Brazil City Gas Distribution Market Size

Brazil City Gas Distribution Market Analysis

The Brazilian city gas distribution market is estimated to register a CAGR of more than 2% during the forecast period. The outbreak of the COVID-19 pandemic in Q1 of 2020 negatively impacted the market. Lockdown restrictions imposed by the Brazilian government to stop the spread of COVID-19 infections in the country caused a drop in the consumption of natural gas fuels as the restrictions imposed limited the movement of vehicles that directly impacted the market in Brazil. Factors such as the rising demand for natural gas as a clean fuel and the properties of emitting low carbon particles than coal and oil, city gas has a tremendous potential to reduce the growing carbon emission. This is expected to drive the growth of the market. However, Brazil's shift towards renewables for electricity generation, increasing use of biofuels for transportation and the growing sale of electric vehicles are likely to resist the growth possessing a huge threat to the City Gas Distribution market in the coming years.

• The growing demand for natural gas from end users, including transportation, industrial, power, residential and commercial applications, is expected to drive Brazil's city gas distribution market during the forecast period.
• Further, the CNG to power project is likely to provide a vast market for the city das distribution players. Additionally, the rapid urbanization in Brazil is expected to create considerable opportunities for the city gas distribution market in the coming years.
• The increasing adoption of renewable fuels in the transportation sector is expected to restrain the market growth during the forecast period.