Compressed Natural Gas Market to Grow with a CAGR of 9.19% through 2028

Rising prices of fossil fuels such as gasoline and diesel and surging carbon emissions from fossil fuels are likely to drive the market in the forecast period.

According to TechSci Research report, “Compressed Natural Gas Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Compressed Natural Gas Market stood at USD 14.08 billion in 2022 and is anticipated to grow with a CAGR of 9.19% in the forecast period. One of the primary drivers of the Compressed Natural Gas (CNG) market is the global emphasis on environmental sustainability. With concerns over climate change, air pollution, and the environmental impact of traditional fossil fuels, CNG has emerged as an attractive alternative due to its significantly lower emissions profile. CNG produces fewer greenhouse gas emissions, particularly carbon dioxide (CO2), when burned compared to gasoline and diesel fuels. Additionally, CNG combustion results in reduced emissions of harmful pollutants such as nitrogen oxides (NOx) and particulate matter, which contribute to smog and respiratory problems. As governments and international organizations implement stringent emissions regulations and strive to meet climate targets outlined in agreements like the Paris Agreement, CNG offers a practical solution to reduce the carbon footprint of the transportation sector. This growing global awareness of environmental issues and the need for sustainable energy sources has prompted governments and industries to invest in CNG infrastructure, promote CNG-powered vehicles, and develop policies that incentivize the adoption of CNG. As a result, CNG is positioned to play a crucial role in mitigating environmental challenges and contributing to a greener and more sustainable future.

Energy security and diversification represent another significant driver of the Compressed Natural Gas (CNG) market. Nations around the world are increasingly concerned about their dependence on imported oil and the vulnerability it creates to price volatility and geopolitical conflicts. CNG offers a domestic or regionally sourced alternative energy option that enhances energy security and reduces reliance on imported fossil fuels. Many countries possess abundant natural gas reserves, and CNG provides a means to utilize these resources efficiently for both transportation and industrial purposes. By diversifying their energy mix with CNG, nations can insulate themselves from global energy market fluctuations and reduce their susceptibility to supply disruptions. Furthermore, CNG complements renewable energy sources by serving as a cleaner bridge fuel during the transition to a more sustainable energy future. It can be used in conjunction with renewables to provide a reliable and environmentally friendly energy supply. Governments, in recognition of these benefits, are implementing policies that encourage CNG adoption, such as tax incentives, subsidies, and regulations that promote the use of domestically sourced natural gas. The pursuit of energy security and diversification will continue to drive the expansion of the global CNG market, contributing to greater economic stability and resilience in the energy sector.

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "Global Compressed Natural Gas Market.” 

The Global Compressed Natural Gas Market is segmented into source, end user and region. Based on source, The Associated Gas segment had the largest market share in 2022 & expected to maintain it in the forecast period. Associated Gas is produced alongside crude oil in oil reservoirs. When oil wells are drilled, they often release natural gas as a byproduct. This co-production of oil and gas makes associated gas readily available at the same location, simplifying the process of capturing and utilizing it for various purposes, including CNG production.  Since associated gas is produced alongside oil, capturing and processing it for CNG can be cost-effective. The cost of drilling, extracting, and transporting associated gas can be lower than for non-associated gas, which requires separate exploration and drilling efforts. This economic advantage has made associated gas a preferred source for CNG in many oil-producing regions. Flaring, the practice of burning off excess associated gas at oil wells, is both wasteful and environmentally harmful. Many governments and international organizations have imposed regulations and restrictions on gas flaring to reduce greenhouse gas emissions. Utilizing associated gas for CNG instead of flaring it aligns with environmental goals, making it a more attractive option for oil companies. Associated gas production tends to be stable and consistent over time as long as oil production continues. This reliability in supply makes it a dependable source for CNG production, particularly for meeting the demands of transportation and industrial sectors. Using associated gas for CNG, it ensures the efficient utilization of a valuable energy resource that might otherwise be wasted. This aligns with broader energy efficiency and resource conservation goals, which are of increasing importance in today's world.

Based on end user, The Medium Or Heavy Duty Trucks segment had the largest market share in 2022 and is projected to experience rapid growth during the forecast period. Medium and heavy-duty trucks typically have larger engines and higher fuel consumption compared to passenger vehicles. CNG is known for its cost-effective and eco-friendly nature. It can offer significant fuel savings, making it an attractive option for businesses that operate a fleet of such vehicles.  Many countries and regions have stringent emissions regulations for heavy-duty vehicles. CNG is considered a cleaner alternative to diesel or gasoline, as it emits fewer greenhouse gases and pollutants. This makes it an appealing choice for trucking companies looking to comply with environmental regulations. While the initial cost of converting or purchasing CNG-powered trucks may be higher than traditional diesel vehicles, the lower cost of CNG fuel can result in substantial long-term savings. Over time, these savings can outweigh the initial investment. Governments in various countries often provide incentives, tax breaks, or subsidies to encourage the adoption of CNG vehicles. These incentives can make it more financially attractive for businesses to invest in CNG trucks, particularly in regions where natural gas is abundant. The availability of CNG refueling infrastructure is crucial for the adoption of CNG-powered vehicles. In some regions, governments or private companies have invested in building an extensive CNG refueling network, which further encourages the use of CNG in medium and heavy-duty trucks. Medium and heavy-duty trucks are commonly used for long-distance hauling and transportation of goods. CNG can offer a longer driving range compared to electric vehicles, making it a practical choice for these applications. Many companies have set sustainability and emissions reduction goals. Switching to CNG trucks can be a part of their strategy to reduce their carbon footprint and meet these targets.  CNG technology for medium and heavy-duty trucks has been around for some time and is well-established. This reliability and experience with the technology make it a dependable choice for commercial applications. Reducing dependence on imported oil is a priority for many nations.

Major companies operating in the Global Compressed Natural Gas Market are:

• PJSC Gazprom
• Shell plc
• ExxonMobil Corporation
• TotalEnergies SE
• Chevron Corporation
• Eni S.p.A
• China National Petroleum Corporation
• China Petroleum & Chemical Corporation
• PetroChina Company Limited
• National Petroleum Limited,

Download Free Sample Report

Customers can also request for 10% free customization on this report.

“The Global Compressed Natural Gas market is expected to rise in the upcoming years and register a significant CAGR during the forecast period. The Global Compressed Natural Gas (CNG) Market is primarily driven by its cost-efficiency and environmental advantages in the medium and heavy-duty commercial vehicle sector. Medium and heavy-duty trucks are embracing CNG due to stringent emissions regulations, cost savings, government incentives, and a well-developed refueling infrastructure. Long-haul trucking benefits from CNG's extended range, while corporate sustainability goals and a desire to enhance energy security further propel adoption. CNG technology's established reliability and ongoing advancements in efficiency and emissions control make it a compelling choice. This dominance is influenced by a confluence of economic, environmental, and regulatory factors, shaping the future of the global CNG market. Therefore, the market of Compressed Natural Gas is expected to boost in the upcoming years.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

“Compressed Natural Gas Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Source (Associated Gas, Non-Associated Gas, Unconventional Sources), By End User (Light Duty Vehicles, Medium Or Heavy Duty Buses, Medium Or Heavy Duty Trucks), By Region, By Competition”, has evaluated the future growth potential of Global Compressed Natural Gas Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Global Compressed Natural Gas Market.

Contact

Mr. Ken Mathews

Techsci Research LLC

420 Lexington Avenue, Suite 300,

New York, United States- 10170

Tel: +13322586602

Email: [email protected]               

Website: www.techsciresearch.com