Automotive Gas Cylinder Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Type 1, Type 2, Type 3, Type 4, Type 5), By Vehicle Type (Passenger, Light Commercial, Heavy Commercial), By Material Type (Steel, Aluminium, Composite), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 9.57 Billion
CAGR (2026-2031)	4.93%
Fastest Growing Segment	Type 4
Largest Market	Asia Pacific
Market Size (2031)	USD 12.77 Billion

Market Overview

The Global Automotive Gas Cylinder Market will grow from USD 9.57 Billion in 2025 to USD 12.77 Billion by 2031 at a 4.93% CAGR. The Global Automotive Gas Cylinder Market entails the manufacturing of pressure vessels designed to store compressed natural gas, liquefied petroleum gas, and hydrogen for vehicle propulsion. Growth is chiefly driven by rigorous emission standards and a global transition toward low-carbon energy, which has catalyzed government incentives for alternative fuel technologies. According to the Hydrogen Council, in 2024, committed investment in clean hydrogen projects reaching the final investment decision stage increased to approximately USD 75 billion. This substantial capital influx underscores the strengthening financial support for the alternative fuel infrastructure that underpins this market.

Distinct from these drivers, the industry is witnessing a trend toward Type IV composite cylinders, which provide significant weight reduction benefits over traditional steel options. Nevertheless, a significant challenge impeding market expansion is the prohibitive cost of developing extensive refueling infrastructure. This financial constraint limits consumer accessibility and network density, ultimately restricting the broader proliferation of gas-powered vehicles in key regions.

Key Market Drivers

The escalating adoption of CNG, LPG, and hydrogen vehicles is a primary catalyst propelling the global automotive gas cylinder market. As the automotive industry shifts to meet decarbonization targets, the demand for specialized on-board storage solutions has surged to accommodate alternative propulsion systems. This trend is particularly evident in the hydrogen sector, where the proliferation of fuel cell electric vehicles (FCEVs) necessitates high-pressure Type IV composite cylinders. According to the International Energy Agency, in April 2024, in the 'Global EV Outlook 2024', the global stock of fuel cell electric vehicles increased by approximately 20% in 2023, reaching a total of 87,600 units. This growth in vehicle deployment directly correlates with increased manufacturing volumes for gas containment systems, as OEMs seek lightweight vessels to ensure range efficiency and safety in these platforms.

Simultaneously, favorable government incentives and subsidies for green mobility are critical in overcoming the high initial costs associated with alternative fuel technologies. By providing financial grants for vehicle purchases and underwriting the massive capital required for refueling networks, policymakers are effectively de-risking the market for both consumers and manufacturers. For instance, according to the U.S. Department of Energy, in November 2024, the administration awarded up to USD 2.2 billion to two Regional Clean Hydrogen Hubs to accelerate commercial-scale deployment and infrastructure expansion. Such substantial public funding boosts industry confidence, reflected in the performance of key component suppliers. Demonstrating this sector-wide momentum, according to Hexagon Purus, in November 2024, the company reported record quarterly revenue of NOK 544 million, representing a 43% increase compared to the same period in the previous year, driven largely by hydrogen infrastructure and mobility demand.

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Key Market Challenges

The prohibitive cost of developing extensive refueling infrastructure acts as a primary impediment to the expansion of the Global Automotive Gas Cylinder Market. Constructing a dense and reliable network for compressed natural gas and hydrogen requires massive capital expenditure, often involving specialized high-pressure storage and safety equipment that significantly drives up initial project costs. This financial burden restricts the speed at which refueling stations can be deployed, creating significant gaps in geographic coverage. Consequently, fleet operators and individual consumers face range anxiety and logistical inflexibility, which directly dampens the demand for gas-powered vehicles and the pressure vessels they utilize.

This lack of infrastructure density forces the market into a cycle of stagnation. Without a sufficient number of convenient refueling points, vehicle manufacturers are hesitant to scale up production, which in turn reduces the volume of gas cylinders ordered from suppliers. The severity of this infrastructure gap is evident in recent industry data. According to The Transport Project, in 2024, the combined network of public natural gas fueling stations across the United States and Canada stood at approximately 1,600 locations. This limited availability relative to the vast transportation network highlights the financial and logistical challenges preventing the broader proliferation of gas-powered transport.

Key Market Trends

The Integration of IoT-Enabled Smart Cylinder Monitoring is transforming pressure vessels from passive storage units into intelligent data nodes capable of broadcasting critical status metrics. This trend involves embedding advanced sensors and connectivity modules directly into cylinder valves to track real-time gas levels, internal pressure, and geolocation. For distributors and fleet operators, this connectivity enables predictive maintenance and automated replenishment models (pay-per-use), significantly reducing logistical inefficiencies and eliminating unexpected run-out events. The shift towards digital precision is rapidly replacing traditional mechanical gauges, which often suffer from limited visibility and estimation errors. According to Rotarex SRG, in February 2024, the company launched a patented digital multivalve system capable of providing precise electronic level readings across a 3% to 80% range, markedly improving upon the accuracy of conventional float-based mechanical counterparts.

Simultaneously, the market is being shaped by Strategic Alliances for Fuel Cell Vehicle Integration, as automotive OEMs partner deeply with cylinder manufacturers to secure supply chains for high-performance storage systems. These collaborations are essential for optimizing Type IV composite cylinder designs to fit within the unique chassis constraints of commercial fuel cell electric vehicles (FCEVs) while meeting stringent safety and range requirements. By transitioning from transactional supplier relationships to co-development partnerships, manufacturers are successfully scaling production to meet the demands of heavy-duty transport decarbonization. Underscoring the scale of this industrial ramp-up, according to Forvia, in May 2024, the company reported that it had produced and delivered more than 11,000 hydrogen tanks globally in 2023, reflecting the growing volume of serial production contracts supporting this integration.

Segmental Insights

The Type 4 segment constitutes the fastest-growing category within the global automotive gas cylinder market, primarily driven by the imperative for lightweight fuel storage solutions. Constructed with a non-metallic polymer liner and carbon fiber reinforcement, these cylinders offer substantial weight reduction compared to steel alternatives, which is essential for extending the driving range of hydrogen and compressed natural gas vehicles. This market shift is further accelerated by stringent emission standards from regulatory bodies like the European Commission, compelling manufacturers to adopt lighter components that improve vehicle efficiency and ensure compliance with environmental mandates.

Regional Insights

Asia Pacific commands the Global Automotive Gas Cylinder Market, primarily driven by aggressive government policies aiming to reduce vehicular emissions in major economies like China and India. The region experiences high demand for Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) cylinders due to the significant cost advantages of these fuels over gasoline and diesel. Furthermore, substantial investments in refueling infrastructure, guided by institutions such as India’s Petroleum and Natural Gas Regulatory Board, facilitate widespread adoption. This convergence of regulatory support, economic benefits, and infrastructure expansion secures Asia Pacific’s position as the primary regional market.

Recent Developments

• In November 2024, Hexagon Purus was selected by New Flyer, a prominent mass mobility solutions provider, to supply Type 4 hydrogen cylinders for the fifth consecutive year. Under this contract, valued at approximately USD 6.3 million, the company agreed to deliver high-pressure hydrogen storage systems for the customer's next-generation fuel cell-electric transit buses throughout 2025. This ongoing collaboration underscored the critical role of lightweight composite cylinder technology in enabling long-range, zero-emission public transportation across North America.
• In June 2024, Time Technoplast Ltd received final approval from the Petroleum and Explosives Safety Organization (PESO) to manufacture and supply high-pressure Type-IV composite cylinders for hydrogen. This regulatory clearance made the company the first in India to be authorized for the production of these advanced cylinders for on-board automotive applications. The approval paved the way for the firm to capitalize on the rapidly expanding green energy market and support the country’s transition to sustainable fuel sources for vehicles.
• In April 2024, OPmobility (formerly Plastic Omnium) secured a substantial order from a premium European automobile manufacturer to supply high-pressure hydrogen vessels for SUVs in the United States. This contract marked a key milestone for the company’s expansion in the American automotive market, where it planned to establish a large-scale hydrogen storage production facility in Grand Blanc Township, Michigan. The manufacturing plant was designed to produce up to 100,000 tanks annually to support the increasing demand for zero-emission mobility solutions in both the passenger and commercial vehicle segments.
• In March 2024, a leading automotive technology supplier, Forvia, announced a significant agreement to supply hydrogen storage systems to a major North American original equipment manufacturer. The company secured a contract to provide Type IV hydrogen storage tanks for medium-duty commercial trucks, with production expected to commence in 2025. This deal reinforced the supplier's position in the North American market, following a strong performance in the previous year where it delivered over 11,000 hydrogen tanks globally. The collaboration highlighted the growing adoption of hydrogen fuel cell technology in the commercial transport sector.

Key Market Players

• Luxfer Holdings PLC
• Ryder Industries Ltd.
• Hexagon Purus ASA
• Stellantis N.V.
• Worthington Cylinders GmbH
• Nexteer Automotive Corporation
• Everest Kanto Cylinder Ltd.
• Krosaki Harima Corporation
• Chengdu Yachuan Gas Equipment Co., Ltd.
• Stelrad Group plc

By Product Type	By Vehicle Type	By Material Type	By Region
Type 1 Type 2 Type 3 Type 4 Type 5	Passenger Light Commercial Heavy Commercial	Steel Aluminium Composite	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Gas Cylinder Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Gas Cylinder Market, By Product Type:

• Type 1
• Type 2
• Type 3
• Type 4
• Type 5

• Automotive Gas Cylinder Market, By Vehicle Type:

• Passenger
• Light Commercial
• Heavy Commercial

• Automotive Gas Cylinder Market, By Material Type:

• Steel
• Aluminium
• Composite

• Automotive Gas Cylinder Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE