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Increasing demand for natural gas to fuel economic growth to boost the CNG Compressors Market

Gauri Cmi
Increasing demand for natural gas to fuel economic growth to boost the CNG Compressors Market

The global CNG Compressors Market is estimated to be valued at US$ 3.46 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Compressed natural gas (CNG) is a clear, non-toxic alternative fuel that can be used to power vehicles and equipment. CNG vehicles produce fewer harmful emissions compared to traditional gasoline or diesel vehicles. CNG compressors are critical equipment used to compress natural gas into a transportable form for fueling CNG vehicles. They are available in piston compressor and reciprocating compressor configurations suitable for various gas compression needs across industries such as automotive, transportation, power generation and utilities.

Market key trends:

One of the key trends driving the Global CNG Compressors Market Growth is the rising demand for natural gas, particularly in developing nations to fuel their economic growth and development. Countries are focusing on developing natural gas infrastructure to address rising energy requirements in a more sustainable manner. This is increasing investments into gas transportation and distribution networks, thereby boosting deployment of CNG compressors. Another major trend is the stringent emission regulations globally favoring cleaner alternative fuels like CNG to reduce vehicular pollution. Several countries are offering tax rebates and incentives for purchasing CNG vehicles and setting up CNG fueling stations to encourage their adoption rates. This is positively impacting sales of CNG compressors for fueling applications.

Porter’s Analysis

Threat of new entrants: The CNG compressors market requires large investments and established distribution channels to compete effectively. This creates moderate barriers for new companies to enter the market.

Bargaining power of buyers: Large buyers such as utilities and transportation fleets have significant bargaining power to negotiate lower prices from CNG compressor vendors.

Bargaining power of suppliers: A few leading companies dominate the supply of components such as motors and cylinders used in CNG compressors. This gives moderate bargaining power to suppliers.

Threat of new substitutes: Alternate fuels such as LNG and electricity pose a moderate threat as substitutes for CNG in transportation and power generation applications.

Competitive rivalry: The global CNG compressors market is moderately concentrated with the presence of large multinational companies. Competition is based on product design, reliability, pricing and customer support.

Key Takeaways

The global CNG compressors market is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing adoption of natural gas as a clean alternative fuel for vehicles and power plants. The market size for 2023 is estimated to be US$ 3.46 Bn.

Regional analysis: Asia Pacific dominates the global CNG compressors market and is expected to continue its lead over the forecast period. Countries such as India and China are actively promoting use of natural gas for transportation and power generation applications which is driving regional market growth.

Key players: Key players operating in the CNG compressors market are Atlas Copco, Ariel Corporation, Siemens Energy, Galileo Technologies, Bauer Compressors, Ingersoll Rand, ANGI Energy Systems, Bauer Group, Clean Energy Compression, CIMC Enric Group. Players are focusing on new product launches catering to commercial vehicles and industrial gas applications to strengthen their market position.



Read More: https://www.trendingwebwire.com/cng-compressors-market-share/

Gauri Cmi
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