CNG Compressor Market Size, Share, and Industry Analysis By Technology (Electric Driven Compressors and Gas Driven Compressors), By Type (Rotary Compressors and Centrifugal Compressors), By End-User (Natural Gas Refueling Station, Natural Power Plants, Industrial, and Others), and Regional Forecast till 2032

The global CNG compressor market is growing as it plays a crucial role in ensuring cleaner alternatives to gasoline and diesel, producing lower levels of pollutants and greenhouse gases. Increasing environmental regulations and concerns about climate change drive the demand for cleaner fuels.

• The Gujarat government has taken a unique approach to developing CNG stations through the PPP model to promote a green environment and green mobility in the state. For this purpose, the government has approved the CNG Scheme and Full Dealer Demonstration (FDODO), which Gujarat Gas Limited and Sabarmati Gas Limited will implement.

CNG Compressor Market Driver

Rising Prices for other Fuel Types make CNG Cost-Efficient Driving the Market Growth

CNG is often cheaper than gasoline and diesel, which attracts both individual consumers and fleet operators looking to reduce fuel costs. This economic advantage drives the adoption of CNG vehicles and the need for more CNG compressors.

• As of February 2024, the price of CNG at gas stations has dropped to EUR 1.189 (USD 1.25) per kilo. This decrease in CNG pricing, in addition to resulting in increased savings for CNG vehicle owners, is also anticipated to boost the sales of new CNG vehicles throughout different segments, including both passenger and commercial vehicles.

CNG Compressor Market Restraint

Limited Refueling Infrastructure in Several Countries May Hinder Market Progress

In many countries, the availability of CNG refueling stations is limited compared to conventional fuel stations, which can deter consumers and fleet operators from adopting CNG vehicles. Expanding the network of refueling stations requires substantial investment and can be challenging in regions with low demand or difficult logistics.

• The Nigerian National Petroleum Corporation Limited (NNPCL) has announced that Compressed Natural Gas (CNG) is 40% cheaper than Premium Motor Spirit (PMS) in Nigeria. Hence, 12 Compressed Natural Gas (CNG) stations in Lagos and Abuja have been commissioned to reduce the cost of transportation in the country. The state-of-the-art CNG stations are capable of dispensing more than six million standard square feet of CNG per day, serving fifteen thousand vehicles per day.

CNG Compressor Market Opportunity

Soaring Regulations for Emission Reduction to Drive Industry Expansion

Growing regulatory pressure to reduce emissions and improve air quality is driving the adoption of CNG as a cleaner alternative to gasoline and diesel. This creates a demand for CNG compressor for both refueling infrastructure and industrial applications. Further, governments across the globe are offering subsidies, tax incentives, and grants to promote the use of CNG and build the necessary infrastructure, including compressors.

Segmentation

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Countries


• Latest Technological Advancements


• Insight on Regulatory Landscape


• Porters Five Forces Analysis


• Impact of COVID-19 on the Market 

Analysis by Technology

Based on technology, the market is subdivided into electric driven compressors and gas driven compressors.

Electric-driven CNG compressors run on electricity and are often preferred for lower operating costs and environmental benefits. However, gas-based CNG engines are powered by natural gas and are suitable for applications where proper gas is available.

Analysis by Type

Based on type, the market is fragmented into rotary compressors and centrifugal compressors.

Rotary-type CNG compressors are efficient and suitable for many applications. It includes rotary screws, rotary vane, rotary sliding, and others, which all have efficiency, reliability, and suitability for various applications. The growth of CNG infrastructure, technological advancements, and energy efficiency and sustainability opportunities for rotary compressors pushes segmental expansion. 

Analysis by End-User

On the basis of end-user, the market is divided into natural gas refueling station, natural power plants, industrial, and others.

CNG compressors are used at refueling stations to compress natural gas to high pressures, enabling it to be stored and dispensed into CNG vehicles. They help ensure the effective compression and distribution of natural gas, facilitating quick refueling.

• In March 2024, India announced that it has 17,500 more CNG stations across the country. The network has been developed for the expansion of the ancillary industries, including the manufacturing of CGD meters, dispensers, and compressors. 

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America has well-established CNG compressors due to the presence of substantial natural gas resources and a developed infrastructure.

• Sapphire Gas Solutions and Bauer Compressors, Inc. announced a national partnership between the two industry leaders. Through this partnership, Sapphire will be able to distribute, manufacture, and serve a range of new gas turbines manufactured by Bauer and supply OEM parts to serve many industries in Canada, the U.S., and Mexico.

Major markets of CNG compressors in Europe include Italy, Germany, France, and the U.K. which have been leading the adoption of CNG as an alternative fuel. The market is experiencing growth due to the increasing adoption of CNG vehicles and investments in refueling infrastructure.

Government policies, economic benefits, and the need for improved air quality drive the CNG compressor market in Asia Pacific. Technological advancements and the expansion of CNG infrastructure present significant opportunities for growth.

• Myanmar Oil and Natural Gas Corporation expanded the availability of CNG for vehicles. Of the 41 CNG stations in Yangon, 17 of them have 38 safe CNG dispensers from Italy, and six stations use Intermech CNG machines from New Zealand.

The Middle East & Africa has an abundance of natural gas reserves. Therefore, many countries such as Iran, Saudi Arabia, the UAE, and Qatar are increasingly investing in CNG infrastructure and vehicles. Middle Eastern countries are diversifying their economies away from oil dependency.

The market is growing in Latin America as several governments and businesses recognize the advantages of CNG, including cost savings and environmental benefits. The growth is driven by increased CNG vehicle adoption and investments in refueling infrastructure.

Key Players Covered

The global CNG Compressor market is fragmented, with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Atlas Copco (Sweden)


• GE Oil & Gas (U.S.)


• Ariel Corporation (U.K.)


• Siemens Energy (Germany)


• Ingersoll Rand (U.S.)


• Elliott Company (U.S.)


• Gardner Denver Nash (U.S.)


• Sullair LLC (U.S.)


• Wartsila (Finland)


• Xian Shaangu Power (Indonesia)


• MAN Turbo (Germany)


• Galileo Technologies (U.S.)

Key Industry Developments

• In August 2021, Hanwha Solutions, an energy, petrochemical, and real estate services company signed a contract with Sunbridge Energy Services, an energy company based in Texas, U.S., and Hanwha Cimarron, a well developer. This project includes the provision of separate storage tanks for compressed natural gas (CNG).


• In April 2021, Galileo Technologies, a provider of customized solutions, announced the creation of Galileo Compression USA, a technology-based business unit in the U.S. with a focus on cost-effective solutions. Galileo Compression, a leading global manufacturer and service provider, has more than thirty years of experience.