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CNG Powertrain Market Size

Report ID: GMI12106
Published Date: Nov 2024
Report Format: PDF

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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. Stricter environmental regulations and emission standards worldwide are significantly driving the growth of the market. Governments are increasingly implementing stringent policies to reduce greenhouse gas emissions and improve air quality, particularly in urban areas with high pollution levels. For instance, in July 2024, the Centre for Economic Policy Research published a report on “how standards for greenhouse gas emissions and fuel economy induce innovation in clean car technologies”.

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CNG vehicles emit lower levels of nitrogen oxides, particulate matter, and carbon dioxide compared to conventional gasoline and diesel vehicles, making them a preferred choice for meeting these regulations. This regulatory push encourages automakers and fleet operators to invest in CNG technology to comply with legal requirements while capitalizing on potential tax incentives and subsidies. As environmental awareness grows, the demand for cleaner transportation solutions like CNG powertrains is expected to rise, driving market expansion.

CNG Powertrain Market Report Attributes
Report Attribute	Details
Base Year:	2023
CNG Powertrain Market Size in 2023:	USD 90.3 Billion
Forecast Period:	2024 to 2032
Forecast Period 2024 to 2032 CAGR:	17.2%
2032 Value Projection:	USD 365 Billion
Historical Data for:	2021 – 2023
No. of Pages:	180
Tables, Charts & Figures:	200
Segments covered:	Component, Vehicle, Drive, Fuel, Application
Growth Drivers:	Stricter environmental regulations and emission standards worldwide Rising awareness of climate change and sustainability Technological advancements in engine and fuel storage technology Expansion in the CNG refueling infrastructure Governments in various regions are offering subsidies, tax incentives, and grants
Pitfalls & Challenges:	Higher initial vehicle and conversion costs Reduced driving range compared to conventional fuels

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Moreover, the expansion of CNG refueling infrastructure is a critical driver for the growth of the CNG powertrain market. Increased investments from governments and private entities in building more refueling stations significantly improve accessibility for consumers and fleet operators. This enhanced availability alleviates range anxiety, a common concern among potential CNG vehicle buyers, allowing them to refuel conveniently and confidently.

Additionally, improved infrastructure supports the deployment of CNG vehicles in public transport and commercial fleets, promoting a shift towards cleaner energy solutions. The growth of CNG infrastructure also encourages manufacturers to develop more models tailored for CNG use, further stimulating adoption. Ultimately, a robust refueling network enhances the overall viability and attractiveness of CNG as a sustainable alternative fuel source.

Authors: Preeti Wadhwani, Aishwarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of CNG powertrain reached USD 90.3 billion in 2023 and is set to grow at a 17.2% CAGR from 2024 to 2032, driven by stricter environmental regulations and emission standards worldwide.

The front wheel drive (FWD) segment held around 58% of the market share in 2023 due to its cost-effectiveness, efficiency, and suitability for urban and passenger vehicles.

The Asia Pacific market accounted for 45% of the revenue share in 2023 and is expected to exceed USD 180 billion by 2032, led by robust government initiatives promoting clean energy and significant investments in CNG infrastructure

China's CNG powertrain market is expected to exceed USD 60 billion by 2032, propelled by the expansion of CNG refueling stations to support growing urban populations and commercial fleets.

The key players in the industry include Continental, Cummins, Ford Motor, General Motors, Honda Motor, Robert Bosch, Stellantis, Tata Motors Limited, Volkswagen, and Volvo Group.