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CNG Powertrain Market: Analysis By Drive Type (Front Wheel Drive, All-wheel Drive, & Rear Wheel Drive), By Fuel Type (Bi-fuel & Mono-fuel), By Vehicle Type (Passenger & Commercial), By Region, Size & Forecast with Impact Analysis of COVID-19 and Forecast up to 2028

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    Report

  • 141 Pages
  • August 2023
  • Region: Global
  • Daedal Research
  • ID: 5863690

CNG powertrains are propulsion systems used in vehicles that run on CNG as fuel. CNG is a clean-burning, domestically-produced fuel that compresses natural gas to high pressure. It is often used as an alternative to gasoline or diesel fuel in vehicles. CNG powertrains consist of a CNG fuel tank, a fuel delivery system, and an internal combustion engine modified to run on CNG. The fuel delivery system regulates the flow of CNG from the fuel tank to the engine, and the engine burns the CNG to generate power.

The global CNG powertrain market in 2022 was valued at US$79.58 billion and is expected to reach US$198.75 billion by 2028, growing at a CAGR of 16.48%, during the forecast period of 2023-2028. As environmental concerns continue to take center stage, the automotive industry is undergoing a significant transformation. The demand for cleaner and more sustainable transportation solutions has fueled the growth of alternative fuel technologies. Among these, Compressed Natural Gas (CNG) powertrains have emerged as a promising option, offering a greener and economically viable alternative to traditional internal combustion engines.

Market Segmentation Analysis:

  • By Drive Type: The report splits the global CNG powertrain market into three different drive type: Front Wheel Drive, All-wheel Drive, and Rear Wheel Drive. The front-wheel-drive segment dominated the market in 2022, and this growth can be attributed to the advantageous characteristics of front-wheel-drive vehicles, such as their lightweight, improved fuel economy, and weight distribution balance, which increases the vehicle's overall stability on rugged terrains. Additionally, front-wheel drive is a cost-effective option for consumers because drivetrains require less maintenance, and the engine provides increased fuel economy.
  • By Fuel Type: The global CNG powertrain market can be divided into two segments on the basis of fuel type: Bi-fuel and Mono-fuel. Mono fuel segment is anticipated to grow at the fastest CAGR during the forecasted period. The mono-fuel CNG powertrain refers to vehicles that solely operate on compressed natural gas without the option to switch to other fuels. These vehicles are designed and optimized to run exclusively on CNG. Since these vehicles are purpose-built to run solely on CNG, their engines and overall systems are optimized to achieve better mileage and performance when compared to bi-fuel counterparts. This makes them a preferred choice for consumers and businesses seeking greater fuel economy. Moreover, the mono-fuel CNG powertrain segment finds particular relevance in niche markets and specific applications.
  • By Vehicle Type: The report divides the global CNG powertrain market into two vehicle types: Passenger and Commercial. Passenger vehicle segment held the maximum share of the market. The Passenger Vehicle segment in the global CNG powertrain market encompasses cars, SUVs, and other personal-use vehicles that are equipped with compressed natural gas (CNG) powertrains. CNG is often more affordable than gasoline or diesel, providing a cost-effective option for consumers seeking to save on fuel expenses. This cost advantage becomes particularly significant in regions where natural gas is abundant and prices are lower. As consumers become more conscious of their budgets, the potential for cost savings drives the popularity of CNG-powered passenger vehicles. The growth of CNG-powered passenger vehicles is further facilitated by the expanding infrastructure for refueling.
  • By Region: According to this report, the global CNG powertrain market can be divided into four major regions: Asia Pacific (China, Japan, India, South Korea and Rest of Asia Pacific), Europe (Germany, UK, France, Italy, Spain and Rest of Europe), North America (The US, Canada and Mexico), and Rest of the World. Asia Pacific held the maximum share in the global CNG powertrain market. The region is diverse, encompassing both rapidly developing countries and highly industrialized nations. Many countries in Asia Pacific face severe air pollution issues, particularly in densely populated urban centers. Governments are actively seeking solutions to improve air quality, and CNG powertrains present a cleaner alternative to conventional gasoline and diesel vehicles.
  • Moreover, several countries in the region have implemented policies to promote the use of alternative fuels and reduce greenhouse gas emissions. These policies often come in the form of financial incentives, subsidies, and tax breaks for CNG-powered vehicles and the development of CNG refueling infrastructure. Some countries in Asia Pacific, such as China and India, have significant natural gas reserves. Utilizing these domestic resources as a transportation fuel helps reduce dependency on imported oil and supports the growth of the CNG powertrain market.

Market Dynamics:

  • Growth Drivers: Increasing environmental regulations and sustainability has emerged as a significant driving factor for the CNG powertrain market. CNG is considered a cleaner alternative to traditional fossil fuels, such as gasoline and diesel, due to its lower emissions of greenhouse gases and pollutants. Environmental regulations, imposed by governments and regulatory bodies, have become increasingly stringent over the years to address the negative impact of transportation on air quality and climate change. These regulations often include emission standards that encourage the use of cleaner fuels and technologies. CNG powertrains have gained popularity as they meet these stringent regulations and offer reduced emissions of carbon dioxide (CO2), nitrogen oxides, and particulate matter. Further, the market is expected to increase due to low running costs, abundant natural gas resources, advancements in CNG powertrain technology and government incentives and infrastructure development.
  • Challenges: However, some challenges are impeding the growth of the market such as increasing shift to electric vehicles and high upfront cost. The increasing shift to electric vehicles (EVs) has had a significant impact on the compressed natural gas (CNG) powertrain market, leading to several challenges and hindrances. EVs offer numerous advantages over CNG-powered vehicles, including lower emissions, reduced dependence on fossil fuels, and improved energy efficiency. As a result, the popularity and demand for EVs have been steadily rising, while CNG powertrain sales have been declining. One of the main reasons for the decline in the CNG powertrain market is the growing availability and infrastructure development for EV charging stations.
  • Trends: A major trend gaining pace in CNG powertrain is increasing adoption of dual-fuel systems. Dual-fuel systems enable vehicles to run on a combination of CNG and diesel or gasoline, providing greater flexibility and efficiency to end users. CNG is a cleaner-burning fuel compared to diesel or gasoline, resulting in reduced emissions of pollutants such as particulate matter, nitrogen oxides, and greenhouse gases. By integrating a dual-fuel system, vehicles can leverage the benefits of CNG while still having the option to use conventional fuels when necessary. This flexibility helps in the transition to cleaner energy while minimizing infrastructure and operational challenges. More trends in the market are believed to augment the growth of CNG powertrain market during the forecasted period include advancements in CNG fuel storage and distribution infrastructure, integration of renewable natural gas (RNG), etc.

Impact Analysis of COVID-19 and Way Forward:

The COVID-19 pandemic had a negative impact on the compressed natural gas (CNG) powertrain market. In the initial stages of the pandemic in 2020, strict lockdowns and travel restrictions led to a sharp decline in demand for transportation, including commercial fleets and public transport, which heavily relied on CNG powertrains. This resulted in reduced vehicle sales and a slump in the CNG powertrain market. The manufacturing and supply chain disruptions caused by the pandemic also affected the production and availability of CNG vehicles and related components, leading to delays and higher costs. Additionally, uncertainty regarding the duration and severity of the pandemic caused a decrease in investments and a cautious approach from businesses, further dampening the market's growth.

However, as the situation improved and economies began to recover in 2021 and beyond, there was a gradual rebound in the CNG powertrain market. The growing focus on sustainable and eco-friendly transportation solutions, coupled with increasing government incentives for clean energy adoption, provided a boost to the market's revival. Advancements in CNG powertrain technology may result in more efficient and high-performance engines. Improvements in infrastructure, such as advanced refueling stations and enhanced storage solutions for CNG, could address some of the limitations that may have hindered market growth in the past.

Competitive Landscape and Recent Developments:

The CNG powertrain market is consolidated with the presence of few number of players dominating worldwide. Prominent players are adopting strategies such as expansion, mergers & acquisitions, and partnerships to strengthen their market presence in various regions.

Key players of the CNG powertrain market are:

  • Robert Bosch GmbH
  • Cummins Inc.
  • Ford Motor Company
  • Iveco Group (FPT Industrial)
  • Hyundai Motor Company
  • Maruti Suzuki India Limited
  • Honda Motor Co., Ltd.
  • General Motors Company
  • Volvo Group

Organic growth remains the key strategy for most of the market's incumbents. As such, CNG powertrain manufacturers are focused on enhancing their existing product offerings and brand awareness to gain a competitive edge in the market. For Instance, in October 2021, Cummins announced a launch of the X15N engine, a 15-liter natural engine for heavy-duty trucks, which is a specially modified bi-fuel engine and can run on diesel and CNG. Additionally, the X15N engine model is incorporated with Eaton automated transmission technologies and Cummins fuel delivery system to ensure the development of a fully integrated natural gas powertrain.

Table of Contents


1. Executive Summary
2. Introduction
2.1 CNG Powertrain: An Overview
2.1.1 Definition of CNG Powertrain
2.2 CNG Powertrain Segmentation: An Overview
2.2.1 CNG Powertrain Segmentation
3. Global Market Analysis
3.1 Global CNG Powertrain Market: An Analysis
3.1.1 Global CNG Powertrain Market: An Overview
3.1.2 Global CNG Powertrain Market by Value
3.1.3 Global CNG Powertrain Market by Drive Type (Front Wheel Drive, All-wheel Drive, and Rear Wheel Drive)
3.1.4 Global CNG Powertrain Market by Fuel Type (Bi-fuel and Mono-fuel)
3.1.5 Global CNG Powertrain Market by Vehicle Type (Passenger and Commercial)
3.1.6 Global CNG Powertrain Market by Region (Asia Pacific, Europe, North America, and ROW)
3.2 Global CNG Powertrain Market: Drive Type Analysis
3.2.1 Global CNG Powertrain Market by Drive Type: An Overview
3.2.2 Global Front Wheel Drive CNG Powertrain Market by Value
3.2.3 Global All-wheel Drive CNG Powertrain Market by Value
3.2.4 Global Rear Wheel Drive CNG Powertrain Market by Value
3.3 Global CNG Powertrain Market: Fuel Type Analysis
3.3.1 Global CNG Powertrain Market by Fuel Type: An Overview
3.3.2 Global Bi-fuel CNG Powertrain Market by Value
3.3.3 Global Mono-fuel CNG Powertrain Market by Value
3.4 Global CNG Powertrain Market: Vehicle Type Analysis
3.4.1 Global CNG Powertrain Market by Vehicle Type: An Overview
3.4.2 Global Passenger Vehicle CNG Powertrain Market by Value
3.4.3 Global Commercial Vehicle CNG Powertrain Market by Value
4. Regional Market Analysis
4.1 Asia Pacific CNG Powertrain Market: An Analysis
4.1.1 Asia Pacific CNG Powertrain Market: An Overview
4.1.2 Asia Pacific CNG Powertrain Market by Value
4.1.3 Asia Pacific CNG Powertrain Market by Region (China, India, Japan, South Korea and Rest of Asia Pacific)
4.1.4 China CNG Powertrain Market by Value
4.1.5 India CNG Powertrain Market by Value
4.1.6 Japan CNG Powertrain Market by Value
4.1.7 South Korea CNG Powertrain Market by Value
4.1.8 Rest of Asia Pacific CNG Powertrain Market by Value
4.2 Europe CNG Powertrain Market: An Analysis
4.2.1 Europe CNG Powertrain Market: An Overview
4.2.2 Europe CNG Powertrain Market by Value
4.2.3 Europe CNG Powertrain Market by Region (Germany, United Kingdom, France, Italy, Spain and Rest of the Europe)
4.2.4 Germany CNG Powertrain Market by Value
4.2.5 United Kingdom CNG Powertrain Market by Value
4.2.6 France CNG Powertrain Market by Value
4.2.7 Italy CNG Powertrain Market by Value
4.2.8 Spain CNG Powertrain Market by Value
4.2.9 Rest of Europe CNG Powertrain Market by Value
4.3 North America CNG Powertrain Market: An Analysis
4.3.1 North America CNG Powertrain Market: An Overview
4.3.2 North America CNG Powertrain Market by Value
4.3.3 North America CNG Powertrain Market by Region (The US, Canada and Mexico)
4.3.4 The US CNG Powertrain Market by Value
4.3.5 The US CNG Powertrain Market by Drive Type (Front Wheel Drive, All-wheel Drive, and Rear Wheel Drive)
4.3.6 The US Front Wheel Drive CNG Powertrain Market by Value
4.3.7 The US All-wheel Drive CNG Powertrain Market by Value
4.3.8 The US Rear Wheel Drive CNG Powertrain Market by Value
4.3.9 Canada CNG Powertrain Market by Value
4.3.10 Mexico CNG Powertrain Market by Value
4.4 Rest of the World CNG Powertrain Market: An Analysis
4.4.1 Rest of the World CNG Powertrain Market: An Overview
4.4.2 Rest of the World CNG Powertrain Market by Value
5. Impact of COVID-19
5.1 Impact of COVID-19
5.1.1 Impact of COVID-19 on CNG Powertrain Market
5.1.2 Decline in Vehicle Production
5.1.3 Post COVID Scenario
6. Market Dynamics
6.1 Growth Drivers
6.1.1 Increasing Environmental Regulations and Sustainability
6.1.2 Low Running Costs
6.1.3 Abundant Natural Gas Resources
6.1.4 Advancements in CNG Powertrain Technology
6.1.5 Government Incentives and Infrastructure Development
6.2 Challenges
6.2.1 Increasing Shift to Electric Vehicles
6.2.2 High Upfront Cost
6.3 Market Trends
6.3.1 Increasing Adoption of Dual-Fuel Systems
6.3.2 Advancements in CNG Fuel Storage and Distribution Infrastructure
6.3.3 Integration of Renewable Natural Gas (RNG)
7. Competitive Landscape
7.1 Global CNG Powertrain Market Players: A Financial Comparison
7.2 Global CNG Powertrain Market Players: Product Offerings
8. Company Profiles
8.1 Robert Bosch GmbH
8.1.1 Business Overview
8.1.2 Sales by Business Sector
8.1.3 Business Strategy
8.2 Cummins Inc.
8.2.1 Business Overview
8.2.2 Operating Segments
8.2.3 Business Strategy
8.3 Ford Motor Company
8.3.1 Business Overview
8.3.2 Operating Segments
8.3.3 Business Strategy
8.4 Iveco Group (FPT Industrial)
8.4.1 Business Overview
8.4.2 Operating Segments
8.4.3 Business Strategies
8.5 Hyundai Motor Company
8.5.1 Business Overview
8.5.2 Operating Segments
8.5.3 Business Strategy
8.6 Maruti Suzuki India Limited
8.6.1 Business Overview
8.6.2 Revenue from Operations
8.6.3 Business Strategy
8.7 Honda Motor Co., Ltd.
8.7.1 Business Overview
8.7.2 Operating Segments
8.7.3 Business Strategy
8.8 General Motors Company
8.8.1 Business Overview
8.8.2 Operating Segments
8.8.3 Business Strategy
8.9 Volvo Group
8.9.1 Business Overview
8.9.2 Operating Segments
8.9.3 Business Strategy
List of Figures
Figure 1: Advantages of CNG Powertrain
Figure 2: CNG Powertrain Segmentation
Figure 3: Global CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 4: Global CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 5: Global CNG Powertrain Market by Drive Type; 2022 (Percentage, %)
Figure 6: Global CNG Powertrain Market by Fuel Type; 2022 (Percentage, %)
Figure 7: Global CNG Powertrain Market by Vehicle Type; 2022 (Percentage, %)
Figure 8: Global CNG Powertrain Market by Region; 2022 (Percentage, %)
Figure 9: Global Front Wheel Drive CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 10: Global Front Wheel Drive CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 11: Global All-wheel Drive CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 12: Global All-wheel Drive CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 13: Global Rear Wheel Drive CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 14: Global Rear Wheel Drive CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 15: Global Bi-fuel CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 16: Global Bi-fuel CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 17: Global Mono-fuel CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 18: Global Mono-fuel CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 19: Global Passenger Vehicle CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 20: Global Passenger Vehicle CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 21: Global Commercial Vehicle CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 22: Global Commercial Vehicle CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 23: Asia Pacific CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 24: Asia Pacific CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 25: Asia Pacific CNG Powertrain Market by Region; 2022 (Percentage, %)
Figure 26: China CNG Powertrain Market by Value, 2018-2022 (US$ Billion)
Figure 27: China CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 28: India CNG Powertrain Market by Value, 2018-2022 (US$ Billion)
Figure 29: India CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 30: Japan CNG Powertrain Market by Value, 2018-2022 (US$ Billion)
Figure 31: Japan CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 32: South Korea CNG Powertrain Market by Value, 2018-2022 (US$ Billion)
Figure 33: South Korea CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 34: Rest of Asia Pacific CNG Powertrain Market by Value, 2018-2022 (US$ Billion)
Figure 35: Rest of Asia Pacific CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 36: Europe CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 37: Europe CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 38: Europe CNG Powertrain Market by Region; 2022 (Percentage, %)
Figure 39: Germany CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 40: Germany CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 41: United Kingdom CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 42: United Kingdom CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 43: France CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 44: France CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 45: Italy CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 46: Italy CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 47: Spain CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 48: Spain CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 49: Rest of Europe CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 50: Rest of Europe CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 51: North America CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 52: North America CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 53: North America CNG Powertrain Market by Region; 2022 (Percentage, %)
Figure 54: The US CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 55: The US CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 56: The US CNG Powertrain Market by Drive Type; 2022 (Percentage, %)
Figure 57: The US Front Wheel Drive CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 58: The US Front Wheel Drive CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 59: The US All-wheel Drive CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 60: The US All-wheel Drive CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 61: The US Rear Wheel Drive CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 62: The US Rear Wheel Drive CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 63: Canada CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 64: Canada CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 65: Mexico CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 66: Mexico CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 67: Rest of the World CNG Powertrain Market by Value; 2018-2022 (US$ Billion)
Figure 68: Rest of the World CNG Powertrain Market by Value; 2023-2028 (US$ Billion)
Figure 69: Global Motor Vehicle Production, 2018-2022 (Million)
Figure 70: Global BEV and PHEV Sales, 2017-2022 (Million)
Figure 71: Robert Bosch Sales by Business Sector; 2022 (Percentage, %)
Figure 72: Cummins Inc. Net Sales by Segments; 2022 (Percentage, %)
Figure 73: Ford Motor Company Revenues by Segments; 2022 (Percentage, %)
Figure 74: Iveco Group Net Revenues by Segments; 2022 (Percentage, %)
Figure 75: Hyundai Motor Company Net Sales by Segment, 2022 (Percentage, %)
Figure 76: Maruti Suzuki India Limited Revenue from Operations, 2022 (Percentage, %)
Figure 77: Honda Motor Co., Ltd. Sales Revenue by Segment, 2022 (Percentage, %)
Figure 78: General Motors Company Net Sales And Revenue by Segments; 2022 (Percentage, %)
Figure 79: Volvo Group Net Sales by Segment; 2022 (Percentage, %)
Table 1: Global CNG Powertrain Market Players: A Financial Comparison; 2023
Table 2: Global CNG Powertrain Market Players: Product Offerings

Companies Mentioned

  • Robert Bosch GmbH
  • Cummins Inc.
  • Ford Motor Company
  • Iveco Group (FPT Industrial)
  • Hyundai Motor Company
  • Maruti Suzuki India Limited
  • Honda Motor Co., Ltd.
  • General Motors Company
  • Volvo Group

Methodology

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