CNG LPG Vehicle Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 6.73 Billion |
| Market Size (2029) | USD 10.13 Billion |
| CAGR (2024 - 2029) | 7.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
CNG LPG Vehicle Market Analysis
The CNG LPG Vehicle Market size is estimated at USD 6.73 billion in 2024, and is expected to reach USD 10.13 billion by 2029, growing at a CAGR of 7% during the forecast period (2024-2029).
Over the medium term, the market for CNG and LPG vehicles is expected to expand due to growing environmental concerns, higher fuel costs, and the emphasis on energy diversification. Significant advancements in CNG and LPG vehicle technologies have been made in recent years, including fuel storage, engine efficiency, and safety features. These improvements have increased the competitiveness of CNG and LPG vehicles in terms of performance and reliability.
As the world moves toward sustainable energy, CNG and LPG vehicles are expected to remain important, particularly in areas with underdeveloped EV infrastructure. Ongoing advancements in vehicle technology and fuel infrastructure could further increase the attractiveness of CNG and LPG vehicles in the market.
Lower operational costs, stemming from the cheaper prices of CNG and LPG compared to petrol and diesel, are significant factors driving their usage. This benefit is especially attractive for commercial and high-mileage vehicles. The tightening of emission regulations globally is also leading to increased adoption of CNG and LPG vehicles, as they produce fewer pollutants compared to conventional fuels.
Asia-Pacific is the largest market for automobiles in the world. Despite the slow growth in the Chinese market, the largest automobile market globally, the region is expected to drive growth in the CNG and LPG vehicle market during the forecast period.
CNG LPG Vehicle Market Trends
Commercial Vehicles are Fueling the Demand for CNG and LPG Vehicles
CNG and LPG are often cheaper than traditional petrol and diesel fuels. For commercial vehicle operators, fuel cost is a significant portion of operating expenses. The lower cost of CNG and LPG can result in substantial savings over the vehicle's lifetime, making these options financially attractive.
Compared to the more volatile oil market, CNG and LPG prices are generally more stable. This stability allows businesses to better forecast and manage operating costs, which is crucial for commercial operations.
The growing number of strict emission regulations worldwide is playing a major role in shaping the automotive industry. Compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicles have been proven to produce lower levels of harmful pollutants like nitrogen oxides (NOx), particulate matter (PM), and carbon dioxide (CO2) in comparison to diesel and gasoline vehicles. These benefits make CNG and LPG vehicles especially suitable for urban areas where maintaining good air quality is crucial.
The accessibility of CNG and LPG fuels has increased due to the expansion of fueling stations. This expansion is often a result of government initiatives or partnerships between private entities and government bodies. Modern CNG and LPG vehicles have experienced significant improvements in performance, reliability, and fuel efficiency, making them more competitive with traditional fuel vehicles.
In areas where natural gas or LPG is easily accessible and more affordable because of local production, these resources tend to be used. Many cities worldwide are implementing low-emission zones, where vehicles that do not meet specific emission standards are either prohibited or required to pay a fee. CNG and LPG vehicles often meet these standards, making them a practical choice for businesses operating in urban areas.
However, factors such as the cost advantage offered by natural gas vehicles and the supportive government policies to encourage the adoption of alternative fuel-powered vehicles are driving the CNG and LPG vehicle market.
Due to such factors, the market for CNG and LPG vehicles worldwide is expected to grow in the coming years.
Asia-Pacific is Expected to be the Largest Market During the Forecast Period
Asia-Pacific is projected to emerge as the leading market for CNG and LPG vehicles worldwide, primarily driven by the increasing demand in India.
Cities in the region are some of the most polluted in the world. Compared to diesel and petrol vehicles, CNG and LPG vehicles emit fewer pollutants, making them attractive options for improving urban air quality. Many countries are adopting global trends in emission standards, and CNG and LPG vehicles are viewed as practical steps toward meeting these stricter environmental regulations.
Regulatory policies across the region are strengthening this trend. Stringent emission control policies, such as India's Bharat Stage VI emission standards, have accelerated the use of cleaner fuel vehicles, including CNG and LPG. Countries like China and India also have specific policies that promote alternative fuel vehicles, positioning CNG and LPG vehicles within broader carbon reduction strategies.
Technological advancements significantly contribute to the appeal of CNG and LPG vehicles. Improvements in vehicle technology have enhanced performance and reliability and increased the efficiency, range, and refueling times of these vehicles.
Complementing these technological advancements is the expansion of refueling infrastructure, which is crucial for the practicality of CNG and LPG vehicles. This expansion, particularly in India and China, has played a key role in making these fuels more accessible for personal and commercial use. The market dynamics of Asia-Pacific are defined by a large and expanding vehicle population, which further drives the demand for CNG and LPG vehicles.
Europe and North America are expected to become the next major markets after Asia-Pacific, largely attributed to the decreased prices of natural gas and the implementation of strict emission regulations.
With such development across the region, the demand for CNG and LPG vehicles is likely to grow in the coming years.
CNG LPG Vehicle Industry Overview
The CNG and LPG vehicle market is dominated by several global and local players. Some of the major players are Hyundai Motor Company, Suzuki Motor Corporation, Nissan Motor Co. Ltd, Volkswagen AG, and Honda Motor Company. The major companies are launching new products and forming joint ventures to cement their market positions. For instance:
- In June 2024, at the Bharat Mobility Global Expo 2024, Tata Motors unveiled the Nexon iCNG, marking the fifth introduction to Tata's CNG lineup. Notably, the Nexon iCNG is the first turbo-petrol car equipped with a factory-fitted CNG kit. This innovative offering showcases Tata's commitment to eco-friendly and efficient mobility solutions.
- In November 2023, the Indian government announced its commitment to significantly expanding the network of CNG stations, with an ambitious target to increase the count from 6,000 to 17,700 by 2030. This strategic move aims to close the gaps in the existing gas infrastructure, which is expected to substantially drive the growth of the CNG and LPG vehicle market.
CNG LPG Vehicle Market Leaders
-
Hyundai Motor Company
-
Suzuki Motor Corporation
-
Volkswagen AG
-
Ford Motor Company
-
Honda Motor Co. Ltd.
*Disclaimer: Major Players sorted in no particular order
CNG LPG Vehicle Market News
- June 2024: Sacania United Kingdom announced the launch of an innovative new three-axle (6脳2) CNG truck. This new 44-tonne 6脳2 vehicle is set to become one of the most sought-after articulated truck formats in the United Kingdom.
- June 2023: The National Economic Council (NEC) approved the proposal by the National Automotive Design and Development Council (NADDC) for initiating large-scale production of electric vehicles and vehicles powered by CNG in Nigeria.
CNG and LPG Vehicle Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand for Clean Energy Driving the Market
4.3 Market Restraints
4.3.1 Rising Safety Concerns Anticipated to Restrain the Market
4.4 Value Chain/Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value (USD))
5.1 By Fuel Type
5.1.1 Compressed Natural Gas (CNG)
5.1.2 Liquefied Petroleum Gas (LPG)
5.2 By Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
5.3 By Sales Channel
5.3.1 OEM
5.3.2 Retrofitting
5.4 By Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Spain
5.4.2.6 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 India
5.4.3.2 China
5.4.3.3 Japan
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Rest of the World
5.4.4.1 South America
5.4.4.2 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Hyundai Motor Company
6.2.2 Suzuki Motor Corporation
6.2.3 Nissan Motor Co. Ltd
6.2.4 Volkswagen AG
6.2.5 Honda Motor Company
6.2.6 IVECO SpA
6.2.7 AB VOLVO
6.2.8 Ford Motor Company
6.2.9 Tata Motors Limited
6.2.10 Traton SE
6.2.11 Scania AB
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
CNG LPG Vehicle Industry Segmentation
The CNG (compressed natural gas) and LPG (liquefied petroleum gas) vehicle market refers to the segment of the automotive industry that involves the production, sale, and use of vehicles powered by CNG or LPG instead of traditional fuels such as petrol and diesel. The market includes a variety of vehicles, ranging from passenger cars to commercial vehicles such as buses and trucks, depending on the region.
The market is segmented by fuel type, vehicle type, sales channel, and geography. By fuel type, the market is segmented into compressed natural gas (CNG) and liquefied petroleum gas (LPG)). By vehicle type, the market is segmented into passenger cars and commercial vehicles. By sales channel, the market is segmented into OEM and retrofitting. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. For each segment, the market sizing and forecast have been done based on the value (USD).
| By Fuel Type | |
| Compressed Natural Gas (CNG) | |
| Liquefied Petroleum Gas (LPG) |
| By Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| By Sales Channel | |
| OEM | |
| Retrofitting |
| By Geography | ||||||||
| ||||||||
| ||||||||
| ||||||||
|
CNG and LPG Vehicle Market Research FAQs
How big is the CNG LPG Vehicle Market?
The CNG LPG Vehicle Market size is expected to reach USD 6.73 billion in 2024 and grow at a CAGR of 7% to reach USD 10.13 billion by 2029.
What is the current CNG LPG Vehicle Market size?
In 2024, the CNG LPG Vehicle Market size is expected to reach USD 6.73 billion.
Who are the key players in CNG LPG Vehicle Market?
Hyundai Motor Company, Suzuki Motor Corporation, Volkswagen AG, Ford Motor Company and Honda Motor Co. Ltd. are the major companies operating in the CNG LPG Vehicle Market.
Which is the fastest growing region in CNG LPG Vehicle Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in CNG LPG Vehicle Market?
In 2024, the Asia-Pacific accounts for the largest market share in CNG LPG Vehicle Market.
What years does this CNG LPG Vehicle Market cover, and what was the market size in 2023?
In 2023, the CNG LPG Vehicle Market size was estimated at USD 6.26 billion. The report covers the CNG LPG Vehicle Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the CNG LPG Vehicle Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
CNG and LPG Vehicle Industry Report
Statistics for the 2024 CNG and LPG Vehicle market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. CNG and LPG Vehicle analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
