The Asia-Pacific region dominates the global CNG and LPG vehicles market owing to the favorable government policies to boost the adoption of low-emission vehicles. Largest automotive manufacturing countries including China, India, and Japan, are also expanding their production of CNG and LPG vehicles to increase and improve their market penetration. Following Asia Pacific, Europe is also projected to register a high growth rate during the forecast period.
New Delhi, May 30, 2023 (GLOBE NEWSWIRE) — The global CNG and LPG vehicles market is gaining traction because of the low operating cost compared to petroleum vehicles and rapid industrialization in major emerging economies across the regions.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the global CNG and LPG vehicles market size at USD 5,235.22 million in 2022. During the forecast period between 2023 and 2029, the global CNG and LPG vehicles market size is projected to grow at a CAGR of 4.07% reaching a value of USD 6,889.02 million by 2029. The cost and efficiency of CNG and LPG vehicles compared to traditional fuels like petrol and diesel are key growth factors for the global market. Due to the availability of dual fuel, these vehicles provide a desired option in terms of cheaper running costs and the removal of range anxiety, which is emerging as a favorable trend for the growth of the global CNG and LPG vehicles market.
Global CNG and LPG Vehicles Market – Overview
The term “CNG” refers to compressed natural gas, which is essentially pure methane gas (CH4) that is used to produce a clean fuel that is practically air-clean and pollutant-free. Therefore, CNG is sometimes referred to as “clean fuel”. Liquefied petroleum gas, or LPG for short, is a mixture of light gaseous hydrocarbons, such as propane, butane, and other light petroleum products, which have been combusted under extremely high pressure and then turned into a liquid. LPG is either extracted during the generation of natural gas or created during the refining of crude oil. The use of CNG and LPG vehicles as replacements for older, more polluting diesel vehicles contributes to the reduction of global greenhouse gas (GHG) emissions.
Global CNG and LPG Vehicles Market – By Fuel Type
Based on fuel type, the global CNG and LPG vehicles market is segmented into CNG and LPG. The CNG fuel type holds a higher share in the global CNG and LPG vehicles market. As CNG contains less carbon than other fuels, its combustion produces very little carbon dioxide and carbon monoxide, which plays a crucial role in its market growth. The fact that CNG is comparatively less expensive than LPG is one of the main distinctions between the two fuels, which also contributes to the market demand for CNG.
Impact of COVID-19 on the Global CNG and LPG Vehicles Market
The unprecedented COVID-19 pandemic disrupted the growth of the global CNG and LPG vehicles market. The lockdown imposed by the countries to curb the virus spread halted the manufacturing and production operations of the vehicles, negatively affecting the market growth. The pandemic especially affected the small OEMs and dealers of the aftermarkets owing to lower commute and loss of implementation of low-emission vehicle regulations in various countries. The demand for registers has significantly declined since 2020 owing to the low average income of the consumers. However, the market is projected to get back on the growth track during the forecast period.
Major players operating in the global CNG and LPG vehicles market include Ford Motor Company, Fiat Chrysler Automobiles, General Motors, Volkswagen AG, Groupe Renault, HYUNDAI MOTOR GROUP, Suzuki Motor Corporation, Honda Motor Co. Ltd., Navistar Inc., Nissan, Tata Sons Private Limited, AB Volvo, KION GROUP AG, Landi Renzo S.p.a., and Bajaj Auto.
To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and the Global CNG and LPG Vehicles Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Global CNG and LPG Vehicles Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.