CNG & LPG Vehicles Market Size - By Vehicle Type (CNG & LPG vehicles, Commercial Vehicles, Three-wheelers), Fuel Type (LPG, CNG), By Fitting (OEM, Aftermarket), Engine System (Dedicated System, Bi-fuel, Dual-fuel) & Global Forecast, 2023 - 2032

CNG & LPG Vehicles Market Size

CNG & LPG Vehicles Market size was valued at USD 11.4 billion in 2022 and is anticipated to register a CAGR of over 7% between 2023 and 2032, as it is driven by the escalating environmental concerns and regulations worldwide. Advancements in CNG technology are driving growth in the market. Improved CNG technologies enhance fuel efficiency, reduce emissions, and boost performance, making compressed natural gas an increasingly attractive alternative.
 

For instance, in May 2023, Tata Motors, a prominent automobile manufacturer in India, introduced Altroz iCNG, featuring India's pioneering twin-cylinder CNG technology. The introductory price for this model is set at USD 9,082.8 (All-India, ex-showroom). It is equipped with advanced features including a voice-assisted electric sunroof, wireless charger, and an air purifier. These advancements address environmental concerns and align with the global push for cleaner energy solutions, contributing to the CNG & LPG vehicles market expansion.
 

The surging emphasis on sustainable mobility stems from a global commitment to address environmental challenges, prompting a shift toward eco-friendly transportation solutions. In response to concerns over climate change and air quality, consumers and governments are actively seeking cleaner alternatives. CNG & LPG vehicles, characterized by their reduced emissions, are gaining traction as viable options, aligning with the collective effort to create a more sustainable and environmentally conscious approach to mobility. This shift underscores the pivotal role of environmental considerations in propelling the market.
 

Perceptions of reduced performance compared to petrol-powered vehicles can hinder the CNG & LPG vehicles market growth. Consumer concerns about power and acceleration may influence their purchasing decisions. Despite technological advancements, addressing these perceptions and showcasing the competitive performance of CNG & LPG vehicles is crucial for broader market acceptance, as consumer preferences often gravitate toward vehicles that maintain or exceed the performance standards set by traditional petrol-powered counterparts.
 

COVID-19 Impact

The COVID-19 pandemic negatively impacted the CNG & LPG vehicles market. The economic downturn, supply chain disruptions, and decreased consumer spending during lockdowns led to a slowdown in vehicle purchases. Uncertainties surrounding the pandemic, coupled with financial constraints, reduced the willingness of consumers and businesses to invest in alternative fuel vehicles. These factors collectively contributed to a challenging environment, impeding the industry growth.
 

CNG & LPG Vehicles Market Trends

The increasing introduction of three-wheeler CNG vehicles is propelling the CNG & LPG vehicles industry. These launches cater to the growing demand for cleaner and cost-effective transport options. For instance, in May 2023, Piaggio Vehicles, a prominent Small Commercial Vehicle (SCV) manufacturer, introduced the Ape Xtra LDX cargo three-wheeler priced at USD 3,067. This SCV is offered in CNG configuration, featuring a 5.5-foot deck, ensuring high fuel efficiency and the lowest operating costs in its category. Fueled by an air-cooled, naturally aspirated 230cc engine incorporating three-valve technology, the SCV offers excellent pulling power, superior operational efficiency, and economical maintenance costs.
 

The improved fuel efficiency of CNG & LPG vehicles is fostering lucrative growth in the market. As advancements in technology enhance the mileage and overall performance of these vehicles, consumers and businesses are drawn to the cost savings associated with reduced fuel consumption. This heightened fuel efficiency contributes to economic benefits and aligns with environmental goals, making CNG & LPG vehicles increasingly appealing and propelling their market size.
 

CNG & LPG Vehicles Market Analysis

Based on the vehicle type, the passenger vehicle segment accounted for 50% of the market share in 2022. The introduction of fuel-efficient CNG-powered trucks is driving growth in the commercial vehicle segment of the market. These vehicles, known for their enhanced fuel efficiency, cater to the increasing demand for economical and eco-friendly transportation solutions.
 

For instance, in August 2023, Ashok Leyland introduced the 1922 CNG truck in the 18.5-ton segment, featuring various cylinder options and four loading span choices. The truck provides extended tire life, increased service intervals, and the overall reduced maintenance expenses. It offers exceptional fuel efficiency and an impressive range, making it a comprehensive & cost-effective choice in the commercial vehicle segment.
 

Based on fuel type, the CNG segment held over 78% of the CNG & LPG vehicles market share in 2022. CNG's superiority is attributed to its dual-appeal environmental benefits and cost efficiency. As a cleaner alternative, CNG aligns with stringent environmental regulations, reducing harmful emissions and enhancing sustainability. Simultaneously, its cost-effectiveness positions it as an economically viable choice for consumers and businesses alike. Government support, infrastructure development, and technological advancements further amplify CNG's prominence, fostering a compelling narrative for fleet adoption and consumer preference in the evolving automotive landscape.
 

Asia Pacific CNG & LPG vehicles market size dominated around USD 6 billion in 2022. Government policies and incentives play a pivotal role in propelling the market in the region. Supportive regulations and financial incentives provided by governments encourage both consumers and businesses to adopt cleaner & more sustainable transportation options. These policy measures create a conducive environment for infrastructure development, technology advancements, and overall market growth, aligning with the region's commitment to address environmental concerns and promote eco-friendly mobility solutions.
 

CNG & LPG Vehicles Market Share

Major companies operating in the CNG & LPG vehicles industry are:

• Ford Motor Company
• Maruti Suzuki
• Volkswagen Group
• Honda
• Hyundai Motor Company
• Renault
• Tata Motors

Ford Motor Company holds the largest market share as the company offers consumers a compelling value proposition, including fuel efficiency, reduced emissions, and competitive pricing, would contribute to Ford's potential dominance in the CNG & LPG vehicles segment. Ford's potential success in the market could be linked to a well-executed strategy involving the development and promotion of vehicles that run on these alternative fuels.
 

CNG & LPG Vehicles Industry News

• In August 2023, Tata Motors introduced the CNG version of its micro-SUV, Punch, with a price ranging from USD 8,541.4 to USD 11,645.2. This CNG-powered vehicle is equipped with additional features including a voice-assisted electric sunroof, LED DRLs, automatic projector headlamps, 16-inch diamond-cut alloy wheels, and a 7-inch infotainment system by Harman.
   

The CNG & LPG vehicles market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and shipments (Units) from 2018 to 2032, for the following segments:

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Market, By Vehicle Type

• Passenger vehicles
• Commercial vehicles
• Three-wheelers

Market, By Fuel Type

• LPG
• CNG

Market, By Fitting

• OEM
• Aftermarket

Market, By Engine System

• Dedicated system
• Bi-fuel
• Dual-fuel

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia