CNG Vehicles market size is estimated to be valued over US$ 1,459 million in 2019 and will register a CAGR of 4.7% between 2018 and 2028.
Over 25.8 million vehicles worldwide are reported to be running on natural gas in 2018. Natural gas vehicles have high mileage making it preferred for choice among consumers over petrol and diesel vehicles. It is largely considered as clean source of transportation owing to reduced greenhouse gas emissions, better air quality and widespread distribution infrastructures. Moreover, horsepower and cruise speed is equivalent to conventional vehicles.
Depleting oil reserves and government push towards sustainable development is driving the demand for CNG vehicles globally. Global oil reserves has fallen by 0.9 billion since 2017. Oil reserves is expected to further deplete at higher pace with increasing energy demand. Moreover, rising gasoline prices has further de-accelerated the demand for conventional vehicles. Pollution and related economic burden on many country’s GDP has led government to opt for CNG/LPG and electric vehicles as viable mode of transportation.
Stringent regulations has also played a key role in overall sales of CNG vehicles worldwide. For instance, in May 2019, the government of U.S. state of Oklahoma extends tax incentives for CNG vehicles. Tax credits will be extended from January 2020 to 2027. In 2018, government of Delhi, India has proposed 50% less road tax for new CNG vehicles. Such move to curb pollution and meet sustainable development goal is expected to boost CNG vehicle sales.
Various companies are also emphasizing on expanding CNG vehicle fleets. For instance, in May 2019, Blue Bird launched Type-C school bus fueled by CNG. As of 2018, there are over 7000 CNG buses operational in around 150 U.S. district. Lower operational cost has created favorable demand for CNG in the country. As a result, various heavy duty vehicle manufacturers are coming up with CNG based vehicles.
Light CNG Vehicles to Dominate the Global Sales
In 2018, light weight vehicles dominated the global CNG vehicles market. The segment accounted for 73% share in 2018 and will continue to dominate the market throughout the forecast period. Growth in the segment is primarily driven by increasing sales of per passenger vehicles. Per capita spending has increased worldwide especially in developing region including India, China, Nigeria and ASEAN. At the same time, higher vehicle mileage and climate awareness has created ambient ecosystem for CNG vehicle to flourish in the region. Heavy duty vehicles including buses and trucks will have relatively sluggish growth. This is primarily due to higher emphasis on electric buses and trucks worldwide. Electric buses and trucks are registering double digit growth – replacing the conventional vehicle at higher pace. Heavy duty CNG vehicles will register a CAGR of 3.2% during the forecast period.
Global CNG Vehicles Market Size and Forecast: Regional Analysis
Asia Pacific dominated the global CNG vehicles market, with 31% market share in 2018. Growth in the region is primarily driven by China, India and Pakistan. In India, government policies has created favorable business environment for CNG vehicle players. It is expected that around half of the new vehicle sales will be CNG based in India by 2030. Under the proposed plan, the government of India unveiled Natural Gas Infrastructure Development Plan to set up 10,000 CNG stations by 2028 from 1,424 CNG stations recorded in 2018. This is a huge market opportunity for players considering the sheer size of vehicle demand in the country. As of 2019, Maruti Suzuki and Hyundai Motors accounted for highest share in India CNG vehicle market.
Middle East stands next to Asia Pacific. In Middle East, Iran dominated the regional sales in 2018. As of 2019, there are close to 1,470 CNG filling stations in Iran. Government of Iran has actively supported the sales of CNG vehicles. There are over 3.5 million CNG vehicles running on road in Iran. The number is expected to increase with government emphasizing on sustainable development. The government is providing low interest loans to those who are willing to convert gasoline/diesel vehicle to CNG based vehicle.
Global CNG Vehicles Market Size and Forecast: Competition Landscape
AS of 2019, CNG vehicles are operational in 86 countries with over 73 vehicle manufacturers investing in CNG/LNG vehicle production. As per the Bekryl, the industry will be driven by higher spending on product development. Some key CNG Vehicles market players are:
- General Motors
- Ford Motor Company
- Hyundai Motor Company
- Tata Motors
- Maruti Suzuki India Limited
- Bayerische Motoren Werke AG (BMW)
- Audi AG
- Volkswagen Group
- Iran Khodro
- Škoda Auto
- Volvo Group
By Vehicle Type:
- Light Weight
- Heavy Duty Vehicle
- Marine Crafts
What Will You Discover in the Report?
- An in-depth analysis of the CNG Vehicles market across regions – North America, Latin America, Western Europe, Central and Eastern Europe, Asia Pacific, Middle East, and Africa.
- How the CNG Vehicles market sales is expected to grow throughout the forecast period.
- How geopolitical policies and technological changes will affect the CNG Vehicles market in near future
- Where the stakeholders should invest to generate higher profit margins
- How consumers (end-users) will reflect to the CNG Vehicles industry during the forecast period
- Who are the CNG Vehicles industry leaders and what are the key initiatives taken by them for long term growth
Who will benefit from the Report?
- CNG Vehicles Industry Suppliers
- CNG Vehicles Industry Manufacturers
- Consultants and Analysts
- Industry Specialists
Analyst access with Bekryl Market Analysts
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