CNG Market Size, Share, Price Analysis, Trends and Industry Outlook Reportby Susan Hill Business Consultant
Global compressed natural gas (CNG) market is anticipated to reach USD 129.77 billion by 2020, according to a new study by Grand View Research, Inc. Growth of global natural gas vehicles (NGVs) industry coupled with increased automobile fuel efficiency attributed by 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 89.9% of total market volume in 2013. Increasing drilling activities particularly in Middle East is expected to ensure continuous supply of non-associated gases for CNG over the forecast period. Unconventional methods are expected to be the most lucrative source segment growing at an estimated CAGR of 28% from 2014 to 2020.
Further key findings from the study suggest:
- Global CNG demand
was 61,668 MCM in 2013 and is expected to reach 108,957.9 MCM by 2020,
growing at a CAGR of 8.5% from 2014 to 2020.
- Light duty
vehicles (LDV) were the largest CNG consuming segment and accounted for
48.3% of total market volume in 2013. Growth of passenger cars
particularly in emerging markets of BRICS is expected to drive this
segment. LDV is also expected to witness highest growth rate over the
forecast period. The segment is expected to grow at an estimated CAGR of
9.1% from 2014 to 2020.
- 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 46.6% of total market volume in 2013. Positive outlook on
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. Central & South America is
expected to be the fastest growing regional market for CNG at an estimated
CAGR of 17% from 2014 to 2020.
- 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).
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Created on Oct 16th 2019 05:42. Viewed 149 times.