CNG LPG Vehicle Market Size (2024 - 2029)

CNG LPG Vehicle Market Analysis

The CNG LPG Vehicle Market size is estimated at USD 6.73 billion in 2024, and is expected to reach USD 10.13 billion by 2029, growing at a CAGR of 7% during the forecast period (2024-2029).

Over the medium term, the market for CNG and LPG vehicles is expected to expand due to growing environmental concerns, higher fuel costs, and the emphasis on energy diversification. Significant advancements in CNG and LPG vehicle technologies have been made in recent years, including fuel storage, engine efficiency, and safety features. These improvements have increased the competitiveness of CNG and LPG vehicles in terms of performance and reliability.

As the world moves toward sustainable energy, CNG and LPG vehicles are expected to remain important, particularly in areas with underdeveloped EV infrastructure. Ongoing advancements in vehicle technology and fuel infrastructure could further increase the attractiveness of CNG and LPG vehicles in the market.

Lower operational costs, stemming from the cheaper prices of CNG and LPG compared to petrol and diesel, are significant factors driving their usage. This benefit is especially attractive for commercial and high-mileage vehicles. The tightening of emission regulations globally is also leading to increased adoption of CNG and LPG vehicles, as they produce fewer pollutants compared to conventional fuels.

Asia-Pacific is the largest market for automobiles in the world. Despite the slow growth in the Chinese market, the largest automobile market globally, the region is expected to drive growth in the CNG and LPG vehicle market during the forecast period.

CNG LPG Vehicle Industry Segmentation

The CNG (compressed natural gas) and LPG (liquefied petroleum gas) vehicle market refers to the segment of the automotive industry that involves the production, sale, and use of vehicles powered by CNG or LPG instead of traditional fuels such as petrol and diesel. The market includes a variety of vehicles, ranging from passenger cars to commercial vehicles such as buses and trucks, depending on the region.

The market is segmented by fuel type, vehicle type, sales channel, and geography. By fuel type, the market is segmented into compressed natural gas (CNG) and liquefied petroleum gas (LPG)). By vehicle type, the market is segmented into passenger cars and commercial vehicles. By sales channel, the market is segmented into OEM and retrofitting. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. For each segment, the market sizing and forecast have been done based on the value (USD).