CNG and LPG Vehicle Market Report

Market Overview:

The global CNG and LPG vehicle market size reached US$ 2.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 5.2 Billion by 2032, exhibiting a growth rate (CAGR) of 7.57% during 2024-2032. The burgeoning automobile industry, rising fuel prices, and the growing demand for original equipment manufacturer (OEM)-fitted vehicles represent some of the key factors driving the market.

Compressed natural gas (CNG) vehicles rely on CNG for their propulsion and produce energy by burning methane with oxygen, which releases carbon dioxide and water vapor. They store natural gas in a CNG tank and supply it to the engine through a CNG kit comprising a high-pressure tube, fittings, pressure gauge, hoses, and clamps. They transfer high-pressure gas from the fuel tank via the fuel lines, wherein a pressure regulator reduces the pressure to a level compatible with the engine fuel injection system. They offer dual drive modes to the driver of the vehicle for switching between petrol or diesel and CNG mode. On the other hand, liquified petroleum gas (LPG) vehicles rely on LPG, which is a mixture of various hydrocarbon gases. They store LPG in a pressurized fuel tank in liquid form which is located under the boot floor.

CNG and LPG Vehicle Market Trends:

At present, the rising demand for low-emission vehicles due to the increasing awareness among the masses about the harmful impacts of air pollution represents one of the key factors supporting the growth of the market. Besides this, governing agencies of various countries are promoting the usage of CNG and LPG vehicles through subsidies and tax rebates. They are also focusing on developing CNG and LPG infrastructure, which is propelling the growth of the market. In addition, the rising fuel prices on account of the increasing number of petroleum vehicles and reducing reserves of fuels are offering lucrative growth opportunities to industry investors. Moreover, the growing demand for original equipment manufacturer (OEM)-fitted vehicles due to various benefits, such as personalization of the vehicle and the provided warranty, is positively influencing the market. Apart from this, there is an increase in the utilization of CNG and LPG vehicles as public transport due to their cost-effectiveness and fuel efficiency across the globe. This, coupled with the thriving automobile industry, is strengthening the growth of the market. The rising price of diesel vehicles due to the incorporation of sophisticated exhaust gas recirculation and particulate filter systems is also catalyzing the demand for CNG and LPG vehicles. Furthermore, the increasing conversion rates of old petrol and diesel vehicles to CNG and LPG vehicles, along with the wide availability of various CNG and LPG retrofitting kits, is bolstering the growth of the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global CNG and LPG vehicle market, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on fuel type, vehicle type, and sales channel.

Fuel Type Insights:

• CNG (Compressed Natural Gas)
• LPG (Liquefied Petroleum Gas)
   

The report has provided a detailed breakup and analysis of the CNG and LPG vehicle market based on the fuel type. This includes CNG (Compressed Natural Gas) and LPG (Liquefied Petroleum Gas). According to the report, CNG (compressed natural gas) represented the largest segment.

Vehicle Type Insights:

• Passenger Cars
• Commercial Vehicles
   

A detailed breakup and analysis of the CNG and LPG vehicle market based on the vehicle type has also been provided in the report. This includes passenger cars and commercial vehicles. According to the report, passenger cars accounted for the largest market share.

Sales Channel Insights:

• OEM (Original Equipment Manufacturer)
• Retrofitting
   

A detailed breakup and analysis of the CNG and LPG vehicle market based on the sales channel has also been provided in the report. This includes OEM (Original Equipment Manufacturer) and retrofitting. According to the report, retrofitting accounted for the largest market share.

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific was the largest market for CNG and LPG vehicle. Some of the factors driving the Asia Pacific CNG and LPG vehicle market included the rising prices of petrol and diesel, adoption of stringent automotive emissions norms, availability of various CNG or LPG retrofitting kits, etc.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global CNG and LPG vehicle market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered include AB Volvo, Hyundai Motor Company, IVECO S.p.A, Suzuki Motor Corporation, Tata Motors Limited (Tata Group), etc. Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Questions Answered in This Report:

• How has the global CNG and LPG vehicle market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global CNG and LPG vehicle market?
• What is the impact of each driver, restraint, and opportunity on the global CNG and LPG vehicle market?
• What are the key regional markets?
• Which countries represent the most attractive CNG and LPG vehicle market?
• What is the breakup of the market based on the fuel type?
• Which is the most attractive fuel type in the CNG and LPG vehicle market?
• What is the breakup of the market based on the vehicle type?
• Which is the most attractive vehicle type in the CNG and LPG vehicle market?
• What is the breakup of the market based on sales channel?
• Which is the most attractive sales channel in the CNG and LPG vehicle market?
• What is the competitive structure of the global CNG and LPG vehicle market?
• Who are the key players/companies in the global CNG and LPG vehicle market?

Key Benefits for Stakeholders

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the CNG and LPG vehicle market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global CNG and LPG vehicle market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the CNG and LPG vehicle industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.