Automotive Gas Cylinder Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Type 1, Type 2, Type 3, Type 4, Type 5), By Vehicle Type (Passenger, Light Commercial, Heavy Commercial), By Material Type (Steel, Aluminium, Composite), By Region & Competition, 2019-2029F

Global Automotive Gas Cylinder Market was valued at USD 1.50 Billion in 2023 and is expected to reach USD 1.99 Billion by 2029 with a CAGR of 4.83% during the forecast period. The global automotive gas cylinder market is experiencing significant growth, driven by the increasing shift towards alternative fuels like compressed natural gas (CNG), liquefied petroleum gas (LPG), and hydrogen. Rising environmental concerns and stringent emission regulations have pushed automakers to adopt cleaner fuels, boosting the demand for gas cylinders. Governments worldwide are encouraging the adoption of vehicles powered by CNG, LPG, and hydrogen to reduce carbon emissions and dependency on traditional fossil fuels. The rising cost of gasoline and diesel, along with incentives and subsidies for alternative fuel vehicles, has made these vehicles more attractive to consumers, further propelling market growth. Advances in gas cylinder technology, such as lightweight materials and enhanced pressure-handling capabilities, have made these cylinders safer and more efficient, stimulating adoption.

Key Market Drivers

Shift Towards Alternative Fuels

One of the primary drivers of the global automotive gas cylinder market is the growing adoption of alternative fuels like compressed natural gas (CNG), liquefied petroleum gas (LPG), and hydrogen. As environmental concerns and government regulations regarding emissions intensify, automakers and consumers are seeking cleaner, more sustainable fuel options. CNG and LPG, for instance, produce lower carbon emissions compared to gasoline and diesel, making them more attractive to environmentally conscious consumers. Hydrogen powered vehicles, though still in the early stages, are also gaining attention for their zero-emission potential. The rise of these alternative fuels necessitates the use of specialized gas cylinders, driving demand in the market.

Government Regulations and Incentives

Stringent emission norms and government policies promoting clean energy adoption are key drivers for the automotive gas cylinder market. Many governments are implementing strict emission standards to combat air pollution and reduce reliance on fossil fuels. As part of this initiative, financial incentives, such as subsidies for alternative fuel vehicles, tax exemptions, and rebates, are being offered to both manufacturers and consumers. These incentives have significantly boosted the adoption of CNG, LPG, and hydrogen vehicles, driving the need for high-quality, durable gas cylinders. Regulatory frameworks, particularly in the automotive industry, are continuously evolving to prioritize sustainability, further strengthening market growth.

Rising Fuel Prices and Cost-Effectiveness of CNG and LPG

The escalating prices of conventional fuels like gasoline and diesel are prompting a shift toward more cost-effective alternatives such as CNG and LPG. For consumers and fleet operators, the lower cost of CNG and LPG, compared to conventional fuels, offers significant savings over the long term. This economic advantage is particularly important in regions where fuel costs are high, making CNG and LPG-powered vehicles a more viable option. For instance, In India the CNG fuel consumption has risen by 15% and per day CNG consumption is 23 tonnes and by next year it is expected to go upto 50 tonnes. Gas cylinders designed for these fuels have become essential for vehicle manufacturers, especially in sectors like public transport and commercial vehicles, where operating costs play a critical role in decision-making.

Technological Advancements in Gas Cylinders

Technological innovations in gas cylinder materials and designs have greatly enhanced the performance and safety of automotive gas cylinders. Advances such as Type 4 cylinders, made from lightweight composite materials like carbon fibre, are gaining popularity due to their high-pressure tolerance and reduced weight. These cylinders improve the overall fuel efficiency of vehicles, extending their range while maintaining safety standards. New safety features like pressure relief devices and enhanced anti-leak systems have made gas cylinders more reliable, boosting consumer confidence in alternative fuel vehicles. These innovations are helping accelerate the adoption of gas-powered vehicles.

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Key Market Challenges

High Cost of Composite Cylinders

One of the most significant challenges in the global automotive gas cylinder market is the high cost of advanced composite materials used in cylinders, particularly Type 3 and Type 4 cylinders. These cylinders are typically made from carbon fibre or glass fibre reinforced plastics, which are much lighter than steel but more expensive to manufacture. The high cost can discourage automakers and consumers from adopting gas-powered vehicles, especially in price-sensitive markets. While composite cylinders offer superior performance in terms of weight reduction and fuel efficiency, the premium pricing can limit their mass adoption. This challenge is particularly pronounced for budget conscious vehicle segments like commercial fleets, taxis, and passenger cars, where cost-effectiveness is critical.

Limited Hydrogen Refuelling Infrastructure

While hydrogen-powered vehicles are gaining attention as a sustainable alternative to conventional fuels, the lack of an established hydrogen refuelling infrastructure poses a significant barrier to their adoption. Hydrogen fuelling stations are still sparse, particularly outside of developed markets. This limits the practicality of hydrogen-powered vehicles and, by extension, reduces the demand for hydrogen gas cylinders. Until governments and private players make substantial investments in building a widespread and reliable refuelling network, the adoption of hydrogen vehicles and the associated gas cylinder market will likely remain constrained. The logistical challenges of transporting and storing hydrogen also contribute to this issue, adding complexity to the infrastructure development process.

Safety Concerns and Stringent Regulations

Safety remains a critical concern in the automotive gas cylinder market due to the high pressure at which these cylinders operate. CNG, LPG, and hydrogen cylinders must adhere to strict safety regulations to prevent accidents, such as leaks, explosions, or ruptures. The potential for catastrophic failures has led to stringent government regulations governing the manufacturing, handling, and installation of these cylinders. Meeting these regulatory standards requires continuous testing, certification, and adherence to quality control, all of which increase manufacturing costs. Any high-profile safety incidents could erode consumer trust in gas-powered vehicles, slowing market adoption. The challenge lies in balancing performance and cost while ensuring the highest levels of safety.

Competition from Electric Vehicles (EVs)

The growing popularity of electric vehicles (EVs) presents a competitive challenge to the automotive gas cylinder market. As governments and automakers invest heavily in EV technology, the focus on gas-powered vehicles could diminish. EVs offer zero emissions and, with improvements in battery technology and charging infrastructure, they are increasingly seen as the future of sustainable transportation. While CNG, LPG, and hydrogen-powered vehicles provide an alternative to conventional fuels, they are competing with EVs for market share in the clean energy space. The automotive gas cylinder market needs to differentiate its value propositions, such as lower operating costs and infrastructure requirements, to remain competitive in this evolving landscape.

Key Market Trends

Increasing Adoption of Composite Cylinders

One of the key trends in the global automotive gas cylinder market is the growing adoption of composite gas cylinders, particularly Type 3 and Type 4 cylinders. These cylinders, made from lightweight materials such as carbon fibre and glass fibre composites, offer significant advantages over traditional steel cylinders. They reduce the overall weight of the vehicle, enhancing fuel efficiency and vehicle range, which is crucial for alternative fuel vehicles like CNG and hydrogen-powered cars. Composite cylinders also have a higher-pressure tolerance, allowing for more fuel storage, which further improves vehicle performance. The rising demand for lightweight and high-performance vehicles is pushing automakers to integrate these advanced gas cylinders, positioning composite cylinders as a pivotal component in the market.

Rising Popularity of Hydrogen Fuel Cells

Hydrogen-powered vehicles are emerging as a promising solution for reducing emissions, and this trend is gaining momentum within the automotive gas cylinder market. As governments and industries invest in hydrogen as a clean energy source, demand for hydrogen gas cylinders is rising. Hydrogen fuel cells, which convert hydrogen into electricity, require durable and high-pressure cylinders for safe storage. The development of hydrogen-powered buses, trucks, and passenger vehicles is driving the need for advanced gas cylinders capable of withstanding high pressures. As the hydrogen fuel infrastructure expands, this trend is expected to grow, making hydrogen a key area of focus in the gas cylinder market.

Advancements in Cylinder Safety Technology

Safety remains a top priority in the automotive gas cylinder market, and there is a growing trend towards integrating advanced safety features in gas cylinders. Manufacturers are increasingly adopting pressure relief devices, anti-leak systems, and other safety mechanisms to minimize the risk of accidents, such as cylinder explosions or leaks. These safety enhancements are especially important for high-pressure cylinders used in CNG and hydrogen vehicles. The inclusion of real-time monitoring systems, which track the pressure and condition of the cylinders, is becoming more common. These innovations are critical for gaining consumer trust and meeting the stringent safety standards imposed by regulatory bodies, ensuring long-term market growth.

Development of CNG Infrastructure

The global expansion of CNG infrastructure is a major trend driving the automotive gas cylinder market. Many countries are investing heavily in building CNG refuelling stations to support the growing number of CNG-powered vehicles. This infrastructure development is essential for the adoption of CNG vehicles in both the passenger and commercial vehicle segments. As the refuelling network becomes more widespread, consumers and fleet operators are more likely to opt for CNG vehicles, increasing the demand for gas cylinders. This trend is particularly strong in emerging markets where CNG offers a cost-effective and environmentally friendly alternative to traditional fuels, driving further market expansion.

Segmental Insights

Product Type Insights

Type 4 gas cylinders are the fastest-growing segment in the Automotive Gas Cylinder Market due to their lightweight design and superior performance. These cylinders are made using a plastic liner fully wrapped with composite materials, such as carbon fibre, which significantly reduces their weight compared to traditional steel or aluminium cylinders. This weight reduction is crucial in enhancing vehicle fuel efficiency and range, especially in alternative fuel vehicles like CNG and hydrogen-powered cars, where reducing overall vehicle weight translates directly into better performance.

Another factor driving the growth of Type 4 cylinders is their high-pressure tolerance. These cylinders are capable of storing gas at much higher pressures, allowing for more fuel to be stored in a smaller, lighter cylinder. This makes them ideal for vehicles that require extended driving ranges, such as commercial trucks, buses, and hydrogen-powered vehicles. The combination of lightweight materials and high-pressure capacity offers a perfect balance of performance, efficiency, and safety.

The growing focus on sustainability and reducing emissions has accelerated the adoption of alternative fuel vehicles, further boosting the demand for advanced gas cylinders like Type 4. As automakers seek to meet stricter emission regulations and improve the efficiency of their vehicles, Type 4 cylinders have become a preferred choice due to their ability to reduce fuel consumption and emissions. Combination of lightweight materials, high pressure capacity, and increasing demand for fuel-efficient vehicles has positioned Type 4 cylinders as the fastest-growing segment in the automotive gas cylinder market.

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Regional Insights

Asia-Pacific dominated the global automotive gas cylinder market due to several key factors that drove its growth. The region experienced rapid economic development and urbanization, which led to increased vehicle ownership and a rising demand for alternative fuels. Countries like India and China were particularly prominent, with extensive investments in the infrastructure needed for compressed natural gas (CNG) and liquefied petroleum gas (LPG) refuelling. This investment significantly boosted the adoption of CNG and LPG vehicles, which in turn drove the demand for automotive gas cylinders.Stringent government regulations and policies aimed at reducing emissions accelerated the adoption of cleaner fuels in Asia-Pacific. Governments in these countries actively promoted the use of CNG and LPG as alternatives to gasoline and diesel due to their lower emissions and cost-effectiveness. Substantial incentives and subsidies were available for vehicles using these fuels, further encouraging their adoption and increasing the demand for gas cylinders.

Recent Developments

• In 2024, Vanguard Group Inc. strategically increased its stake in Luxfer Holdings PLC, acquiring 2,523 shares, raising its total ownership to 4.98% of the company's outstanding shares. This move reflects a potential confidence in Luxfer's market performance and growth trajectory.
• In 2024, Confidence Group announced the launch of advanced Type-4 hydrogen cylinders, becoming India's first company to import this technology. These cylinders, lighter and corrosion-resistant, will support the green hydrogen market and sustainable energy goals.

Key Market Players

•          Luxfer Holdings PLC
• Ryder Industries Ltd.
• Hexagon Purus ASA
• Stellantis N.V.
• Worthington Cylinders GmbH
• Nexteer Automotive Corporation
• Everest Kanto Cylinder Ltd.
• Krosaki Harima Corporation
• Chengdu Yachuan Gas Equipment Co., Ltd.
• Stelrad Group plc

Report Scope:

In this report, the Global Automotive Gas Cylinder Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·           Automotive Gas Cylinder Market, By Product Type:

o   Type 1

o   Type 2

o   Type 3

o   Type 4

o   Type 5

·         Automotive Gas Cylinder Market, By Vehicle Type:

o   Passenger

o   Light Commercial

o   Heavy Commercial

·         Automotive Gas Cylinder Market, By Material Type:

o   Steel

o   Aluminium

o   Composite

·         Automotive Gas Cylinder Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe & CIS

§  France

§  Germany

§  Spain

§  Italy

§  United Kingdom

o   Asia-Pacific

§  China

§  Japan

§  India

§  Vietnam

§  South Korea

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

§  Kuwait

§  Egypt

o   South America

§  Brazil

§  Argentina

§  Colombia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Automotive Gas Cylinder Market.

Available Customizations:

Global Automotive Gas Cylinder Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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