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Global Vehicle Use CNG Steel Cylinder Market Size By Type (CNG-1, CNG-2), By Application (Trucks, Car), By Region, And Segment Forecasts, 2023 to 2032
Report Id: 38291 | Published Date: Apr 2025 | No. of Pages: | Base Year for Estimate: Apr 2025 | Format:
The Global Vehicle Use CNG Steel Cylinder Market was valued at USD 3.8 billion in 2023 and is projected to surpass USD 6.5 billion by 2031, growing at a CAGR of 6.7% during the forecast period of 2023-2031. The market's growth is driven by the increasing adoption of compressed natural gas (CNG) as an alternative fuel in transportation due to its environmental benefits and cost efficiency. CNG steel cylinders are critical for storing and transporting CNG in vehicles safely, contributing to their growing demand.
Drivers:
Environmental Regulations: Stringent global
emissions regulations are encouraging the adoption of cleaner fuels like CNG,
bolstering the demand for CNG vehicles and associated components like steel
cylinders.
Economic Viability: CNG offers a
cost-effective fuel alternative, especially in regions with established CNG
infrastructure, leading to increased adoption by fleet operators and individual
vehicle owners.
Technological Advancements: Innovations in
cylinder design and manufacturing, such as lightweight steel composites, are
enhancing durability and vehicle efficiency.
Restraints:
High Initial Investment: The cost of
transitioning to CNG vehicles, including the installation of steel cylinders,
can deter some consumers, particularly in price-sensitive markets.
Limited Infrastructure: Inadequate CNG
refueling stations in some regions restrict the broader adoption of CNG
vehicles.
Opportunity:
Emerging Markets: Expanding infrastructure
in developing regions like Asia-Pacific and Latin America provides significant
growth opportunities for the market.
Hybrid Applications: Increasing focus on
hybrid CNG-electric vehicles presents a new avenue for market expansion.
Market
by System Type Insights:
The Type II Steel Cylinder segment
dominated the market in 2023, attributed to its balance of weight, safety, and
cost. These cylinders are expected to maintain their leadership during the
forecast period due to their widespread adoption in passenger and light
commercial vehicles.
Market
by End-use Insights:
The Commercial Vehicle segment emerged as
the largest revenue contributor in 2023, driven by the extensive use of CNG in
public transport and logistics. The segment's growth is fueled by government
incentives for greener transport solutions and the rising operational cost of
traditional fuels.
Market
by Regional Insights:
Asia-Pacific: Held the largest market share
in 2023 due to the region's high adoption rate of CNG vehicles and government
subsidies.
North America: Witnessing significant
growth, supported by advancements in CNG infrastructure and growing
environmental consciousness.
Europe: Expanding use in urban public
transportation systems to reduce carbon emissions.
Competitive
Scenario:
Key players include Luxfer Gas Cylinders,
Worthington Industries, Faber Industrie, Hexagon Composites, and Rama
Cylinders. These companies focus on technological innovation, strategic
partnerships, and geographical expansion to strengthen their market presence.
Scope
of Work – Global Vehicle Use CNG Steel Cylinder Market
|
Report
Metric |
Details |
|
Market Size (2023) |
USD 3.8 billion |
|
Projected Market Size (2031) |
USD 6.5 billion |
|
CAGR (2023-2031) |
6.7% |
|
Key Segments Covered |
By System Type (Type II, Type III),
End-use (Passenger Vehicles, Commercial Vehicles), Region |
|
Key Growth Drivers |
Environmental regulations, technological
advancements, cost efficiency of CNG |
|
Opportunities |
Expansion in emerging markets, hybrid
applications |
Key
Market Developments:
2023: Luxfer Gas Cylinders launched a new
lightweight Type II cylinder series, enhancing vehicle efficiency.
2024: Faber Industrie announced a
partnership with a leading automotive manufacturer to develop high-capacity CNG
storage systems.
2025: Hexagon Composites expanded
production capacity in Asia-Pacific to cater to rising regional demand.
FAQs:
What is the current market size of the
Global Vehicle Use CNG Steel Cylinder Market?
The market was valued at USD 3.8 billion in
2023.
What is the major growth driver of the
Global Vehicle Use CNG Steel Cylinder Market?
Stringent environmental regulations and the
economic viability of CNG as a fuel are major drivers.
Which is the largest region during the
forecast period in the Global Vehicle Use CNG Steel Cylinder Market?
Asia-Pacific is expected to remain the
largest region due to robust CNG infrastructure development.
Which segment accounted for the largest
market share in the Global Vehicle Use CNG Steel Cylinder Market?
The Commercial Vehicle segment accounted
for the largest market share in 2023.
Who are the key market players in the
Global Vehicle Use CNG Steel Cylinder Market?
Key players include Luxfer Gas Cylinders,
Worthington Industries, Faber Industrie, and Hexagon Composites.
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