PUBLISHER: The Business Research Company | PRODUCT CODE: 1682105
PUBLISHER: The Business Research Company | PRODUCT CODE: 1682105
CNG (compressed natural gas) and LPG (liquefied petroleum gas) vehicles are automobiles that utilize alternative fuels-compressed natural gas (CNG) or liquefied petroleum gas (LPG)-as their primary sources of energy. These vehicles feature engines or retrofit kits specifically designed to accommodate the unique properties of these alternative fuels, offering environmental benefits compared to traditional gasoline and diesel vehicles. These benefits include lower emissions of pollutants and reduced greenhouse gas emissions.
The primary fuel types used in CNG and LPG vehicles are compressed natural gas (CNG) and liquefied petroleum gas (LPG). Compressed natural gas refers to a fuel primarily composed of methane stored under high pressure, commonly employed as an alternative to gasoline or diesel in vehicles. These vehicles come in various types, including passenger cars and commercial vehicles, and are distributed through various sales channels such as original equipment manufacturer (OEM) outlets and retrofitting services.
The CNG and LPG vehicle market research report is one of a series of new reports from The Business Research Company that provides CNG and LPG vehicle market statistics, including CNG and LPG vehicle industry global market size, regional shares, competitors with a CNG and LPG vehicle market share, detailed CNG and LPG vehicle market segments, market trends and opportunities, and any further data you may need to thrive in the CNG and LPG vehicle industry. This CNG and LPG vehicle market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry
The CNG And LPG vehicle market size has grown strongly in recent years. It will grow from $4.19 billion in 2024 to $4.57 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to increased early adoption by public transit systems, government subsidies and incentives, rising environmental awareness, industry collaborations and partnerships, research and development initiatives.
The CNG And LPG vehicle market size is expected to see strong growth in the next few years. It will grow to $6.4 billion in 2029 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to rising stricter emission regulations, renewable energy integration, urbanization and congestion challenges, shift towards sustainable mobility, market expansion strategies. Major trends in the forecast period include growth of biogas and bio-LPG adoption, integration with advanced vehicle technologies, expansion of mobility-as-a-service (MaaS) solutions, emergence of next-generation infrastructure, shift towards circular economy models.
The growing adoption of clean-energy vehicles is expected to drive the growth of the CNG and LPG vehicle market in the coming years. Clean-energy vehicles are powered by alternative fuels or energy sources that generate lower or zero emissions compared to traditional gasoline or diesel vehicles. This demand is fueled by rising concerns about environmental sustainability and the need to reduce carbon emissions to address climate change. CNG (compressed natural gas) and LPG (liquefied petroleum gas) serve as alternative fuels, offering lower carbon emissions than traditional fuels and providing a cleaner, more environmentally friendly transportation option. For example, in 2024, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported that sales of electric cars in 2023 were 3.5 million higher than in 2022, marking a 35% year-on-year increase. Therefore, the increasing adoption of clean-energy vehicles is contributing to the growth of the CNG and LPG vehicle market.
Major companies in the CNG and LPG vehicle market are pioneering innovative twin-cylinder CNG technology to enhance fuel efficiency and minimize emissions. Twin-cylinder CNG technology involves outfitting a vehicle with two separate compressed natural gas (CNG) cylinders to store fuel. For instance, in May 2023, Tata Motors Limited, an India-based automotive company, unveiled the Altroz iCNG, incorporating twin-cylinder CNG technology. This cutting-edge solution addresses the common concern of limited boot space in CNG cars, providing owners with practical and usable storage capacity. The Altroz iCNG boasts features such as leatherette seats, iRA-connected car technology, cruise control, and automatic headlamps.
In May 2023, Wal-Mart Stores Inc. partnered with Cummins Inc. to deploy five new tractors powered by a Cummins-built CNG engine. These tractors offer performance and range comparable to diesel engines while running quieter, offering lower maintenance costs, and promoting sustainable transportation in the trucking industry. Walmart's initiative to introduce CNG trucks into its fleet aligns with its goal to achieve zero emissions across its global operations by 2040. Cummins Inc. is known for manufacturing diesel and alternative fuel engines and generators.
Major companies operating in the CNG and LPG vehicle market report are Volkswagen AG; Ford Motor Company; General Motors; Tata Group; Honda Motor Co. Ltd.; Hyundai Motor Group; Nissan Motor Co. Ltd.; Groupe Renault; AB Volvo; Suzuki Motor Corporation; Cummins Inc.; IVECO S.p.A.; KION GROUP AG; Scania AB; MAN Truck & Bus AG; Navistar Inc.; Chart Industries Inc.; Clean Energy Fuels Corp.; Westport Fuel Systems Inc.; Landi Renzo S.p.a.; Hexagon Agility Inc.; AC S.A.; CNG Fuels Ltd.; Fiat Chrysler Automobiles; Clean Fuels Ohio
Asia-Pacific was the largest region in the CNG and LPG vehicles market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the CNG and LPG vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the CNG and LPG vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The CNG and LPG vehicles market consists of sales of conversion kits, fuel injectors, pipes, regulators, and valves for the 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.
CNG And LPG 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 cng and lpg 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 cng and lpg vehicle ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The cng and lpg 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.