CNG and LPG Vehicle Global Market Report 2024

The CNG and LPG Vehicles market size has grown rapidly in recent years. It will grow from $3.87 billion in 2023 to $4.19 billion in 2024 at a compound annual growth rate (CAGR) of 8.4%. The growth observed in the historical period can be attributed to several factors, including increased early adoption by public transit systems, government subsidies and incentives, rising environmental awareness, industry collaborations and partnerships, and research and development initiatives.

The CNG and LPG Vehicles market size is expected to see rapid growth in the next few years. It will grow to $5.88 billion in 2028 at a compound annual growth rate (CAGR) of 8.8%. The forecasted growth in the period ahead can be linked to several factors, including stricter emission regulations, the integration of renewable energy, urbanization and congestion challenges, the transition towards sustainable mobility, and market expansion strategies. Major trends expected in the forecast period encompass the growth of biogas and bio-LPG adoption, integration with advanced vehicle technologies, the expansion of mobility-as-a-service (MaaS) solutions, the emergence of next-generation infrastructure, and a shift towards circular economy models.

The CNG and LPG vehicle market is poised for growth, driven by the increasing adoption of clean-energy vehicles. Clean-energy vehicles utilize alternative fuels or energy sources with lower or zero emissions, addressing concerns about environmental sustainability and carbon emissions reduction. Compressed natural gas (CNG) and liquefied petroleum gas (LPG) are preferred alternative fuels due to their cleaner emissions compared to traditional gasoline and diesel options, offering a more environmentally friendly transportation solution. For example, according to the International Energy Agency, electric car sales nearly tripled in 2021 to 3.3 million, comprising about half of the worldwide total, with sales of electric cars, including fully electric and plug-in hybrids, doubling to reach a record 6.6 million compared to the previous year. Consequently, the surge in clean-energy vehicle adoption is fueling 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 are Volkswagen AG, Ford Motor Company, General Motors, Tata Group, Honda Motor Co. Ltd., The 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.

Asia-Pacific was the largest region in the CNG and LPG vehicles market in 2023. 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. The countries covered in the CNG and LPG vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

CNG (compressed natural gas) and LPG (liquefied petroleum gas) vehicles are automobiles that utilize alternative fuels - compressed natural gas (CNG) or liquefied petroleum gas (LPG) - as their primary sources of energy. These vehicles feature engines or retrofit kits specifically designed to accommodate the unique properties of these alternative fuels, offering environmental benefits compared to traditional gasoline and diesel vehicles. These benefits include lower emissions of pollutants and reduced greenhouse gas emissions.

The primary fuel types used in CNG and LPG vehicles are compressed natural gas (CNG) and liquefied petroleum gas (LPG). Compressed natural gas refers to a fuel primarily composed of methane stored under high pressure, commonly employed as an alternative to gasoline or diesel in vehicles. These vehicles come in various types, including passenger cars and commercial vehicles, and are distributed through various sales channels such as original equipment manufacturer (OEM) outlets and retrofitting services.

The CNG and LPG vehicle market research report is one of a series of new reports that provides CNG and LPG vehicle market statistics, including CNG and LPG vehicle industry global market size, regional shares, competitors with a CNG and LPG vehicle market share, detailed CNG and LPG vehicle market segments, market trends and opportunities, and any further data you may need to thrive in the CNG and LPG vehicle industry. This CNG and LPG vehicle market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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