Natural gas compressors act as critical gas handling equipment which compresses natural gas to higher pressures. CNG compressors are used to fill CNG cylinders installed in vehicles running on compressed natural gas. They are utilized at CNG fueling stations to compress natural gas into high-pressure gas cylinders in vehicles. CNG compressors reduce vehicular emissions as compared to gasoline or diesel powered vehicles.
The 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Stringent emission regulations imposed by governments worldwide is expected to drive the CNG compressors market growth. Many countries have laid emphasis on reducing vehicular carbon emissions to curb air pollution. Adoption of natural gas vehicles like cars, buses and trucks is being encouraged through subsidies and tax benefits. This is increasing the installation of CNG fueling stations utilizing CNG compressors.
Another factor fueling the market is the rising demand and consumption of natural gas. Natural gas has emerged as a viable and cleaner alternative to conventional petroleum fuels. The increasing global natural gas reserves and production is augmenting the infrastructure for gas transportation and distribution through pipelines using gas compressors. Growing gas exploration and production activities driven by shale gas boom will positively impact the CNG compressors market over the forecast period.
SWOT Analysis
Strength:
- Growing demand for CNG vehicles to reduce pollution levels
- Increase in government support for use of natural gas vehicles
- Higher efficiency and low maintenance compared to traditional compressors
Weakness:
- High initial investment cost for installation of CNG compressors
- Require special infrastructure for refueling CNG vehicles
Opportunity:
- Expanding CNG infrastructure across regions to boost adoption rates
- Rising environmental awareness among consumers regarding vehicular emissions
Threats:
- Fluctuations in prices of natural gas
- Slow growth of CNG stations hindering large scale use of CNG vehicles
Key players analysis:
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. The market is fragmented in nature with presence of global as well as regional players. Leading companies are focusing on new product launches and capacity expansions to strengthen their foothold.
Stringent emission regulations imposed by governments worldwide is expected to drive the CNG compressors market growth. Many countries have laid emphasis on reducing vehicular carbon emissions to curb air pollution. Adoption of natural gas vehicles like cars, buses and trucks is being encouraged through subsidies and tax benefits. This is increasing the installation of CNG fueling stations utilizing CNG compressors.
Another factor fueling the market is the rising demand and consumption of natural gas. Natural gas has emerged as a viable and cleaner alternative to conventional petroleum fuels. The increasing global natural gas reserves and production is augmenting the infrastructure for gas transportation and distribution through pipelines using gas compressors. Growing gas exploration and production activities driven by shale gas boom will positively impact the CNG compressors market over the forecast period.
SWOT Analysis
Strength:
- Growing demand for CNG vehicles to reduce pollution levels
- Increase in government support for use of natural gas vehicles
- Higher efficiency and low maintenance compared to traditional compressors
Weakness:
- High initial investment cost for installation of CNG compressors
- Require special infrastructure for refueling CNG vehicles
Opportunity:
- Expanding CNG infrastructure across regions to boost adoption rates
- Rising environmental awareness among consumers regarding vehicular emissions
Threats:
- Fluctuations in prices of natural gas
- Slow growth of CNG stations hindering large scale use of CNG vehicles
Key players analysis:
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. The market is fragmented in nature with presence of global as well as regional players. Leading companies are focusing on new product launches and capacity expansions to strengthen their foothold.
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 use of natural gas as an eco-friendly fuel for automobiles and industries.
Regional analysis:
Asia Pacific dominates the global CNG compressors market and is estimated to grow at the fastest rate during the forecast period. This is attributed to rising demand for CNG compressors from India and China due to growing natural gas vehicle fleet and expanding CNG fueling infrastructure in these countries.
North America is another major market for CNG compressors owing to stringent emission regulations and increasing use of unconventional natural gas resources such as shale gas.
The global CNG compressors market is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing use of natural gas as an eco-friendly fuel for automobiles and industries.
Regional analysis:
Asia Pacific dominates the global CNG compressors market and is estimated to grow at the fastest rate during the forecast period. This is attributed to rising demand for CNG compressors from India and China due to growing natural gas vehicle fleet and expanding CNG fueling infrastructure in these countries.
North America is another major market for CNG compressors owing to stringent emission regulations and increasing use of unconventional natural gas resources such as shale gas.
