Compressed Natural Gas (CNG) Tanks/Cylinders Market Size, Share, Growth, Trends, and Global Industry Analysis: By Raw Material (Glass Fiber, Carbon Fiber, Metal), By Type (Type 1, Type 2, Type 3, Type 4, and Type 5), By Application (Automotive, Marine, Military, Aerospace, Locomotive, Industrial, and Others), and Region Forecast 2020-2031

Compressed Natural Gas (CNG) Tanks/Cylinders Market size was valued at US$ 2,187.3 million in 2023 and is anticipated to grow at a CAGR of 4.5% from 2024-2030. The market refers to the industry focused on the manufacturing, distribution, and sale of storage containers specifically designed to hold compressed natural gas. Compressed natural gas is a cleaner and more environmentally friendly alternative to traditional gasoline or diesel fuels, and it is used as a fuel source for vehicles, particularly in the transportation sector. CNG tanks or cylinders are crucial components in vehicles that run on compressed natural gas, providing a safe and efficient means of storing and transporting this alternative fuel. The transportation and logistics sector majorly drives the market. The transportation sector, including public transport, commercial fleets, and individual vehicles, is a significant user of the CNG. Fleet operators and logistics companies are increasingly adopting CNG-powered vehicles to reduce fuel costs and emissions.

Moreover, aviation and marine industry also contribute the growth of the market. The aviation and maritime industries are exploring the use of CNG as a fuel for certain vehicles and vessels. This includes smaller aircraft, ferries, and ships operating in coastal or inland waters. However, CNG tanks require more space in a vehicle compared to traditional fuel tanks. This can impact vehicle design and interior space, influencing consumer preferences, which ultimately may limit the market expansion. Meanwhile, governments across the world are increasingly promoting cleaner transportation alternatives to reduce emissions and dependence on fossil fuels. Subsidies, tax benefits, and grants for CNG-powered vehicles and refueling infrastructure can create opportunities for the expansion of the market growth. Collaborations between vehicle manufacturers, refueling station providers, and energy companies accelerate the development of CNG infrastructure, making the transition more attractive to consumers. For instance, in August 2021, Hanwha Solutions Corp.’ s newly acquired tank subsidiary signed a $260 million deal with U.S. energy firm Sunbridge Energy Services to provide storage tanks for compressed natural gas (CNG).

Key Developments

• In April 2022, Hexagon acquired 40% stake in Cryoshelter GmbH to enhance its portfolio of clean fuel solutions.
• In November 2022, Chevron U.S.A. Inc., a subsidiary of Chevron Corporation), acquired full ownership of Beyond6, LLC (B6) and its network of 55 compressed natural gas (CNG) stations across the United States.