June 24, 2024

CNG Compressors Market Propelled by Growing Adoption Of Natural Gas Vehicles

CNG Compressors help in boosting the efficiency of CNG vehicles by compressing natural gas to high pressures. CNG compressors play a vital role in CNG fueling stations by compressing the gaseous fuel for dispensing into vehicle fuel tanks.

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: Growing adoption of natural gas vehicles (NGVs) has been a key driver boosting demand for CNG compressors. NGV adoption is gaining momentum across regions owing to economic and environmental benefits of natural gas over conventional fuels such as diesel and petrol. As per industry estimates, over 26 million NGVs were plying on roads globally in 2020. Stringent emission norms by regulatory bodies have further augmented the adoption of NGVs. Rapid roll-out of CNG fueling stations and infrastructure development especially across countries such as India, China, Brazil and Iran has created robust demand for CNG compressors. Manufacturers are developing advanced compressors with increased flow rates to meet the rising demand from fueling stations.

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 companies are focusing on developing customized CNG compressor solutions suitable for refueling stations as well as industrial applications. Technological innovations to enhance efficiency and reduce maintenance costs of compressors will help players strengthen their market presence.

SWOT Analysis
Strength: CNG compressors offer lower operational costs and reduced carbon emissions compared to gasoline and diesel vehicles. They are more environment-friendly.
Weakness: Setting up CNG infrastructure like compressor stations require high initial investments. Maintenance of CNG compressors also increases overhead costs.
Opportunity: Growing natural gas vehicle market along with subsidies and tax benefits by governments to promote use of natural gas is driving demand for CNG compressors. Rising environmental awareness is also supporting market growth.
Threats: Fluctuations in raw material prices can increase compressor costs. Slow expansion of CNG station network poses a challenge.

Key Takeaways

The global CNG Compressors Market is expected to witness high growth.

Asia Pacific region currently dominates the market owing to large fleet of natural gas vehicles in countries like India and China. China has over 4.5 million NGVs, the most in the world. India is also promoting use of CNG as a transportation fuel with over 4300 CNG stations. Both countries are major markets for CNG compressors and the demand is anticipated to surge further in coming years.

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