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US CNG Compressor Market

ID: MRFR/EnP/13592-HCR
100 Pages
Swapnil Palwe
October 2025

US CNG Compressor Market Research Report By Technology (Positive Displacement, Dynamic) and By Application (Industrial, Residential, Transportation) - Forecast to 2035

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US CNG Compressor Market Infographic
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US CNG Compressor Market Summary

As per MRFR analysis, the US CNG compressor market size was estimated at 700.2 USD Million in 2024. The US cng compressor market is projected to grow from 729.61 USD Million in 2025 to 1101.18 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 4.2% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US CNG compressor market is poised for growth driven by technological advancements and regulatory support.

  • Technological advancements in compression technology are enhancing efficiency and performance in the CNG compressor market.
  • Regulatory support is fostering a favorable environment for the adoption of CNG as a clean energy solution.
  • The largest segment in the market is the commercial sector, while the fastest-growing segment is the transportation sector.
  • Rising demand for clean energy solutions and government incentives are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 700.2 (USD Million)
2035 Market Size 1101.18 (USD Million)

Major Players

Atlas Copco (SE), CNG Services (GB), Corken (US), Gardner Denver (US), Ingersoll Rand (US), Kobelco (JP), Parker Hannifin (US), Sauer Compressors (DE), Siemens (DE)

US CNG Compressor Market Trends

The cng compressor market is currently experiencing a notable transformation, driven by the increasing demand for cleaner energy solutions. As environmental concerns gain prominence, stakeholders are increasingly turning to compressed natural gas as a viable alternative to traditional fossil fuels. This shift is not merely a trend but appears to be a fundamental change in energy consumption patterns. The market is characterized by advancements in technology, which enhance the efficiency and reliability of compressors. Furthermore, regulatory frameworks are evolving, promoting the adoption of cng as a cleaner fuel option. This regulatory support may further stimulate market growth, as businesses and consumers alike seek to reduce their carbon footprints. In addition, the cng compressor market is witnessing a rise in investments aimed at infrastructure development. The establishment of refueling stations and distribution networks is crucial for the widespread adoption of cng vehicles. This infrastructure expansion could potentially lead to increased accessibility and convenience for users. Moreover, the market is likely to benefit from innovations in compressor design, which may improve performance and reduce operational costs. Overall, the cng compressor market is poised for growth, driven by technological advancements, regulatory support, and infrastructure development.

Technological Advancements

The cng compressor market is seeing rapid technological innovations that enhance compressor efficiency and performance. These advancements may lead to reduced energy consumption and lower operational costs, making cng a more attractive option for consumers and businesses.

Regulatory Support

Government policies are increasingly favoring the use of compressed natural gas as a cleaner fuel alternative. This regulatory support could encourage more companies to invest in cng infrastructure, thereby expanding the market and promoting wider adoption.

Infrastructure Development

The expansion of cng refueling stations and distribution networks is critical for the growth of the market. Improved infrastructure may enhance accessibility for consumers, facilitating the transition to cng vehicles and boosting overall market demand.

US CNG Compressor Market Drivers

Economic Viability of CNG

The economic advantages associated with CNG are a significant driver for the cng compressor market. CNG is often more cost-effective than traditional fuels, with prices fluctuating around $2.50 per gasoline gallon equivalent (GGE) in the US. This price point makes CNG an attractive option for fleet operators and individual consumers alike. The cng compressor market is likely to see increased investment as businesses recognize the potential for cost savings. Additionally, the lower operating costs of CNG vehicles compared to gasoline or diesel counterparts further incentivize adoption. As the market matures, the economic viability of CNG is expected to bolster the demand for compressors, facilitating the growth of the industry.

Expansion of CNG Infrastructure

The expansion of CNG infrastructure is a vital driver for the cng compressor market. As more refueling stations are established across the US, the accessibility of CNG increases, encouraging more consumers and businesses to adopt this cleaner fuel. Recent reports indicate that the number of CNG refueling stations has grown by over 20% in the past few years, reflecting a commitment to enhancing infrastructure. The cng compressor market stands to gain significantly from this trend, as the demand for compressors will rise in tandem with the expansion of refueling networks. This infrastructure development not only supports existing CNG users but also attracts new customers, further propelling market growth.

Government Incentives and Subsidies

Government incentives and subsidies play a crucial role in driving the cng compressor market. Various federal and state programs are designed to encourage the adoption of CNG as a cleaner fuel alternative. For instance, tax credits and grants for CNG infrastructure development have been implemented, which can significantly reduce the financial burden on businesses looking to invest in cng compressors. The cng compressor market is likely to experience growth as these incentives make it more feasible for companies to transition to CNG. Furthermore, the alignment of these incentives with broader environmental goals suggests a sustained commitment to promoting CNG, thereby enhancing market prospects.

Rising Demand for Clean Energy Solutions

The increasing emphasis on clean energy solutions is a pivotal driver for the cng compressor market. As environmental concerns escalate, the shift towards cleaner fuels like compressed natural gas (CNG) becomes more pronounced. In the US, the demand for CNG as a transportation fuel has surged, with a reported growth of approximately 15% in recent years. This trend is likely to continue as consumers and businesses seek to reduce their carbon footprints. The cng compressor market is poised to benefit from this shift, as more refueling stations and infrastructure are developed to support CNG vehicles. Furthermore, the transition to CNG aligns with federal and state initiatives aimed at promoting sustainable energy practices, thereby enhancing the market's growth potential.

Technological Innovations in Compression Technology

Technological innovations in compression technology are transforming the cng compressor market. Advances in compressor design and efficiency are enabling faster refueling times and improved reliability. For instance, the introduction of high-pressure compressors has enhanced the ability to compress CNG more efficiently, which is crucial for meeting the growing demand. The cng compressor market is likely to benefit from these innovations, as they not only improve operational efficiency but also reduce maintenance costs. As manufacturers continue to invest in research and development, the market is expected to see a wave of new products that cater to the evolving needs of consumers and businesses alike.

Market Segment Insights

By Technology: Positive Displacement (Largest) vs. Dynamic (Fastest-Growing)

The US cng compressor market is characterized by a significant share distribution between two main segment values: Positive Displacement and Dynamic technologies. Positive Displacement compressors are currently the most widely used, owing to their reliability and efficiency in various applications. In contrast, Dynamic compressors, while smaller in overall market share, are gaining traction rapidly due to advances in technology and their increasing adoption in high-flow situations. Growth trends indicate a shift in preference towards Dynamic compressors, which are becoming essential for modern cng infrastructure due to their ability to handle fluctuating demand and provide faster response times. Key drivers for this growth include growing investments in renewable energy and stringent environmental regulations compelling users to adopt more efficient and eco-friendly compressors.

Technology: Positive Displacement (Dominant) vs. Dynamic (Emerging)

Positive Displacement compressors dominate the US cng compressor market due to their established presence and proven performance in applications requiring stable and consistent flow. They are ideal for low to medium flow rates and are preferred in various sectors, including industrial and transportation. Meanwhile, Dynamic compressors are emerging as a competitive alternative, characterized by their ability to operate in high flow and varying demand scenarios efficiently. As technological advancements continue to improve their performance and reliability, Dynamic compressors are increasingly adopted, especially in situations requiring rapid fluctuations in flow, thus contributing to their growing market acceptance.

By Application: Industrial (Largest) vs. Transportation (Fastest-Growing)

In the US cng compressor market, the application segment is characterized by a diverse distribution among its categories: Industrial, Residential, and Transportation. The Industrial segment leads strongly, holding the largest market share due to continuous demand for natural gas in manufacturing processes and power generation. Meanwhile, the Residential segment is smaller, reflecting a niche market, while the Transportation segment is rapidly expanding as more transportation companies adopt CNG as a cleaner and more economical fuel alternative, contributing to a shifting landscape in the market. The growth trends within the US cng compressor market emphasize the Transportation segment as the fastest growing, driven by increasing governmental regulations favoring cleaner fuels and the rise in environmental awareness among consumers. Additionally, advances in compressor technology enhance efficiency, making CNG more appealing for logistics and public transport. Meanwhile, the Industrial segment continues to be robust, benefiting from consistent energy demands and the transition toward sustainable energy solutions across various industries.

Industrial (Dominant) vs. Transportation (Emerging)

The Industrial segment in the US cng compressor market is marked by its dominance, supported by strong demand from industrial applications such as power generation and manufacturing. Companies within this segment invest in high-capacity compressors to meet the rigorous energy requirements of their operations. Conversely, the Transportation segment is emerging powerfully, catering to an increasing fleet of vehicles powered by CNG. This segment attracts investments driven by fuel cost savings and regulatory incentives for cleaner emissions. As infrastructure for refueling expands, the Transportation segment's growth prospects look promising, making it an exciting area for innovation and investment while moving towards sustainability initiatives.

Get more detailed insights about US CNG Compressor Market

Key Players and Competitive Insights

The cng compressor market is currently characterized by a dynamic competitive landscape, driven by increasing demand for cleaner energy solutions and the growing adoption of natural gas as a fuel alternative. Key players such as Atlas Copco (SE), Ingersoll Rand (US), and Parker Hannifin (US) are strategically positioning themselves through innovation and regional expansion. Atlas Copco (SE) focuses on enhancing its product portfolio with advanced technologies, while Ingersoll Rand (US) emphasizes sustainability in its operations. Parker Hannifin (US) is actively pursuing partnerships to bolster its market presence, collectively shaping a competitive environment that prioritizes technological advancement and environmental responsibility.

The market structure appears moderately fragmented, with several players vying for market share. Key business tactics include localizing manufacturing to reduce costs and optimize supply chains, which enhances responsiveness to market demands. The collective influence of these major companies fosters a competitive atmosphere where innovation and operational efficiency are paramount, allowing them to adapt to evolving customer needs and regulatory requirements.

In October 2025, Atlas Copco (SE) announced the launch of a new line of energy-efficient cng compressors designed to reduce operational costs for end-users. This strategic move underscores the company's commitment to sustainability and positions it favorably in a market increasingly focused on energy efficiency. By integrating cutting-edge technology, Atlas Copco (SE) aims to capture a larger share of the market while addressing the growing demand for environmentally friendly solutions.

In September 2025, Ingersoll Rand (US) unveiled a partnership with a leading renewable energy firm to develop hybrid cng compressor systems. This collaboration is significant as it aligns with the global shift towards sustainable energy practices. By leveraging the expertise of both companies, Ingersoll Rand (US) is likely to enhance its product offerings and appeal to a broader customer base, thereby strengthening its competitive position.

In August 2025, Parker Hannifin (US) expanded its manufacturing capabilities in the Midwest, focusing on the production of advanced cng compressor technologies. This expansion is indicative of the company's strategy to localize production and improve supply chain efficiency. By increasing its manufacturing footprint, Parker Hannifin (US) is poised to respond more effectively to regional market demands and enhance its service delivery.

As of November 2025, current trends in the cng compressor market include a pronounced emphasis on digitalization, sustainability, and the integration of artificial intelligence (AI) into operational processes. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to pool resources and expertise. Looking ahead, competitive differentiation is expected to evolve, with a shift from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition may redefine market dynamics, compelling companies to invest in R&D and sustainable practices to maintain a competitive edge.

Key Companies in the US CNG Compressor Market market include

Industry Developments

The US CNG Compressor Market has been experiencing significant developments recently, driven by growing demand for clean energy solutions and the increase in the adoption of compressed natural gas (CNG) as an alternative fuel. Companies such as Worthington Industries, Parker Hannifin, and CNG Industrial have been focusing on innovation to enhance efficiency and reduce emissions in their compressor technologies. In early 2023, DresserRand launched a new high-efficiency compressor system aimed at improving operational performance for industrial clients. 

In terms of mergers and acquisitions, Ingersoll Rand announced the acquisition of a selected business unit from a smaller competitor, enhancing its market position and technological capabilities in January 2023. Growth in market valuation is noteworthy, with Atlas Copco reporting an increase of approximately 15% year-over-year in its CNG compressor segment, reflecting rising sales and market expansion. 

Over the last few years, initiatives from the US government aimed at promoting natural gas vehicle infrastructure and reducing greenhouse gas emissions have spurred investments in the sector, creating a more competitive landscape among key players like BAUER Compressors and General Electric. These trends are anticipated to further fuel growth in the CNG compressor market in the upcoming years.

Future Outlook

US CNG Compressor Market Future Outlook

The CNG compressor market is projected to grow at a 4.2% CAGR from 2024 to 2035, driven by increasing demand for cleaner fuel and advancements in technology.

New opportunities lie in:

  • Expansion of CNG refueling infrastructure in urban areas.
  • Development of high-efficiency compressors for industrial applications.
  • Integration of smart technology for remote monitoring and maintenance.

By 2035, the market is expected to achieve robust growth, driven by innovation and infrastructure development.

Market Segmentation

US CNG Compressor Market Technology Outlook

  • Positive Displacement
  • Dynamic

US CNG Compressor Market Application Outlook

  • Industrial
  • Residential
  • Transportation

Report Scope

MARKET SIZE 2024 700.2(USD Million)
MARKET SIZE 2025 729.61(USD Million)
MARKET SIZE 2035 1101.18(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 4.2% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Atlas Copco (SE), CNG Services (GB), Corken (US), Gardner Denver (US), Ingersoll Rand (US), Kobelco (JP), Parker Hannifin (US), Sauer Compressors (DE), Siemens (DE)
Segments Covered Technology, Application
Key Market Opportunities Adoption of advanced technologies enhances efficiency in the cng compressor market, driving growth opportunities.
Key Market Dynamics Rising demand for cleaner energy solutions drives innovation and competition in the CNG compressor market.
Countries Covered US

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FAQs

What is the expected market size of the US CNG Compressor Market in 2024?

The US CNG Compressor Market is expected to be valued at 700.2 USD Million in 2024.

What is the projected market value for the US CNG Compressor Market by 2035?

By 2035, the US CNG Compressor Market is expected to reach a valuation of 1,099.69 USD Million.

What is the expected CAGR for the US CNG Compressor Market from 2025 to 2035?

The expected CAGR for the US CNG Compressor Market from 2025 to 2035 is 4.189%.

Which technology segment is projected to dominate the US CNG Compressor Market by 2035?

The Positive Displacement technology segment is projected to dominate the market with a value of 550.0 USD Million by 2035.

What are the anticipated market values for the Positive Displacement and Dynamic segments in 2024?

In 2024, the Positive Displacement segment is valued at 350.0 USD Million and the Dynamic segment is valued at 350.2 USD Million.

Who are the key players in the US CNG Compressor Market?

Some of the major players include Worthington Industries, Parker Hannifin, and BAUER Compressors.

What challenges does the US CNG Compressor Market currently face?

Challenges include competition from alternative fuel technologies and fluctuating raw material prices.

What are the key applications driving the growth of the US CNG Compressor Market?

Key applications include transportation, industrial production, and energy generation.

What growth opportunities exist for the US CNG Compressor Market during the forecast period?

Emerging opportunities include increasing demand for natural gas vehicles and infrastructure development.

How is the current global scenario impacting the US CNG Compressor Market?

The current global scenario is affecting supply chains and may influence pricing strategies in the market.

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