CNG Tank Market Trends

Growth Drivers

• Volatile Oil Prices – It is anticipated that oil prices would reach about USD 90/bbl in 2023 and USD 79/bbl in 2024, falling from the anticipated price of approximately USD 99/bbl in 2022. Nonetheless, prices would continue to be substantially higher than about USD 59/bbl, their recent five-year average across the globe. Hence, the demand for CNG is growing. Also, during COVID-19 lockdown people were traveling more in their vehicles.
  However, as fuel costs soar, an increasing number of individuals are installing CNG kits and converting their cars to run on less expensive compressed natural gas.
• Growing number of natural gas vehicles (NGVs) – the increasing number of NGVs and the lower cost of natural gas over gasoline and diesel are the driving factors of market expansion.  The expansion of the development of type V tanks is two emerging trend that have a direct impact on the dynamics of the CNG tank market.

Challenges

• Scarcity of CNG Stations - The absence of many CNG stations is the biggest drawback of CNG cars, which has discouraged many car owners from making this decision. There are only a few CNG pumps that are available in some states. It might be challenging for CNG customers to reach or find such stations, even in cities where CNG fuel is available, owing to the dearth of CNG-friendly stations. It may be exceedingly difficult to locate CNG stations, especially for frequent travelers. Hence, this factor is estimated to hinder the growth of the market.
• High Initial Cost of Manufacturing These Tanks
• Boot Space in Vehicles Gets Reduced