CNG Compressor Market size was USD 3.8 billion in 2024 and is estimated to reach USD 6.6 billion by the end of 2037, expanding at a CAGR of 4.6% during the forecast period, i.e., 2025-2037. In 2025, the industry size of CNG compressors is estimated at USD 3.9 billion.
The strict emission regulations and sustainability goals are primarily augmenting the CNG compressor market growth. Natural gas being a relatively low-emission fuel compared to gasoline or diesel aligns well with global efforts to reduce carbon footprints and pollution. The increasing adoption of CNG vehicles is set to propel the sales of compressors in the coming years. For instance, the U.S. Department of Energy estimates that there are more than 23 million natural gas vehicles operating across the world and over 1,75,000 vehicles in the U.S.
The transportation sector is the major contributor to carbon emissions around the globe. The International Energy Agency (IEA) revealed that the global transportation sector amounted to over 250Mt CO2 to nearly 8 Gt CO2, in 2022. To combat this issue, governments worldwide are implementing supportive initiatives to boost the adoption of cleaner transportation, creating lucrative opportunities for CNG compressor manufacturers. The use of CNG-based vehicles for public transportation is a significant driver contributing to the increasing revenue growth of market players. According to the analysis by the U.S. Department of Energy around 18,370 natural gas transit buses were operating in the U.S. in 2021. Thus, the rise in the adoption of natural gas public transit vehicles is set to directly push the demand for CNG compressors.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
4.6% |
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Base Year Market Size (2024) |
USD 3.8 billion |
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Forecast Year Market Size (2037) |
USD 6.6 billion |
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Regional Scope |
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Application (Industrial, Residential, Transportation)
In CNG compressor market, industrial segment is set to dominate revenue share of around 53% by the end of 2037. The rising industrial activities in both developed and developing economies are accelerating the adoption of CNG as an energy source owing to the clean energy trend. The modernization of industries and swift employment of cost-effective and sustainable solutions are creating lucrative opportunities for CNG compressors.
In the manufacturing industries, CNG compressors are used in various processes, where natural gas is needed as fuel or raw material. For instance, the global manufacturing industry is valued at USD 13.6 trillion in 2024. The National Association of Manufacturers revealed that the U.S. manufacturing market size was calculated at USD 2.5 trillion in 2021 with a presence of around 8.41% of the workforce. Furthermore, in textiles, food processing, chemicals, and glass manufacturing CNG compressors offer the required pressure to fuel burners to carry out the heating process.
Technology (Positive Displacement, Dynamic)
The positive displacement technology segment in CNG compressor market is projected to capture a dominant revenue share through 2037. The advancements in positive displacement CNG compressors are making them more efficient, durable, and capable of operation under harsh conditions, which is accelerating their adoption rates. The U.S. Environmental Protection Agency estimates that positive displacement compressors are widely used for industrial process refrigeration. The increasing industrial activities are set to boost the adoption of modern positive displacement CNG compressors in the coming years. Furthermore, the versatility of positive displacement compressors is also augmenting their demand across various industries such as utilities, transportation, and manufacturing.
Our in-depth analysis of the global CNG compressor market includes the following segments:
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Technology |
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Application |
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North America Market Forecast
North America in CNG compressor market is set to account for more than 46.9% revenue share by the end of 2037. The strong presence of key market players, increasing investments in technological advancements, and high adoption of advanced technologies by the marine transportation sector are propelling the regional market growth. Supportive government policies on green transportation are also set to fuel the sales of advanced CNG compressors in the U.S. and Canada.
In the U.S., the rapidly expanding manufacturing sector is fueling the demand for modern CNG compressors. The U.S. Bureau of Labor Statistics (BLS) estimates that the pipeline transportation of natural gas, oil & gas extraction, merchant wholesalers, nondurable goods, machinery, equipment, and supplies merchant wholesalers, and fuel dealers are some of the top industries where the employment of gas compressor and operators is high. Furthermore, the rising use of natural gas in industries such as electric power (37.5%), industrial consumers (26.4%), and residential consumers (15.3%) is anticipated to propel the sales of CNG compressors in the coming years.
In Canada, the clean energy trend, increasing investment in CNG fueling station construction, and the existence of industry giants such as Sauer Compressors and Ingersoll Rand, Inc. are positively influencing the CNG compressor market growth. The increasing adoption of sustainable vehicles for public transportation is also pushing the CNG compressor sales.
Asia Pacific Market Statistics
The Asia Pacific CNG compressor market is foreseen to increase at the fastest pace during the projected period. The rapid industrial and urban activities, high investments in the manufacturing sectors, and supportive policies for natural gas vehicle adoption are propelling the sales of CNG compressors.
In China, the increasing adoption of dual fuel vehicles (oil and gas), particularly buses and taxis to mitigate the carbon footprint is positively augmenting the sales of CNG compressors. The rising industrial activities in chemical, marine, transportation, and construction are also contributing to the high adoption of CNG compressors in the country.
In India, the adoption of natural gas is exhibiting a boom owing to the rising prices of other fuels such as petrol and diesel. The continuous growth in the adoption of natural gas is set to boost the sales of CNF compressors in the country. For instance, in March 2024, the Ministry of Petroleum & Natural Gas revealed that the first Small Scale LNG Unit of GAIL and around 201 CNG stations were inaugurated in the country. Furthermore, the government estimates to expand the natural gas share in the primary energy basket to 15% by 2030. Such initiatives are making India a most lucrative marketplace for CNG compressor manufacturers
The CNG compressor market is characterized by the presence of industry giants and the emergence of new companies. The start-ups are investing heavily in research and development activities to introduce innovative CNG compressors. Such moves aid them to stand out from the crowd and attract a wider consumer base. The key players are investing in several organic and inorganic activities such as new product launches, strategic collaborations & partnerships, mergers & acquisitions, and regional expansions to maximize their market shares. Collaborations with tech firms and other players are adding them to introduce AI-powered CNG compressors. Furthermore, by acquiring smaller or new companies, they are expanding their product offerings.
Some of the key players include
Author Credits: Richa Gupta
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