Impact of the Covid-19 Outbreak on the CNG Compressor Market
Compressed natural gas is a fuel that is used instead of diesel, gasoline, and liquefied petroleum gas. CNG combustion produces lesser unwanted gases than the fuels mentioned above. CNG compressors are used in the fueling of vehicles, for pumping gas into high-pressure CNG tanks, as a part of gas station setups, and in pipeline transmission such as at compressor stations. It is also widely used in the natural gas industry for transportation. However, COVID-19 has changed the entire scenario and has spread across the world, which has significantly impacted multiple sectors. The lockdowns imposed by the government authorities to contain the spread of the pandemic have prohibited the movement of vehicles, which has decreased the consumption of CNG. Besides, the decline in the overall domestic sales of CNG-powered vehicles due to the economic slowdown and COVID-19 pandemic is also hindering the growth of the market. The lack of availability of CNG stations also limits the sales of such vehicles. The demand for natural gas is expected to fall further in 2020.
NATURAL GAS PROCESSING IN THE U.S. (2015–2019)
The decreased sales of two-wheelers in the APAC region are hampering the growth of the market. Asia-Pacific is expected to hold a considerable share of the CNG compressors market. The countries in the region have grown increasingly concerned regarding the air quality; however, due to the COVID-19 pandemic, the negative impact on the industrial and transportation sectors has caused a decline in the adoption of CNG compressors. The resumption of economic activity in the Asia-Pacific region is expected to drive the growth of the CNG compressors market.
Source: Primary Experts, Secondary Sources and MRFR Analysis
Source: U.S. Energy Information Administration (EIA)