Global CNG and LPG Vehicle Market to Reach US$ 5.2 Billion by 2032, Fostered by Rising Demand for Low-Emission Vehicles

April 17, 2023 | Automotive Industry

According to the latest report by IMARC Group, titled "CNG and LPG Vehicle Market by Fuel Type (CNG (Compressed Natural Gas), LPG (Liquefied Petroleum Gas)), Vehicle Type (Passenger Cars, Commercial Vehicles), Sales Channel (OEM (Original Equipment Manufacturer), Retrofitting), and Region 2024-2032," the global CNG and LPG vehicle market size reached US$ 2.7 Billion in 2023. CNG is a fossil fuel manufactured from compressed natural gas, primarily methane, while LPG is a mixture of propane and butane gases. Both of these fuels are more environmentally friendly than traditional gasoline, as they emit fewer harmful pollutants and greenhouse gases. CNG vehicles are designed to use compressed natural gas as their primary fuel source. The gas is stored in high-pressure cylinders in the vehicle, which are connected to the engine via a fuel system. It offers 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. It is stored in a pressurized tank in the vehicle, which is connected to the engine via a fuel system. 

Global CNG and LPG Vehicle Market Trends:

The rising demand for low-emission vehicles is driving the global market. This can be attributed to the increasing awareness among the masses about the harmful impacts of air pollution. Moreover, the rising regulations by the government to reduce emissions and promote the use of cleaner fuels are creating a positive market outlook. Apart from this, 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. Besides, the development of new technologies, such as improved engines and fuel systems, is making CNG and LPG vehicles more efficient and cost-effective and is acting as another growth-inducing factor. The market is further driven by the increasing utilization of CNG and LPG vehicles as public transport due to their cost-effectiveness and fuel efficiency across the globe. Furthermore, the increasing conversion rates of old petrol and diesel vehicles to CNG and LPG vehicles and the wide availability of various CNG and LPG retrofitting kits are impacting the market worldwide. Apart from this, the rising price of diesel vehicles due to the incorporation of sophisticated exhaust gas recirculation and particulate filter systems is strengthening the overall demand. Other factors, such as expanding automobile industry, rising infrastructural development and continuous technological advancements are also influencing the market. On account of the aforementioned factors, the market is anticipated to reach a value of US$ 5.2 Billion by 2032, exhibiting a growth rate (CAGR) of 7.57% during 2024-2032. 

Market Summary:

  • On the basis of the fuel type, the market has been divided into CNG (compressed natural gas) and LPG (liquefied petroleum gas). Currently, the CNG (compressed natural gas) platform represented the largest market segment.
  • Based on the vehicle type, the market has been segmented into passenger cars and commercial vehicles. Among these, passenger cars exhibited a clear dominance in the market.
  • On the basis of the sales channel, the market has been bifurcated into OEM (original equipment manufacturer) and retrofitting. Retrofitting presently accounted for the largest market share.
  • On the basis of the region, the market has been categorized into North America (the United States, and Canada), Europe (Germany, France, 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. Among these, Asia Pacific holds the leading position in the market.
  • The competitive landscape of the market has been studied in the report with the detailed profiles of the key players operating in the market. Some of the key players include AB Volvo, Hyundai Motor Company, IVECO S.p.A, Suzuki Motor Corporation, Tata Motors Limited (Tata Group).

Report Scope:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Fuel Types Covered CNG (Compressed Natural Gas), LPG (Liquefied Petroleum Gas)
Vehicle Types Covered Passenger Cars, Commercial Vehicles
Sales Channels Covered OEM (Original Equipment Manufacturer), Retrofitting
Regions Covered  Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered AB Volvo, Hyundai Motor Company, IVECO S.p.A, Suzuki Motor Corporation, Tata Motors Limited (Tata Group), etc.
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

About Us:

IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

Contact Us:

134 N 4th St.
Brooklyn, NY 11249, USA
Americas:- +1 631 791 1145 | Africa and Europe :- +44-753-713-2163 | Asia: +91-120-433-0800

Need more help?

  • Speak to our experienced analysts for insights on the current market scenarios.
  • Include additional segments and countries to customize the report as per your requirement.
  • Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
  • For further assistance, please connect with our analysts.
Global CNG and LPG Vehicle Market to Reach US$ 5.2 Billion by 2032, Fostered by Rising Demand for Low-Emission Vehicles
Purchase options

Benefits of Customization

Personalize this research

Triangulate with your data

Get data as per your format and definition

Gain a deeper dive into a specific application, geography, customer, or competitor

Any level of personalization

Get in Touch With Us

Phone: +1-631-791-1145


Phone: +91-120-433-0800


Phone: +44-753-714-6104


Client Testimonials

Aktive Services

IMARC made the whole process easy. Everyone I spoke with via email was polite, easy to deal with, kept their promises regarding delivery timelines and were solutions focused. From my first contact, I was grateful for the professionalism shown by the whole IMARC team. I recommend IMARC to all that need timely, affordable information and advice. My experience with IMARC was excellent and I can not fault it.

Read More
Greenfish S.A.

The IMARC team was very reactive and flexible with regard to our requests. A very good overall experience. We are happy with the work that IMARC has provided, very complete and detailed. It has contributed to our business needs and provided the market visibility that we required

Read More
Colruyt Group

We were very happy with the collaboration between IMARC and Colruyt. Not only were your prices competitive, IMARC was also pretty fast in understanding the scope and our needs for this project. Even though it was not an easy task, performing a market research during the COVID-19 pandemic, you were able to get us the necessary information we needed. The IMARC team was very easy to work with and they showed us that it would go the extra mile if we needed anything extra

Read More

Last project executed by your team was as per our expectations. We also would like to associate for more assignments this year. Kudos to your team.

Read More
Zee Media Corp. Ltd.

We would be happy to reach out to IMARC again, if we need Market Research/Consulting/Consumer Research or any associated service. Overall experience was good, and the data points were quite helpful.

Read More
Arabian Plastic Manufacturing Company Ltd.

The figures of market study were very close to our assumed figures. The presentation of the study was neat and easy to analyse. The requested details of the study were fulfilled. My overall experience with the IMARC Team was satisfactory.

Read More
Sumitomo Corporation

The overall cost of the services were within our expectations. I was happy to have good communications in a timely manner. It was a great and quick way to have the information I needed.

Read More
Hameln Rds

My questions and concerns were answered in a satisfied way. The costs of the services were within our expectations. My overall experience with the IMARC Team was very good.

Read More
Quality Consultants BV

I agree the report was timely delivered, meeting the key objectives of the engagement. We had some discussion on the contents, adjustments were made fast and accurate. The response time was minimum in each case. Very good. You have a satisfied customer.

Read More
TATA Advanced Systems Limited

We would be happy to reach out to IMARC for more market reports in the future. The response from the account sales manager was very good. I appreciate the timely follow ups and post purchase support from the team. My overall experience with IMARC was good.

Read More

IMARC was a good solution for the data points that we really needed and couldn't find elsewhere. The team was easy to work, quick to respond, and flexible to our customization requests.

Read More