According to Lucintel, a management consulting and research firm, this market is expected to reach a double digit growth over the next five years. Its major driver is the development of the demand for NGVs, which is likely to further intensify the demand for cylinders. Besides, innovation and development in the area of vehicles is further projected to boost the demand of tanks, says the report “Growth Opportunities for Composite CNG Tank in Global Automotive Industry 2014-2019: Trends, Forecast, and Market Analysis.”
On the basis of a comprehensive research, Lucintel forecasts that composite CNG tanks for automotive industry will grow significantly during 2014-2019. The market for heavy-duty vehicles will witness strong growth by 2019 due to introduction of new vehicles and switch to natural gas by major fleet owners. Composite cylinders are much lighter than their conventional counterparts, resulting in weight savings with more fuel storage capacity, while providing an additional improvement in fuel economy of vehicles.
In turn, manufacturers are continuously adopting new strategies to gain market share in this industry. In recent years, type-IV has emerged as the largest segment among different types of CNG tanks for automotive industry. Luxfer Gas Cylinders, Hexagon Composites, Worthington Cylinders, Faber Industrie and Beijing Tianhai Industrial Co. are among the major suppliers of the product.
The biggest challenges prevailing in the composite CNG cylinders market are limited refueling stations, particularly for the fleet operators. Rising price of raw materials such as fiber, resin, and other components used in manufacturing of composite tanks are the few challenges to the growth of the industry.