Global CNG and LPG Vehicles Market, By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Industrial Truck), Fuel Type (CNG and LPG) - Industry Trends and Forecast to 2030.
CNG and LPG Vehicles Market Analysis and Size
The key factors driving market growth include environmental concerns, government regulations promoting cleaner energy, and the ongoing transition toward sustainable and efficient transportation solutions. This market is characterized by innovation in vehicle technology, infrastructure development, and a growing emphasis on reducing carbon emissions in the automotive sector. CNG and LPG vehicles have significantly not that expensive having running costs over gasoline vehicles, public awareness regarding air quality, increasing use of alternative fuel in the automotive industry for cost effectiveness, fuel efficiency and emission control, government incentives to promote CNG and LPG vehicles are the reasons for the immense growth of the global CNG and LPG vehicle market.
Data Bridge Market Research analyses that the global CNG and LPG vehicles market which was USD 5,235.22 million in 2022, is expected to reach USD 7203.43 million by 2030, and is expected to undergo a CAGR of 3.61% during the forecast period of 2023 to 2030. “Passenger cars” dominate the vehicle type segment of the global CNG and LPG vehicles market due to the fact that more people are purchasing cars, which are growing more and more popular in both developed and developing countries. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
CNG and LPG Vehicles Market Scope and Segmentation
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Report Metric
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Details
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Forecast Period
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2023 to 2030
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Base Year
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2022
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Historic Years
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2021 (Customizable to 2015-2020)
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Quantitative Units
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Revenue in USD Million, Volumes in Units, Pricing in USD
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Segments Covered
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Vehicle Type (Passenger Cars, Light Commercial Vehicles, Industrial Truck), Fuel Type (CNG and LPG)
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Countries Covered
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U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E., Saudi Arabia, Egypt, South Africa, Israel, and Rest of Middle East and Africa
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Market Players Covered
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Ford Motor Company (U.S.), Fiat Chrysler Automobiles (U.K.), General Motors (U.S.), Volkswagen AG (Germany), Groupe Renault (France), HYUNDAI MOTOR GROUP (South Korea), Suzuki Motor Corporation (Japan), Honda Motor Co. Ltd. (Japan), Navistar Inc. (U.S.), Nissan (Japan), Tata Sons Private Limited (India), AB Volvo (Sweden), KION GROUP AG (Germany), AC S.A.(Poland) and Landi Renzo S.p.a. (Italy),
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Market Opportunity
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Market Definition
The global compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicles encompasses the production, distribution, and utilization of vehicles powered by CNG and LPG fuels. This dynamic market includes passenger cars, commercial vehicles, and industrial applications adopting cleaner, alternative fuels. Natural gas is the most reputably cleanest fossil fuel and consequently has emissions advantage over diesel and gasoline. LPG is highly inflammable combination of hydrocarbons with high calorific value. CNG on the other hand is derived from natural gas which is mainly methane (CH4). Natural gas under high pressure yields CNG. CNG and LPG vehicles are alternatives for older and pollutant diesel vehicles which help in reducing pollution around the world.
Global CNG and LPG Vehicles Market Dynamics
Drivers
- Low Cost Compared with Other Vehicle Fuel
The cost advantage attracts both consumers and businesses, encouraging the adoption of these cleaner alternatives and contributing to market growth. CNG fuel is cheaper than conventional fuels like petrol and diesel that’s why most of the vehicle run on CNG.
- Increase in Demand of Budget and Eco-Friendly
CNG cars, offering superior mileage over petrol counterparts and emitting lower pollution, align with the growing awareness of eco-friendly. This trend underscores the pivotal role of alternative fuels in addressing environmental concerns while meeting budget-conscious consumer needs.
Opportunity
- Rapidly Growing Pollution which is shifting towards Low Emission Vehicle Fuel
This shift presents a significant opportunity for the global CNG and LPG vehicles market as environmentally conscious consumers and regulatory measures drive the demand for cleaner alternatives, positioning CNG and LPG vehicles as key solutions to mitigate environmental impact. The market stands to benefit from the increasing emphasis on sustainable transportation amid the imperative to reduce pollution.
Restraints/Challenges
- Initial Investment Cost of CNG Vehicle is High
This cost barrier may limit widespread adoption and pose a restraint on market expansion, despite the long-term benefits of using compressed natural gas vehicles. It approximately costs USD 720 to get the complete installation process of the CNG kit depending on vehicle type which put extra burden on customer.
- Cylindrical Damage due to Improper Drainage
The global CNG and LPG vehicles market face challenges, including cylindrical damage caused by improper drainage. This issue may impact vehicle components, necessitating efficient drainage solutions to maintain vehicle integrity. Addressing this challenge is crucial for sustaining the market's growth and ensuring the reliability of CNG and LPG vehicles.
This global CNG and LPG vehicles market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the global CNG and LPG vehicles market contact the Data Bridge Market Research for an Analyst Brief, our team will help you make an informed market decision to achieve market growth.
Recent Developments
- In May 2023, the Council formally adopted the new CO2 emissions requirements for new automobiles and vans. Only new 100% electric and hydrogen fuel cell powered vehicles for individual and commercial usage will be allowed to be sold on the European market beginning in 2035. Petrol, diesel, E85, LPG, CNG, and hybrids, including rechargeable hybrids, will be prohibited from sale. This judgment will have a significant influence on a sector that employs 12.5 million people in Europe, with roughly 400,000 direct jobs in France
- In March 2023, HAM Group has erected a new LNG and CNG service station in Benavente, Zamora, at Caada Berciana 9A, near to the A-6 (Northwest route), one of Spain's six radial highways, and the N-630, one of the country's longest national highways
Global CNG and LPG Vehicles Market Scope
The global CNG and LPG vehicles market is segmented on the basis of vehicle type and fuel type. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Vehicle Type
- Passenger Cars
- Light Commercial Vehicles
- Industrial Truck
Fuel Type
- CNG
- LPG
Global CNG and LPG Vehicles Market Region Analysis/Insights
The global CNG and LPG vehicles market is analysed and market size insights and trends are provided by countries, vehicle type and fuel type as referenced above.
The countries covered in the global CNG and LPG vehicles market report are U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E., Saudi Arabia, Egypt, South Africa, Israel, and Rest of Middle East and Africa
Asia Pacific dominates the global CNG and LPG vehicles market, with India anticipated to boast the highest number of CNG vehicles globally. This dominance is attributed to elevated petrol and diesel prices, strict automotive emissions standards, widespread adoption of CNG in buses, taxis, and auto rickshaws, a substantial presence of CNG/LPG retrofitting kits, prevalent conversion of old petrol and diesel vehicles to CNG/LPG, and a limited penetration of electric vehicles. Market growth is further propelled by rising demand for passenger cars, substantial investments from major original equipment manufacturers, and concurrent infrastructural advancements.
Europe is the fastest growing region in the global CNG and LPG vehicles market, due to the exploding population and high demand for clean fuel, and European LNG fuelling network is still expanding as of now approx. 690 LNG and 4160 CNG fuelling stations in Europe.
The region section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, and Porter’s five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and the challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the region data.
Competitive Landscape and Global CNG and LPG Vehicles Market Share Analysis
The global CNG and LPG vehicles market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, regional presence, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to global CNG and LPG vehicles market.
Some of the major players operating in the global CNG and LPG vehicles market are:
- Ford Motor Company (U.S.)
- Fiat Chrysler Automobiles (U.K.)
- General Motors (U.S.)
- Volkswagen AG (Germany)
- Groupe Renault (France)
- HYUNDAI MOTOR GROUP (South Korea)
- Suzuki Motor Corporation (Japan)
- Honda Motor Co. Ltd. (Japan)
- Navistar Inc. (U.S.)
- Nissan (Japan)
- Tata Sons Private Limited (India)
- AB Volvo (Sweden)
- KION GROUP AG (Germany)
- AC S.A.(Poland)
- Landi Renzo S.p.a. (Italy)
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