What Has Been the Growth of the CNG And LPG Vehicle Market So Far?
The cng and lpg vehicle market has seen considerable growth due to a variety of factors.
• In recent times, the market size of the CNG and LPG vehicle sector has undergone robust growth. The market is projected to expand from $4.19 billion in 2024 to $4.57 billion in 2025, showcasing a compound annual growth rate (CAGR) of 9.1%.
This progress in the historical timeframe is the result of factors such as the early adoption by public transport systems, government subsidies and incentives, escalating environmental consciousness, collaborations and partnerships within the industry, and initiatives in research and development.
How Will the CNG And LPG Vehicle Market?
The cng and lpg vehicle market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market for CNG and LPG vehicles is anticipated to experience robust growth, escalating to $6.4 billion by 2029 with an 8.7% compound annual growth rate. This uptrend through the forecast period is due to factors like heightened emission standards, the incorporation of renewable energies, and challenges related to urbanization and traffic congestion, along with the shift towards eco-friendly mobility and market extension strategies. Key trends anticipated during the forecast span encompass the increasing adoption of bio-LPG and biogas, amalgamation with advanced automobile technologies, the proliferation of mobility-as-a-service (MaaS) solutions, advancements in next-gen infrastructure, and the transition towards circular economy models.
Which Factors Are Boosting Growth In The CNG And LPG Vehicle Market?
The escalation in usage of clean-energy vehicles is projected to boost the expansion of the CNG and LPG vehicle market in the future. Vehicles powered by clean energy run on alternative fuels or energy resources that emit less or no pollution when compared to conventional gasoline or diesel-run vehicles. The demand for these vehicles is driven by rising environmental sustainability concerns and the necessity to decrease carbon emissions to counteract climatic changes. Clean-energy vehicles employ compressed natural gas and liquefied petroleum gas as alternative fuels since they yield less carbon emissions compared to gasoline and diesel, hence providing a more eco-friendly means of transportation. For instance, a France-based autonomous intergovernmental agency, the International Energy Agency (IEA) reported that sales of electric vehicles in 2023 rose by 3.5 million more than that in 2022, marking a 35% year-on-year increase. Hence, the escalating usage of clean-energy vehicles is fueling the expansion of the CNG and LPG vehicle market.
What Key Areas Define The Segmentation Of The Global CNG And LPG Vehicle Market?
The CNG And LPG vehicle market covered in this report is segmented –
1) By Fuel Type: Compressed Natural Gas (CNG), Liquefied Petroleum Gas(LPG)
2) By Vehicle Type: Passenger Cars, Commercial Vehicles
3) By Sales Channel: Original Equipment Manufacturer(OEM), Retrofitting
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What New Trends Are Influencing The CNG And LPG Vehicle Market?
Leading corporations in the CNG and LPG vehicle sector are pioneering twin-cylinder CNG technology to enhance fuel economy and cut down on emissions. This technology equips a vehicle with two separate CNG cylinders to store fuel. For example, in May 2023, Tata Motors Limited, an automotive firm based in India, launched the Altroz iCNG, which uses twin-cylinder CNG technology. This revolutionary product resolves the common issue of limited boot space in CNG vehicles, thus offering owners functional, usable space. The Altroz iCNG comes with amenities such as leatherette seating, integrated connected car tech, cruise control, and auto-headlamps.
Who Are the Key Players In The CNG And LPG Vehicle Market?
Major companies operating in the CNG and LPG vehicle market report are:
• Volkswagen AG
• Ford Motor Company
• General Motors
• Tata Group
• Honda Motor Co. Ltd.
• Hyundai Motor Group
• Nissan Motor Co. Ltd.
• Groupe Renault
• AB Volvo
• Suzuki Motor Corporation
• Cummins Inc.
• IVECO S.p.A.
• KION GROUP AG
• Scania AB
• MAN Truck & Bus AG
• Navistar Inc.
• Chart Industries Inc.
• Clean Energy Fuels Corp.
• Westport Fuel Systems Inc.
• Landi Renzo S.p.a.
• Hexagon Agility Inc.
• AC S.A.
• CNG Fuels Ltd.
• Fiat Chrysler Automobiles
• Clean Fuels Ohio
What Is The Most Dominant Region In The CNG And LPG Vehicle Market?
Asia-Pacific was the largest region in the CNG and LPG vehicles market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the CNG and LPG vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
