City Gas Distribution in India Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)

The Market Report Covers City Gas Distribution Companies in India and is segmented by Type (Pipeline Natural Gas [PNG] Connections and Compressed Natural Gas [CNG] Connections) and End User (Automotive, Residential, Commercial, and Industrial).

India City Gas Distribution Market Size

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India City Gas Distribution (CGD) Market Summary
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

India City Gas Distribution (CGD) Market Major Players

*Disclaimer: Major Players sorted in no particular order

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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 Market Trends

This section covers the major market trends shaping the India City Gas Distribution (CGD) Market according to our research experts:

PNG Connections are Likely to Dominate the Market

  • A PNG connection is the supply of natural gas to the home, commercial, and industrial sectors via galvanized iron pipelines, together with the requisite fittings, pressure regulators, and a meter. Natural gas sources, which are mostly composed of methane gas, are regarded as one of the cleanest kinds of energy. Domestic and a few business connections utilize it for cooking, whereas industrial connections use it for heating.
  • Over the past few years, the PNG connections across the country have increased significantly. According to the Ministry of Petroleum and Natural Gas, the number of PNG connections in the country was approximately 9.3 million in 2021, which has increased from 7.9 million in 2020. The growth, which was registered at approximately 18%, is expected to increase significantly during the forecasted period.
  • Government measures to expand the use of natural gas as cooking gas to help reduce the number of people who suffer from health issues from the combustion of fossil fuels such as wood, coal, or cow dung will result in a growth in PNG connections over time. For example, in the past two years, 22 private providers have been authorized to provide PNG to houses by Petroleum and Natural Gas Regulatory Board (PNGRB). According to the "Minimum Work Programme," they are in the process of developing gas infrastructure.
  • Furthermore, in August 2022, the government announced that after the completion of the 11A bidding round, 295 geographical areas had been allocated to various entities. The government announced that after this round, 98% of the population and 88% geographical area of the country had been covered for city gas distribution.
India City Gas Distribution (CGD) Market: PNG Connections, in Units, India, 2018-2021

Increasing PNG Connections and CNG Stations are Expected to Drive the Market

  • The city gas distribution market in India includes PNG and CNG segments. PNG connections are provided to various end-users like domestic, industrial, and commercial. At the same time, the CNG stations, also known as retail outlets, are installed at various places so that people can have access to natural gas for transport.
  • After the completion of the 11 A bidding round in the country in August 2022, the government announced that it had covered 98% of the population compared to 96% in the previous round. This increase in the coverage area is expected to increase the number of PNG and CNG connections across the country.
  • According to the Petroleum and Natural Gas Regulatory Board (PNGRB), in 2021, the total domestic connections in the country were around 9,302,667, while the commercial connections stood at 34,854, and the industry connections were around 13,215. Additionally, the number of CNG stations also increased in the country. As of 2021, there was a total of 4,433 retail outlets in the country.
  • The Petroleum & Natural Gas Regulatory Board in India, under the Natural Gas Infrastructure in India "Vision 2030," has announced plans to increase the share of natural gas in the energy mix by 20% in 2025 as compared to 11% in 2010, which may increase the number of PNG connections and CNG stations in the country.
  • The 11th CGD round awarded major contracts to Bharat Petroleum Corporation Limited (BPCL), Megha Enterprises (MEIL), Indian Oil Corporation (IOC), and Adani Total. a growth in the number of connections in the future is expected to drive the CGD market throughout the forecast period.
India City Gas Distribution (CGD) Market: Population Covered Under Various CGD Bidding Rounds, in %, India

India City Gas Distribution Industry Overview

The India city gas distribution (CGD) market is moderately fragmented. The key players in the market (in no particular order) include Indraprastha Gas Limited, Mahanagar Gas Ltd, GAIL Gas Limited, Gujarat Gas Ltd, and IndianOil-Adani Gas Pvt. Ltd, among others

India City Gas Distribution Market Leaders

  1. Indraprastha Gas Limited

  2. Mahanagar Gas Ltd

  3. GAIL Gas Limited

  4. Gujarat Gas Ltd.

  5. IndianOil-Adani Gas Pvt. Ltd.

*Disclaimer: Major Players sorted in no particular order

India City Gas Distribution (CGD) Market Concentration.png
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India City Gas Distribution Market News

  • In July 2022, the petroleum ministry announced that it planned to set up 3,500 CNG stations in India in the next two years. GAIL and nine of its CGD companies will set up these CNG stations in 41 geographical areas spread across 14 states.
  • In January 2022, Bharat Petroleum Corporation Ltd (BPCL) announced an investment of USD 1.35 billion over the next five years in setting up city gas distribution networks in cities for which it secured licenses on the 11th bidding round.

India City Gas Distribution Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD Billion, till 2028

    3. 4.3 Number of PNG Connections and CNG Stations, by Location, in 2022

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 PESTLE Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Pipeline Natural Gas (PNG) Connections

      2. 5.1.2 Compressed Natural Gas (CNG) Connections

    2. 5.2 End User

      1. 5.2.1 Automotive

      2. 5.2.2 Residential

      3. 5.2.3 Commercial

      4. 5.2.4 Industrial

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Indraprastha Gas Limited

      2. 6.3.2 Mahanagar Gas Ltd

      3. 6.3.3 GAIL Gas Limited

      4. 6.3.4 Gujarat Gas Ltd

      5. 6.3.5 IndianOil-Adani Gas Pvt. Ltd

      6. 6.3.6 SKN-Haryana City Gas Distribution Pvt.Ltd.

      7. 6.3.7 Aavantika Gas Ltd

      8. 6.3.8 Sabarmati Gas Ltd

      9. 6.3.9 Assam Gas Company Ltd

      10. 6.3.10 Adani Total Gas Ltd.

      11. 6.3.11 Torrent Group

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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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
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India City Gas Distribution Market Research FAQs

The India City Gas Distribution (CGD) Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)

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.

The report covers the India City Gas Distribution (CGD) Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India City Gas Distribution (CGD) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

City Gas Distribution in India Industry Report

Statistics for the 2024 City Gas Distribution in India market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. City Gas Distribution in India analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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City Gas Distribution in India Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)