Market Size of South America CNG and LPG Vehicle Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South America CNG & LPG Vehicle Market Analysis
The South America CNG and LPG Vehicle Market is projected to grow with a CAGR of more than 3 % during the forecast period.
- Owing to the decreasing in air quality because of the rising air pollution, along with the high fluctuations in the crude oil prices in the international markets, alternative fuels vehicles demands are rising all over the world.
- The market is primarily driven by the factors such as with the use of CNG and LPG fuel vehicles the carbon emission in the environment can be controlled as compared to conventional fuels like Diesel and Petrol, the promotion of CNG and LPG vehicles by the governments in the region by providing financial aids for the conversion of conventional fuel vehicles to auto gas vehicles, also the increase in spending for infrastructure like auto gas stations is attracting demand for CNG and LPG vehicles in the region.
- However, the rise of flexi fuel cars, like ethanol fuel-based vehicle in the region is affecting the growth of CNG and LPV fuel-based vehicles in the South American region. For instance, in 2019 Brazil's consumption of ethanol reached 32.8 billion liters (8.6 billion gallons), a 10.5% year-on-year increase
South America CNG & LPG Vehicle Industry Segmentation
The South America CNG and LPG Vehicle market report covers a detailed study on the latest trends and innovations in the market which is segmented by Fuel type (Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG)), Vehicle Type (Passenger Cars and Commercial Vehicles), Sales Channel (OEM and Aftermarket), and Country. The report also covers a detailed study on major players, their strategies, innovation in technology and financials in detail.
| Fuel Type | |
| Compressed Natural Gas | |
| Liquified Petroleum Gas |
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| Sales Channel | |
| OEMs | |
| Aftermarket |
South America CNG and LPG Vehicle Market Size Summary
The South America CNG and LPG Vehicle Market is experiencing a positive growth trajectory, driven by increasing demand for alternative fuel vehicles due to rising air pollution and fluctuating crude oil prices. The market benefits from government initiatives promoting the use of CNG and LPG vehicles through financial incentives for converting conventional fuel vehicles. The expansion of infrastructure, such as auto gas stations, further supports this demand. The cost-effectiveness of CNG and LPG, offering significant savings compared to traditional fuels like gasoline and diesel, is particularly appealing to taxi fleet operators and other vehicle users. Additionally, the environmental benefits of these fuels, being cleaner than fossil fuels, contribute to their growing popularity.
Despite the promising growth, the market faces challenges from the rise of flexi-fuel cars, such as ethanol-based vehicles, which impact the adoption of CNG and LPG vehicles. However, countries like Bolivia are leading the market due to their rich natural gas reserves and low operational costs, with a significant conversion rate of conventional vehicles to CNG. The market is fragmented, with numerous players like TA Gas Technology, Fiat, and Cummins holding small shares. Collaborations, such as Uber's partnership with Landi Renzo Brasil for converting cars to natural gas, highlight the ongoing efforts to expand the CNG and LPG vehicle market in the region.
South America CNG and LPG Vehicle Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porters Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Fuel Type
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2.1.1 Compressed Natural Gas
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2.1.2 Liquified Petroleum Gas
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2.2 Vehicle Type
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2.2.1 Passenger Cars
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2.2.2 Commercial Vehicles
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2.3 Sales Channel
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2.3.1 OEMs
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2.3.2 Aftermarket
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South America CNG and LPG Vehicle Market Size FAQs
What is the current South America CNG and LPG Vehicle Market size?
The South America CNG and LPG Vehicle Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in South America CNG and LPG Vehicle Market?
TA Gas Technology, Fiat, Encava, Cummins Inc and BRC Gas Equipment are the major companies operating in the South America CNG and LPG Vehicle Market.
