India City Gas Distribution Market is Expected to grow at a robust CAGR of 12.5% through 2030
The increasing India City Gas
Distribution market is driven by Cost-Effective and Stable Energy Source, Shift
Towards Natural Gas in the Industrial Sector during the forecast period
2026-2030.
According to TechSci Research report, “India City Gas Distribution Market –
By Region, Competition, Forecast & Opportunities, 2020-2030F, The India City Gas Distribution Market was
valued at USD 9.7 Billion in 2024 and is expected to reach USD 19.84 Billion by
2030 with a CAGR of 12.5% during the forecast
period. In
addition to government initiatives and the rise in cleaner energy adoption,
other significant drivers for India’s City Gas Distribution (CGD) market
include the growing emphasis on environmental sustainability and energy
security. As India aims to reduce its carbon footprint and meet global climate
goals, the demand for natural gas as a cleaner alternative to coal and oil is
increasing. This aligns with the country's commitment to increasing the share
of natural gas in the energy mix from 6% to 15% by 2030.
The industrial sector’s shift towards
cleaner fuels. As industries, particularly in manufacturing and chemical
sectors, strive to meet stringent environmental regulations, natural gas is
becoming the preferred choice for energy needs due to its cost-effectiveness
and lower emissions. Furthermore, natural gas offers operational efficiency
advantages, driving its adoption in combined heat and power (CHP) systems.
The increased demand for CNG-powered
vehicles is also a key driver. With India aiming to reduce vehicular pollution,
CNG vehicles are seen as a sustainable alternative to petrol and diesel. The
expansion of CNG refueling stations in urban and rural areas further supports
this transition, contributing to market growth.
Browse over XX market data Figures
spread through XX Pages and an in-depth TOC on the " India
City Gas Distribution Market"
Based on Source of Supply, International
Pipeline Trade segment dominated in the India City Gas Distribution Market, The
International Pipeline Trade segment has emerged as a dominant force in the
India City Gas Distribution (CGD) market, primarily due to the growing demand
for natural gas and the country's reliance on external suppliers to meet its
energy needs. As India continues its shift toward cleaner energy sources, the
need for natural gas has increased significantly, particularly in urban areas
where city gas networks are expanding rapidly. With domestic natural gas
production not being sufficient to meet the demand, India has turned to
international pipeline trade to supplement its supply. This segment involves
the import of natural gas through pipelines from neighboring countries like
Myanmar and Bangladesh, which offer a reliable and cost-effective solution to
bridge the supply-demand gap.
One of the primary drivers for the
growth of the international pipeline trade segment in India is the country’s
commitment to reducing its carbon footprint and transitioning to cleaner fuels.
Natural gas, being more environmentally friendly compared to coal and oil, has
been prioritized in India's energy mix. The cross-border pipeline projects have
therefore become an integral part of India’s energy strategy. Notably, the
India-Myanmar gas pipeline and potential projects involving Iran and Tajikistan
are expected to increase the flow of natural gas into the country, further
supporting the growth of the CGD market.
Additionally, international pipeline
trade offers cost-competitive access to natural gas, making it a preferred
choice for India’s City Gas Distribution networks. The pipeline infrastructure
ensures a stable, continuous, and uninterrupted supply of gas, reducing the
need for expensive and time-consuming imports of Liquefied Natural Gas (LNG).
This enhances the reliability and affordability of natural gas, particularly
for industries and residential consumers who are switching to piped natural gas
(PNG) for daily use.
The expansion of the international
pipeline trade segment also helps India achieve greater energy security by
diversifying its sources of natural gas. This is crucial for a country that is
increasingly dependent on energy imports, particularly as domestic natural gas
reserves deplete. International pipeline trade helps stabilize prices by
providing an alternative to the more volatile LNG market, which is subject to
global demand fluctuations and geopolitical events.
Furthermore, government policies and
initiatives such as the Pradhan Mantri Urja Ganga and Indian Gas Exchange have
promoted cross-border natural gas trade and the development of infrastructure
for efficient distribution. The Indian government’s focus on expanding the
national gas grid further supports the role of international pipeline trade by
ensuring the gas reaches various regions across the country, including remote
and underserved areas.
The international pipeline trade segment
plays a pivotal role in shaping the India CGD market, addressing the growing
demand for natural gas while providing a more reliable and cost-effective
supply. With ongoing investments in infrastructure and cross-border
collaboration, this segment is expected to remain a key player in India's
transition to a cleaner, more sustainable energy future.
Key market players in the India City Gas
Distribution market are: -
- Gujarat Gas Limited (GGCL)
- Indraprastha Gas Limited (IGL)
- GAIL Gas Limited
- Mahanagar Gas Limited (MGL)
- Adani Gas Limited
- Maharashtra Natural Gas Limited (MNGL)
- Central U.P. Gas Limited (CUGL)
- Bhagyanagar Gas Limited (BGL)
- Tripura Natural Gas Company Limited
(TNGCL)
- Sabarmati Gas Limited (SGL)
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“The India City Gas Distribution (CGD) market
presents significant opportunities, driven by expanding infrastructure, rising
demand for cleaner energy, and government initiatives. One key opportunity lies
in the expansion of natural gas pipelines to underserved areas, particularly in
tier-2 and tier-3 cities. With the government's focus on enhancing access to
clean energy through initiatives like the Pradhan Mantri Urja Ganga project,
there is a growing market for piped natural gas (PNG) in residential and
commercial sectors. Additionally, the rising adoption of compressed natural gas
(CNG) for transportation offers immense potential. As cities face mounting
pollution levels, the shift to CNG-powered vehicles, including buses,
auto-rickshaws, and private cars, is expected to grow rapidly. This trend,
coupled with the expansion of CNG refueling infrastructure, presents a valuable
opportunity for CGD companies to capture a larger share of the transportation
fuel market. Moreover, the push towards cleaner industrial fuel solutions
offers growth prospects. Industrial sectors such as chemicals, textiles, and
manufacturing are increasingly switching to natural gas for its cost efficiency
and environmental benefits. With India aiming for more sustainable energy
solutions, CGD companies have an opportunity to meet the rising demand for
natural gas across various sectors.Top
of Form” said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based Global management consulting firm.
“India City Gas Distribution Market Segmented By Type (Compressed Natural Gas, Piped
Natural Gas), By Source of Supply (Domestically Supplied, International
Pipeline Trade), By End-User (Industrial, Residential, Commercial, Automotive),
By Region, Competition, Forecast and Opportunities, 2020-2030F,”
has evaluated the future growth potential of India City Gas Distribution 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 take sound investment decisions. Besides
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in India City Gas Distribution
Market.
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