Compressed Natural Gas Market To Reach $345.3 Billion By 2030

Compressed Natural Gas Market Growth & Trends

The global compressed natural gas market size is anticipated to reach USD 345.3 billion by 2030, registering a CAGR of 11.7% from 2024 to 2030, according to a new report by Grand View Research, Inc. Growth of global natural gas vehicles (NGVs) industry coupled with increased automobile fuel efficiency attributed by compressed natural gas (CNG) is anticipated to remain a key driving factor for the global market. Government subsidiaries in form of financial incentives particularly in Asia Pacific and Latin America is also expected to have a positive impact on the market growth. Positive outlook on exploration of unconventional resources including shale gas particularly in U.S. and China is expected to provide growth opportunities for market participants. High initial investment for CNG automobile storage tanks is expected to remain a key challenge for market participants over the forecast period. Increasing R&D expenditure by automobile manufactures on developing dual fuel engines is expected to remain a critical success factor over the next six years.

Non-associated gas emerged as leading source for CNG and accounted for 55.0% of total market volume in 2023. Increasing drilling activities particularly in Middle East is expected to ensure continuous supply of non-associated gases for CNG over the forecast period.

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Compressed Natural Gas Market Report Highlights

• Light duty vehicles (LDV) were the largest CNG consuming segment and accounted for 64.5% of total market volume in 2023. Growth of passenger cars particularly in emerging markets of BRICS is expected to drive this segment. LDV is also expected to witness the highest growth rate over the forecast period. The segment is expected to grow at an estimated CAGR of 11.5% from 2024 to 2030.

• Asia Pacific was the leading regional CNG market and is expected to continue its dominance over the next six years in the global market. The region accounted for 48.3% of total market volume in 2023. Positive outlook on the automotive industry coupled with government support to promote the use of alternative transportation fuel particularly in China and India is expected to drive the regional CNG market.

• Highly fragmented CNG industry participants compete on the basis of price differentiation across various regions. Major industry participants operating in the global CNG market include National Iranian Gas Comp, Indraprastha Gas Ltd (IGL), China Natural Gas Inc and Mahanagar gas Ltd (MNGL).

Compressed Natural Gas Market Segmentation

Grand View Research has segmented the global compressed natural gas market report based on source, application, end use, and region:

Compressed Natural Gas Source Outlook (Revenue, USD Billion, 2018 - 2030, Volume in Million Tons)

• Refinery

• Associated Gas

• Non Associated

Compressed Natural Gas Application Outlook (Revenue, USD Billion, 2018 - 2030, Volume in Million Tons)

• Residential / Commercial

• Chemical

• Industrial

• Auto Gas

• Refinery

• Other Applications

Compressed Natural Gas End Use Outlook (Revenue, USD Billion, 2018 - 2030, Volume in Million Tons)

• Light Duty Vehicles

• Medium / Heavy Duty Trucks

• Medium / Heavy Duty Buses

• Other End Uses

Compressed Natural Gas Regional Outlook (Revenue, USD Billion, 2018 - 2030, Volume in Million Tons)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Russia

  • Netherlands

  • Norway

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • South Korea

  • Indonesia

  • Malaysia

• Latin America

  • Brazil

  • Argentina

  • Venezuela

• Middle East and Africa

  • South Africa

  • Saudi Arabia

  • UAE

  • Qatar

  • Kuwait

List of Key Players of Compressed Natural Gas Market

• ExxonMobil Corporation

• BP plc

• TotalEnergies SE

• Chevron Corporation

• Eni S.p.A.

• Equinor ASA

• ConocoPhillips Company

• Cabot Oil & Gas LLC

• Gazprom PAO

• Shell plc

• Occidental Petroleum Corporation

• JW Power Company