Worldwide growth of the natural gas vehicle (NGV) industry, enhanced by increased automobile fuel efficiency attributed to compressed natural gas (CNG), will be a key market driver for the overall global natural gas storage market, according to a new report from BCC Research.
The report says the worldwide natural gas storage market will reach $796.4 billion in 2020, up from $562.2 billion in 2015, registering a five-year CAGR of 7.2% for the period. Underground gas storage, as a segment, should grow at a five-year CAGR of 2.9% to reach $430.5 billion in 2020, from $374.2 billion in 2015.
According to the report, the greatest challenges in the CNG vehicle market penetration are the availability of refueling infrastructure, raw material prices and the high price of composite tanks. However, the report says research and development of new products is creating more sustainable products and enhancing the competitive position in the market for companies involved in CNG storage tank production.
“Driven by more stringent emissions requirements, increased natural gas extraction through hydraulic fracturing, and a lower total cost of ownership, interest in NGVs is growing, thus increasing demand for compressed natural gas storage in the vehicles and in refueling stations to serve these vehicles,” says BCC Research analyst Edward Gobina.
“Current NGVs, like their internal combustion engine counterparts, are undergoing significant technical changes with an aim to reduce costs reduction and improve overall efficiency. Component manufacturers and suppliers are developing direct-injection systems and storage tanks that will enable more universality with most generations of fossil-fueled engines.”
For more about the report, click here.