The Global CNG Cylinders Market Was Estimated To Be Worth $1.5 Billion In 2022 And Is Expected To Reach $2.6 Billion By 2030, Expanding At A Compound Annual Growth Rate (CAGR) Of 5.9% From 2023 Until 2030.

CNG Cylinders Market Overview:

The most common type of fuel kept in cars is compressed natural gas, which is often kept in high-pressure cylinders. CNG is put into a cylinder that usually has around 250 bars of pressure. The weight of the CNG cylinders carried on board could mean a lot of different things. So that they can safely hold the high-pressure gas, CNG cylinders need to have a strong frame. Compressed natural gas can be bought in cylinders that come in many different shapes and sizes for many different uses.

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

CNG Cylinders Market Dynamics

The market is expected to boost with rising sales of LNG vehicles as an alternative to diesel-based vehicles.

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 fuelling 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 centre that is authorised 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 under body 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 fibreglass or composite.

CNG Cylinders Market Segment Analysis

The global compressed CNG Cylinders market is segmented based on type, material, vehicle and region.

The need for reducing fuel consumption and payload has boosted the demand for carbon fiber-based LNG tanks/cylinders

The global compressed CNG Cylinders market is divided into steel, glass fibre, carbon fibre, aluminium, and others based on the material.

Carbon fibre wound composite cylinders are more likely to work well than cylinders made of a single metal, like aluminium or steel. It can hold more gas than metal cylinders of the same size, is 50% lighter, is resistant to corrosion, and doesn't pollute the environment. Carbon fibre cylinders are the best on the market when it comes to safety, efficiency, and durability. Carbon fibre cylinders can improve a vehicle's range, payload, and handling, and they can also use less fuel.

Several companies have recently switched to making LNG cylinders out of carbon fibre. For example, in 2020, Hyosung Advanced Materials Corp. added a third line that could make 2,500 tonnes per year of PAN carbon fibre at its plant in South Korea. According to the company, the ambitious goal of this expansion is to meet the demand for carbon fibre used in fuel tank cylinders for compressed natural gas and hydrogen vehicles, which usually reach 350-700 operating pressure. Hyosung Advanced Materials thinks that its TANSOME high-strength, high-strain carbon fibres will be an important part of the safe operation of type III and type IV cylinder pressure vessels.

Stringent government regulations on diesel-based vehicles will boost the demand for LNG vehicles in Asia-Pacific

The goal of switching to vehicles with no emissions is to improve China's air quality, cut CO2 emissions, and make the country less dependent on foreign energy by using huge amounts of gases. Several different types of businesses have already seen the number of LNG car sales go up. During the fiscal year 2019-20, Maruti Suzuki India Limited sold more cars than ever before that run on compressed natural gas (CNG). The company was able to sell 106,443 CNG vehicles in all of India.

Since the BS-VI Emissions Standards will go into effect on April 1, 2020, many programmes have been set up to encourage the use of IGL or the switch from diesel. As part of a strategic plan led by Indraprastha Gas Limited, India's Minister of Petroleum and Natural Gas introduced the country's first long-distance compressed natural gas bus in 2020. Agility Fuel Solutions made a fuel system for buses that is based on composite cylinders and more than doubles the range of CNG buses. Buses all over the country are powered by this system. Before the programme, CNG buses in India could only go 350 km, but each of the five buses in the programme can go nearly 1,100 km.

Scope Analysis:

CNG Cylinders Market Competitive Landscape

The global CNG Cylinders market is moderately competitive and has witnessed new entrants due to the rising sales of CNG vehicles. Major players in the market include Hexagon Agility, Worthington Industries, 3M, Luxfer Group, Cobham Limited, Quantum Fuel Systems Technologies, CNG United, REL Inc, Time Technoplast Ltd, Steelhead Composites and others. The players in the market are known to incorporate numerous market strategies to achieve growth in the global compressed CNG Cylinders market; these include product launches, expansion and partnerships.

Recent Development:

• On 30 April 2019, Faber Industries has achieved the 0.75kg/I weight for type-1 cylinder. This weight reduction has lead OEM to pursue trades between weight and robustness of tank.
• On 29 March 2021, Hexagon Composites business company Hexagon Ability has bagged an order for CNG trucks from global logistics deliver company Ups. This order will lead to establishment of sustainable fleets in environmental and economic sense.

CNG Cylinders Market Segmentation

This section of the research on the market for CNG Cylinders provides in-depth information on the various segments at the country and regional levels. As a result, it is easier for the strategist to determine the demographics that should be targeted by the relevant product or service and the opportunities that are on the surface.

By Material

• Steel
• Glass Fiber
• Carbon Fiber
• Aluminum
• Others

By Vehicle

• Light Duty
• Medium Duty
• Heavy Duty

By Companies

• Hexagon Agility
• Worthington Industries
• 3M
• Luxfer Group
• Cobham Limited
• Quantum Fuel Systems Technologies
• CNG United
• REL Inc
• Time Technoplast Ltd
• Steelhead Composites