CNG Vehicles Market is predicted to touch USD 190 Billion at a 5% CAGR during the forecast period, reveals the current Market Research Future’s (MRFR) CNG vehicles market report.
The global CNG vehicles market has faced the brunt of the COVID-19 outbreak with some form of social, economic, and political disruptions in major industries. In the United States, for instance the automotive sector announced a complete shutdown of three Detroit vehicle manufacturing operations. China, on the other hand, faced a drop in auto sales by 80%. Moreover, large events like Geneva Motor Show had been canceled for fear of the spread of the virus. Lockdowns and social distancing trends have led to a shutdown in industries, a fall in demand for cars, and a gap between demand and supply that may have a negative impact on the global CNG vehicles market size.
The global CNG vehicles market is highly fragmented and competitive in nature with the presence of several market players. These market players have encompassed several strategies to stay ahead in the competition as well as cater to the surging needs of the consumers, such as acquisitions and mergers, partnerships, new product launches, alliances, extensive research and development activities, geographical expansion, and many others. Besides, manufacturers are getting involved in long-term collaborations with vendors as the design and quality of materials utilized are key factors to manage cost, which differentiate every vendor.
Key players profiled in the global CNG vehicles market include 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., and Toyota Motor Corporation, among others.
Demand for Alternative Fuel to Bolster Market Growth
The growing need for alternative fuel in the auto industry for emission control, fuel efficiency, and cost-effectiveness is likely to bolster market growth over the forecast period.
Additional factors adding to the global CNG vehicles market value include growing demand for cars having dual fuel systems like CNG and petrol, concerns on constant swelling pollution, government regulations and policies of different countries to reduce vehicle air pollution are boosting the use of eco-friendly LPG and CNG cars, growing interest from transportation and trucking industry, the unstable and disruptive pricing structure related to gasoline and diesel, and the increase in the extraction of shale gas across the US. Besides, the growing need for automobiles, growing concerns about the environment, and burgeoning middle-class population are also adding market growth
Inclination Towards Advanced Automotive Cars to Offer Robust Opportunities
The increasing inclination towards advanced automotive vehicles is likely to offer robust opportunities to market players in the upcoming days.
High Cost to Act as a Market Restraint
The high cost of CNG cars may act as a market restraint over the forecast period.
Demand for Petrol and Diesel Vehicles to Act as a Market Challenge
The demand for petrol and diesel vehicles owing to the low infrastructure of alternative fuel may act as a major market challenge for vendors in the upcoming days.
Global CNG Vehicles Industry has been segmented based on Application and Product Type.
Car Modifications Segment to Lead CNG Vehicles Market
By product type, the CNG vehicles market is segmented into car modification and OEM. Of these, the car modifications segment will lead the market over the forecast period for the growing demand for eco-friendly cars and a hike in fuel price. Besides, the rise in product ranges of CNG conversion kits for buses, trucks, and cars is also adding to the segmental growth.
Personal Use Segment to Dominate CNG Vehicles Market
By application, the global CNG vehicles market is segmented into commercial use and personal use. Of these, the personal use segment will dominate the market over the forecast period. Growing refueling stations for CNG cars coupled with an increase in affordability are adding to the growth of the segment.
APAC to Spearhead CNG Vehicles Market
Geographically, the global CNG vehicles market has been segmented into Europe, North America, the Asia Pacific (APAC), and Rest of the World (RoW). Of these, the APAC region will spearhead the market over the forecast period. Booming automotive industry, strict government policies on vehicle emissions, high potential consumer base, affluent automotive centers on Japan, China, and India amalgamated with natural gas resources, government interventions like enforcement for adoption and investments, favorable government initiatives such as Clean Vehicles Action to prevent vehicular air pollution, and targets set in China for alternative fuel application including CNG in taxi fleets and bus, along with provisions for buyers in the likes of subsidies are adding to the global CNG vehicles market growth in the region. Besides, China’s efforts to develop natural gas infrastructure like West to East Gas Pipeline Projects, growing advances in the creation of CNG vehicles, financial support for CNG vehicle owners by NEPO and PTT Public Company Limited like low rates of interest for tax conversions and loans with long-term repayment, grants offered to BMTA to buy automotive natural gas vehicles, expansion of the auto industry, the presence of key CNG vehicle manufacturers, growing economies India and China, and key automotive companies likely to enter in automotive CNG vehicles market are also adding to the CNG vehicles market share.
Although owing to the ongoing outbreak, the demand for automotive LPG and CNG kits in the region has declined by 30%, but this region will continue to command the largest share chiefly on account of larger vehicle fleet, higher vehicle sales, and higher population.
Europe to Hold Second-Largest Share in CNG Vehicles Market
The global CNG vehicles market is predicted to hold the second-largest share over the forecast period. Presence of top market players such as Mitsubishi Motors Corporation, The Volvo Group, Mercedes-Benz, and Volkswagen Group, technological advancements in the auto industry, growing concerns about carbon emissions, strict environmental regulations that have impelled auto manufacturers to focus on alternative fuel vehicles, unprecedented sale, and growth of passenger cars and three-wheelers, are also adding to the global CNG vehicles market growth in the region. Besides, the strict government regulations to curb pollution, and growing demand in Germany and the UK are also adding to the market growth.
Global CNG Vehicles Market report by Market Research Future throws light on the current trends and niches in the industry. The report also lays emphasis on the various market drivers, opportunities, market restraints, and challenges, as well as offers insights for the forecast period. It also throws light on the different market segments for a comprehensive understanding of the reader.
By Product Type
|Market Size||2027: USD USD 190 Billion|
|CAGR||5% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type, Application, Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||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., and Toyota Motor Corporation|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The CNG vehicles market is expected to augment at 5.96% CAGR.
By the end of 2025, the CNG vehicles market is poised to reach a valuation of USD 1,85,422.3 Mn.
The participants of the CNG vehicles market are General Motors, Volkswagen Group, Fiat Chrysler Automobiles, Toyota Motor Corporation, Groupe PSA, Daimler AG, Ford Motor Company, Volvo Group, Honda Motor Co. Ltd., Hyundai Motor Company, Suzuki Motor Corporation, and Renault.
The segments of the CNG vehicles market on the basis of application are personal use and commercial use.
The personal use segment is projected to hold the largest market share.
The CNG vehicles market is likely to thrive on account of rising implementation of environment protection regulations.
OEM and car modification are the two segments of the CNG vehicles market based on product type.
Compressed natural gas (CNG) powered vehicles offer an alternative to traditional petrol or diesel-powered vehicles due to the combustion of methane with oxygen and water vapor which burns cleanly and has lower carbon emissions. The global CNG vehicle market recorded revenue of USD 1,09,783.6 Mn in 2017 and is expected to appreciate to an approximate market value of USD 1,85,422.3 Mn. The global market is slated to witness growth at a CAGR of 5.96% during the forecast period from 2018 to 2025.
Several factors drive the global CNG vehicle market, chief among them is the ever-increasing price of crude oil due to its rapidly decreasing availability. The growth of the global population has resulted in an increase in demand for automotive vehicles. However, consumer preferences are shifting to CNG and other alternative fuel vehicles in an effort to avoid fuel hikes. Emerging economies across the world are displaying an increasing preference for CNG vehicles as has been depicted in the year by year growth in sales. Moreover, developed economies are increasing focus on the development of CNG supportive infrastructure due to a growing concern for rapidly depleting fossil fuel. The significant price difference between traditional fuel and CNG shows significant disparity and as such drives growth of the global CNG vehicles market. In support of this, government authorities of various emerging countries across the globe have planned and increased investments in manufacturing of CNG vehicles and have taken steps to attract prominent manufacturers. As a result, the global economy is shifting with emerging economies gradually establishing themselves as manufacturing hubs. Countries such as Brazil, Singapore, India, China, and some Middle Eastern countries have attracted significantly important manufacturers for the Natural Gas vehicle market.
Increasing concern for the negative impact of harmful vehicle emissions on the environment and a growing global desire to adopt clean and renewable energy methods has given rise to strong demand for electric vehicles. This demand is expected to increase in the coming years due to the highly advanced features that these types of vehicles offer. Several key market players have successfully begun rolling out a wide variety of electric powered vehicles including sedans, hatchbacks, family cars and vans among others. The growing popularity and demand for electric vehicles are expected to restrain market growth. Expansion of OEM activities to accommodate older vehicles is likely to provide market opportunities. Older CNG vehicles presently have underdeveloped aftermarket services. However, mounting pressure to increase aftermarket services are expected to yield opportunities for the growth of the global CNG vehicles market.
The global CNG vehicle market is segmented, in the report on the basis of product type, application, and region. OEM and car modification make up the main segments by product type. The car modifications segment captures over 60% of the total market share due to the increasing prices of crude oil which have influenced an increased demand for cheaper fuels. Additionally, this segment is poised to witness growth at the highest CAGR of 6.03% during the assessment period as vehicle owners are increasingly choosing to power their vehicles with CNG.
By application, the market is segmented into commercial use and personal use. The personal use segment accounts for the largest share of the market and is expected to grow at the highest CAGR of 6.14% during the review period. Although the automotive segment is growing rapidly due to the increased buying power of consumers, increasing fuel prices are daunting and have resulted in an increased preference for CNG vehicles for private use.
The Rest of the World accounts for a market share of over 46% making it a key market for CNG vehicles. Iran Pakistan and GCC countries are among the key country-level markets in the region. In GCC countries the CNG vehicle market is witnessing growth as air pollution, and traffic congestion has encouraged emerging economies in the GCC to encourage adoption of CNG to reduce carbon emissions. Reduced price of natural gas which offers an overall reduction in vehicle ownership and travel is highly attractive in the major countries of this region where CNG adoption is high. Government regulations in the region are additionally, encouraging CNG vehicle adoption. These factors are expected to increase sales of CNG during the forecast period.
China is another significant country-level market which has a market share exceeding 18%. The Chinese government has increased tax waiver initiatives to encourage the adoption of CNG vehicles. High levels of air pollution have resulted in stringent government regulations in an effort to reduce carbon emissions. Moreover, improvement of infrastructure and tax incentives, combined with increasing environmental awareness have contributed significantly to Chinas leadership position in the global CNG vehicle market. Japan has a comparable growth pattern to China which also makes it a significant market. Moreover, several key CNG vehicle manufacturers are present in the country, thus contributing to Japan’s position in the market.
Notable market players in the global CNG vehicle industry include General Motors, Fiat Chrysler Automobiles, Volkswagen Group, Toyota Motor Corporation, Ford Motor Company, Groupe PSA, Volvo Group, Hyundai Motor Company, Honda Motor Co. Ltd., Suzuki Motor Corporation, Daimler AG, and Renault. The market is highly competitive, and innovation of technology, mergers & acquisitions, and product extensions have been observed to be prominent growth strategies employed by the aforementioned market players.
Global CNG Vehicle Market: Competitive Landscape
Market Research Future includes following key players for CNG vehicles market research study: Ford Motor Company, Daimler AG, Fiat Chrysler Automobiles, Suzuki Motor Corporation, and General motors, Volkswagen Group, Toyota Motor Corporation, Groupe PSA, Volvo Group, Hyundai Motor Company, Honda Motor Co., Ltd and Renault and among others.
The market share analysis is derived by considering various factors such as financial position, segmental R&D investment, product innovations, corporate strength, product portfolio, strategy analysis, and, key innovations in the market among other factors. The major players holding prominent position in the Market are Ford Motor Company, Daimler AG, Fiat Chrysler Automobiles, Suzuki Motor Corporation, and General motors.
According to MRFR analysis ,Ford Motor Company is leading company in the global CNG vehicle market. The company offers safe, efficient, intelligent and affordable solutions for machines, vehicles, traffic, and transport. The firm has a strong research and development abilities that helps in providing efficient performance, safety, and customer satisfaction of products, and to develop new products and services. The firm has vast number of manufacturing plants globally.
Daimler AG has currently occupied the second position in the global CNG vehicle market . Daimler AG is a global manufacturer of premium cars and commercial vehicles. The group manufactures and sells CNG vehicles under the Mercedes-Benz Cars and Daimler Buses business unit. Daimler AG is widely present in the global market and nearly consists ofa large number of production plants locations, globally.The company also has also been focusing on the production of gas-powered, connected, autonomous, and electric vehicles for their expansion globally.
Fiat Chrysler Automobiles has currently occupied the third position in the global CNG vehicle industry.Fiat Chrysler Automobiles is engaged in designing, engineering, production, distribution and sale of vehicles, components, and production systems. The company’s splitted into a number of brands. The company sells its products directly or through dealers and distributors for a large number of countries.The company focuses on vehicle emission reduction technology with the use of alternative fuels, from natural gas to biofuels, to offer technologies that are aligned with the fuels that can reduce emission levels.
Suzuki Motor Corporation has currently occupied the fourth position in the global CNG vehicle market. Suzuki Motor Corporation has a well-developed research division. It focuses on product development to meet the demand for future advanced technologies. It focuses on sustainable growth. The company targets to enhance the market share in Asian countries and promote the company with the slogan "Small Cars for a Big Future". In the upcoming years, the company plans to introduce a number of new CNG powered vehicles and hybrid vehicles over electric vehicles.
General Motors has currently occupied the fifth position in the global natural gas vehicle market. General Motors has a wide product portfolio and the company has strong sales in SUVs and Trucks. It focuses on , design and development of new products and services for improving existing products or services related to greenhouse gas (GHG) emissions control, vehicle. The company plans to deliver products with improved fuel economy, and safety features for drivers and passengers. The firm invests in research and development activities. It has also been building up its network of joint ventures, mergers, and acquisitions.