Compressed Natural Gas (CNG) Market Worth USD 129.77 Billion By 2020 : Radiant Insights,Inc

Compressed Natural Gas (CNG) Market Worth USD 129.77 Billion By 2020 : Radiant Insights,Inc

Global compressed natural gas (CNG) market is anticipated to reach USD 129.77 billion by

2020. 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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