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CNG compressors are primarily used for compressing natural gas to higher pressure for storage and transportation in gas cylinders and pressure vessels. CNG compressors offers economical and efficient fuel alternative with lower greenhouse gas emissions.
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 growing demand for energy efficient compressors. With rising energy costs and stringent regulations regarding carbon emissions, there is increasing focus on developing energy efficient compressors that can reduce operating costs and help organizations meet sustainability goals. Several manufacturers are focusing on innovation and incorporating new technologies to make compressors more powerful yet energy efficient. This is expected to drive the demand for CNG compressors during the forecast period.
SWOT Analysis
Strength: CNG compressors offer cheaper fuel costs and lower emissions compared to gasoline or diesel. Their efficiency and reliability make them an attractive option for commercial vehicle fleets.
Weakness: High initial installation costs of CNG compressors and refueling stations present a barrier for wider adoption. The need for specialized storage tanks also increases vehicle costs.
Opportunity: Stringent emission regulations worldwide are driving demand for cleaner fuels like CNG. Many countries offer tax incentives and subsidies to promote natural gas vehicles.
Threats: Fluctuating natural gas prices introduce supply risks and impact the total cost of ownership proposition for CNG. Electric vehicles pose a competitive threat with their declining battery prices.
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. They are focusing on developing efficient CNG refueling infrastructure with innovative product launches. Mergers and acquisitions remain important competitive strategies.
Key Takeaways
The global CNG compressors market is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing investment in natural gas infrastructure across regions. Governments aim to cut vehicular emissions with a shift towards alternative fuels for transportation.
Asia Pacific dominates the global CNG compressors market, accounting for around 35% share in 2023. China, India, and Pakistan are major consumers in the region due to their large vehicle fleets and initiatives promoting natural gas vehicles. The regional market is projected to grow at a rapid pace during the forecast period.
North America is another major region, led by the US where Pennsylvania, Oklahoma, and California are hubs of CNG production and distribution network. Supportive regulatory policies and tax credits drive adoption of natural gas heavy vehicles in the US. However, China holds the highest CNG refueling stations globally.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
