India Gas Equipment Market Overview, 2031

Key Insights

• According to the research report, "India Gas Equipment Market Outlook, 2031," published by Bonafide Research, the India Gas Equipment Market is anticipated to grow at more than 9.83% CAGR from 2026 to 2031.
• India's gas-equipment market is being reshaped by an unprecedented regulatory overhaul, a mission-mode push to connect households to piped gas, and the world's most ambitious compressed biogas programme. The Petroleum and Natural Gas Regulatory Board has authorised city gas distribution entities across 309 geographical areas covering the entire mainland, with 1.74 crore domestic PNG connections as of August 2026. A new incentive scheme effective September 2026 provides an additional 200 SCM of lower-priced APM gas for every incremental billed connection, cutting payback periods from ten years to nearly three.
• Compressed biogas has emerged as India's most distinctive equipment-demand channel. The Union Cabinet approved a ₹23,731 crore GOBARdhan scheme in August 2026, to be implemented from FY 2026-27 to FY 2035-36, targeting a near tenfold increase in domestic CBG production. Mandatory blending obligations rise from 3% in FY 2026-27 to 5% from FY 2028-29 onwards, with an administered procurement price of ₹2,110 per MMBtu providing long-term revenue certainty.
• LNG terminal capacity continues to expand despite near-term demand volatility. India operates eight LNG import facilities with approximately 52.7 million tonnes per year of capacity, making it the world's fourth-largest regasification market. The Centre approved a ₹3,400 crore expansion of IndianOil's Ennore terminal from 5 to 10 MTPA, supported by rising demand across Tamil Nadu, Andhra Pradesh, and Karnataka. Petronet LNG commissioned the Dahej expansion on 31 March 2026, raising capacity to 22.5 MTPA.
• Hydrogen readiness is transitioning from concept to structured preparation. The PNGRB signed a cooperation agreement with Germany's DVGW in January 2026 to establish a framework for hydrogen blending in gas pipelines, safety standards, and progressive repurposing toward 100% hydrogen use. A feasibility assessment found that operating at 20 bar hydrogen achieves a 97% structural pass rate, with repurposing estimated at ₹15,000–18,000 crores 50–60% cheaper than new constructionl.

Market Outlook

• Pipeline transportation remains the largest equipment opportunity. GAIL's network exceeds 18,690 kilometres, with another 1,500 km under construction, bringing the total toward 20,000 km. The Jagdishpur–Haldia–Bokaro–Dhamra pipeline project represents an investment of ₹129.4 billion. These projects require high-pressure compressors, large-diameter valves, metering stations, SCADA systems, and pipeline inspection technologies.
• City gas distribution expansion will drive sustained demand for distribution-class equipment. The government approved an incentive scheme to accelerate domestic PNG connections from 1 September 2026, with a mission-mode urban expansion drive to add 50 lakh new connections. The National PNG Drive was extended until 30 June 2026, with 11 new geographical areas connected to the trunk pipeline network, taking the total to 250.
• Compressed biogas infrastructure is creating a decentralised equipment market. The GOBARdhan scheme's six pillars include assured CBG offtake, administered pricing, capital assistance of up to ₹2 crore per tonne per day, pipeline connectivity support, a credit guarantee mechanism for MSME-based projects, and a CBG Ecosystem Challenge Fund. This creates demand for anaerobic digestion systems, gas upgrading and purification units, compressors, analysers, injection skids, and metering equipment across distributed rural locations.
• Industrial and power-generation applications provide a stable demand channel. GAIL's board approved investments in two fertiliser plants in Maharashtra and Chhattisgarh with combined investment of about ₹21,000 crore, and is progressing with a 500,000-tonne-per-year propane dehydrogenation-polypropylene project at Usar with an estimated investment of about ₹11,256 crore. These downstream projects will require gas-conditioning, compression, regulation, measurement, filtration, and combustion equipment.

Policies & Regulatory Landscape

• The PNGRB released its Action Plan 2026–27, outlining initiatives to strengthen the sector through regulatory reforms, infrastructure expansion, and digitalisation. The plan includes strategic gas storage, CBG pipeline connectivity, LNG terminal registration, CGD-to-CGD connectivity, and development of a National Product Pipeline Grid. It also proposes implementation of the "One Nation, One Tariff" framework, digital tariff determination, a digital consumer grievance portal, and a regulatory framework for hydrogen transportation through pipelines.
• India notified a new gas pipeline order in March 2026 to fast-track infrastructure development, introducing time-bound approvals, standardised processes, and investor-friendly provisions. The order makes PNG mandatory for notified consumers and allows LPG cut-off after three months of non-compliance, streamlining the transition from cylinder-based to pipeline-based cooking fuel.
• Compressed biogas policy is becoming increasingly prescriptive. The GOBARdhan scheme establishes an assured CBG offtake framework with mandatory blending obligations, an administered procurement price of ₹2,110 per MMBtu, capital assistance for greenfield and brownfield plants, pipeline connectivity support, a dedicated credit guarantee mechanism for MSME-based projects, and a CBG Ecosystem Challenge Fund. These measures directly support equipment demand across the CBG value chain.
• Hydrogen regulation is advancing through international cooperation and technical assessment. The PNGRB-DVGW partnership focuses on hydrogen blending in gas pipelines, safety standards, and long-term readiness for 100% hydrogen use, aligned with India's National Green Hydrogen Mission. Key deliverables include access to DVGW technical rules, standards adoption for Indian operating conditions, a Hydrogen Readiness Testing Scheme, and hydrogen-ready certification.

Gas Equipment Procurement & Industry Impact

• Localisation has become a strategic priority for critical gas equipment. India manufactured its first domestically built LNG Marine Loading Arm in May 2026, produced by Woodfield Systems International at its Asangaon facility near Mumbai. The equipment operates at cryogenic temperatures of nearly minus 162°C and was historically sourced from European manufacturers. The company expects its India-made LNG loading arm business to generate $20–30 million in revenue by FY27.
• Smart metering is emerging as a major equipment category. The PNGRB and Energy Efficiency Services Limited signed a memorandum of understanding in August 2026 to facilitate demand aggregation and enable large-scale deployment of smart domestic PNG meters across the CGD sector. This initiative is expected to create a structured ecosystem for standardisation and deployment, representing a significant procurement opportunity for meter manufacturers and technology providers.
• Replacement demand is substantial across India's expanding gas network. The aftermarket and replacement segment is forecast to grow from 25–30% of the pipeline evacuation systems market, driven by the maturation of assets installed during earlier expansion phases. The default material for last-mile PNG connections remains galvanised iron pipe, but corrugated stainless steel tubing is gaining attention for its flexibility, seismic resistance, and reduced joint count, particularly in landslide-prone and flood-affected regions.
• Compressed biogas projects require a different procurement model. Unlike centralised transmission projects, CBG plants are distributed across agricultural and waste-rich regions, often in remote locations. The GOBARdhan scheme's capital assistance covers not only the core biogas plant but also infrastructure for feedstock aggregation, organic manure processing, and value addition. This favours modular, pre-engineered equipment packages that can be rapidly deployed, remotely monitored, and maintained with limited on-site technical expertise.

Industry News

• In August 2026, the Union Cabinet approved the ₹23,731 crore GOBARdhan scheme for compressed biogas, to be implemented from FY 2026-27 to FY 2035-36, with a mandatory CBG blending obligation of 3% in FY 2026-27, rising to 5% from FY 2028-29 onwards.
• In July 2026, the Centre approved a ₹3,400 crore expansion of IndianOil's Ennore LNG terminal, doubling regasification capacity from 5 MTPA to 10 MTPA, and increasing regasification capacity from 20 MMSCMD to 40 MMSCMD.
• In May 2026, India manufactured its first indigenous LNG Marine Loading Arm at Woodfield Systems' Asangaon facility near Mumbai, marking a milestone in localisation of critical cryogenic equipment.
• In May 2026, the Technology Development Board signed an agreement with NTF Energy Solutions to commercialise indigenous Type-IV composite CNG cylinders, which are up to 75% lighter than traditional steel cylinders, enhancing vehicle efficiency and reducing emissions.

Segment Analysis

Gas Equipment By Equipment
• Gas Delivery Systems in India connect domestic gas fields, LNG terminals, transmission pipelines, CGD networks, industrial facilities, power plants, and emerging CBG injection points. Equipment selection must account for India's diverse geography from Himalayan foothills to coastal plains as well as varying pressure regimes, gas compositions, and climatic conditions. The PNGRB's "One Nation, One Tariff" framework is driving standardisation of equipment specifications, while the mission-mode CGD expansion creates demand for distribution-class equipment at unprecedented scale.
• Gas Regulators control pressure across transmission, distribution, industrial, commercial, and residential applications. Indian buyers evaluate inlet and outlet pressure, flow capacity, gas composition, temperature range, relief arrangements, materials, response characteristics, and maintenance requirements. The expanding CBG sector requires regulators capable of handling varying gas compositions, while hydrogen blending introduces additional requirements around seals and material compatibility. Replacement demand is substantial across India's growing network, with the CGD expansion programme creating a particularly strong near-term market.
• Flow Devices include meters, valves, flow-control equipment, pressure instruments, and automation systems. Accurate measurement is essential for pipeline balancing, commercial settlement, LNG custody transfer, CGD billing, and industrial processes. Indian buyers assess accuracy, rangeability, pressure rating, calibration stability, materials, communications capability, and integration with digital network-management platforms. The PNGRB-EESL smart meter initiative will significantly expand the addressable market for domestic PNG meters and associated communication modules.
Gas Equipment By End-Use Sector
• Oil and Gas remains the dominant end-use sector, encompassing upstream production, processing, transmission, LNG, CGD, and distribution at rapidly expanding scale. The sector's equipment requirements are increasingly focused on pipeline network expansion, CGD rollout, LNG terminal construction, and CBG integration. Compressors, valves, regulators, meters, filtration, controls, detection systems, and integrity-management technologies are required across the value chain. The shift toward domestic equipment is particularly pronounced, with local manufacturers achieving milestones in cryogenic loading arms and composite CNG cylinders.
• Chemical and Petrochemical facilities use natural gas for feedstock, hydrogen production, process heat, steam generation, refining, and other applications. India's emphasis on increasing domestic processing and value creation is expanding demand for gas-conditioning, compression, regulation, measurement, filtration, and combustion equipment. GAIL's investments in PDH-PP at Usar and PTA at Mangalore illustrate the scale of downstream expansion. Facilities require products capable of operating under high pressure, elevated temperatures, corrosive conditions, and variable gas compositions.
• Power Generation remains a major gas-equipment application, with natural gas supporting combined-cycle plants, peaking facilities, and captive generation. Gas-fired generation provides flexibility for balancing a power system with rapidly growing renewable capacity. Equipment includes fuel-gas skids, filters, regulators, meters, valves, emergency shutdown systems, combustion controls, and monitoring technologies. Modernisation of ageing gas-based thermal assets can create replacement opportunities even without substantial growth in total gas consumption.
Gas Equipment By End-Use Industry
• Generation in India encompasses natural gas production and processing, CBG production, hydrogen production, purification, compression, and gas conditioning. Conventional gas processing remains dominant, with domestic production continuing to grow. CBG adds a decentralised production base, while green hydrogen production is expanding under the National Green Hydrogen Mission. Equipment requirements include compressors, separators, purifiers, valves, controls, meters, analysers, and detection systems. Buyers increasingly consider gas quality, efficiency, emissions, materials compatibility, reliability, and maintenance together.
• Storage covers underground natural gas facilities, LNG storage, linepack, and emerging hydrogen storage applications. The PNGRB Action Plan 2026-27 includes strategic gas storage as a priority initiative. LNG terminals at Dahej, Hazira, Kochi, Ennore, and Dhamra provide substantial storage capacity. Equipment demand includes compressors, wellhead systems, valves, pressure-control equipment, meters, monitoring systems, and integrity-management technologies. Future hydrogen storage and CBG buffer storage could introduce additional requirements for specialised materials, compression, measurement, and leakage management.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031



Aspects covered in this report
• Gas Equipment with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Equipment
• Gas Delivery Systems
• Gas Regulators
• Flow Devices
• Purifiers & Filters
• Gas-Generating Systems
• Gas Detection Systems
• Cryogenic Products
• Accessories

By End-Use Sector
• Metal Fabrication & Metalworking
• Chemical & Petrochemical
• Healthcare & Medical
• Oil & Gas
• Food & Beverage
• Automotive & Transportation
• Electronics & Semiconductors
• Others



By Process
• Generation
• Storage
• Transportation & Distribution
• Detection