Market Overview:

The Global CNG Cylinders Market Was Estimated To Be Worth $1.5 Billion In 2022 And Is Expected To Reach $2.37 Billion By 2030, Expanding At A Compound Annual Growth Rate (CAGR) Of 5.9% From 2023 Until 2030.

Compressed natural gas tanks, also called CNG tanks, are high-pressure cylinders that store CNG gas. The natural gas is put into a cylinder with a high pressure, usually around 250 bar. CNG gas is stored in these tanks in vehicles, which are then powered by the gas. In the past few years, natural gas has become a much bigger part of the world's energy mix. Compressed natural gas (CNG) is used in a lot of vehicles because it is cheap and good for the environment.

Due to strict rules on diesel-powered vehicles, growing concerns about greenhouse gases (GHG), and the government's support for LNG-powered vehicles, the market is expected to grow in a big way. Light-duty cars have dual-fuel systems, while heavy-duty vehicles have dual-fuel systems. Fuel systems for light-duty vehicles are made just for them. The tanks in CNG vehicles are made to keep the natural gas in its gaseous form. The ANSI NGV2 standard says that a CNG cylinder will last between 15 and 20 years on average.

COVID-19 Impact:

Because of the steps taken to stop the spread of COVID-19, sales of new cars have dropped by a lot. According to the OICA report, the auto industry's production would drop by 16% by 2020, to less than 78 million cars, which is the same number of cars sold in 2010. In Europe as a whole, there was an average drop of more than 21%. All of the main countries that contributed had sharp drops, ranging from 11% to 40%, which hurt the growth of the market for CNG gas cylinders and tanks. Also, the market was hurt by the sudden rise in the prices of raw materials like aluminum and steel.

But the market will get better as more companies focus on selling CNG vehicles. For example, Maruti Suzuki's sales of vehicles powered by compressed natural gas went up in FY21, even though the pandemic had a negative effect on sales and production. In 2021, Maruti sold 157,000 gas-powered cars, up from 106444 cars in FY 20. This is a 48.11 percent increase.

Market Dynamics:

Driving Factors:

• Rising Sales of LNG Vehicles as an Alternative to Diesel-Based Vehicles

Countries around the world work together to fight climate change by setting ambitious goals to cut GHG emissions. EU has made it a requirement that by 2030, emissions must be 40% lower than they were in 1990. The use of fossil fuels in road transportation is one of the most important parts of EU economies.

Because the transportation sector is so dependent on oil, it is the single biggest source of greenhouse gas emissions in Europe. Road transportation is responsible for about 73% of all GHG emissions from transportation. This is because more than 95% of Europe's more than 308,3 million road vehicles run on oil-based fuels. At the same time, there are a lot of low-emission alternative fuels for vehicles that can make the transportation sector less reliant on oil and reduce greenhouse gas emissions from road travel. Today, more than 2 million vehicles in the EU run on natural gas. They are supported by a network of 4041 CNG and LNG fueling stations.

Putting CNG cars in place of gasoline cars can save about 10% of the energy that the gasoline cars would have used. Gas prices are going up, and electric cars are too expensive for most people to buy. So, people are turning to cars that run on cheap fuels like compressed natural gas.

• Need for Regular Maintenance

CNG fuel systems need to have the CNG storage tanks checked for safety often as part of their maintenance. Road debris can damage CNG tanks and make them less safe. When some substances come in contact with something, corrosion and cracking can happen. Because these tanks are under 3,600 pounds per square inch (psi) of pressure, even small damage could cause the quality of the tank to go down a lot, which would be a serious threat. Because of these things, tanks should be checked every three years (36 months) or every 36,000 miles in a service center that is authorized to do so.

Tanks should also be checked after a fire, accident, or any other event that could cause damage to the tank. When tanks are in the underbody of a vehicle, they are more likely to hit road debris or get damaged in a crash, like when driving over a curb. Before meeting standards and getting approval from the government, the cylinders are put through a long list of tests, such as a bullet impact test and a bonfire test. Even with these rules, the cylinders must be handled carefully, especially the ones made of fiberglass or composite.

• Rising the Carbon Emission

In 2021, the amount of carbon dioxide put into the atmosphere by fossil fuels and industry grew by about 4% to a record-breaking 36 billion metric tonnes (GtCO2).

• Volatile Oil Prices

Oil prices are expected to reach about USD 90/bbl in 2023 and USD 79/bbl in 2024, which is less than the USD 99/bbl price that is expected in 2022. Still, prices would be much higher than the USD 59/bbl that has been the average for the past five years around the world. So, there is more demand for CNG. During COVID 19 lockdown, people also used their own cars more to get around. But as fuel prices rise, more and more people are getting CNG kits and converting their cars to run on compressed natural gas, which is cheaper. Also, CNG costs about half as much as gasoline or diesel. So, the main reason why people are switching from regular cars to CNG-powered cars is to save money on gas.

Restraining Factors:

• Unavailability of Fuel

Even though it costs a lot to install a CNG tank, the growth of the worldwide CNG tank market is slowed by the fact that fuel isn't available during blackouts. This is one of the big problems with the market.

• Scarcity of CNG Station

The biggest problem with CNG cars is that there aren't many CNG stations, which has kept many car owners from making this choice. In some states, there are only a few CNG pumps available. Even in cities where CNG fuel is available, it might be hard for CNG customers to get to or find CNG-friendly stations because there aren't many of them. CNG stations can be very hard to find, especially for people who travel a lot. So, this is thought to slow down the growth of the market.

• High Initial Cost of Manufacturing These Tanks
• Boot Space in Vehicles Gets Reduced

Opportunities:

• Automotive Industry and Bulk Transportation

The future of the global CNG tank market looks good, with opportunities in industries like automotive and bulk transportation. In 2020, the global economic recession caused by COVID-19 will lead to a drop in the market for CNG tanks. The market is growing because there are more natural gas vehicles (NGVs) and natural gas costs less than gasoline and diesel.

Strategic Development:

• In April 2019 - Faber Industries has reached the 0.75kg/I weight for type-1 cylinders. This weight reduction has caused OEM to try to find trade-offs between tank weight and strength.
• In March 2021 - UPS gave the business division of Hexagon Composites, called Hexagon Ability, an order for CNG trucks. This order will help set up fleets that are good for the environment and the economy.

Key Vendors:

Top market players are

• Hexagon Agility

Hexagon Agility, a business of Hexagon Composites, is the world's leading provider of clean fuel solutions for commercial vehicles and gas transportation solutions. It sells storage and delivery systems for natural gas, Type 4 composite natural gas cylinders, propane, and fuel systems for natural gas. These products move clean gaseous fuels and make it possible for vehicles to reduce emissions and cut costs at the same time.

• Worthington Industries

Worthington Industries is a leading global industrial manufacturing company that provides innovative solutions to customers in many industries, including transportation, construction, industrial, agriculture, retail, and energy. Worthington is the best company in North America for adding value to steel and making laser-welded products. It is also a leading global supplier of pressure cylinders and accessories for uses like fuel storage, water systems, outdoor living, tools, and parties.

• 3M

3M Co. is a technology company that makes products for business, safety, and people's homes. It has four business areas: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer.

• Luxfer Group

Luxfer is a global materials technology company that designs, makes, and sells high-performance materials, components, and gas cylinders to customers in a wide range of end-markets that are growing.

Our goal is to build close relationships with our customers and work closely with them to find new ways to meet their needs for advanced materials, parts, and gas containment.

• Cobham Limited

As a division of Advent International Corp, Cobham Ltd (Cobham) designs, develops, makes, and sells communication and connectivity equipment and solutions for the aerospace, energy, electronics, and defense industries. It also does high-quality engineering and offers specialized air services. Air-to-air refueling, defense electronics, aviation services like airlines and charters, audio, video, and data communications, oxygen systems, refueling equipment, rescue and navigation lights, weapon system containers, satellite communications, and life support and mission equipment are just some of the products that the company offers.

• Quantum Fuel Systems Technologies

Quantum Fuel Systems LLC is designing the future of storing alternative fuels by making innovative transport trailers and Type 4 cylinders for hydrogen and CNG that are the best in the business. Quantum is at the top of its field because it has more than 30 years of experience in gaseous fuel storage and systems solutions.

• CNG United

CNG United offers CNG Safety and Education programs and quality, proven CNG conversion systems to everyone in the United States, both the general public and automotive technicians. The CNG conversion system can be used in almost any kind of vehicle, including police cars, taxis, buses, personal cars, and small and large fleets for businesses.

• REL Inc

REL, Inc. was started in 1993 in Calumet, Michigan, as a job shop that did machining for customers in the area. REL got started with a 1200-square-foot shop space, a vertical knee mill, an engine lathe, and a dream to become an original equipment manufacturer. REL now has 48 employees, a 40,000-square-foot World Class Manufacturing facility, and three lines of equipment to help customers all over the world.

• Time Technoplast Ltd

Time Technoplast Ltd. (Time Tech) is a multinational company with offices in Bahrain, Egypt, Indonesia, India, Malaysia, the United Arab Emirates, Taiwan, Thailand, Vietnam, Saudi Arabia, and the United States. It is the world's largest producer of polymer products. The company's portfolio includes technically driven, innovative products for growing industries, such as Industrial Packaging Solutions, Lifestyle Products, Automotive Components, Healthcare Products, Infrastructure/Construction related products, Material Handling Solutions, and Composite Cylinders.

• Steelhead Composites

Steelhead Composites, based in Golden, Colorado, is a world-class advanced manufacturing company (USA). Steelhead focuses on making hydrogen storage systems. They do this by designing, engineering, making, testing, and certifying them. We also offer a full range of technical services in the areas of vessel design, metal spin forming, rotational molding, filament winding, prototyping, and testing of hydrogen storage components and systems. Steelhead's hydrogen storage is certified and is used in aerospace, stationary, mobile, and maritime applications.

Segmentation Analysis:

The market is segmented on the basis of tank type, composite type, vehicle type and region.

By Tank Type:

The market is divided into the cryogenic tank, the tube-tailored tank, the stationary tank, and others based on the type of tank. The tailored tank is expected to have the biggest share of the most important CNG tank market because it has many uses in the automotive industry and costs less to buy. Other than that, a vehicle's life cycle is much better because it is lighter, which has a direct effect on the market for CNG tanks.

• Cryogenic Tank
• Tube Tailored Tank
• Stationary Tank
• Others

By Composite Type:

Based on the type of composite, the market is divided into carbon fiber, steel or aluminum alloy, metal component, glass fiber, and others. The carbon fiber composite is the lightest CNG volume. This means that the vehicle's range, fuel efficiency, and payload are all improved. Because of these things, the carbon fiber composite is expected to grow over the next few years.

• Carbon Fibre
• Steel or Aluminium Alloy
• Metal Component
• Glass Fibre
• Others

By Vehicle Type:

The market is split into passenger vehicles, commercial vehicles, and other vehicles. Original equipment manufacturers make commercial gas vehicles, which has led to the most significant market growth for CNG tanks. Aside from that, commercial vehicles can be used as delivery trucks, heavy goods vehicles, buses, and many other things. The CNG tank market is expected to grow because CNG has a wide range of uses and is lighter than other fuels. Because of this, it costs less to transport and work with CNG tanks.

• Commercial Vehicle
• Passenger Vehicle
• Others

Regional Insights:

Researchers from North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa have looked at the CNG tank market. Due to rising demand for natural gas in places like China, Japan, South Korea, and India, the Asia-Pacific region is expected to be the biggest market.
China is investing the most in CNG tanks because it wants to use cleaner energy for business and industrial transportation. This is expected to drive the market in the rest of the region. After Asia-Pacific, North America and Europe have passed strict laws to reduce emissions and are focusing more on renewable energy projects and energy-efficient sectors. The rise in commercial and industrial transportation has led to the growth of CNG tanks across the region, which is good for the CNG tank market.

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia-Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America

Scope of Report:

Conclusion:

• The goal of this report is to give a full picture of the global market for CNG Tank (CNG Cylinder), including both quantitative and qualitative analysis, so that readers can come up with business/growth strategies, figure out how competitive the market is, figure out where they stand in the market right now, and make smart business decisions about CNG Tank (CNG Cylinder).
• This report shows the size and growth of the CNG Tank (CNG Cylinder) market around the world.
• The analysis also examines whether the CNG Tanks business is open to new entrants, whether they enter and exit the market regularly, and whether a few players dominate it.