With Globalization on its surge, transportation of anything from a range of small goodies to heavy pieces of machinery has simultaneously grown.
To facilitate this growth in Transportation, efficient vehicles and other transportation methods are being introduced in markets with advanced methodologies to operate them as well. Here is when CNG, LPG, and LNG come into place.
Methane has been in use for vehicles started in the 1930s and has continued off. Since 2008, there has been a large market expansion for natural gas vehicles, especially CNG.
In India, the downstream oil and Natural Gas is regulated by PNGRB, an autonomous authority established under the PNGRB Act, 2006. In this article, we will further dwell upon some intriguing facts about Compressed Natural Gas and the market associated with it.
Across, the Globe, there were around 28 million Natural Gas Vehicles in 2019 with the market led by China (5 million). This estimate, especially at the time when the world is pressing over the issue of a cleaner environment makes CNG a viable and important alternative for Petrol, thus making it an important product in the fuel market.
The Asia-Pacific region accounts for a huge demand for natural gas. The market is powered by the low cost of Compressed Natural Gas with the huge demand for energy rise all over the globe. As of 2019, there were an estimated 7,177 trillion cubic feet of the total world proved reserves of gross natural gas.
The market has various branches providing opportunistic growth such as the development of CNG kits, cylinders with high storage capacity with thermal stability for CNG, compact, lightweight with long life engines to be substituted in vehicles. Installation of CNG fuel pumps providing opportunities for infrastructure development for interested entities willing to participate in the market.
Currently, due to the situation of Covid-19, the market has been on downfall but with the upcoming times, it is seen that the CNG market will flourish as it has never before because of factors that are discussed further in the report.
In terms of value, APEJ (Asia Pacific region excluding Japan) is expected to hold a significant share of the market being discussed during the mentioned forecast period.
In between passenger and commercial vehicles, passenger vehicles seem to have a remarkable bloom within the market where although Commercial vehicles seem to be potential places for investment in the CNG market, their growth is relatively slow.
Various governments, all over the world are transitioning to clean fuel favoring policies. Following the statement, regions such as Europe have welcoming measures to take up CNG as fuel and the market is expected to see an augmentation in the upcoming future.
Other important and most prominent as well as promising regions for CNG include South and North America, with countries specifically as Canada, Mexico, and the United States.
With the introduction of CNG in new regions of the world, innovation simultaneously finds its path within. Countries like Ukraine and Italy and private entities are innovating and spending a significant amount of capital on efficient CNG powered commercial as well as personal vehicles.
Compressed Natural Gas, a term that never existed in past is maturating in modern times. The reason being – humanitarian and environmental factors.
In 2020, with 70 million tons of pollution being released by the United States alone, there is an average rise of 3.4% in pollution levels per year in these years. Thus, companies are shifting toward the use of much cleaner fuel as fast as possible to combat the severe pollution levels.
Also, keeping in mind the same viewpoint, Governments are becoming stricter on policy formulations for the same, thus introducing stringent laws.
Here is when the CNG acts as a gamechanger with huge hopes for the world, thus aiding Vehicle manufacturers to shift towards the building of advanced technologies for CNG compatible vehicles.
With various researches and experiments being done, some companies are building Eco-fuel cars to align with the market ahead by developing Cars that run on bi-fuel, I.e., using gasoline and CNG in the same car at different times which might become a popular choice for Commercial vehicles.
Compressed Natural Gas, might seem like a life-saver for all of us at the time of crisis, however, a huge roadblock is the research and development of CNG Vehicles as the machinery is not efficient in present times.
The major problems include – short-range, reduced performance, limited availability, and higher cost with theories (not yet established) stating that CNG may damage the engine easily upon reaction with chemical elements in comparison to conventional fuels present at the moment.
Not only this, the rising awareness among Global citizens about the judicious use of Natural resources can be a concerning and attacking factor for CNG in the marketplace which might result in the vanishment of its existence from the market, not anywhere in near future, but in the upcoming decades for sure.
These Global CNG Manufacturers are playing the vital role of reducing Carbon footprint over the Globe and therefore, their ultimatum as well their vogue escalating in modern times of crisis when World pollution levels are perilous.
Having a glance over the list provides a clear insight that every prominent motor vehicle enterprise is projecting over shifting to use of CNG in the upcoming times, making the development of vehicles with CNG fuel tanks and compatible engines for the same flourishing as well.
The market is projected to see a boom in near future with huge expectations from all over the world because of high demand.
Although Compressed Natural Gas comes with the benefit of cleaner air, it’s limitations cannot be ignored as they outweigh in benefits.
But, with the time progressing the CNG might be a prominent flourishing market till the time our researchers sufficiently build upon promising technologies for vehicles namely – Solar-powered, hybrid or battery-driven cars for the convenience of all.
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