Wednesday 6 July 2016

Compressed Natural Gas Market: LD Vehicles Gain Dominant Share, Market to Register a High Growth Rate

A new Transparency Market Research report states that the global compressed natural gas market was worth US$56.32 bn and is predicted to reach US$126.19 bn by 2020, by expanding at a healthy 12.30% CAGR between 2014 and 2020. The title of the report is “Compressed Natural Gas Market - Global CNG Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020”.
Natural gas primarily comprises methane and is obtained from gas wells or during the production of crude oil. Compressed natural gas (CNG) is odorless, non-corrosive, and clear and is manufactured by the compression of natural gas. CNG is employed majorly as a transportation fuel and involves lower emissions in comparison to diesel or gasoline. Currently, CNG is being utilized as the most preferred choice of fuel in automobiles. A sulfur-based odorant is usually added to CNG for facilitating leak detection.
As suggested in this report, the reduced prices of CNG in comparison to diesel and gasoline are propelling the growth of the global compressed natural gas market. In addition, the favorable initiatives taken by governments globally for controlling vehicle emission and the other incentive-based polices being introduced for raising the adoption of CNG will also impact the market positively. The rising of trade opportunities owing to the expansion of the Panama Canal and the increasing probability of shale gas production within Latin America and Asia Pacific are the prime opportunities seen in the market.
On the other hand, the increasing demand for LNG as a substitutes for CNG by the owners of large long haul vehicles and the absence of an efficient refueling infrastructure globally may inhibit the development of the compressed natural gas market in the coming years.
On the basis of source analysis, the report segments the market into non-associated gas, associated gas, and unconventional methods. Amongst these, the segment of non-associated gas led the market in 2013 with a share of approximately 90% and is poised to be a lucrative segment in the forecast period. On the other hand, the segment of associated gas is poised to lose some of its market share by the end of the forecast horizon. This is owing to the depleting oil wells and the reducing activities of crude oil production globally. On the other hand, the segment of conventional gas is also a promising segment within the market for compressed natural gas.
Download the Compressed Natural Gas Industry Fact Sheet by 2020 @http://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=1072
By end use, the compressed natural gas market is segmented into LD Vehicles, MD/HD Buses, MD/HD Trucks, and others. Of these, LD vehicles held a share of approximately 93% in the market on the basis of the global CNG vehicle fleet in 2013. On the basis of consumption, this segment held a share of 50.2% in the market in the same year.
By geography, the report segments the market into Europe, North America, the Middle East and Africa, Asia Pacific, and South & Central America. Amongst these, the North America compressed natural gas market is predicted to emerge as the most lucrative market in the coming years. This is owing to the availability of cheap domestic natural gas in the U.S., which provides high incentives to truck and fleet owners for converting it to CNG.
As per the report, the key players operating in the market are National Iranian Gas Company, Indraprastha Gas Ltd, and OAO Gazprom, among others.
The market has been segmented as follows:
CNG Market: Source Analysis
  • Associated Gas
  • Non-Associated Gas
  • Unconventional Methods
CNG Market: End-User Analysis
  • LD Vehicles
  • MD/HD Buses
  • MD/HD Trucks
  • Others
CNG Market: Regional Analysis
  • North America
  • Europe
  • Asia-Pacific
  • The Middle East & Africa
  • South & Central America

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