CNG Powertrain Market Size - By Component, By Vehicle, By Drive, By Fuel, By Application, Analysis, Share, Growth Forecast, 2024 - 2032

CNG Powertrain Market Size

The global CNG powertrain market size was valued at USD 90.3 billion in 2023 and is projected to grow at a CAGR of 17.2% between 2024 and 2032. In a substantial manner, the expansion of the CNG powertrain industry is driven by stricter environmental protection rules and emission limits around the globe.
 

In particular, the heavily polluted city centers are striving to improve the air quality by putting in place stringent mechanisms to minimize the greenhouse gases emitted. For instance, the Centre for Economic Policy Research published a working paper on “how regulations for greenhouse gas emissions and fuel consumption encourage innovation in clean automobile technologies” in July 2024.

Compared to traditional gasoline and diesel automobiles, CNG vehicles produce significantly reduced emissions of nitrogen oxides, particulate matter, and carbon dioxide. This makes them an ideal option for regulators. This regulatory pressure drives investment from automakers and fleet operators into CNG technology so as to achieve legal compliance and benefit from tax breaks and subsidies. With increasing concern for the environment, it is anticipated that the demand for less polluting CNG powertrains will increase, thus serving as a catalyst for market growth.
 

Apart from this, the expansion of CNG refueling infrastructure is one of the most significant factors that drive the CNG powertrain market. Greater investments made by both government and private bodies towards building more refueling stations increase the convenience for consumers and fleet managers. This improved convenience makes it easy to overcome range anxiety, which is a challenge most people think of purchasing a CNG vehicle face, as they can refuel when and where they feel like.

Similarly, better infrastructure also enables the use of CNG vehicles by public and commercial transport, leading to a gradual change in the energy mix. The development of CNG infrastructure also motivates more manufacturers to produce different models for CNG, which in turn will encourage more people to use the fuel. Ultimately, a solid refueling system makes the overall use of CNG as an alternative fuel much more feasible and appealing.
 

CNG Powertrain Market Trends

Significant advancements in engine and fuel storage technologies related to CNG powertrains are in the works. These improvements increase performance, efficiency, and safety of the CNG powertrain. Similarly, improved combustion techniques and advanced fuel injectors increase efficiency and reduce emissions, making CNG fuel vehicles even more appealing to ecologically minded buyers.
 

The advanced lightweight composite materials used for CNG tanks have also increased the range and total capacity of CNG powered vehicles while simultaneously decreasing the overall weight of the vehicles. The net result is the creation of compact and efficient fuel systems which enhance vehicle performance and user experience. Moreover, newer refueling infrastructure technologies allow for faster and safer CNG refueling processes, which promote adoption. With the progression of these technologies, more viable and competitive CNG options are created and consequently, market growth and investment in the sector is stimulated.
 

Allison Transmission, for example, with the assistance of A. C. Delco, has developed the new Mack Granite CNG truck and in August of 2023, it issued the 4500 Rugged Duty Series™ (RDS) transmission. The goal of these endeavors is to provide a fuel alternative that caters to the refuse collection customer sector by improving the truck's performance and durability. It's an axle back truck, which means it has a new chrome grille and new self-heating LED headlamps. These units increase forward visibility by 29% and peripheral visibility by 50%, which makes the truck safer to operate during the day and night.
 

The expenditure on the conversion vehicles is so very high that CNG powertrains have suffered in the market. Because so many additional parts need to be made, vehicles that run on CNG tend to be much more expensive than automobiles that run on gasoline or diesel. This also applies to diesel and gasoline powered cars that underwent conversion to CNG. Their modified versions cost more, and the entire process is expensive. This reality stops consumers and fleet operators from switching to CNG.
 

This is more difficult in the case of budgets and consumers who have low to medium awareness of CNG which does aid in reducing emissions. These high expenditures act as a challenge in the adoption of CNG and hence CNG powered vehicles will remain a dream for many in transition to a cleaner engine energy powered transportation sector.
 

CNG Powertrain Market Analysis

Based on vehicles, the market is segmented into light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and passenger cars. In 2023, the passenger cars segment accounted for over 45% of the CNG powertrain market share and is expected to exceed USD 180 billion by 2032.
 

• The leading segment of the CNG powertrain market is passenger cars, as these one-off users increasingly seek inexpensive and greener fuel options. The total cost of ownership for CNG-powered passenger cars is lower since CNG is cheaper than gasoline and diesel fuels. Such economics are especially favorable in areas where CNG infrastructure is developed.
   
• In India, China, and Brazil, government programs and policies support urban populations’ switch to CNG vehicles, creating a positive market for this segment of CNG vehicles.
   
• In addition, the development of CNG technology has improved fuel economy, increased mileage, and reduced emissions of passenger cars, which is in line with global efforts to decrease carbon footprints. All these factors contribute to the high levels of adoption of CNG powertrains in the passenger car segment.
   

Based on the drive, the CNG powertrain market is divided into front wheel drive (FWD), rear wheel drive (RWD), and all-wheel drive (AWD). The front wheel drive (FWD) segment held around 58% of the market share in 2023.
 

• Front-wheel drive (FWD) systems have gained popularity in the CNG powertrain segment because they are inexpensive to manufacture, easy to operate, and appropriate for urban and passenger vehicles.
   
• FWD is best when it comes to the specific weight and size constraints found in small to medium passenger cars and light commercial vehicles, where CNG usage is abundant. This design consideration strengthens fuel economy, which is a great asset for CNG cars. Lowering the cost of operating the vehicle serves the financial interests of both the people and the enterprises.
   
• Economically, FWD systems outperform in the traction department because they have the ability to harness the increased grip provided by the dry and asphalted coatings commonly found in cities where there is heavy traffic to CNG cars.
   
• The reduced production costs associated with FWD systems attract manufacturers aiming to offer affordable, environmentally friendly CNG vehicle options in both developing and developed markets.
   

In 2023, the Asia Pacific CNG powertrain market accounted for over 45% revenue share and is expected to exceed USD 180 billion by 2032.
 

• China possesses the major CNG powertrain industry, benefiting from strong national policies for clean energy adoption and considerable investment in the CNG infrastructure. The expansion of CNG refueling stations has kept pace with the increasing urban population and business-owned vehicles.
   
• In addition, the adoption of CNG vehicles has been supported by stricter emission control and air quality management. In comparison to other countries, China has the most dynamic market for these technologies. The increasing requirement for competitive transport solutions is also evident for public transportation and logistics industries there.
   
• Adoption of CNG powertrains in North America is increasing, especially for commercial and public transportation services. One of the reasons for this change is the government subsidies aimed at increasing the use of non-polluting fuels and tight emission standards, which are mostly adhered to in metropolitan regions.
   
• The U.S. is the top country in the CNG powertrain market, with considerable investments in CNG infrastructure and a growing number of CNG buses and heavy trucks.
   
• The same growth is supported by Canada’s complementary policies aimed at curbing greenhouse gas emissions. The still lacking understanding of some consumers and the competition put forth by the electric and hydrogen fuel cell technologies are challenges; however, the real-time improvements in CNG technologies and infrastructure creation are prospects.
   
• In Europe, CNG powertrains continue to capture a portion of the market, but growth is not regarded as significant as there is tight competition concerning potential CO2 emission limits and competition put forth by the other investments in CNG alternative fuel infrastructure.
   
• Italy and Germany are the leaders in the adoption of CNG as a power source due to favorable government policies and a well-developed refueling infrastructure. The CNG powertrain market is moving toward a cleaner public transportation system, as more CNG buses are incorporated into the fleets of various cities. The constant growth of carbon emission concerns throughout Europe is sustaining the growth of demand for CNG powertrains.
   

CNG Powertrain Market Share

Robert Bosch GmbH., Cummins Inc., and Volkswagen AG collectively held a substantial market share of over 8% in the CNG powertrain industry in 2023.
 

• Bosch is developing fuel systems and injection technologies for CNG engines to make them more efficient and less polluting. The company is also focusing on improving its CNG fuel injectors and spark plugs, which significantly reduces emissions and enhances fuel efficiency to meet the global emission regulations. Moreover, Bosch works with automotive OEMs to make sure that the integration of his systems is done efficiently.
   
• Cummins is looking to add heavy-duty, low-emission CNG engines to their fleet for commercial use. Its CNG powertrains are extremely durable, scalable, and perfect for bus and truck applications.
   
• Cummins is looking to make more investment into CNG powertrains and offer them in many regions globally where low-carbon solutions are in high demand. This further cements Cummins as a leading power clean technologies firm.
   
• To cut down on the total fleet emissions, Volkswagen is adding more models of CNG powered vehicles. The automaker has advanced CNG powertrains in several of its models as well as works with industry players to further enhance the CNG infrastructure.
•  
• The company focuses on these goals to fuel the VW CNG powered bus and motorhome segments of the market for urban self-sustaining transportation.
   

Bosch is advancing fuel systems and injection technologies to enhance the efficiency and reduce the emissions of CNG engines. The company is investing in R&D to refine its CNG fuel injection systems and spark plugs. This initiative aims to lower emissions and improve fuel economy, aligning with tightening global emissions standards. Additionally, Bosch collaborates with automotive OEMs to ensure the efficient integration of its systems.
 

Cummins is focusing on developing high-performance, low-emission CNG engines for commercial applications. Emphasizing durability and scalability, its CNG powertrains are designed for trucks and buses. By investing in partnerships and R&D, Cummins aims to expand its CNG engine offerings globally, particularly in markets with strong demand for low-carbon solutions, reinforcing its position as a leader in clean power technologies.
 

Volkswagen is expanding its CNG vehicle lineup to reduce fleet emissions. The company integrates advanced CNG powertrains across multiple models and collaborates with industry partners to improve CNG infrastructure. By promoting CNG as a cost-effective and eco-friendly alternative for urban transport, Volkswagen aims to meet its sustainability goals while offering fuel-efficient options for consumers.
 

CNG Powertrain Market Companies

Major players operating in the CNG powertrain industry are:

• Robert Bosch
• Continental AG
• Cummins Inc.
• Ford Motor Company
• General Motors Company
• Honda Motor Company
• Stellantis
• Tata Motors Limited
• Volkswagen AG
• Volvo Group
   

Companies operating in the international CNG powertrain market have used mergers and acquisitions to expand their technology base and improve their market penetration. There are alliances being formed with auto manufacturers, the state, and energy companies for the purpose of marketing CNG powered vehicles on a long-term basis. Focus is being put on investment in advanced engine technologies to meet the increasing demand for cleaner and sustainable transportation options such as highly efficient engines, advanced fuel injection systems, and integrated hybrids.
 

Key players are also applying new technologies, including telematics, performance monitoring, and AI optimization software, to increase the effectiveness, dependability, and performance of CNG-powered vehicles. These technologies facilitate fuel efficiency, reduce emissions, and decrease overall operational costs. Moreover, in response to global demand, CNG powertrains are being developed not just for light-duty CNG vehicles but also for heavy-duty vehicles such as buses, trucks, and passenger cars, which will assist in reducing the carbon footprint of the transportation industry.
 

CNG Powertrain Industry News

• In September 2024, Hyundai Motor India launched the Aura E variant equipped with dual-CNG technology. The Aura E variant is powered by a 1.2-litre bi-fuel petrol/CNG engine that produces 69 PS and 95.2 Nm of torque in CNG mode, while petrol mode delivers 82 PS and 114 Nm. It is paired exclusively with a 5-speed manual transmission. The claimed mileage for the CNG variant is 28.4 km/kg.
   
• In May 2024, Brudeli Green Mobility engaged in a partnership with Hexagon Agility to integrate Brudeli’s Powerhybrid technology into CNG/RNG tanks for ZEVs intended for the North American market. The objective of this collaboration is to expand the limits of Class 7 and 8 trucks to reduce emissions while still delivering the same capabilities as a diesel-powered engine. Hexagon Agility will supply the trucks with its Type 4 composite natural gas cylinders that provide low weight efficiency, thus enabling the vehicle to carry more fuel.
   

The CNG powertrain market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Component

• Engine
• Fuel injector
• Transmission
• Fuel tank
• Exhaust system
• Control unit

Market, By Vehicle

• Light Commercial Vehicles (LCV)
• Heavy Commercial Vehicles (HCV)
• Passenger cars

• Sedans
• Hatchbacks
• SUV

Market, By Drive

• Front Wheel Drive (FWD)
• Rear Wheel Drive (RWD)
• All-Wheel Drive (AWD)

Market, By Fuel

• Mono-fuel
• Bi-fuel

Market, By Application

• Transportation
• Logistics
• Industrial

The above information is provided for the following regions and countries:

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