There is a growing demand for compressed natural gas (CNG) tanks in the market. This is because CNG is an environmentally friendly fuel that can be used to power vehicles. In addition, CNG is cheaper than gasoline and diesel. This has led to a surge in the demand for CNG tanks. Many companies are now manufacturing CNG tanks to meet the increasing demand. As a result, consumers can now find a wide variety of CNG tanks available in the market. One of the main benefits of CNG tanks is that they are cheaper than gasoline and diesel. A CNG tank costs around $500, while a gasoline tank costs around $1,000. In addition, the cost of running a vehicle on CNG is about 60% less than the cost of running a vehicle on gasoline. This makes CNG an attractive option for consumers.
Increasing focus on Alternative fuel to Propel Demand for CNG, RNG, and Hydrogen tanks
CNG is already gaining momentum. Car manufacturers in India like Maruti Suzuki, Tata Motors and Hindustan Motors are working on new models to make them run on both CNG (Compressed Natural Gas) and petrol. CNG cars emits 70% less harmful gases compared to petrol/diesel cars while also saving money on fuel cost. These features make it the differentiator between small car & SUV in future. CNG or Compressed Natural Gas is natural gas which is compressed to 5 times of normal atmospheric pressure at 20 degrees Celsius, this reduces its volume by 600 times, making it easier to store and transport like petrol/diesel. All these factors are projected to drive growth of the CNG, RNG, and hydrogen tanks market.
CNG tanks are also becoming popular because they are reliable. Unlike gasoline and diesel, CNG is not subject to price fluctuations. This means that consumers can rely on CNG to provide a consistent fuel supply. In addition, CNG tanks do not require any special maintenance. This makes them a cost-effective option for consumers. Overall, the popularity of CNG tanks is growing due to their many benefits.
Favorable Government Regulations to Boost Demand for Tanks
In order to further incentivize the use of CNG vehicles and infrastructure, the governments around the globe is increasing the tax incentives currently in place. For example, the tax deduction for CNG vehicles increased, or the exemption from certain fuel taxes also extended to CNG fuel as well. Additionally, the governments around the globe, especially in India and China are providing more funding for research and development of CNG technology, or offer grants or loans to help finance the construction of CNG fueling stations.
These initiatives would not only help reduce emissions and improve air quality, but would also create jobs and stimulate the economy. By making it more affordable and convenient to switch to CNG, more drivers will be encouraged to make the switch, which will help reduce reliance on oil. This is adding fuel to the growth of the CNG, RNG, and Hydrogen tanks market. This would also help diversify the domestic energy market, creating an increased demand for natural gas. And with more vehicles on the road running on domestically produced CNG.
Demand for CNG in Asia Pacific to Continue Growing
CNG is becoming an attractive fuel alternative across Asia Pacific CNG, RNG, and Hydrogen Tanks Market. The demand for Compressed Natural Gas (CNG) in the Asia Pacific fleet management segment is expected to rise by 20 per cent. Natural gas, which has a lower carbon footprint than gasoline and diesel, is increasingly being used to power vehicles in both developing and industrialized countries due to its lower price at the pump, cost of vehicle operation over its life cycle, benefits on foreign exchange savings, etc. Fleet managers are being enticed by CNG-powered cars because they offer low operating costs while reducing carbon emissions. The demand for natural gas will increase significantly if oil prices go up, as this cheaper fuel alternative can help to offset some of the increased costs.
CNG is being seen as a key enabler for the region's ambitions to go electric. Many countries in the region are looking to electrify their transport sector in order to reduce emissions and improve air quality, and CNG can play an important role in this transition by providing a cleaner and more affordable option for vehicles. Several countries in the region, such as China, India, Thailand and Indonesia, have been investing in CNG infrastructure over the past few years and this is expected to continue in the coming years.
More Consumers are Turning to CNG
The increasing gasoline prices is offering a lucrative opportunity for CNG, RNG, and Hydrogen tanks market. The cost of CNG is about half of the cost of gasoline. In addition, CNG vehicles have about a third the emissions of gasoline vehicles. CNG is finding increasing use in buses, taxis and government fleets. New York City's Metropolitan Transit Authority (MTA) said it would start putting CNG engines in about 1,000 buses next year. The MTA said that the cost of converting to CNG will pay for itself over six years because of reduced fuel costs.
Compressed natural gas (CNG) is finding increased use in buses, taxis and government fleets as the cost of gasoline continues to increase. However, there are some disadvantages to CNG such as the space that the tanks take up and the lack of well-developed infrastructure. Nevertheless, with gas prices continuing to increase more consumers are likely to turn to CNG in the years ahead. It has been observed that consumers in Asia Pacific are increasingly converting their gasoline-based vehicles to CNG using a conversion kit.
Some of the key players in CNG, RNG, and Hydrogen Tanks Market are Faber Industrie, SpA (Italy), Worthington Industries, Inc. (US), Luxfer Group (UK), Everest Kanto Cylinders Ltd. (India) and Hexagon Composites ASA (Norway).
Please Note: The above mentioned segmentation/companies/countries are likely to differ in the actual report as they are based on preliminary research.