The global Compressed Natural Gas (CNG) market is experiencing significant growth, driven by environmental concerns, cost-effectiveness, and the need for energy diversification. As nations strive to reduce their carbon footprints and transition to cleaner energy sources, CNG has emerged as a viable alternative to traditional fuels like gasoline and diesel.
The global compressed natural gas (CNG) market size was valued at USD 92.21 billion in 2024 and is expected to reach USD 121.42 billion by 2032, ****at a CAGR of 3.50% during the forecast period. This growth is fueled by several factors, including rising fuel prices, environmental regulations, and advancements in CNG technology.
CNG is considered one of the cleanest fossil fuels, emitting significantly lower levels of carbon dioxide (CO₂), nitrogen oxides (NOₓ), and particulate matter compared to gasoline and diesel. This makes it an attractive option for countries aiming to meet stringent air quality standards and reduce greenhouse gas emissions. For instance, in San Antonio, Texas, renewable natural gas (RNG) derived from landfill methane is used to power over 400 buses, replacing approximately 7 million gallons of diesel annually and reducing CO₂ emissions by up to 85% .
CNG is widely used in public transportation systems, freight logistics, and private vehicles. Its adoption is particularly prominent in countries like India, where government incentives and rising fuel costs have accelerated the conversion of vehicles to CNG. In Nigeria, the government's Presidential CNG Initiative aims to convert 1 million vehicles to CNG by 2027, leveraging the nation's vast gas reserves to reduce transport costs and emissions
Industries utilize CNG for power generation, heating, and as a feedstock in chemical processes. Its cleaner combustion properties make it a preferred choice over coal and oil in many manufacturing sectors. Additionally, CNG's role in power generation is significant as it provides a bridge between traditional fossil fuels and renewable energy sources CNG.
In urban areas, CNG is increasingly used for cooking and heating. Its availability through city gas distribution networks has made it a convenient and cleaner alternative to liquefied petroleum gas (LPG). For example, in Greater Kolkata, India, the Bengal Gas Company Ltd has ramped up CNG supply to meet the growing demand from residential consumers
The Asia-Pacific region holds the largest share of the global CNG market. Countries like India and China are leading the adoption of CNG vehicles due to government policies promoting cleaner fuels and the availability of domestic natural gas resources. In India, initiatives like the Ethanol Blended Petrol (EBP) programme and investments in compressed biomethane gas (CBG) production are driving the growth of the CNG sector
Europe is focusing on integrating renewable natural gas (RNG) into the CNG infrastructure. The European Commission's support for biogas projects and the development of RNG facilities are enhancing the sustainability of the CNG sector. Countries like Germany and Sweden are at the forefront of this transition, utilizing agricultural waste and landfill methane to produce RNG