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I AgreeAnalysis of CNG Vehicles Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Global demand for CNG vehicles is forecasted to register an increase at a stellar 10.9% CAGR from 2023 and 2033 while currently enjoying a revenue of US$ 110.5 billion. The global CNG vehicles market is thus expected to secure a valuation of US$ 312 billion by 2033-end.
CNG vehicles are those vehicles that run compressed natural gas as a fuel source for propulsion. The popularity of CNG vehicles has increased exponentially in the past couple of decades as fossil fuel prices continue to rise and the focus on sustainability increases.
CNG cars and trucks are often seen as an eco-friendly alternative to gasoline cars and diesel trucks that have a detrimental impact on the environment. Soaring awareness regarding the harmful environmental impact of fossil-powered transportation and implementation of strict mandates to regulate carbon emissions are other factors that are slated to boost demand for CNG vehicles in the future.
Increasing disposable income, growing availability of new CNG vehicles, evolving consumer preferences, hikes in fossil fuel prices, stringent norms for automotive efficiency, high investments in CNG infrastructure development, and supportive government initiatives to promote the use of natural gas are other factors that augment shipments of CNG vehicles.
On the flip side, the high initial costs of CNG vehicles as compared to petrol vehicles and the lack of a proper CNG refueling and servicing infrastructure are anticipated to hinder CNG vehicle sales in the long run. High maintenance costs are also anticipated to foil market growth potential through 2033.
Demand for CNG storage tanks, CNG conversion kits, and CNG regulators is projected to witness a notable hike over the coming years. CNG vehicle component manufacturers can benefit from this soaring demand for CNG cars and trucks by expanding their sales potential around the world.
This recently updated CNG vehicles market research analysis by Fact.MR, a market research and competitive intelligence provider, proffers a detailed account of trends such as product standards, new developments, supply chain management, local supply, etc., to provide a realistic current and forecasted assessment of the global marketplace.
Report Attributes |
Details |
CNG Vehicles Market Size (2023) |
US$ 110.5 Billion |
Projected Market Value (2033F) |
US$ 312 Billion |
Global Market Growth Rate (2023 to 2033) |
10.9% CAGR |
Market Share of Dedicated Fuel (2022) |
45% |
Market Share of Passenger Vehicles (2022) |
>60% |
Key Companies Profiled |
|
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“Surging Sales of CNG Vehicles Creating Moneymaking Opportunities in India”
The number of CNG vehicles in India has been increasing rapidly in recent years and this has created a highly opportunistic scenario for established and upcoming CNG vehicle companies in the country. High fossil fuel prices and growing consumer awareness regarding sustainability and the environmental impact of fossil fuel use are key factors that are estimated to promulgate shipments of CNG vehicles in the country across the forecast period.
Expanding CNG vehicle fleet and stringent mandates regarding the use of gasoline and diesel-powered cars have created ample opportunities for new CNG vehicle suppliers in India. Low costs of operation, favorable government policies, and a growing focus on carbon emission reduction are expected to encourage start-ups to invest in the research and development of novel CNG solutions and products.
More detailed insights about recent developments from start-ups and an exhaustive regional and country-wise analysis of trends affecting market development on a global scale have been listed in this revised Fact.MR research report.
“Demand for Commercial CNG Vehicles to be High in Japan”
Japan mostly imports its natural gas, which makes it comparatively expensive to other fuels. The majority of the natural gas is used for electricity production in the country and the rest is utilized in other applications that are mostly commercial. Commercial natural gas vehicles (NGVs) or CNG trucks are used in specialty applications in Japan.
CNG cars are not as popular in the country and the production of CNG vehicles in Japan is losing momentum, which could hinder market growth over the coming years. However, demand for commercial CNG trucks and CNG pickup trucks is estimated to keep the CNG vehicles market afloat in Japan across the forecast period.
“Germany Accounts for High Demand for CNG Cars & CNG Trucks”
Sustainability is the chief focus of several European countries and this makes it a highly lucrative market for alternative fuel vehicles such as CNG vehicles and hybrid vehicles. An abundant supply of natural gas, stringent mandates to regulate carbon emissions, the surging popularity of alternative fuel vehicles, and the rising purchasing power of consumers are key factors that govern CNG vehicle sales in almost all European countries.
Germany is estimated to lead market growth in Europe owing to the presence of a robust automotive manufacturing industry and key automotive manufacturers such as Volkswagen, BMW, etc. Supportive government initiatives to bolster sales of hybrid CNG cars and CNG trucks are also projected to boost market development in the future.
“High Consumption & Production of Natural Gas Creating Lucrative Business Scope”
The United States is the leading country in terms of consumption and production of natural gas, which makes it a highly attractive market for CNG vehicle manufacturers and suppliers. However, CNG vehicles are not as popular in the country as we would have expected them to be and this can be linked to the lack of a proper CNG infrastructure.
Commercial CNG vehicles are anticipated to witness a hike in popularity as stringent norms to regulate the use of diesel to curb carbon emissions are implemented in the country. The aforementioned factor is also projected to boost sales of CNG tanks for pickup trucks, CNG kits for diesel trucks, etc. over the coming years.
Efforts to bolster CNG infrastructure in the country are increasing from the public as well as the private sector and this could bolster demand for hybrid CNG cars going forward in the United States.
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“Passenger Vehicles to Account for Dominant Market Share”
Based on vehicle type, the CNG vehicles market is segmented into passenger, commercial, and others.
Passenger cars have been CNG kits for a while now and have been witnessing a surge in popularity as the prices of gasoline and diesel are increasing at an exponential rate. Several new launches of natural gas vehicles by key automotive manufacturers around the world and growing per capita disposable income are contributing to surging demand for passenger CNG vehicles. Sales of small CNG tanks for cars and natural gas vehicle conversion kits are projected to witness an upward demand trend in the future.
Meanwhile, the growing focus on sustainability and rising prices of diesel have resulted in high demand for commercial CNG vehicles such as trucks, pickups, etc. Commercial vehicle manufacturers are focusing on capitalizing on this growing demand by launching new CNG-powered commercial vehicles.
Prime CNG vehicle manufacturers are focusing on launching new vehicles to advance their business potential and gain a competitive advantage over other market players.
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The global CNG vehicles market stands at a valuation of US$ 110.5 billion in 2023.
CNG vehicle sales are estimated to reach US$ 312 billion by 2033-end.
Worldwide CNG vehicle demand is forecasted to rise at 10.9% CAGR through 2033.
Demand for CNG vehicles in Asia Pacific is set to account for a significant share of the global industry.
Suzuki Motor Corporation, Hyundai Motor Group, and Fiat Chrysler Automobiles are leading manufacturers of CNG vehicles.