Composite Cylinder Market Expected to Reach $1.2 Billion by 2030

According to a new report published by Allied Market Research, titled, "Composite cylinder market by cylinder type, by fiber type, by tank type, and by end use: Global Opportunity Analysis and Industry Forecast, 2020-2030," The global composite cylinder market size was valued at $0.8 billion in 2020, and projected to reach $1.2 billion by 2030, with a CAGR of 4.1% from 2021 to 2030.

Steel cylinders are replaced with composite cylinders, as they are UV-protected, lightweight, non-corrosive, and explosion proof in nature. Superior benefits associated with composite cylinders as compared to steel cylinders such as life span of more than 20 years, easy transportation, low weight, and their portability act as the key driving forces of the global composite cylinders market. 

The above-mentioned properties will eventually help in reducing transportation costs due to its low weight and ease of transportation. Furthermore, rapid urbanization and increase in disposable income have escalated the demand for resources, which, in turn, boosted the growth of the composite cylinders market. Rise in demand for LPG cylinders in developing countries significantly boosts the growth of the composite gas cylinders market. Moreover, various initiatives taken by government to encourage the use of composite cylinders are expected to increase the market share of composite cylinders worldwide. 

Furthermore, increase in production of natural gas-powered vehicles, innovation in hybrid-powered vehicles, and surge in demand for lightweight storage solutions positively impact the growth of the composite gas cylinder market. Implementation of government regulations and regulatory safety standards related to reliable transportation and storage of gas facilitates the industry expansion. Rapid urbanization and development of transportation infrastructure in emerging economies and presence of excess income among the middle-class population have led to surge in demand for personal natural gas-fueled vehicles, which has propelled the demand for composite cylinders. 

In addition, increase in awareness regarding natural gas-fueled vehicles and government policies to support the green energy vehicles support the growth of the composite cylinder market. However, manufacturing of a composite cylinder is difficult and a high-tech procedure, due to which the price of the composite cylinders is significantly more than steel cylinders, which acts as a key deterrent factor of the global market. Moreover, the outbreak of the COVID-19 pandemic resulted in disruptions in key end-use verticals, which include automotive, aerospace & defense, construction, and transportation, thus negatively impacting the composite cylinders industry.

The global composite cylinder market is segmented into cylinder type, fiber type, tank type, end use, and region. On the basis of cylinder type, the market is classified into LPG and CNG. By fiber type, it is categorized glass fiber composites, carbon fiber composites, aramid fiber composites, and others. Depending on tank type, it is categorized into type II, type III, and type IV. As per end use, it is fragmented into gas carrier and storage, transportation, life support, recreation, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The major companies profiled in this report include Aburi composites, Amtrol-alfa, Aygaz, Dragerwerk, Evas, Faber Industrie, Hexagon composites ASA, Luxfer Gas Cylinders, Quantum Fuel System Technologies, and Sinoma. Additional growth strategies such as expansion of production capacities, acquisition, and partnership in the development of the innovative products from manufacturers have helped to attain key developments in the global composite cylinder market trends. 

Impact Of Covid-19 On The Global Composite Cylinder Market

• Emergence of COVID-19 had a negative impact on the growth of the composite cylinder market during this period.
• The COVID-19 pandemic had transformed the growth of various industries; the immediate impact of the outbreak is varied, as few industries registered a drop in demand, whereas numerous other industries remained unscathed and show promising growth opportunities.
• The pandemic has had a significant impact on the composite cylinders market, as the supply of raw materials for the production of these cylinders was delayed due to the improper transportation conditions due to lockdown.
• Decline in the demand for petroleum products due to the shutdown of various industries, decrease in usage of personal vehicles for transportation, and ban over large-scale transportation system have huge impact on the demand for crude oil, thus leading to decline in the price of crude oil, which, in turn, led to the decline in LPG and CNG cost.
• Thus, the abovementioned factors are expected to have great impact on the development of composite cylinder market growth in this forecast period.

Key Findings Of The Study

• Region wise, the Asia-pacific is projected to witness growth at the highest CAGR in terms of revenue, during the forecast period.
• As per global composite cylinder market analysis, by cylinder type, the LPG segment accounted for the largest share in 2020. 
• On the basis of fiber type, the glass fiber composite segment was the major share contributor in 2020.
• On the basis of tank type, the type III segment was the major share contributor in 2020.
• On the basis of end-use, the transport segment was the major share contributor in 2020.