CNG and LPG Vehicles Market

CNG and LPG Vehicles Market Outlook

The CNG and LPG vehicles market is anticipated to flourish at an average CAGR of 4.6% between 2023 and 2033. The market is expected to hold a market share of USD 8.54 billion by 2033 while the market is likely to reach a value of USD 5.44 billion in 2023.

Attributes	Details
CNG and LPG Vehicles Market CAGR (2023 to 2033)	4.6%
CNG and LPG Vehicles Market Size (2023)	USD 5.44 billion
CNG and LPG Vehicles Market Size (2033)	USD 8.54 billion

The key factor responsible for the increasing adoption of CNG and LPG vehicles is growing awareness about clean energy vehicles and the ability of CNG and LPG vehicles to replace conventional vehicles. Also, the CNG and LPG vehicles are also expected to be economically productive in the long run, which could serve as a value for money to the customers and is therefore boosting the adoption. Hence, it is anticipated that the CNG and LPG vehicles market is likely to have significant growth during the forecast period.

Market Dynamics for CNG and LPG Vehicles Market

A large number of influential factors are identified to prevail in the CNG and LPG vehicles that are elevating the level of demand for these convenient vehicles. Moreover, the advancements in the market scenario and changing preferences of consumers are unlocking the doorway to opportunities that might further expand the market.

In addition to the prevailing factors boosting market demand, the experts at FMI also say that some aspects are expected to curb market growth during the forecast period. Let’s take a stroll across the drivers, restraints, opportunities, and threats stirring the market in the following table:

Drivers

• CNG and LPG vehicles have low operating costs as compared to petroleum vehicles.
• Rising consumer awareness about eco-friendly fuel replacing conventional energy sources is driving the market demand.
• The government bodies of many countries around the world are taking initiatives to reduce carbon emissions. As a result, significant growth in inclination toward the use of different low-emission fuel vehicles such as CNG and LPG vehicles are observed across the globe.
• Technological advancements are expected to maximize the productivity of CNG and LPG vehicles and contribute to market growth.

Restraints

• CNG and LPG vehicles tend to be priced high compared to regular petrol vehicles. This is due to the extra components added to these vehicles.
• High maintenance costs can act as a curbing factor as the part of the vehicles get damaged fast in comparison to the petrol vehicles due to lack of lubrication.
• The parts require replacement and high replacement cost is another factor to impact the market growth for CNG and LPG vehicles market.
• Huge initial investment costs as compared to petroleum vehicles are a key restraint in the CNG and LPG vehicle market.

Opportunities

• The rising concerns about reducing emissions by countries all around the world may lead to an increase in the growth of low-emission fuel vehicles like CNG and LPG Vehicles.
• Countries in Asia have already been supporting the growth of alternative fuel vehicles like CNG and LPG for a reduction in emissions and costs due to the import of petrol.

Threats

• Improper drainage causes cylindrical damage.
• NPFA 52 requires the shield systems to be able to drain solids and liquids away from the cylinder. This means that holes are drilled at certain intervals.
• The lack of substitutes for renewable CNG and LPG sustainable gas may be a challenge for the growth of the CNG and LPG vehicle market.

Country-wise Insights

Country-wise Revenue Share:

Country	The United States
Revenue Share % (2022)	15.2%

Country	Germany
Revenue Share % (2022)	7.1%

Country	Japan
Revenue Share % (2022)	7.9%

Country	Australia
Revenue Share % (2022)	0.3%

Country-wise Revenue CAGR:

Country	China
CAGR % (2023 to 2033)	4.7%

Country	India
CAGR % (2023 to 2033)	4.5%

Country	The United Kingdom
CAGR % (2023 to 2033)	4.4%

How is North America’s CNG and LPG Market Performing?

The United States Market is having steady growth and is expected to have a significant share holding in the upcoming years. The region held a15.2% of the total market share for CNG and LPG vehicles in 2022.

Factors that are making a Significant Contribution to the Expansion of the Market in this Region are:

• The government in this region has subsidized and incentivized LPG as a measure to check the pollution generated by traditional fuels.
• There is a need for diesel, and petrol vehicles because of the low groundwork in the North America’s regions which is further contributing to the market expansion of the region for CNG and LPG vehicles.

Growth Outlook of Europe’s CNG and LPG Vehicles Market

It is projected that Europe is going to dominate the global CNG and LPG vehicles market during the period from 2023 to 2033.

The Reasons Attributing to the Growth of the CNG and LPG Vehicles Market in Europe

Owing to the exploding population and high demand for clean fuel, the European CNG and LPG vehicles market is propelling at a significant pace.

• The presence of the leading market players in this region is a key factor behind exercising dominance in the global market of CNG and LPG vehicles.

Category Analysis

Category	By Fuel Type
Leading Segment	CNG
Market Share% (2022)	78.5%

Category	By VehicleType
Leading Segment	Passenger Cars
Market Share% (2022)	39.2%

Start-up Ecosystem

New Entrants Considerably Adding Value to the CNG and LPG Vehicles Market

• The start-ups in the CNG and LPG vehicles market are continually indulging in several collaborations and highly investing in research and development activities to provide efficient eco-friendly fuel solutions to customers. They are performing research and development activities to abide by government regulations and create a market witnessing further exponential growth in terms of CNG and LPG vehicle adoption.
• Vizag start-up INKS is creating CNG-like gas and is further contemplating expanding the capacity and acquiring additional land to meet the future demands of such gas production.
• Ward Energy is a United States of America-based start-up developing vapor recovery solutions for various industries, including oil and gas, chemicals, and petrochemicals. The start-up also provides combustors, compressor products, panel systems, and maintenance services for the existing vapor recovery units.

Recent Developments:

• In August 2020, Analog Instruments Inc. collaborated with Intel Corporation to create a flexible radio platform for addressing 5G network design challenges, enabling customers to scale their 5G networks quickly and economically. The technology is going to combine ADI’s radio-frequency trans-receivers with the latter’s Intel Arria 10 Field Programmable Gate Arrays which might provide access to a new set of design tools for creating optimized solutions.
• Texas Instruments Incorporated, the second market leader, offers a range of ADCs such as the ADS8167 16-bit, 500 kSPS, buffer and direct sensor interface, the ADS8924B 16-Bit, 250 kSPS buffer internal LDP and enhanced SPI interface and the ADS8900B 20-Bit 1-MSPS SAR ADC interfaces to name a few of them.
• In July 2020, Maxim Integrated introduced the MAXM86146 Dual-Photodetector Optical Sensor Solution which is integrated with highly advanced algorithms for monitoring heart rate and oxygen saturation in its health and fitness product portfolio. This contraption offers designers of advanced wearable products to achieve a 45% thinner optical design.
• Recently, in July 2020, Asahi Microdevices developed an ultra-low power intelligent system wakeup ADC integrated with Acoustic Activity Analyzer codenamed AK5706. It is a high-performance 24-bit stereo A/D Converter, ideal for applications such as smart speakers, voice-assisted wearable devices and connected security devices.

Key Players Profiled in the CNG and LPG Vehicles Market

• GAILIndia Ltd.
• Fiat Group
• General Motors Group
• Renault
• Hyundai
• Suzuki
• Ford
• Volkswagen

Key Segments Covered

By Fuel Type:

• CNG
• LPG

By Vehicles Type:

• Passenger
• Light Commercial
• Medium commercial
• Heavy Commercial

Key Regions Covered:

• North America
  • The United States
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Europe
  • Germany
  • The United Kingdom
  • France
  • Spain
  • Russia
  • Rest of Europe
• Japan
• Asia Pacific Excluding Japan
  • China
  • India
  • Malaysia
  • Singapore
  • Australia
  • Rest of Asia Pacific Excluding Japan (APEJ)
• The Middle East and Africa
  • GCC Countries
  • Israel
  • South Africa
  • The Middle East and Africa (MEA)

Frequently Asked Questions

How Big is the CNG and LPG Vehicles Market?

The market is valued at US$ 5.44 billion in 2023.

Who are the Key CNG and LPG Vehicles Market Players?

Fiat Group, Ford and Renault are key market players.

Which is the Key Segment by Fuel Type Category?

CNG segment is likely to remain preferred through 2033.

What are the Key Challenges Faced by the Market?

High maintenance cost is the key challenge faced by market.

Which are the Key Asian Countries in the CNG and LPG Vehicles Market?

India, Japan, and China dominate the Asian market.