CNG Vehicle Market Size, Share, and Industry Analysis, By Vehicle Type (Passenger Car, Light Duty Vehicle, and Heavy Duty Vehicle), By Fitting type (OEM and Aftermarket), By Kit Type (Venturi and Sequential), and Regional Forecast, 2024-2032

The Compressed Natural Gas (CNG) vehicle market refers to the segment of the automotive industry that focuses on vehicles powered by compressed natural gas as an alternative fuel source. CNG vehicles use natural gas stored at high pressure in tanks onboard the vehicle to power internal combustion engines. These vehicles are increasingly gaining popularity due to their lower emissions, cost-effectiveness, and potential for reducing dependence on conventional fossil fuels such as gasoline and diesel.

The CNG vehicle market encompasses a variety of vehicles, including passenger cars and commercial vehicles (such as buses, trucks, and vans). These vehicles are specially designed or modified to run on compressed natural gas instead of traditional fuels. They feature engines optimized for CNG combustion, as well as fuel storage tanks and fuel delivery systems capable of handling high-pressure gas. One of the primary driving factors for the CNG vehicle market is the environmental benefits associated with natural gas as a fuel. Compared to gasoline and diesel, natural gas produces fewer harmful emissions, such as carbon dioxide (CO2), nitrogen oxides (NOx), and particulate matter (PM). As governments worldwide implement stricter emission regulations to combat air pollution and climate change, CNG vehicles are seen as a cleaner alternative, driving demand for vehicles.

The COVID-19 pandemic directly and indirectly impacted the CNG vehicle market. During periods of lockdowns and restrictions to curb the spread of the virus, there was a significant reduction in transportation activities, including both personal and commercial vehicle usage. With fewer vehicles on the roads, the demand for alternative fuels, such as compressed natural gas (CNG), decreased, leading to a temporary decline in sales of CNG vehicles.

Segmentation

Key Insights

The report covers the following key insights:

• Latest Developments
• Porter's Five Forces Analysis.
• Technological Developments
• Patent Analysis
• Impact of COVID-19 on the CNG Vehicle Market

Analysis by Vehicle Type

By vehicle type, the market is segregated into passenger car, light duty vehicles, and heavy duty vehicles. During the projected period, the passenger car segment is expected to maintain its dominance within the market. The segmental growth is attributed to increasing fleet conversion programs. Some fleet operators, including taxi companies, ride-sharing services, and corporate fleets, have converted their passenger vehicle fleets to run on CNG. These fleet conversion programs contribute to the overall market share of passenger vehicles in the CNG vehicle market.

Regional Analysis

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The global market is geographically segmented into North America, Europe, Asia Pacific, and the Rest of the World. The market is predominantly led by Asia Pacific, mainly propelled by new vehicle launches. The regional growth is attributed to the increasing adoption of CNG by developed countries. The region has seen significant investment in the development of CNG refueling infrastructure to support the growing demand for CNG vehicles. Governments, fuel retailers, and energy companies are expanding the network of CNG refueling stations in urban areas, along highways, and in industrial zones to improve accessibility and convenience for consumers and fleet operators.

Key Players Covered

The report includes the profiles of key players, such as TATA Motors (India), Suzuki Motor Corporation (Japan), Honda Motor Company (Japan), Hyundai Motor Group (South Korea), Volkswagen AG (Germany), Ford Motor Company (U.S.), MAN SE (Germany), IVECO SpA (Italy), Ford Motor Co. (U.S.), General Motors Co. (U.S.), Landi Renzo S.P.A (Italy), Tartarini Auto S.R.L. (Italy), Tomasetto Achille SpA (Italy), and Westport Fuel Systems Inc.(Canada)

Key Industry Developments

• In June 2024, Bajaj Auto announced the launch of the world's first factory-fitted CNG motorcycle on July 5. The automaker is also the leading manufacturer of three-wheeler CNG vehicles in India. The motorcycle will be an entry-level offering with engine displacement ranging between 100 cc and 125 cc. The engine is likely to be mated with a 5-speed transmission.
• In August 2023, Tata Motors unveiled upgraded CNG variants for its Tiago and Tigor models and introduced the new Punch iCNG. The Tiago iCNG is available from USD 7.87 thousand to USD 9.72 thousand, while the Tigor iCNG is offered between USD 9.37 thousand and USD 10.74 thousand. The Punch iCNG has a price tag ranging from USD 8.52 thousand to USD 11.62 thousand.
• In July 2023, Hyundai Motor India Limited (HMIL) unveiled the Exter compact SUV, priced between USD 7.20 thousand and USD 11.20 thousand. The Exter features a 1.2-liter Kappa gasoline engine with 4 cylinders, designed to be E20 fuel-ready. It offers customers the choice of three powertrains, including manual transmission (MT), automated manual transmission (AMT), and a gasoline engine paired with a manual transmission (MT) and CNG compatibility.