CNG Tank & Cylinder for Car and Transportation Market Size, Share

CNG Tank & Cylinder for Car and Transportation Market Overview

The CNG Tank & Cylinder for Car and Transportation Market size was valued at USD 1688.05 million in 2024 and is expected to reach USD 2827.67 million by 2033, growing at a CAGR of 5.9% from 2025 to 2033.

The CNG (Compressed Natural Gas) tank and cylinder market for car and transportation applications is experiencing a significant surge due to rising adoption of clean fuel technologies. Globally, over 28 million vehicles are powered by CNG as of 2024, indicating strong market potential for CNG tank and cylinder manufacturers.

The market is segmented based on tank types such as Type 1, Type 2, Type 3, and Type 4, each offering unique material and structural advantages. Type 4 composite cylinders, for example, weigh up to 70% less than conventional steel tanks and can withstand pressures of over 700 bar, significantly reducing vehicle weight and improving fuel efficiency. The Asia-Pacific region remains the largest consumer, accounting for more than 55% of global CNG vehicle demand, driven primarily by India, Pakistan, and China. In India alone, over 5.5 million CNG vehicles were in operation by the end of 2023, creating strong downstream demand for CNG cylinders.

Governments are pushing for low-emission vehicles, and several urban transport systems in cities like New Delhi and Jakarta are transitioning bus fleets to CNG. Furthermore, growing interest in bio-CNG and renewable natural gas is prompting more OEMs to integrate CNG cylinders into their vehicle portfolios, boosting market penetration across segments.

Key Findings

DRIVER: Increasing government mandates for low-emission transportation is driving demand for CNG-powered vehicles and, by extension, CNG tanks and cylinders.

COUNTRY/REGION: India leads the market with over 5.5 million CNG vehicles in operation as of 2023.

SEGMENT: Type 4 CNG cylinders dominate due to their lightweight properties and superior fuel efficiency, accounting for over 35% of newly installed CNG tanks.

CNG Tank & Cylinder for Car and Transportation Market Trends

The global market for CNG tanks and cylinders is undergoing rapid evolution, characterized by increasing lightweight innovations and regulatory compliance for vehicle emissions. As of 2024, over 120 countries have incorporated CNG vehicle policies, boosting the adoption of high-pressure storage tanks. Type 3 and Type 4 composite tanks are increasingly preferred over traditional steel Type 1 tanks. Type 3 tanks, composed of aluminum liners wrapped in carbon fiber, offer a 50% weight reduction and extended service life compared to Type 1. Type 4 CNG tanks, made entirely from composite materials, have emerged as the fastest-growing product segment. These tanks offer corrosion resistance and enable up to 30% more gas storage in the same volume, which is critical for long-haul transportation. As of 2024, Type 4 cylinders are being installed in over 70% of new OEM light-duty CNG cars in North America and Europe. Governments across Asia-Pacific are investing heavily in CNG infrastructure. India announced the addition of over 4,000 new CNG stations by 2025, up from 5,500 in 2023, directly correlating with rising demand for CNG tanks. In Latin America, Argentina and Brazil together operate more than 4 million CNG vehicles, with retrofitting constituting 60% of tank installations in this region. Fleet electrification is also influencing hybrid CNG-electric models, which require specialized low-weight tanks to maintain efficiency. Heavy commercial vehicles, especially in Europe, are transitioning to CNG due to stricter emission norms under Euro 6 guidelines. Germany alone added over 15,000 new CNG trucks to its commercial fleet in 2023. The aftermarket segment continues to thrive, with over 1.2 million retrofits performed globally in 2023, especially in older diesel vehicles. Advances in carbon fiber winding and leak detection technologies are lowering production costs and increasing tank reliability. Furthermore, new Type 4 tanks have demonstrated lifespans exceeding 20 years with over 15,000 refill cycles, meeting or

CNG Tank & Cylinder for Car and Transportation Market Dynamics

The dynamics of the CNG tank & cylinder for car and transportation market are shaped by a combination of regulatory shifts, technological innovation, cost structures, and infrastructure readiness. Globally, over 28 million vehicles are powered by compressed natural gas (CNG), which has directly led to the installation of more than 60 million CNG tanks across all automotive applications. These figures highlight the robust demand environment for high-pressure cylinders and advanced tank materials.

DRIVER

Government Mandates for Clean Transportation

One of the primary drivers of the market is the increasing emphasis on clean transportation solutions. As of 2024, more than 80 countries have announced climate action plans that include targets for reducing transport-related emissions. In India, CNG-powered vehicles are a cornerstone of the National Green Mobility strategy, with more than 5.5 million CNG vehicles on the road. In Pakistan, over 2.9 million CNG vehicles have contributed to reducing diesel consumption by over 1 billion liters annually. Moreover, governments across Latin America are pushing the adoption of CNG fleets. In Argentina, CNG now powers over 2.3 million vehicles, supporting national goals to cut carbon emissions by 19% by 2030. These mandates are directly driving the demand for high-quality, high-capacity CNG tanks.

RESTRAINT

Limited Refueling Infrastructure

A major restraint facing the market is the uneven availability of refueling stations. As of 2023, there are only 33,000 CNG stations globally compared to over 1 million petrol stations. In Africa, for instance, fewer than 200 CNG refueling stations exist, limiting the viability of CNG vehicles outside major urban areas. Even in the United States, where CNG is being explored as an alternative for fleets, only 1,200 public-access CNG stations are operational nationwide. This limits adoption in long-haul or rural areas, thus affecting demand for CNG cylinders in these sectors. Additionally, high initial setup costs for stations—upwards of $600,000 per unit—discourage widespread infrastructure investment.

OPPORTUNITY

Rising Demand for Hybrid CNG Vehicles

There is significant opportunity in the development and adoption of hybrid vehicles powered by both CNG and electricity. In 2024, over 30 automotive manufacturers have launched CNG-hybrid models globally. These include light commercial vans and compact cars optimized for city commutes. In Europe, the availability of hybrid CNG-electric delivery vehicles increased by 21% in 2023 due to regulatory tax exemptions. In China, hybrid buses utilizing dual CNG-electric propulsion were deployed across 120 cities, resulting in 14% fuel savings and 33% lower particulate emissions. The opportunity lies in producing next-generation CNG tanks with lightweight materials and embedded telemetry, which can integrate seamlessly into these hybrid systems.

CHALLENGE

Cost of Composite Cylinders

While Type 3 and Type 4 composite cylinders offer significant weight and performance advantages, their cost remains a challenge. Type 4 cylinders can be 3 to 5 times more expensive than steel Type 1 tanks. This high cost limits penetration into low-income markets and prevents widespread retrofitting of older vehicles. As of 2023, the average cost of a 60L Type 4 tank is around $1,200, while Type 1 tanks cost approximately $350. The lack of economies of scale in composite manufacturing and reliance on high-cost materials such as carbon fiber further exacerbate the pricing problem. Additionally, composite tanks require specialized maintenance and inspection protocols, adding operational costs for fleet owners.

CNG Tank & Cylinder for Car and Transportation Market Segmentation

The CNG tank and cylinder market is segmented by type and application. Types include Type 1 (metal), Type 2 (metal with hoop-wrapped composite), Type 3 (fully wrapped composite with metal liner), and Type 4 (fully wrapped composite with plastic liner). Each type is chosen based on vehicle weight, application, and cost. By application, the market serves passenger vehicles, commercial vehicles, and specialty fleets. Passenger vehicles dominate installations in Asia-Pacific, while commercial applications are prevalent in Europe and Latin America due to fleet conversions. Each segment demands specific tank specifications based on safety standards, capacity needs, and emission targets.

By Type

Type 1 CNG Tank: Made entirely from steel or aluminum, Type 1 cylinders are the most cost-effective and widely used in retrofit markets. In countries like Argentina and Iran, over 70% of installed CNG tanks are Type 1 due to their durability and low cost. These cylinders typically weigh 2.7 kg per liter of water capacity and are designed to withstand up to 200 bar of pressure. However, they are significantly heavier, reducing fuel efficiency in small vehicles.
Type 2 CNG Tank: This type features a steel or aluminum liner wrapped with glass fiber. Type 2 tanks weigh 20–30% less than Type 1 while maintaining high structural strength. As of 2023, they account for 15% of all new CNG tank installations globally. They are preferred in markets that balance cost and performance, such as Brazil and Turkey, and are compliant with ISO 11439 and UN R110 safety standards.
Type 3 CNG Tank: Made from aluminum with full carbon or glass fiber wrapping, Type 3 tanks offer a 50% weight reduction compared to steel options. These are widely used in commercial fleets in Germany and Italy. A typical Type 3 tank can store up to 30% more gas by volume than Type 1. Their adoption is growing at 12% per year in OEM segments due to favorable emission profiles and safety metrics.
Type 4 CNG Tank: Comprising a plastic liner and full composite wrapping, Type 4 tanks are the lightest and most advanced, weighing only 0.8 kg per liter. As of 2024, they account for over 35% of OEM tank installations in North America and Europe. These tanks offer superior corrosion resistance, thermal stability, and allow extended driving ranges. Type 4 tanks are especially prevalent in premium passenger cars and electric-CNG hybrid models.

By Application

Passenger Vehicles: The largest segment by volume, with over 15 million CNG-powered passenger vehicles globally. India and Iran lead this segment. Lightweight tanks (Type 3 and 4) are preferred to optimize space and efficiency. On average, CNG adoption in passenger cars reduces fuel costs by 40% compared to gasoline.
Commercial Vehicles: CNG is heavily used in buses and delivery trucks. In 2023, over 1.1 million commercial vehicles globally used CNG, with growing adoption in logistics fleets in Europe. Type 1 and Type 2 tanks are common due to durability.
Others: Includes government fleets, three-wheelers, and taxis. In Bangladesh, over 0.7 million three-wheelers are retrofitted with CNG tanks, mostly Type 1, supporting low-income transport ecosystems.

Regional Outlook for the CNG Tank & Cylinder for Car and Transportation Market

The regional outlook for the CNG tank and cylinder for car and transportation market reflects diverse patterns of adoption, infrastructure development, and regulatory support across key global zones. Asia-Pacific remains the dominant region, accounting for more than 55% of the global CNG vehicle fleet. India leads with over 5.5 million CNG vehicles, supported by a rapidly expanding network of 5,500+ CNG filling stations as of 2023.

North America

The region is witnessing steady growth in OEM integration of Type 3 and 4 tanks. As of 2024, the U.S. operates over 180,000 CNG vehicles. California and Texas lead adoption, supported by 1,200 public CNG stations. Government incentives, such as up to $8,000 in tax credits for CNG vehicles, are stimulating demand. Heavy-duty fleets, especially in waste management, rely on CNG with growing preference for Type 4 tanks due to performance.

Europe

Europe's stringent emission regulations under Euro 6 and growing urban low-emission zones have driven adoption. Germany, Italy, and Sweden are major markets. Italy alone operates over 1 million CNG vehicles with over 1,200 stations. Type 3 and 4 tanks dominate due to emphasis on weight reduction and safety. European OEMs are actively offering factory-fitted CNG models.

Asia-Pacific

This is the largest and fastest-growing region, driven by massive adoption in India, China, and Pakistan. India alone adds over 600,000 CNG vehicles annually and plans to add 4,000 new CNG stations by 2025. Pakistan and China also feature fleets with over 3 million vehicles combined. Most installations are Type 1 and Type 2 tanks, although Type 3 use is growing in metros.

Middle East & Africa

Iran is a key market with over 5 million CNG vehicles, second only to India. The UAE and Egypt are expanding CNG usage in public buses and taxis. Nigeria and South Africa are piloting CNG projects for commercial fleets. Infrastructure constraints remain a barrier, though national energy security policies support expansion.

List of Top CNG Tank & Cylinder for Car and Transportation Companies

Worthington Industries
Sinomatech
Hexagon Composites
Everest Kanto Cylinders
Luxfer Group
Rama Cylinders
Quantum Technologies
Faber Industrie
Avanco Group
Ullit
Sinomatech
Beijing Tianhai
CIMC ENRIC
Zhongyou Luxi

Hexagon Composites: Headquartered in Norway, Hexagon leads the market in Type 4 CNG tanks with installations in over 60 countries. The company manufactured over 1.2 million composite cylinders in 2023, with strong supply partnerships with European OEMs.

Everest Kanto Cylinders: Based in India, EKC is the dominant supplier in South Asia, producing over 2 million CNG cylinders annually. The company’s product portfolio covers all four tank types and holds certifications under ISO 11439, DOT, and ECE R110.

Investment Analysis and Opportunities

The global CNG tank and cylinder market is witnessing increasing capital flows as countries transition toward greener mobility solutions. In 2023 alone, public and private sector entities invested more than $3.5 billion in CNG infrastructure projects across Asia and Europe. A notable example is India’s Gas Authority, which committed to deploying 4,000 new CNG stations by 2025, resulting in a projected surge in demand for over 7 million new CNG tanks. This expansion creates a compelling opportunity for manufacturers and component suppliers to scale up operations and technology investments. Major vehicle OEMs are investing in integrated CNG platforms. Volkswagen and Fiat expanded their factory-installed CNG models, incorporating Type 4 tanks for weight reduction. This trend is attracting suppliers capable of producing high-performance composite cylinders. Investment in carbon fiber production facilities also increased in 2023, with global production capacity growing by 18% to meet the needs of advanced composite tank manufacturing. Emerging markets like Vietnam, Nigeria, and Bangladesh present untapped potential for investors. In Nigeria, an $800 million government-backed initiative aims to convert 1 million vehicles to CNG by 2026. The expected demand for tanks from this program alone exceeds 2.5 million units, primarily in the low-cost Type 1 and Type 2 categories. R&D investments are increasing across the value chain. Companies like Luxfer and Hexagon Composites have expanded facilities in the U.S. and Germany respectively, focusing on smart CNG tanks with embedded sensors for pressure monitoring and telematics. These investments are projected to reduce refueling risks and enable predictive maintenance, especially beneficial for commercial fleets. Furthermore, favorable government policies and subsidies are stimulating investor confidence. In Europe, up to €10,000 per vehicle is offered in tax incentives for fleets adopting CNG trucks, which subsequently boosts tank procurement. In Brazil, state-owned Petrobras announced partnerships with logistics firms to retrofit 20,000 trucks, creating direct investment opportunities for CNG tank producers and installation service providers.

New Product Development

Product development in the CNG tank and cylinder market is centered on safety, efficiency, and performance. In 2023, over 80 new products were launched globally, including lighter tanks, smart composite materials, and digitally monitored storage solutions. Manufacturers are increasingly investing in automation and precision winding technologies to enhance tank consistency and reduce weight. Hexagon Composites launched the “Hexagon Agility Pro Series” tanks, featuring integrated IoT sensors that monitor tank pressure, temperature, and refueling cycles in real-time. These tanks, designed for commercial vehicles, are 25% lighter than conventional Type 3 alternatives and have a lifespan exceeding 20 years with 18,000+ refill cycles. Everest Kanto Cylinders (EKC) introduced a new Type 4 cylinder for passenger cars under its “EKC NanoLite” brand. These tanks weigh 40% less than aluminum-lined Type 3 models and offer 15% higher gas volume in the same geometric space. The tanks are certified for use in both tropical and extreme cold environments, meeting ISO 11439 and ECE R110 standards. Luxfer Group announced the development of ultra-lightweight CNG tanks for drones and small utility vehicles. These cylinders weigh under 5 kg for a 40-liter capacity, designed for robotic systems and unmanned logistics applications. This expansion into micro-CNG applications opens up entirely new market segments. In addition, product design is being improved to enhance crash resistance. New fiber-wrapping techniques enable tanks to withstand high-speed impacts up to 60 km/h without rupture. In crash tests conducted in Germany in 2023, Type 4 tanks from multiple brands maintained integrity under 800 bar of pressure—well above operational standards. Another area of innovation is modular tank systems for commercial fleets. Companies such as Quantum Technologies now offer customizable multi-cylinder assemblies with integrated fueling ports and mounting kits. These are especially useful for trucks and buses requiring extended range, allowing operators to install up to 1,200 liters of onboard CNG capacity.

Five Recent Developments

Hexagon Composites secured a contract in March 2024 to supply over 60,000 Type 4 cylinders to a European commercial fleet operator, making it one of the largest single orders in the company’s history.
Everest Kanto Cylinders inaugurated a new manufacturing facility in Gujarat, India in January 2024, increasing its production capacity by 1.5 million units annually.
Quantum Fuel Systems launched a next-generation CNG fuel module in late 2023 capable of holding 1,200 liters, aimed at Class-8 trucks in North America.
Beijing Tianhai unveiled dual-pressure composite tanks in February 2024 for use in both passenger cars and low-speed logistics vehicles, featuring 300 and 700 bar storage capability.
Luxfer Group received approval in 2023 for its lightweight Type 3 tanks to be installed in rail-based CNG systems, as tested by Deutsche Bahn in pilot operations.

Report Coverage of CNG Tank & Cylinder for Car and Transportation Market

This market report comprehensively examines the global CNG tank and cylinder sector with a focus on car and transportation applications. It covers detailed segmentation by type (Type 1, Type 2, Type 3, Type 4, Others), application (passenger vehicles, commercial vehicles, others), and regional performance across North America, Europe, Asia-Pacific, and the Middle East & Africa. The analysis includes facts and figures on market volume, infrastructure growth, product launches, manufacturing capabilities, and regulatory developments. As of 2024, over 28 million vehicles globally run on CNG, driving demand for high-pressure tanks and fueling systems. This has led to a global installed base of more than 60 million CNG tanks across all vehicle types. The report assesses the technological advancements in tank materials, particularly the shift from steel to composite-based solutions. It identifies growth areas such as lightweight design, smart sensors, hydrogen compatibility, and modular assembly systems. The widespread application of CNG in public transit buses, logistics fleets, and ride-sharing vehicles is also covered. It further analyzes competitive dynamics among major manufacturers including Hexagon Composites, Everest Kanto Cylinders, Luxfer Group, Quantum Technologies, and others. Profiles include product portfolios, geographic reach, recent contracts, and innovation capabilities. Policy frameworks from over 30 countries have been reviewed, emphasizing fuel subsidies, emission mandates, and infrastructure incentives. Regional demand trends are backed with figures—India leads with over 5.5 million CNG vehicles, followed by Iran, Pakistan, and Brazil. In developed markets like the U.S. and Germany, focus is on hybrid vehicles and cleaner logistics. This report also highlights current investments and forecasts future demand shifts as OEMs introduce factory-fitted CNG variants and governments expand station networks. Recent product launches and five major developments from 2023–2024 provide strategic insight into market direction.