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”.

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.

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.