Compressed Natural Gas (CNG) Tank Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Compressed Natural Gas (CNG) Tank Market is projected to expand from a valuation of USD 998.99 Million in 2025 to USD 1.51 billion by 2031, achieving a compound annual growth rate of 7.21%. This industry involves the manufacturing of high-pressure vessels, crafted from steel or composite materials, which are essential for storing natural gas in automotive applications safely. The market's upward trajectory is primarily driven by stringent environmental mandates designed to lower carbon emissions and the significant operational cost benefits of using natural gas over traditional liquid fossil fuels, with government subsidies for alternative energy further accelerating global adoption.

However, the scarcity of refueling infrastructure in numerous regions remains a formidable obstacle that limits widespread market penetration. This lack of filling stations causes range anxiety among consumers and restricts vehicle adoption to areas with established distribution networks. Despite these logistical challenges, certain markets continue to show robust demand due to the economic viability of the fuel. For instance, the Society of Indian Automobile Manufacturers reported that in the fiscal year ending March 2025, CNG models accounted for 19.5 percent of all passenger vehicle sales, illustrating the resilience of demand for these storage solutions even amidst infrastructural constraints.

Market Drivers

The aggressive development of global CNG refueling networks is fundamentally transforming the market by mitigating the primary deterrent to adoption: range anxiety. As public and private sectors collaborate to increase station density, natural gas becomes a more practical mainstream fuel option, directly stimulating the need for onboard storage cylinders. This infrastructure growth is especially prominent in high-demand Asian regions where accessibility is vital for market continuity; for example, The Hans India reported in December 2025 that the Ministry of Petroleum and Natural Gas confirmed 8,083 operational CNG stations across India as of May 2025, ensuring reliable fuel access and stabilizing the growth outlook for tank manufacturers.

Simultaneously, the transition of public and commercial fleets toward natural gas is significantly boosting the demand for high-capacity composite tanks, driven by the desire to reduce total ownership costs and meet emission standards. Logistics companies and municipal agencies are actively replacing diesel units, creating a need for lightweight, durable fuel systems. Highlighting this trend, Hexagon Agility announced in September 2025 that it secured orders worth USD 4.2 million from over 10 major Class 8 fleets in North America. This commercial shift is mirrored in the mass market, where Maruti Suzuki reported sales of nearly 620,000 CNG passenger vehicles in FY2025 according to CarToq, reinforcing the massive scale of manufacturing required for smaller cylinders.

Market Challenges

The limited availability of refueling infrastructure serves as a critical barrier to the growth of the Global Compressed Natural Gas (CNG) Tank Market. The scarcity of filling stations instills significant range anxiety in both private consumers and fleet operators, who fear being stranded without fuel. Although natural gas offers favorable operational costs, the logistical challenge of locating stations often restricts the practical use of CNG vehicles to specific, well-serviced routes. Consequently, potential buyers frequently turn to conventional or electric vehicles that benefit from more reliable support networks, effectively suppressing the demand for new storage cylinders.

This infrastructural deficit has resulted in tangible contractions within key vehicle segments that utilize these systems. Data from the European Automobile Manufacturers’ Association (ACEA) indicates that in 2024, registrations for trucks powered by alternative energy sources, including natural gas, fell by 27.2 percent in the European Union compared to the prior year. This sharp decline in vehicle uptake suggests that without a dense and accessible refueling grid, the market struggles to maintain its growth momentum, which negatively impacts the production and sales volumes of high-pressure CNG tanks.

Market Trends

The rise of virtual pipeline distribution networks is carving out a specific market niche for ultra-high-capacity gas transport modules. These systems are designed to deliver compressed natural gas to off-grid industrial sites and remote locations, driving the production of large-format Type IV composite containers that optimize payload capacity while minimizing transport weight. This application expands the utility of CNG technology beyond standard automotive fuel systems into the bulk energy logistics sector. For instance, Hexagon Composites announced in July 2024 that it received a contract valued at approximately USD 13 million to supply TITAN gas transport modules to a major U.S. industrial client, underscoring the increasing reliance on mobile infrastructure to address energy connectivity gaps.

In parallel, the development of Renewable Natural Gas (RNG) ecosystems is fueling the demand for specialized storage solutions capable of handling compressed biogas. As governments encourage the transition from fossil-based gas to sustainable bio-methane, the construction of production facilities necessitates robust stationary and cascade storage systems. This trend directly connects the tank market to broader decarbonization initiatives, diversifying demand. According to The Economic Times in October 2024, the Indian Biogas Association announced investment commitments of INR 1,600 crore for new biogas plants, creating a sustained requirement for high-pressure vessels to store and distribute the generated green fuel.

Key Players Profiled in the Compressed Natural Gas (CNG) Tank Market

• National Iranian Gas Company
• Indraprastha Gas Limited
• ENGIE SA
• Exxon Mobil Corporation.
• BP p.l.c.
• TotalEnergies
• Chevron Corporation
• Eni S.p.A.
• ANGI Energy Systems, Inc.
• TGT Fuel Technologies India Pvt. Ltd.

Report Scope

In this report, the Global Compressed Natural Gas (CNG) Tank Market has been segmented into the following categories:

Compressed Natural Gas (CNG) Tank Market, by DWT:

• PSV below 3000 DWT
• PSV above 3000 DWT

Compressed Natural Gas (CNG) Tank Market, by Applications:

• Oil and Gas Production
• Offshore Construction
• Military
• Others

Compressed Natural Gas (CNG) Tank Market, by Type:

• Cargo
• Support

Compressed Natural Gas (CNG) Tank Market, by fuel,:

• Diesel
• LNG
• Electric
• Hybrid

Compressed Natural Gas (CNG) Tank Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Compressed Natural Gas (CNG) Tank Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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