The CNG Vehicles market industry is projected to grow from USD 115.75 Billion in 2023 to USD 347.25 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.72% during the forecast period (2024 - 2032). The CNG Vehicles Market Size was valued at USD 100.9 billion in 2022. Increased growing need for alternative fuel in the auto industry for emission control, fuel efficiency, and cost-effectiveness growing demand for cars having dual fuel systems like CNG and petrol, and concerns on constant swelling pollution are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Over the course of the projected period, market expansion is anticipated to be supported by the rising demand for alternative fuel in the car sector for pollution control, fuel efficiency, and cost-effectiveness. Growing interest from the transportation and trucking industry, the unstable and disruptive pricing structure associated with petrol and diesel, growing demand for vehicles with dual fuel systems such as CNG and petrol, concerns about constantly rising pollution, government regulations and policies of different countries to reduce vehicle air pollution are boosting the use of eco-friendly LPG and CNG cars, and more are all factors contributing to the value of the CNG Vehicles Market. In addition, environmental concerns, an increase in the middle class, and a growing need for vehicles all contribute to the market's CAGR development.
Additionally, the global push for reducing emissions is expected to drive the demand for low-emission fuel vehicles like CNG and LPG. Countries in Europe have committed to reducing emissions, making them a potential market for these vehicles shortly. Meanwhile, Asian countries have already promoted alternative fuel vehicles due to their lower emissions and reduced costs, particularly in light of high petroleum import prices. Because of the affordable conversion of existing vehicles to CNG or LPG fuel systems, there is potential for significant growth in the CNG and LPG vehicle market, including the aftermarket. Furthermore, as the demand for advanced automotive vehicles increases, market players will likely have ample opportunities in the coming years. Thus, these factors drive the CNG Vehicles market revenue.
Based on product type, the CNG Vehicles Market segmentation includes OEM and Car Modification. The car modification segment dominated the market, with the growing demand for eco-friendly cars and a hike in fuel prices. Besides, the rise in product ranges of CNG conversion kits for buses, trucks, and cars is also adding to the segmental growth.
Based on Application, the CNG Vehicles Market segmentation includes personal use and commercial use. The personal use segment dominated the market; growing refueling stations for CNG cars and increased affordability added to the segment's growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American CNG vehicles market will dominate, owing to an increase in the growing need for alternative fuel in the auto industry for emission control and fuel efficiency and the growing demand for cars with dual fuel systems like CNG and petrol boost market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's CNG Vehicles market accounts for the second-largest market share due to the technological advancements in the auto industry, growing concerns about carbon emissions, and strict environmental regulations that have impelled auto manufacturers to focus on alternative fuel vehicles. Further, the German CNG Vehicles market held the largest market share, and the UK CNG Vehicles market was the fastest-growing market in the European Region.
The Asia-Pacific CNG Vehicles market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the Booming automotive industry, strict government policies on vehicle emissions, high potential consumer base, and affluent automotive centers in this Region. Moreover, China’s CNG Vehicles market held the largest market share, and the Indian CNG Vehicles market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the CNG Vehicles market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The CNG vehicles industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global CNG Vehicles industry to benefit clients and increase the market sector. In recent years, the CNG Vehicles industry has offered some of the most significant advantages. Major players in the CNG Vehicles market, including Volkswagen Group, Ford Motor Company, Suzuki Motor Corporation, Renault, Volvo Group, General Motors, Groupe PSA, Fiat Chrysler Automobiles, Hyundai Motor Company, Daimler AG, Honda Motor Co. Ltd., Toyota Motor Corporation., and others, are attempting to increase market demand by investing in research and development operations.
Honda Motor Co., Ltd., headquartered in Tokyo, Japan, is a multinational public conglomerate producing automobiles, motorcycles, and power equipment. Since 1959, Honda has held the title of the world's largest motorcycle manufacturer, and by the end of 2019, it had produced 400 million motorcycles. Recently, Honda unveiled its 9th generation Civic model prototype, which is anticipated to be available for purchase in the latter half of 2021.
Ford Motor Company, an American multinational automaker based in Dearborn, Michigan, produces and sells automobiles and commercial vehicles under the Ford brand and luxury vehicles under the Lincoln brand.Henry Ford founded the company, which was incorporated on June 16, 1903. The company recently introduced the Ford Bronco Sport, a small sports utility vehicle designed for tough terrains and with standard 4x4 configurations. An EcoBoost engine powers the vehicle.
December 2020: Ford Motor Company has unveiled its fourth-generation self-driving technology platform, which features advanced sensors, cleaning technology, and batteries. The platform also includes a hybrid option available in various fuel variants.
November 2020: Honda Motor Company revealed a 9th generation Civic model prototype. The company plans to launch this model for sale in the second half of 2021.
September 2020: Hyundai has recently introduced the fourth generation of its Tucson model, which boasts impressive features and capabilities that outclass its competitors. The vehicle is designed to run on various fuel types and is equipped with advanced technology. In addition, a hybrid variant of the Tucson is now available.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 100.9 billion |
| Market Size 2023 | USD 115.75 billion |
| Market Size 2032 | USD 347.25 billion |
| Compound Annual Growth Rate (CAGR) | 14.72% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Application, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Volkswagen Group, Ford Motor Company, Suzuki Motor Corporation, Renault, Volvo Group, General Motors, Groupe PSA, Fiat Chrysler Automobiles, Hyundai Motor Company, Daimler AG, Honda Motor Co. Ltd |
| Key Market Opportunities | Increase in affordability Increasing inclination toward advanced automotive vehicles. |
| Key Market Dynamics | Growing need for alternative fuel in the auto industry for emission control, fuel efficiency, and cost-effectiveness, Growing demand for cars having dual fuel systems like CNG and petrol, concerns about constant swelling pollution |
Frequently Asked Questions (FAQ) :
The CNG Vehicles Market size was valued at USD 100.9 Billion in 2022.
The global market is projected to grow at a CAGR of 14.72% during 2024-2032.
North America had the largest share of the global market
The key players in the market are Volkswagen Group, Ford Motor Company, Suzuki Motor Corporation, Renault, Volvo Group, General Motors, Groupe PSA, and Fiat Chrysler Automobiles.
The OEM CNG Vehicles category dominated the market in 2022.
Personal Use had the largest share of the global market.
Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
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