LONDON--(BUSINESS WIRE)--Technavio’s latest market research report on the global CNG compressor aftermarket provides an analysis of the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Anju Ajaykumar, a lead analyst from Technavio, specializing in research on engineering tools sector says, “Increasing concern regarding the rising GHG emissions and the need for cleaner energy sources has resulted in growing interest in low-carbon emitting alternate fuels. The growth in the number of refueling stations is expected to propel the demand for CNG compressors aftermarket.”
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- Government support for NGV infrastructure
- Increase in alternative fuels
- CNG gaining popularity in two-wheeler market
Government support for NGV infrastructure
Natural gas has the potential to contribute toward climate change mitigation. Increasing natural gas infrastructure developments will drive this trend. The development of NGV fueling stations is strongly supported by governments in various countries. For instance, in the US, CNG and LNG are considered as alternate fuels. The government provides 30% tax credit for natural gas fueling equipment that has been installed between January 2015 and December 31, 2016. This support will help in reducing the overall investment. Therefore, the natural gas compressor market and CNG compressor aftermarket will grow during the forecast period.
Increase in alternative fuels
Fossil fuel reserves in the world are limited. This has turned the focus on alternative sustainable sources of fuel. Fuels such as upgraded biogas and biofuels help diversify the energy mix and reduce the dependency on petroleum products. Upgraded biogas is produced locally and has the same chemical properties as that of natural gas. It can be transported through the existing gas grid. The use of biogas will decrease the impact of oil and gas price fluctuations in the future.
“Therefore, the production of upgraded biogas and efforts put in by governments in Europe, the US, and Asia to improve the natural gas infrastructure will result in continuous demand and installations for natural gas refueling stations. This, in turn, is expected to drive the CNG compressors and thereby create demand for CNG compressor aftermarket,” says Anju.
CNG gaining popularity in two-wheeler market
Major contributors to the demand for two-wheelers are countries in APAC, with China leading the market. China is closely followed by India and Indonesia. India has seen the fastest growth in the two-wheeler segment in the past five years. With a consistent increase in the sales of two-wheelers, there is a demand for alternative fuel options in the two-wheelers segment as CNG is highly economical and safe. In June 2016, the Government of India launched Honda Activa CNG scooter. The CNG kit has been approved by the Automotive Research Association of India for fitting in Honda's Activa scooters. It is the first CNG scooter launched in India.
These advantages will determine the future trend for CNG in the two-wheeler market. Initiatives such as the one introduced in India can create good market prospects for CNG use in the two-wheeler segment, thus favoring the growth of the CNG compressor market and the CNG compressor aftermarket.
Browse Related Reports:
- Global CNG Compressors Market 2016-2020
- Global Natural Gas Refueling Stations Market 2016-2020
- Global Light and Heavy Duty Natural Gas Vehicle Market 2017-2021
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