PUBLISHER: The Business Research Company | PRODUCT CODE: 1641585
PUBLISHER: The Business Research Company | PRODUCT CODE: 1641585
An automotive natural gas vehicle is an alternative fuel vehicle that operates using natural gas as its fuel source, as opposed to traditional gasoline or diesel. These vehicles are generally more cost-effective than their gasoline and diesel counterparts, providing a sustainable and secure fuel supply. Automotive natural gas vehicles offer high mileage, comfort, and lower emissions.
The main categories of vehicles in the realm of automotive natural gas vehicles include light-duty vehicles, medium-duty vehicles, and heavy-duty vehicles. Light-duty vehicles typically accommodate people and have no more than eight seats. Medium-duty vehicles are designed for transporting cargo and may have at least four wheels. These vehicles utilize different fuel types, with Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) being common options. Automotive natural gas vehicles find applications in various sectors, including commercial vehicles and passenger cars.
The automotive natural gas vehicle market research report is one of a series of new reports from The Business Research Company that provides automotive natural gas vehicle market statistics, including automotive natural gas vehicle industry global market size, regional shares, competitors with automotive natural gas vehicle market share, detailed automotive natural gas vehicle market segments, market trends, and opportunities, and any further data you may need to thrive in the automotive natural gas vehicle industry. This automotive natural gas vehicle market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The automotive natural gas vehicle market size has grown strongly in recent years. It will grow from $12.18 billion in 2024 to $12.98 billion in 2025 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to energy security concerns, emissions reduction, abundance of natural gas, cost savings, government policies.
The automotive natural gas vehicle market size is expected to see strong growth in the next few years. It will grow to $17.43 billion in 2029 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to stricter emissions standards, renewable natural gas, electrification synergies, global expansion of infrastructure, energy transition policies, increased urbanization, consumer education and awareness. Major trends in the forecast period include dual-fuel systems, lightweight vehicle design, enhanced storage technologies, autonomous natural gas vehicles, advanced engine management systems.
Stringent regulations aimed at controlling air pollution are playing a key role in driving the growth of the automotive natural gas vehicle market. Air pollution is the contamination of the atmosphere by harmful physical, chemical, or biological pollutants that pose risks to both humans and animals. In response to the negative effects of air pollution, governments have begun implementing various regulations to curb pollution levels. This has led to increased demand for automotive natural gas vehicles, which have low emission levels due to the reduced carbon content in their fuel. For example, in September 2023, the UK's Department for Environment, Food and Rural Affairs introduced the Environmental Targets (Fine Particulate Matter) (England) Regulations 2023, establishing a legally binding limit of 10 µg/m3 for annual mean PM2.5 concentrations. This target must be met at all monitoring stations across England by 2040. Thus, stricter air pollution regulations are boosting the demand for natural gas vehicles in the automotive market.
The ascent in disposable income levels is poised to be a driving force behind the automotive natural gas vehicle market's growth. As disposable income refers to the amount of money available for spending and saving after taxes and essential deductions, an increase in this financial resource often influences consumer behavior. With higher disposable incomes, consumers tend to exhibit increased propensity for investment in automobiles, which, in turn, fuels the demand for automotive natural gas vehicles. An illustration of this phenomenon is evident in the rise of disposable personal income in India, surging from 238,573,760 INR Million ($2,869,262. 20 million) in 2021 to 272,995,370 INR Million ($3,283,241. 61 million) in 2022. This augmented disposable income has contributed significantly to the growth of the automotive electronics market.
Product innovations have become a key trend gaining traction in the automotive natural gas vehicle market. Leading companies in the sector are focusing on developing advanced technologies to lower greenhouse gas emissions. For example, in September 2022, Tata Motors, an India-based company, introduced five CNG-powered trucks. This new lineup includes India's first CNG-powered Medium & Heavy Commercial Vehicle (M&HCV) truck, equipped with an Advanced Driver Assistance System (ADAS), along with updated versions of the Prima, Signa, and Ultra models, designed for enhanced driving comfort. Additionally, Tata Motors launched advanced Intermediate & Light Commercial Vehicle (I&LCV) tippers and trucks to cater to the rising demands of the logistics and infrastructure sectors. The eco-friendly Signa CNG trucks, featuring a 5.7-liter SGI engine producing 180 hp and 650 Nm torque, provide low operational costs, high durability, a modular architecture, and a range of up to 1,000 km, with various customization options for wheelbase, load deck, and cabins.
Prominent players within the automotive natural gas vehicle market are strategically entering collaborations to enhance their product offerings and market presence. These strategic partnerships entail leveraging the strengths and resources of each entity to achieve mutual benefits and drive collective success. For instance, in May 2023, Walmart, a leading American multinational retail corporation, initiated a partnership with Cummins, a distinguished US-based manufacturer specializing in engines, filtration, and power generation products. The primary objective of this collaboration is to reduce greenhouse gas emissions within the transportation sector by showcasing the viability of natural gas engines as a viable alternative to diesel engines. This partnership unveiled the introduction of the first among five new tractors equipped with a Cummins-built compressed natural gas (CNG) engine. These engines are anticipated to offer comparable performance and range to diesel engines while operating with reduced noise levels and exhibiting lower maintenance costs.
In January 2022, Cummins further solidified its presence in the automotive natural gas vehicle sector through a joint venture with Rush Enterprises. This initiative involved Cummins acquiring a 50% stake in Momentum Fuel Technologies from Rush Enterprises, aiming to enhance the manufacturing of nearly emission-free natural gas powertrains in North America. This strategic collaboration not only seeks to bolster the production of Compressed Natural Gas (CNG) and Renewable Natural Gas (RNG) powertrains but also focuses on expanding and refining the service and support network for customers utilizing these technologies. Rush Enterprises, a prominent US-based retailer specializing in commercial vehicles, particularly new and used trucks, brings its industry expertise and market reach to this partnership, aligning with Cummins' objectives to strengthen their position in the natural gas vehicle market while prioritizing eco-friendly solutions.
Major companies operating in the automotive natural gas vehicle market market include Hexagon Composites ASA, AB Volvo, Beiqi Foton Motor Co. Ltd., CNH Industrial NV, Clean Energy Fuels Corp., Cummins Engine Company Inc., PACCAR International Inc., Navistar International Corp., Quantum Fuel Systems LLC, Westport Fuel Systems Inc., General Motors Company, Maruti Suzuki India Ltd., Ford Motor Company, Hondo Motor Co. Ltd., Volkswagenwerk GmbH, Hyundai Motor Company, Iran Khodro Industrial Group, C&C Trucks Co. Ltd., Tata Engineering & Locomotive Company Ltd., Fiat SpA, Regie Nationale Des Usines Renault SAS, Caterpillar Inc., Shaanxi Automobile Group Co. Ltd., Mercedes-Benz Group AG, Krishna Landi Renzo India Private Limited, Toyota Motor Corporation, Alexander Dennis Limited, Prins Autogassystemen BV, Stellantis N. V., Iveco SpA
Asia-Pacific was the largest region in the automotive natural gas vehicle market in 2024. The regions covered in the automotive natural gas vehicle market market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the automotive natural gas vehicle market market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.
The automotive natural gas vehicle market consists of sales of gasoline-powered vehicles. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Automotive Natural Gas Vehicle Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automotive natural gas vehicle market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automotive natural gas vehicle ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automotive natural gas vehicle market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.