Rising Demand Across Automotive and Transportation Sectors Fuels Type IV Compressed Gas Tank Market Growth
According to our latest study, “Type IV Compressed Gas Tank Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type, Application, End User, and Geography," the market was valued at US$ 3.39 billion in 2024 and is expected to reach US$ 8.36 billion by 2031; it is estimated to record a CAGR of 14.09% during 2025–2031. The report includes prospects owing to the current type IV compressed gas tank market trends and their foreseeable impact during the forecast period.
The rising demand across the automotive and transportation sectors drives the type IV compressed gas tank market growth. The transportation and automotive industries are experiencing a rapid transformation as countries around the globe focus on decarbonization and transitioning to cleaner energy sources, such as hydrogen and compressed natural gas (CNG). Type IV tanks, made from lightweight composite materials and a plastic liner, support these developments, given their strength-to-weight ratio and ability to guard against corrosion. In the automotive sector, fuel cell electric vehicles (FCEVs) are beginning to replace battery electric vehicles as alternatives for longer-range needs or heavy-duty applications. Companies such as Toyota, Hyundai, and Honda are utilizing Type IV tanks within their platforms dedicated to hydrogen-powered vehicles, as Type IV tanks are capable of safely storing high-pressure hydrogen gas while removing weight from the vehicle, thereby improving efficiency. Hyundai's NEXO and Toyota's Mirai use Type IV tanks to facilitate extended driving ranges and refueling times that are acceptable to drivers. These two factors are critical to consumer acceptance in the marketplace.
Type IV Compressed Gas Tank Market Analysis — by Geography
Type IV Compressed Gas Tank Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Gas Type (Hydrogen, CNG, Nitrogen, RNG, and Others), Capacity (Less than 100, 100-250, and More than 250), Material Type (Carbon Fiber, Glass Fiber, and Others), Application (Automotive and Transportation, Industrial, and Others), Automotive And Transportation Application (Light Duty, Medium Duty, and Heavy Duty) and Geography
Type IV Compressed Gas Tank Market Share & Growth 2031
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Source: The Insight Partners Analysis
Hexagon Composites ASA, Luxfer Holdings PLC, Quantum Fuel Systems, Faber Industrie SpA, Everest Kanto Cylinder Ltd, Dragerwerk AG & Co KGaA, CIMC Enric Holdings Ltd, Time Technoplast Ltd, and NPROXX B.V. are among the key players profiled in the type IV compressed gas tank market report. Other players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.
The report includes the type IV compressed gas tank market forecast by gas type, capacity, material type, and application. Based on gas type, the global type IV compressed gas tank market is segmented into hydrogen, CNG, nitrogen, RNG, and others. There is a rising use of hydrogen as a clean and sustainable energy source. There is an ongoing shift toward decarbonization and cleaner energy alternatives worldwide, and hydrogen-powered technology—such as fuel cell vehicles, industrial processes, and energy storage—is being adopted quickly. Lightweight carbon fiber construction, recognized safety aspects, and the ability of hydrogen to stay at a high pressure for storage are uniquely suited for Type IV tanks due to the low density and high diffusivity of hydrogen. Type IV tanks allow for high-pressure storage capacity at lighter weights than alternative materials, which is necessary for the performance of the system or vehicle, while reducing overall weight for increased efficiency. This segment held the largest type IV compressed gas tank market share in 2024.
The scope of the type IV compressed gas tank market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of the Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). Asia Pacific dominated the market in 2024, followed by North America and Europe.
The type IV compressed gas tank market in the Asia Pacific is segmented into Australia, China, Japan, India, South Korea, and the Rest of the Asia Pacific. India held the largest type IV compressed gas tank market share in APAC. The government's emphasis on increasing the use of compressed natural gas (CNG) and green hydrogen in public transport fleets and logistics is creating significant demand for lightweight and strong gas containment systems. Type IV tanks have a superior strength-to-weight ratio and are corrosion-resistant, making them an important part of this transition. CNG-powered buses are becoming more common in cities, and hydrogen is seen as a clean fuel to adopt in the long-term future, thus speeding up their penetration into the market. India's quest for energy self-reliance, with incentives to manufacture locally, is aiding in the establishment of high-performance composite tanks in local facilities. Finally, the expansion of CNG infrastructure and operational plans for hydrogen refueling stations will have a direct impact on the adoption of Type IV tanks.
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