Compressed natural gas (CNG) has gained popularity in the market and is projected to reach $36,035 million by 2023 growing at a CAGR of 14.1% from 2017 to 2023. Its eco-friendly nature, better performance advantages, and reduced maintained cost of the engine, according to a report by Allied Market Research, is making CNG to skyrocket.
At present, the market is driven by low-cost of CNG with growth in energy requirement across the world. Continuous exploration for non-conventional sources of energy and growth of the lager shale gas market also fuel the market, says the report.
Furthermore, stringent government regulations on account of environmental concern and increase in subsidy among various regions such as Asia-Pacific and LAMEA has advanced the demand for CNG in the automotive fuel market, points out Allied Market Research. However, the initial investment cost is too high and limited number of fuel stations restrain the growth of the market.
The light duty vehicles in end user has the highest growth rate in terms of value due to the development of better and affordable storage tanks for CNG in light duty vehicles, according to the research.
Asia-Pacific is the largest consumer of compressed natural gas as transit buses and delivery & refuse truck fleets prefer CNG over fossil fuel. In addition, the Asia-Pacific and Europe region collectively accounted for approximately three-fourths of the global market share by revenue in 2016. Emerging economies such as China, India, Pakistan, and Argentina are estimated to dominate the market for the coming years, concludes the report.
Source: Petrol Plaza