CNG COMPRESSORS MARKET ANALYSIS

CNG Compressors MarketSize and Trends

The CNG compressors market size is expected to reach US$ 5.15 Bn by 2030, from US$ 3.79 Bn in 2023, exhibiting a compound annual growth rate (CAGR) of 4.5% during the forecast period.

Figure 2. CNG Compressors Market Share (%), By Type, 2023

CNG Compressors Market Trends

• High pressure compressor systems: Conventional CNG refueling stations operate compressors at 250 to 350 bar pressure levels. But with advancement in composite storage cylinders, onboard storage pressure in vehicles has increased. OEMs are deploying type IV cylinders that are capable of 500 bar storage pressure. High pressure storage enables faster refueling and increases onboard CNG capacity. This has led to demand for higher capacity compressors that can support fast fill applications. Manufacturers are developing compressor systems that are designed for stable 500 bar fast fill compressed natural gas (FF-CNG) dispensing. The higher flow capacity cuts down refueling time to achieve par with liquid fuels. Some of these ultra-high pressure units also feature advanced connectivity and automation features. Adoption of such high pressure compressors aligns the CNG refueling experience closer to conventional fuels. This can help address consumer perception issues regarding refueling time for CNG vehicles. The trend of developing FF-CNG solutions will accelerate with more natural gas vehicles adopting high pressure cylinders.
• Oil-free and magnetic bearing compressors: Conventional lubricated compressors used in gas refueling applications pose contamination risks from oil carryover. This necessitates additional investment in specialized filters to remove oil aerosols from the CNG stream. Oil-free compressors eliminate this capital intensive filtration need while also providing reliability benefits. Magnetic bearings present another enhancement opportunity replacing maintenance intensive mechanical bearings. Magnetic bearings employ magnetic levitation that avoids metal-to-metal contact seen in traditional bearings. It eliminates need for lubrication while also enabling high speed operation. The inexhaustible life of magnetic bearings results in drastic reduction in downtime costs. Compressor manufacturers are increasingly deploying these technologies in their portfolio to better serve the exacting demands of gas refueling infrastructures. Oil-free and magnetic bearing compressors will be an integral part of next-gen refueling stations.
• Emergence of hydrogen-natural gas blends: As the hydrogen economy gains traction, blending hydrogen in natural gas pipelines is witnessed as a transition strategy. Blending low fractions of hydrogen (5-20%) with natural gas is a safe and pragmatic starting point for introducing hydrogen. This can accelerate clean hydrogen utilization until dedicated hydrogen infrastructure develops. Gas utilities in Europe and North America are piloting hydrogen-natural gas blends for establishing technical feasibility. The blended fuels can then directly use the existing natural gas infrastructure including storage, pipelines, and refueling stations. This prevents the need for immediate and massive investment into full-fledged hydrogen value chain. However, the impact of hydrogen blending on the durability and performance of compressors needs to be evaluated. This opens up a research and development (R&D) opportunity for CNG compressor firms. The gradual move to hydrogen-natural gas blends will emerge as a notable trend in the near future.
• Development of game changing technologies: While positive displacement and dynamic compressors dominate the landscape, research efforts are ongoing on potential step change technologies. For instance, electrochemical compression employs a hydrogen pump that pressurizes gas without moving parts. It combines an electrolyzer with a fuel cell in the same enclosure, thus enabling high pressure gas output. Such revolutionary concepts can help overcome reliability challenges and high compression costs. Researchers are also working on trying to separate methane from natural gas without mechanical compression. This relies on complex materials like metal-organic frameworks (MOFs) that exploit unique molecular sieving behavior. While such innovations have only been demonstrated at laboratory scale, the potential exists for radically advancing the state of the art. CNG compressor incumbents are ramping up their R&D budgets to tap into such promising concepts that could disrupt status quo in the long term. But in the short to medium term, existing technologies still present abundant growth run way.

CNG Compressors Market Restraints

• High compression costs: The gas compression process for CNG applications requires large, high-powered motors, and robust industrial grade compressors. This entails considerable upfront capital expenditure which is a barrier for wider CNG infrastructure proliferation. The power consumption of these compressors running the whole day is also substantial and is adding up to operating costs.
• Lack of standardization: There is a high degree of fragmentation witnessed across geographies in terms of governing specifications for CNG fueling stations. Countries follow different standards regarding gas composition, fuel quality parameters, flow meter accuracy, storage tank design, and others. Even pressure rating within regions like Asia pacific (APAC) vary widely from 250 bar to 500 bar limiting interoperability.
• Emergence of battery powered electric vehicles: Battery technology innovation has enabled wider adoption of electric vehicles globally. Many governments are also setting aggressive e-mobility targets and promoting EVs through financial incentives. EVs provide certain consumer benefits like acceleration, low maintenance, and convenience of home charging. The perception of EVs aligning more closely with sustainability goals has also aided their cause.

Counterbalance: The CNG compressor should ensure better and more convenient consumer benefits as provided by the electric vehicles (EVs) to be in the competition.