Market Size of India City Gas Distribution (CGD) Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 10.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India City Gas Distribution Market Analysis
The India City Gas Distribution (CGD) Market is projected to register a CAGR of over 10% during the forecast period.
COVID-19 negatively impacted the market in 2020. Presently the market has reached pre-pandemic levels.
- Over the medium term, government initiatives to promote natural gas for emission control and minimize the use of conventional fuels like wood, coal, and petrol in various industries are expected to drive the market.
- On the other hand, the lack of awareness in rural areas and the complicated permitting process for pipeline and retail outlet installations are expected to hinder the market's growth.
- Nevertheless, the government's intention of converting India into a gas-based economy is expected to increase the natural gas share in its energy mix from 6% in 2019 to 15% by 2030. This is expected to create enormous opportunities for the India City Gas Distribution (CGD) Market.
India City Gas Distribution Industry Segmentation
City Gas Distribution (CGD) networks are a network of underground Natural Gas pipelines that distribute Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) to residential, commercial, industrial, and retail outlet clients. The pipelines vary in size and pressure significantly. The designed pressure is always customized as per the end user's requirement.
The India city gas distribution (CGD) market is segmented by type and end user. By type, the market is segmented into pipeline natural gas (PNG) connections and compressed natural gas (CNG) connections. By end user, the market is segmented into automotive, residential, commercial, and industrial. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
| Type | |
| Pipeline Natural Gas (PNG) Connections | |
| Compressed Natural Gas (CNG) Connections |
| End User | |
| Automotive | |
| Residential | |
| Commercial | |
| Industrial |
India City Gas Distribution (CGD) Market Size Summary
The India City Gas Distribution (CGD) market is poised for significant growth, driven by government initiatives aimed at promoting natural gas as a cleaner alternative to conventional fuels. The market has rebounded to pre-pandemic levels after the setbacks caused by COVID-19. The government's commitment to transforming India into a gas-based economy is expected to substantially increase the share of natural gas in the country's energy mix, creating vast opportunities for the CGD sector. However, challenges such as limited awareness in rural areas and complex permitting processes for infrastructure development may impede growth. Despite these hurdles, the expansion of PNG connections and CNG stations is anticipated to bolster the market, supported by regulatory measures and infrastructure development efforts.
The CGD market in India encompasses both PNG and CNG segments, catering to domestic, industrial, and commercial users. The government's strategic initiatives, including the allocation of geographical areas for city gas distribution, have significantly expanded coverage, enhancing access to natural gas across the country. Key players in the market, such as Indraprastha Gas Limited, Mahanagar Gas Ltd, and GAIL Gas Limited, are actively involved in expanding the network. Investments by major companies like Bharat Petroleum Corporation Ltd and the establishment of numerous CNG stations are expected to drive further growth. The market's moderate fragmentation indicates a competitive landscape, with ongoing efforts to increase the number of connections and infrastructure development supporting the forecasted growth trajectory.
India City Gas Distribution (CGD) Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD Billion, till 2028
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1.3 Number of PNG Connections and CNG Stations, by Location, in 2022
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1.4 Recent Trends and Developments
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1.5 Government Policies and Regulations
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1.6 Market Dynamics
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1.6.1 Drivers
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1.6.2 Restraints
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1.7 Supply Chain Analysis
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1.8 PESTLE Analysis
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Pipeline Natural Gas (PNG) Connections
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2.1.2 Compressed Natural Gas (CNG) Connections
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2.2 End User
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2.2.1 Automotive
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2.2.2 Residential
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2.2.3 Commercial
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2.2.4 Industrial
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India City Gas Distribution (CGD) Market Size FAQs
What is the current India City Gas Distribution (CGD) Market size?
The India City Gas Distribution (CGD) Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)
Who are the key players in India City Gas Distribution (CGD) Market?
Indraprastha Gas Limited, Mahanagar Gas Ltd, GAIL Gas Limited, Gujarat Gas Ltd. and IndianOil-Adani Gas Pvt. Ltd. are the major companies operating in the India City Gas Distribution (CGD) Market.
