expected to Dominate the CNG Tank Cylinder Market.

By Vehicle Type, Light Duty Vehicles Segment Held the Largest Share In 2023

• Light Duty vehicles which are favored mainly for transportation as it has high fuel efficiency. CNG is less expensive compared to other fuels, and with growing concerns about the environment, CNG is considered the most sustainable choice hence it is mostly used in light-duty vehicles.
• The infrastructure of supplying and refueling CNG like CNG gas stations has expanded significantly, particularly in urban areas. The growing network of CNG refueling stations is making it convenient to go for light-duty vehicles.
• CNG as a fuel source has an improved fuel efficiency that offers cost savings compared to conventional gasoline or diesel. Light-duty vehicles with CNG tank cylinders can experience reduced fuel costs, especially in regions where natural gas is more affordable compared to petroleum-based fuels.
• The use of lightweight composite materials and improved safety features, have made them more suitable for light-duty vehicles. These developments have led to concerns about weight, space, and safety, which is making CNG tank cylinders use light-duty vehicles. Hence in this Vehicle Type, Light Duty Vehicles Segment Held the Largest in CNG Tank Cylinder Market.

CNG Tank Cylinder Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast Period

• Asia Pacific is witnessing a significant shift towards cleaner energy sources, with natural gas being recognized as an alternative to conventional fuels. Governments in countries like China, India, and Japan are implementing policies to promote the use of natural gas and reduce harmful emissions. This is increasing the use of CNG.
• This region boasts a large population and a rapidly growing middle class, leading to increasing vehicle ownership. With the rising concerns about air pollution and the environmental impact of traditional fuels, consumers are turning towards CNG-powered vehicles as a cleaner and more sustainable option.
• The development of infrastructure for CNG refueling stations. This infrastructure expansion is crucial for the widespread adoption of CNG vehicles, as it ensures convenient access to refueling facilities. The Government is promoting the refueling of CNG stations in this region so that people are more convenient for their use and easily accessible. Hence in this way, Asia Pacific is Expected to Dominate the CNG Tank Cylinder Market.

                                   Source: Company Database

• In the Financial year 2023, there were close to 318 thousand units of compressed natural gas (CNG) passenger vehicles sold in India. It was followed by 241 units of CNG three-wheelers. CNG vehicles produce fewer pollutants than conventional internal combustion engine vehicles.

CNG Tank Cylinder Market Active Players

• Luxfer Gas Cylinders (United Kingdom)
• Worthington Industries (United States)
• Hexagon Composites Asa (Norway)
• Beijing Tianhai Industry Co., Ltd. (China)
• Faber Industries S.P.A. (Italy)
• Quantum Fuel Systems Llc (United States)
• Praxair Technologies, Inc. (United States)
• Everest Kanto Cylinder Ltd. (India)
• Cimc Enric Holdings Limited (China)
• Lianyungang Zhongfu Lianzhong Composites Group Co., Ltd. (China)
• Sinoma Science & Technology Co., Ltd. (China)
• Nproxx (Germany)
• CNG Cylinders International (Australia)
• Avanco Group (Germany)
• Advanced Composites, Inc. (United States)
• Changzhou Zhenghao Cng Cylinders Co., Ltd. (China)
• Ullit Sa (France)
• Rama Cylinders Pvt. Ltd. (India)
• Beijing Jingcheng Machinery Electric Holding Co., Ltd. (China)
• Mahyco Pvt. Ltd. (India)
• EKC Industries (Thailand) Co., Ltd. (Thailand)
• Genta Laras Semesta (Indonesia)
• Maruti Koatsu Cylinders Ltd. (India)
• Inflex S.A. (Argentina)
• VTC-Industries Ltd. (India), And Other Active Players

Key Industry Developments in the CNG Tank Cylinder Market:

• In May 2024, Bajaj Auto was set to launch the world's first CNG motorcycle on June 18, 2024, said Rajiv Bajaj. Which mainly targets middle and lower-middle-income groups this will be helpful to the Cost-Conscious Consumers.
• In August 2023, Tata Motors, India’s leading automobile manufacturer made CNG line up with the upgraded Tiago and Tigor iCNG and launched the brand-new Punch iCNG this revolutionary technology made its customers refreshed, the twin-cylinder technology that debuted with the Altroz iCNG in May enabled CNG vehicles to provide their customers with non-compromised boot space, best-in-class features, and a superior drive experience.