Description
The Global Reciprocating CNG Compressor Market size was USD 3.5 billion in 2023 and it is expected to grow to USD 6.0 billion in 2031 with a CAGR of 4.6% in the 2023-2030 period.
Global Reciprocating CNG Compressor Market: Overview
The reciprocating compressor market is expanding due to rising demand for them, especially among CNG & LNG transportation and storage facilities, as well as refineries. The compressors in question operate well in both high pressure as well as power applications, which makes them important in an array of sectors. They have applications in chemical and petroleum manufacturing, natural gas transportation, and many different industries including as natural gas and oil, chemicals, cooling, metal processing, electricity production, and pharmaceuticals.
The market is anticipated to develop as U.S. crude output and utilisation of natural gas rise, fuelled by investments in the petroleum and natural gas industries. Natural gas is developing as a favoured fuel alternative due to its extremely low emissions and inexpensive cost, which is driving consumption even higher.
Global Reciprocating CNG Compressor Market: Covid-19 Impact
The reciprocating compressor industry suffered during the COVID-19 crisis, but key manufacturers are projected to recoup in 2023. However, worldwide inflation, caused by the Ukraine-Russia war and the lasting pandemic effects, poses new challenges. Inflation has pushed up raw material costs, affecting industrial and the price of energy. Europe, Latin America, and some Asian economies suffer production declines, while both China and India demonstrate resiliency. Inflation is expected to worsen without a settlement to the conflicts, however peace talks give prospects for stabilization.
Global Reciprocating CNG Compressor Market: Growth Drivers
1. Increasing Adoption of Natural Gas as a Clean Fuel:
With raised concerns about pollution in the environment and a desire to minimise emissions of greenhouse gases, there has been an important move towards cleaner fuels. Compressed natural gas, also known as CNG, is seen as an environmentally friendly substitute to traditional petroleum-based fuels such as petrol and diesel. As governments and businesses throughout the world work to reach emission reduction targets, demand for CNG compressors has increased.
2. Expansion of Natural Gas Infrastructure:
The growth of natural gas distribution systems, particularly in developing nations, has significantly helped the reciprocating CNG compressor business. Governments and energy firms are making investments in infrastructure that will make natural gas more available for travel, industrial, or residential applications. As the infrastructure for CNG refilling stations grows, so does the demand for CNG compressors.
3. Energy Security and Diversification:
Natural gas is considered as a more dependable and diversified energy source than traditional petroleum products. Countries are turning more frequently to natural gas to minimise reliance on petroleum imports and improve security of supply. This deliberate shift towards natural gas has resulted in investment in CNG infrastructure, notably compressors, to meet the growing need for this alternative fuel.
Global Reciprocating CNG Compressor Market: Restraining Factors
1. Infrastructure Challenges:
Despite the growing number of fossil fuel infrastructure in many places, establishing CNG refuelling stations keeps presenting significant challenges. Building a comprehensive system of refuelling stations necessitates substantial expenditures in infrastructure, purchasing land, and regulatory permits. In certain areas, a lack of suitable infrastructure hinders broad adoption of CNG vehicles, decreasing demand for reciprocating CNG compressors.
2. Competitive Pressure from Alternative Fuels:
Alternative fuels such as liquefied natural gas (LNG), hydrogen, as well as electric vehicles (EVs) are placing pressure on the CNG industry. Each one of these options has benefits and may be favoured in particular uses or localities. LNG, for example, is ideal for long-distance travel, whereas electric vehicles (EVs) are gaining popularity in cities. The availability of multiple fuel options complicates making choices for fleet operators and customers, which could postpone the growth of the reciprocating CNG compressors industry.
Global Reciprocating CNG Compressor Market: Opportunity Factors
1. Government Support and Policies:
Several countries throughout the globe are establishing supportive laws and regulations that promote the use of natural gas as a transportation fuel. These policies frequently involve incentives such as subsidies, tax deductions, and loans to stimulate the purchase of natural gas-powered vehicles (NGVs) and the creation of CNG infrastructure. Furthermore, legislation aimed at decreasing emission levels, such as high fuel efficiency regulations and carbon price processes, create an enabling atmosphere for CNG as an ecologically conscious alternative compared to conventional hydrocarbon and coal.
2. Technological Innovations and Product Development:
Continuous developments in compressor technology enhance the efficiency, dependability, and efficacy of reciprocating CNG compressors. Companies are making investments in study and development to enhance turbine performance, raise compression ratios, and lower service and energy costs. In addition, improvements in components, substances, and management methods have allowed for the development of compression units which have become lighter, more compact, and easier to use.
Global Reciprocating CNG Compressor Market: Challenges
1. Volatility in Natural Gas Prices:
Natural gas price variations may have a significant impact on the cost of using CNG as a vehicle fuel. Although natural gas prices are usually steadier than oil prices, supply and demand changes, dispute resolution, and modifications to regulations can all contribute to market volatility.
2. Infrastructure Investment and Expansion:
The establishment of a comprehensive CNG refuelling infrastructure is vital to the widespread use of natural gas vehicles. However, building and expanding CNG refuelling stations involves significant expenditures in infrastructure, land acquisition, permitting, and compliance with laws and regulations.
Global Reciprocating CNG Compressor Market: Segmentation
- Based On Type: The market is segmented into Single Acting Reciprocating CNG Compressor, Double Acting Reciprocating CNG Compressor.
- Based On Application: The market is segmented into Natural Gas Filling Stations, Natural Gas Distribution Networks, Industrial Applications, Others.
- Based On Capacity: Based on capacity segmentation, the market is further divided into Low Capacity Reciprocating CNG Compressors (Below 1000 Nm3/h), Medium Capacity Reciprocating CNG Compressors (1000-3000 Nm3/h), High Capacity Reciprocating CNG Compressors (Above 3000 Nm3/h).
- Based On Region: Based on Region, the market is segmented into five key geographical regions namely – North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Global Reciprocating CNG Compressor Market: Regional Insights
1. Asia-Pacific
The Asia-Pacific region leads the global Reciprocating CNG Compressor market, owing to rising concerns over the environment and government support for environmentally friendly transportation. China’s supremacy is driven by its manufacturing capabilities and urbanisation. Furthermore, improvements to battery technology increase compressor efficiency, that attracts customers.
In the reciprocating compressor market analysis, Asia-Pacific has the greatest share, with North America anticipated to maintain its lead. Asia-Pacific’s swift industrialization and friendly regulations attract international investment, which drives industrial expansion. Population expansion increases demand for air compressed in a variety of businesses, including food processing and pharmaceuticals. Government efforts such as Make in India and Made in China 2025 help to encourage manufacturing. With increased electricity demand, the region offers promising potential for reciprocating compressor market expansion.
2. North America
The North American Reciprocating CNG Compressor market has significant growth potential, owing to altering consumer tastes and supportive initiatives from the government. Consumers are shifting to cleaner modes of travel, such as reciprocating CNG compressors, as fuel costs rise and awareness of the environment grows.
Government initiatives and investment in charging infrastructure assist to expand the market and promote the use of electric vehicles. California, a leader in clean energy adoption, is a key customer base for Reciprocating CNG Compressors in North America.
Competitive Landscape
- Burckhardt Compression Holding AG,
- Howden Group Holdings Limited,
- Ariel Corporation.,
- General Electric,
- Mayekawa Mfg. Co., Ltd.,
- Gardner Denver Holdings, Inc.,
- IHI Corporation,
- Ingersoll Rand,
- Atlas Copco AB,
- SIEMENS AG.
Recent Developments
In December 2021, Burckhardt Compression finalized the acquisition of Mark van Schaick BV, a Rotterdam-based company boasting over two decades of machining expertise.
In February 2024, Howden reached an agreement to purchase ARM Group Holdings Limited, the umbrella company of Alternative Risk Management, a prominent independent insurance manager in Europe.
