MEA Compressed Natural Gas Dispenser Market

MEA Compressed Natural Gas Dispenser Market Analysis

The MEA Compressed Natural Gas Dispenser Market is expected to register a CAGR of greater than 3% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market now reached the pre-pandemic levels.

• Over the medium term, the Middle East and Africa compressed natural gas dispenser market is expected to include augmented growth due to CNG vehicles' economic and environmental benefits and the growing conversion rate of conventional engines to CNG vehicles.
• On the other hand, the growing occupancy of electric vehicles in the region is expected to impede the market growth for CNG vehicles and associated infrastructure.
• Nevertheless, the growing demand for CNG fuelling stations, which is currently less than the requirement for CNG vehicle units in the region, places an opportunity on the CNG dispensers market.
• Iran is expected to witness significant growth due to the growing CNG vehicles market because of the government's initiatives to promote vehicles.

MEA Compressed Natural Gas Dispenser Market Trends

Growing Demand of CNG vehicles Expected to Drive the Market

• The Middle East and Africa region is envisaging a steady growth in the conversion rate of conventional engines into CNG vehicles. It is due to the growing awareness of CNG vehicles' economic and environmental benefits. The region is blessed with high availability of natural gas due to the high growth rate in huge natural gas reserves.
• The countries like UAE, Iran, Turkey, and Egypt are glowing in the CNG vehicles market. Egypt's natural gas production witnessed consistent growth in the last decade, reaching around 67.8 billion cubic meters of natural gas production in the year 2021. Apart from high natural gas availability, the other propelling factor for the CNG vehicles market in the country is the government's initiatives to see consecutive growth in the market.
• For example, in December 2021, the Egyptian Ministry of Petroleum and Mineral Resources invested around EUR 11.3 million (USD 11.8 million) to finance the national program to convert cars to CNG vehicles. The required equipment will be installed in new CNG stations throughout Egypt as part of the program. GASTEC will install 271 dispensers and 100 compressor packages, while NGVC will install 229 dispensers and 100 compressor packages.
• Furthermore, in other countries, the high CNG conversion rate is positively influencing the CNG dispenser market. For example, in UAE, in March 2022, the Emirates Transport Company reported converting around 900 CNG vehicles in 2021. The total number of CNG vehicles in the country reached 11,000 vehicles since the conversion started in 2010.
• Such developments are expected to propel the CNG dispensers market in the region in the coming years.

Iran to Witness Significant Growth

• Iran made remarkable progress in the development of CNG-based transportation. According to the International Association of Natural Gas Vehicles (IANGV), Iran ranked third for the number of CNG vehicles in the world after Pakistan and Argentina in 2022. It is due to the high availability of natural gas and initiatives taken by automotive companies and government authorities.
• Natural gas production in the country rose to 256.7 billion cubic meters in 2021 after witnessing consistent growth. The CNG vehicles are expected to increase the unfolding scene, too. It is due to the efforts made by the Iranian government to boost CNG vehicle production.
• For example, in December 2022, the Ministry of Petroleum instructed the National Iranian Oil Products Distribution Company (NIOPDC) launched a plan to manufacture 45000 CNG vehicles in the country. The authority signed an agreement with Iran Khodro, one of the country's leading automakers. They intend to convert all gasoline-powered public vehicles, taxis, vans, pickup trucks, and passenger cars to CNG vehicles.
• The National Iranian Oil Refining and Distribution Company (NIORDC) announced that around 165,000 public transport vehicles had been converted into duel-fuel cars (gasoline or CNG). All this was made possible with the help of the CNG programs implemented so far.
• Such developments are expected to make Iran include a significant share in the CNG dispensers market shortly.

MEA Compressed Natural Gas Dispenser Industry Overview

The Middle East and Africa CNG dispenser market is moderately fragmented. Some key players (in no particular order) include FTI Group Ltd., Galileo Technologies SA, Pars Compressor, Compressor Sazi Tabriz, and Dover Fuelling Stations.

MEA Compressed Natural Gas Dispenser Market Leaders

MEA Compressed Natural Gas Dispenser Market News

• July 2022: Dover Fuelling Solutions (DFS), the global provider of technologies and services for the fuel industry, announced the launch of a new technologically advanced four-nozzle Wayne Helix CNG dispenser and hydrogen dispenser for EMEA (Europe, Middle-East, and Africa) region.