CNG and LPG Vehicle Market Report 2026

The cng and lpg vehicle market size has grown strongly in recent years. It will grow from $4.51 billion in 2025 to $4.87 billion in 2026 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to fuel cost volatility, air pollution concerns, availability of natural gas, government incentives, public transport adoption.

The cng and lpg vehicle market size is expected to see strong growth in the next few years. It will grow to $6.39 billion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to emission regulations tightening, urban clean mobility programs, expansion of cng and lpg stations, demand for low-cost mobility, fleet decarbonization. Major trends in the forecast period include expansion of alternative fuel vehicle adoption, growth of retrofit installations, development of fueling infrastructure, rising fleet conversions, focus on emission reduction.

The growing adoption of clean-energy vehicles is expected to drive the growth of the CNG and LPG vehicle market in the coming years. Clean-energy vehicles are powered by alternative fuels or energy sources that generate lower or zero emissions compared to traditional gasoline or diesel vehicles. This demand is fueled by rising concerns about environmental sustainability and the need to reduce carbon emissions to address climate change. CNG (compressed natural gas) and LPG (liquefied petroleum gas) serve as alternative fuels, offering lower carbon emissions than traditional fuels and providing a cleaner, more environmentally friendly transportation option. For example, in 2024, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported that sales of electric cars in 2023 were 3.5 million higher than in 2022, marking a 35% year-on-year increase. Therefore, the increasing adoption of clean-energy vehicles is contributing to the growth of the CNG and LPG vehicle market.

Major companies in the CNG and LPG vehicle market are pioneering innovative twin-cylinder CNG technology to enhance fuel efficiency and minimize emissions. Twin-cylinder CNG technology involves outfitting a vehicle with two separate compressed natural gas (CNG) cylinders to store fuel. For instance, in May 2023, Tata Motors Limited, an India-based automotive company, unveiled the Altroz iCNG, incorporating twin-cylinder CNG technology. This cutting-edge solution addresses the common concern of limited boot space in CNG cars, providing owners with practical and usable storage capacity. The Altroz iCNG boasts features such as leatherette seats, iRA-connected car technology, cruise control, and automatic headlamps.

In May 2023, Wal-Mart Stores Inc. partnered with Cummins Inc. to deploy five new tractors powered by a Cummins-built CNG engine. These tractors offer performance and range comparable to diesel engines while running quieter, offering lower maintenance costs, and promoting sustainable transportation in the trucking industry. Walmart's initiative to introduce CNG trucks into its fleet aligns with its goal to achieve zero emissions across its global operations by 2040. Cummins Inc. is known for manufacturing diesel and alternative fuel engines and generators.

Major companies operating in the cng and lpg vehicle market report include Volkswagen AG, Ford Motor Company, General Motors, Toyota Motor Corporation, Honda Motor Co. Ltd., Hyundai Motor Company, Nissan Motor Co. Ltd., Renault S.A., Suzuki Motor Corporation, Tata Motors Limited, Mahindra & Mahindra Limited, IVECO S.p.A., AB Volvo, Scania AB, MAN Truck & Bus AG, Navistar International Corporation, Isuzu Motors Limited, Mitsubishi Motors Corporation, Dongfeng Motor Corporation, FAW Group Corporation.

Asia-Pacific was the largest region in the CNG and LPG vehicles market in 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the cng and lpg vehicle market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cng and lpg vehicle market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The CNG and LPG vehicles market consists of sales of conversion kits, fuel injectors, pipes, regulators, and valves for the vehicles. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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