WELLESLEY, MA–(Marketwired – January 14, 2016) – The global market for compressed natural gas (CNG) should more than triple in value between 2015 and 2020. BCC Research reveals in its new report that global growth of the natural gas vehicle (NGV) industry, enhanced by increased automobile fuel efficiency attributed to CNG, will be a key market driver, spurring overall growth of the global natural gas storage market.
The global natural gas storage market should reach $796.4 billion in 2020, up from $562.2 billion in 2015, registering a five-year CAGR of 7.2% for the period. Underground gas storage (UGS), as a segment, should grow at a five-year CAGR of 2.9% to reach $430.5 billion in 2020, from $374.2 billion in 2015. The liquefied natural gas (LNG) tanker trade segment is expected to reach $197 billion by 2020, reflecting a CAGR of 10.3%.
The consumption of natural gas varies day-to-day and month-to-month. Weather and the varying demands of electric power generation translate into usage fluctuations. Seasonally the fluctuation is as much as 50%, and short term it can be even more variable. Exact timing, location and volume of peak demand are unpredictable. Because natural gas is not produced in a way that corresponds to these fluctuations, surplus gas is pumped during slumps in usage into numerous storage facilities (underground gas and LNG) for use during inevitable surges in consumption. In international trade, LNG storage provides the vital link between gas producers and consuming countries. This allows continuous service even when production or pipeline transportation services cannot meet demand.
Although still far from being a commodity, LNG is undoubtedly emerging as an essential vector for world gas expansion. The flexibility it offers in terms of supply is of prime importance for future market equilibrium. Despite a number of uncertainties and constraints liable to thwart the realization of the most optimistic growth prospects, the LNG trade remains wedded to rapid growth by 2020, boosting its share of world gas trade.
The greatest challenges in the CNG vehicle market penetration are the availability of refueling infrastructure, raw material prices and the high price of composite tanks. However, research and development of new products is creating more sustainable products and enhancing the competitive position in the market for companies involved in CNG storage tank production.
“Driven by more stringent emissions requirements, increased natural gas extraction through hydraulic fracturing, and a lower total cost of ownership, interest in NGVs is growing, thus increasing demand for compressed natural gas storage in the vehicles and in refueling stations to serve these vehicles,” says BCC Research analyst Edward Gobina.”Current NGVs, like their internal combustion engine counterparts, are undergoing significant technical changes with an aim to reduce costs reduction and improve overall efficiency. Component manufacturers and suppliers are developing direct injection systems and storage tanks that will enable more universality with most generations of fossil-fueled engines.”
Global Markets and Technologies for Natural Gas Storage
(EGY045C) examines the importance of the natural gas storage infrastructure in relation to the overall global energy economy, including a brief history and important indications for the industry. Analyses of global market drivers and trends, with data from 2014, estimates for 2015, and projections of CAGRs through 2020 are provided.
About BCC Research
BCC Research publishes market research reports that make organizations worldwide more profitable with intelligence that drives smart business decisions. These reports cover today’s major industrial and technology sectors, including emerging markets. For more than 40 years we’ve helped customers identify new market opportunities with accurate and reliable data and insight, including market sizing, forecasting, industry overviews, and identification of significant trends and key market participants. We partner with analysts who are experts in specific areas of industry and technology, providing unbiased measurements and assessments of global markets. Recently selected as the world’s greatest market research company, BCC Research is a unit of Eli Global, LLC. Visit our website at www.bccresearch.com. Contact us: (+1) 781-489-7301 (U.S. Eastern Time), or email firstname.lastname@example.org.
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