India City Gas Distribution (CGD) Market Size (2024 - 2029)

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.