The CNG and LPG vehicles market is projected to grow at a steady CAGR of 4.6% from 2023 to 2033. By 2033, the market is expected to reach a valuation of USD 8.54 billion, up from USD 5.44 billion in 2023.
The growth of this market is driven by the benefits of LPG and CNG vehicles, including easy transportation, high heat energy delivery, and low calorific value. Additionally, their lower maintenance costs, reduced running expenses, and lower pollution levels are further boosting market growth.
Governments worldwide are increasingly exploring alternative fossil fuels to gasoline. The rising cost of gasoline and the need for highly refined engines are also contributing to the growing popularity of LPG and CNG vehicles. New product innovations, including high-mileage passenger vehicles and advanced features such as dual-fuel systems that allow switching between CNG and petrol, are enhancing the market appeal.
The lower pollution levels and efficient performance of CNG and LPG vehicles are being actively promoted by governments through subsidies and incentives, further driving market expansion.
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Key Takeaways:
- The United States market leads the CNG and LPG vehicles market in terms of market share in North America. The United States region held a market share of 15.2% in 2022. The growth in this region is attributed to the government policies limiting the gasoline-based vehicles, aware citizens, and high promotion of CNG and LPG vehicles.
- Germany’s market is another important market in Europe region. The market held a market share of 7.1% in 2022. The growth is attributed to being the hub of automotive transition from gasoline to natural gas. The presence of a high number of brands is garnering market growth in the region.
- India’s analog-to-digital converter market thrives at a CAGR of 4.5% between 2023 and 2033. The growth is attributed to aggressive government efforts for the energy transition and subsidies.
- China’s market also thrives at a CAGR of 4.7% during the forecast period.
- Based on the fuel type, the CNG segment leads the market as it held a significant share of 78.5% in 2022.
- Based on the vehicle type, the passenger cars segment leads the market as it held a prominent market share of 39.2% in 2022.
Competitive Landscape
The key vendors focus on increasing efficiency, prices, power, and mileage. The competitors also merge, acquire, and partner with other companies to increase their supply chain and distribution channel.
Key Players Profiled in the CNG and LPG Vehicles Market
- GAILIndia Ltd.
- Fiat Group
- General Motors Group
- Renault
- Hyundai
- Suzuki
- Ford
- Volkswagen
Key Innovation
- GAILIndia Ltd. has been accredited with authorized economic operator (AEO) T3 status.
- Volkswagen has introduced its new Tiguan Lx- CNG-3 version in India with silver accent on steering wheel. The car also has driver-side airbag and reverse parking sensors.
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Key Segments Covered
By Fuel Type:
- CNG
- LPG
By Vehicles Type:
- Passenger
- Light Commercial
- Medium commercial
- Heavy Commercial
By 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
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