Global CNG, RNG, and Hydrogen Tanks Market Forecast, Trend Analysis And Competition Tracking - Market Insights: 2015 – 2031

Global CNG, RNG, and Hydrogen Tanks Market Overview

The global CNG, RNG, and Hydrogen Tanks market was valued at US$ 1.4 billion in 2020, and is projected to grow at a CAGR of 9.4%.

There are three different types of fuel tanks, carbon dioxide or carbon monoxide, compressed natural gas or RNG, and hydrogen. Carbon dioxide or carbon monoxide tanks are most commonly used in cars, with an oxygen tank to make the car run. Compressed natural gas is a newer type of gasoline that can be stored up in a tank which does not need compressors. Hydrogen gas is stored with the help of metal hydrides that are compressed by nitrogen.

CNG, RNG, and Hydrogen tanks are the most common ways to store natural gas in order to use in a vehicle.  The benefits of using natural gas in the vehicle include: the natural gas tank is easy and inexpensive to replace and switch from one type of fuel to another, it is lighter weight than gasoline or diesel which can make more efficient use of engine power, it creates less emissions, and there is no danger inherent with the use of this fuel.

Numerous studies have been done on the pros and cons of using a hydrogen, natural gas, or compressed natural gas to fuel a vehicle. CNG is a more efficient and cleaner way to drive, but it is also costlier. RNG is an even better option for engine performance while also being cheaper than CNG.

Over the past century, our earth has seen a steady rise in chronic diseases due to toxic chemicals in everyday products. As more individuals are becoming aware of the effects of these chemicals they are looking for new ways to make their homes environmentally friendly.

A recent study by the International Energy Agency (IEA) examined the effectiveness of natural gas, renewable energy, and hydrogen as methods to reduce greenhouse gas emissions. The study found that electric vehicles outperformed both CNG and RNG in every metric studied. However, for those who drive less than or equal to 250 miles per month and live in a suburb or rural area, renewable options like solar and wind could be a great way to reduce emissions.

The global CNG, RNG, and Hydrogen Tanks market is segregated into gas type, material type, tank type, and regions. On the basis of gas type, the global CNG, RNG, and Hydrogen Tanks market is sub-segmented into Compressed Natural Gas (CNG), Hydrogen, and Renewable Natural Gas (RNG). With respect to material type, the global CNG, RNG, and Hydrogen Tanks market is distributed into metal, carbon fiber, and glass fiber. On the basis of tank type, the global CNG, RNG, and Hydrogen Tanks market is sub-segmented into Type 1, Type 2, Type 3, and Type 4.  On the basis of region, the global CNG, RNG, and Hydrogen Tanks market is sub-segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Rising Tax Incentives For Cng Vehicles And Infrastructure

The federal tax incentives that have been enhanced or expanded include Asia Pacific, the Middle-East and North America. For example, in May 2019, the government of the USA, the state of Oklahoma adjusted its tax code to acknowledge rebate credits relating to Compressed Natural Gas (CNG) vehicles and their refueling. The tax code was extended from January 1, 2020 to December 31, 2027. This will mean the governor of Oklahoma will likely be the leader in the nation by supporting natural gas as the best choice to modify oil vehicles. This program will ensure that the need for the company's product reaches the highest point by targeting the highest mileage and dirtiest vehicles. It will provide cost savings to the state and its citizens. In December 2019, the Indian Oil Ministry, having lowered the GST rate for CNG automobiles to 5%, contributed the other element of the equation, which is the rise in the popularity of gas vehicles. To reduce CO2 emissions, tax breaks are used to encourage production from gasoline instead of natural gas. This has caused a growth in the demand for CNG tanks.

High Prices Of Composite Material Tanks And Regulatory Approvals

The market for composite products and end-use industries is competitive. If that occurs, all decisions are controlled by commercial considerations. Two most well-known cases of commercial factors are CAPEX and OPEX. The lower direct expenses per product and the wide range of products required in the manufacturing process create economies of scale. To capture the overall economies of scale, it is crucial to design a cost-effective production process. The digitization of carbon fiber and glass fiber pushed many players out of the marketplace. The raw materials used in Type 3 and Type 4 CNG composite tanks, carbon fiber and glass fiber, can be quite costly, which results in the high price paid by consumers for Type 3 and Type 4 CNG composite tanks. The identification and definition of inexpensive technologies for the commercial production of cheap carbon and glass fiber composites are held to be one of the most critical issues for the producers, globally. When selecting an engineering material for a composite cylinder type, the manufacturer should inure to a regulatory body or an independent inspection authority. There are particular safety measures that must be adhered to to prevent loss, trouble, or loss of life from blast accidents. For example, these incidents depend on the use of incorrect CNG cylinders and CNG-to-fuel kits in vehicles, which may affect the growth and profitability of the CNG, RNG, and hydrogen tanks market. These factors could ultimately hinder the growth of the CNG, RNG, and hydrogen tanks industry.

Impact of COVID-19 on the CNG, RNG, and Hydrogen Tanks Market

The demand for affordable natural gas, renewable gas, and hydrogen tanks on account of the decline in natural gas and fuel cell electric vehicles due to the COVID-19 pandemic has adversely affected demand. The transportation of bulk affordable gas, renewable gas, and hydrogen tanks has also declined due to lockdowns and travel bans. However, according to the Natural Gas Vehicle Database, the effects of COVID-19 are likely to last less than one-year. The general fuel demand is predicted to increase in 2021, triggering an upsurge in natural gas, kerosene, and hydrogen containers. In the CNG, RNG, and hydrogen tanks market, ISO tank containers offer a versatile and secure means of transporting alternative fuels.

Regional Analysis

The global CNG, RNG, and Hydrogen Tanks market is segmented into into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa

Markets in the Asia Pacific regionare expected to account for the largest share owing to the high demand CNG tanks, well developed CNG tank manufacturing technology and CNG infrastructure, and the increasing number of CNG vehicles in countries such as China, India, Thailand.

Key Players of the global CNG, RNG, and Hydrogen Tanks Market

• Worthington Industries Inc.
• Luxfer Group
• Hexagon Composites ASA
• Quantum Fuel Systems LLC.
• Everest Kanto Cylinders Ltd.
• Praxair Technologies Inc.
• Avanco Group
• Xinyi Beijing Tianhai Industry Co. Ltd.
• Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd.
• Faber Industrie SpA
• Other Key Players

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Global CNG, RNG, and Hydrogen Tanks Market Segmentation:

Key Segments Covered in Global CNG, RNG, and Hydrogen Tanks Market by Tank Type

• Type 1
• Type 2
• Type 3
• Type 4

Key Segments Covered in Global CNG, RNG, and Hydrogen Tanks Market by Gas Type

• Compressed Natural Gas (CNG)
• Hydrogen
• Renewable Natural Gas (RNG)

Key Segments Covered in Global CNG, RNG, and Hydrogen Tanks Market by Material Type

• Metal
• Carbon Fiber
• Glass Fiber