CNG Cylinders Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Type 1 CNG Cylinders, Type 2 CNG Cylinders, Type 3 CNG Cylinders, Type 4 CNG Cylinders), By Raw Material (Metals, Glass Fiber, Carbon Fiber), By Vehicle Type (Passenger Vehicles, Commercial Vehicles) By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.22 Billion
CAGR (2026-2031)	6.01%
Fastest Growing Segment	Carbon Fiber
Largest Market	Asia Pacific
Market Size (2031)	USD 3.15 Billion

Market Overview

The Global CNG Cylinders Market will grow from USD 2.22 Billion in 2025 to USD 3.15 Billion by 2031 at a 6.01% CAGR. CNG cylinders are specialized high pressure vessels manufactured from steel or composites to store compressed natural gas for automotive and industrial applications. The primary drivers supporting market growth include the significant operational cost savings of natural gas compared to conventional liquid fuels and stringent government regulations regarding vehicular emissions. Additionally, the expanding network of fueling stations in developing regions creates a favorable environment for the adoption of natural gas mobility solutions across commercial and private sectors.

This demand is quantified by robust sales figures in key regional markets that influence global volume. According to the 'Federation of Automobile Dealers Associations', in '2024', 'the three wheeler segment registered a remarkable 49 percent annual growth driven by the introduction of economical CNG fuel options'. Despite these positive indicators, the market faces a substantial challenge from the accelerating transition to electric mobility. The increasing availability and policy support for battery electric vehicles could impede the long term expansion of natural gas infrastructure and cylinder demand.

Key Market Drivers

Rapid expansion of global CNG refueling infrastructure serves as a foundational driver for the cylinder market. Governments and private energy entities are aggressively increasing the density of fueling stations to mitigate range anxiety, encouraging the transition from conventional liquid fuels to compressed natural gas. This infrastructural growth is particularly evident in emerging economies where policy support is strongest. For instance, according to the Ministry of Petroleum and Natural Gas, August 2024, the Indian government has authorized entities to expand the city gas distribution network with a target to establish 18,336 CNG stations by 2032. Such large-scale development mandates a parallel increase in storage cylinder procurement for both station cascades and the vehicles utilizing this expanding network.

Simultaneously, the rising adoption of natural gas vehicles in public and commercial fleets is accelerating demand for high-capacity composite and steel cylinders. Logistics companies and municipal transport agencies are prioritizing CNG to capitalize on lower operational costs and comply with stricter environmental mandates. This shift is highlighted by significant commercial interest; according to Hexagon Agility, October 2024, the company received orders valued at USD 4.3 million for natural gas fuel systems, noting that 40 percent of the involved fleets were new adopters of the technology. This uptake in the commercial segment translates into sustained consumption growth. According to Adani Total Gas, in 2025, the energy provider reported a 19 percent year-on-year increase in CNG volumes for the quarter ended December 2024, underscoring the robust momentum in the broader market.

Download Free Sample Report

Key Market Challenges

The accelerating transition to electric mobility creates a significant structural barrier for the global CNG cylinders market. As automotive strategies align with net-zero carbon goals, policy frameworks are increasingly favoring battery electric vehicles over natural gas alternatives. This diversion of regulatory support disincentivizes fleet operators from adopting CNG platforms, thereby reducing the immediate requirement for on-board fuel storage solutions. Consequently, the market for high-pressure vessels experiences reduced order volumes as the commercial transport sector begins to bypass natural gas in favor of electrification.

This negative impact is substantiated by recent data indicating a retreat in natural gas vehicle adoption within key regions. According to the 'European Automobile Manufacturers’ Association', in '2024', 'registrations of trucks powered by other energy sources, such as natural gas, fell sharply by 27.2 percent across the European Union'. This contraction in the heavy commercial vehicle segment is detrimental as it represents a high-volume application for large cylinders. The decline in new natural gas truck deployments directly shrinks the addressable market for cylinder manufacturers, demonstrating how the electric mobility shift is actively hampering industry expansion.

Key Market Trends

The expansion of large-diameter cylinders for virtual pipelines is emerging as a critical trend, addressing the energy needs of industries located beyond the reach of conventional gas grid infrastructure. Manufacturers are increasingly developing high-capacity composite modules that facilitate the bulk transport of compressed natural gas to remote industrial sites and mining operations. This technology replaces traditional steel tube trailers with lightweight, large-volume composite alternatives, significantly improving logistics efficiency and reducing transportation costs. This demand for mobile infrastructure is substantial; according to Hexagon Agility, December 2024, in the 'Hexagon Agility receives order for Mobile Pipeline TITAN 450 modules' press release, the company secured an order valued at USD 11.2 million for its TITAN 450 modules to support an oilfield services company in transitioning equipment from diesel to natural gas.

Strategic collaborations for OEM-integrated fuel systems are also reshaping the market, as cylinder manufacturers partner directly with heavy-duty vehicle producers to optimize on-board storage solutions. This trend moves away from aftermarket retrofitting toward factory-installed fuel systems designed specifically for new, high-performance natural gas engines. These integrated packages ensure better compatibility with chassis configurations and enhance the driving range of long-haul trucks, thereby accelerating the commercial viability of natural gas fleets. The momentum of this integration is evident in recent procurement activities; according to Hexagon Agility, September 2025, in the 'Hexagon Agility receives new wave of orders' announcement, the manufacturer received orders totaling USD 4.2 million for fuel system installations specifically designed for trucks powered by the Cummins X15N natural gas engine.

Segmental Insights

The carbon fiber segment is identified as the fastest-growing category in the Global CNG Cylinders Market due to its ability to offer substantial weight savings compared to metal alternatives. This material is essential for manufacturing Type III and Type IV cylinders, which significantly improve vehicle fuel efficiency and extend driving range. Consequently, automotive manufacturers are increasingly adopting carbon fiber to meet stringent fuel economy standards mandated by organizations such as the United States Environmental Protection Agency. The high strength-to-weight ratio also allows for greater payload capacity in commercial vehicles, further validating the accelerated demand for this material type.

Regional Insights

Asia Pacific maintains a leading position in the Global CNG Cylinders Market, driven by extensive government mandates to curb high pollution levels. The region benefits from the rapid adoption of natural gas vehicles in major economies like China and India, where policymakers are shifting away from diesel and petrol. Strategic infrastructure projects, such as those overseen by the Petroleum and Natural Gas Regulatory Board in India, facilitate the expansion of city gas distribution networks. This consistent regulatory push for cleaner public and private transportation infrastructure solidifies Asia Pacific as the primary market revenue generator.

Recent Developments

• In July 2025, Luxfer Gas Cylinders introduced "Luxfer Care," a comprehensive aftercare and maintenance service designed to support the deployment of alternative fuel systems throughout Europe. This initiative was developed to provide specialized technical assistance, warranty support, and spare parts management for compressed natural gas (CNG) and hydrogen storage solutions. By addressing the operational needs of transport operators and industrial users, the program aimed to ensure the optimal performance and safety of high-pressure cylinder systems over their service life. The launch of this service underscored the company's strategy to provide end-to-end support for the growing infrastructure of zero-emission and low-carbon gas technologies.
• In May 2025, Hexagon Agility, a global provider of clean fuel solutions, secured significant new orders valued at approximately USD 4.3 million for the delivery of natural gas fuel systems. These systems were specified for heavy-duty trucks equipped with the Cummins X15N engine, a powertrain designed to deliver diesel-like performance using compressed natural gas (CNG) and renewable natural gas (RNG). The orders originated from over 20 leading Class 8 fleets, signaling a robust market shift toward alternative fuels in the North American logistics sector. This commercial milestone highlighted the growing demand for Type 4 composite cylinder technology, which is essential for maximizing the range and efficiency of long-haul natural gas trucks.
• In April 2025, Quantum Fuel Systems launched the Q-Cab 190, a next-generation compressed natural gas (CNG) back-of-cab fuel storage system, during the Advanced Clean Transportation (ACT) Expo. Engineered to meet the rigorous demands of the heavy-duty trucking industry, this new product features a substantial storage capacity of 190 diesel gallon equivalents (DGE). The system incorporates advanced Type 4 composite cylinders, which significantly reduce weight compared to traditional steel alternatives, thereby improving vehicle payload and range. This launch was positioned to support fleet operators in reducing their total cost of ownership while transitioning to cleaner energy sources, reflecting the company's commitment to innovation in gaseous fuel storage.
• In June 2024, Worthington Enterprises finalized a strategic joint venture with Hexagon Composites to strengthen its position in the global clean energy market. Under this agreement, Hexagon Composites acquired a 49 percent equity interest in Worthington’s Sustainable Energy Solutions (SES) business segment. The newly formed entity was established to focus specifically on the development and distribution of high-pressure storage and transport systems for compressed natural gas (CNG) and hydrogen. This collaboration aimed to combine the manufacturing and engineering expertise of both companies to address the accelerating demand for sustainable fuel infrastructure and advanced gas containment technologies across Europe and other international markets.

Key Market Players

• Luxfer Gas Cylinders
• Hexagon Composites ASA
• Faber Industrie SpA
• NPROXX B.V.
• Everest Kanto Cylinder Limited
• Linde plc
• Beijing Tianhai Industrial Co., Ltd
• ELAFLEX US Inc

By Type	By Raw Material	By Vehicle Type	By Region
Type 1 CNG Cylinders Type 2 CNG Cylinders Type 3 CNG Cylinders Type 4 CNG Cylinders	Metals Glass Fiber Carbon Fiber	Passenger Vehicles Commercial Vehicles	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• CNG Cylinders Market, By Type:

• Type 1 CNG Cylinders
• Type 2 CNG Cylinders
• Type 3 CNG Cylinders
• Type 4 CNG Cylinders

• CNG Cylinders Market, By Raw Material:

• Metals
• Glass Fiber
• Carbon Fiber

• CNG Cylinders Market, By Vehicle Type:

• Passenger Vehicles
• Commercial Vehicles

• CNG Cylinders 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