The CNG Compressors Market is estimated to be valued at US$ 3.46 Bn or Mn 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 Overview:
Compressed natural gas (CNG) compressors are machines or devices used for compressing natural gas into compact storage cylinders at high pressure, generally between 2,000–3,600 psi depending upon the Material of construction. CNG compressors are used in CNG fuelling stations for loading CNG into vehicle fuel tanks or in captive vehicles used for transportation. They are designed for rapid gas transfer with lowest operating costs. Key end uses of CNG compressors include fuelling stations, gas transmission applications and gas pipelines.
Market Dynamics:
Increasing concerns regarding environmental pollution and rising demand for cleaner fuel alternatives are expected to drive the global CNG compressors market growth over the forecast period. CNG burns cleaner than gasoline or diesel and reduces up to 21% of carbon monoxide, non-methane hydrocarbons, and particulate matter emissions. Its usage promotes energy diversity and security by displacing imported oil with domestic natural gas. Countries worldwide are providing subsidies for purchasing CNG vehicles and setting up CNG fuelling infrastructure in a bid to reduce reliance on liquid fuels. For instance, the Indian government has rolled out schemes to encourage CNG vehicle adoption and related infrastructure development.
Rising natural gas production globally coupled with expansion of gas pipeline network is another factor propelling the market expansion. According to IEA, global natural gas production increased from 3,691 billion cubic meters in 2010 to over 4,088 billion cubic meters in 2020. As CNG offers economical transportation of natural gas from producing to consuming regions, demand for CNG compressors is expected to surge correspondingly.
CNG Compressors Market Segment Analysis
The Global CNG Compressors Market Growth can be segmented into reciprocating compressors and rotary compressors. Currently, reciprocating compressors dominate the market as they are considered more efficient and reliable for compressing CNG. These compressors compress the gas in stages to achieve the requisite pressure levels efficiently. Their multi-stage operation enables them to handle large volumes of gas while consuming lesser power as compared to single-stage compression.
CNG Compressors Market PEST Analysis
Political: Governments across regions are promoting the use of natural gas as an alternative fuel for vehicles through tax benefits and infrastructure development programs. This is driving the demand for CNG vehicles and associated infrastructure like CNG compressors.
Economic: The fluctuating crude oil prices and rising environmental regulations are encouraging fleet operators and consumers to switch to more affordable and cleaner CNG. This is positively impacting the sales of CNG compressors.
Social: Growing awareness about vehicular emissions and its ill-effects on the environment has boosted the adoption of greener fuels like CNG. Moreover, lower operating costs of CNG vehicles make them attractive.
Technological: Manufacturers are focusing on developing efficient compressors with advanced control systems for smooth operations. The integration of remote monitoring technology enables easy maintenance and diagnosis.
CNG Compressors Market 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 natural gas vehicles adoption particularly in commercial vehicles. Asia Pacific dominates the regional market for CNG compressors. Countries like China, India, and Pakistan have witnessed considerable increase in the number of CNG vehicles in recent years. This is attributed to the growing demand for an affordable and cleaner transport fuel alternative to petroleum.
India is the largest market for CNG compressors in Asia Pacific. The country has over 3000 CNG stations and more than 4 million vehicles run on CNG. Favorable government initiatives and expansion of city gas distribution infrastructure are expected to increase the number of CNG vehicles, boosting compressor demand.
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. Major players are focusing on developing advanced compressors with enhanced capacity and efficiency to strengthen their market position.
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