The global compressed natural gas tank market is expected to reach an estimated $1.3 billion by 2022 and grow at a compound annual growth rate of 5.1% from 2017 to 2022, according to a new market report published by global management consulting and market research firm Lucintel.
As reported, the market sees significant opportunity in automotive and bulk transportation applications, noting that the major drivers for market growth are increasing number of natural gas vehicles (NGVs) and lower cost of natural gas than gasoline and diesel.
Lucintel forecasts that the bulk transportation segment will show above average growth during the forecast period. Within the global CNG tank market, the automotive segment is expected to remain the largest market by value and volume.
The report says expected growth in the fleet of alternative fuel-powered vehicles is the major driving factor that is likely to spur growth for this segment over the forecast period.
By type of tank, the Type I CNG tank is expected to be the largest segment due to its lower cost and higher demand from countries in the Asia-Pacific (APAC) region, which have larger NGV fleets.
According to the study, the APAC region is expected to witness the highest growth for CNG tanks due to the growing fleet of alternative fuel-powered vehicles, as well as increasing number of CNG refueling stations.
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