CNG and LPG Vehicles Market Set to Reach USD 8.54 Billion by 2033, Registering a CAGR of 4.6% | FMI Analysis
The CNG and LPG vehicles market is expected to grow at a steady CAGR of 4.6% from 2023 to 2033. By 2033, the market is projected to reach a valuation of USD 8.54 billion, up from USD 5.44 billion in 2023.
This market growth is driven by the advantages of LPG and CNG vehicles, which include ease of transportation, high heat energy delivery, and low calorific values. Additionally, their lower maintenance costs, reduced operational expenses, and lower emissions are contributing to market expansion.
Governments worldwide are increasingly seeking alternative fossil fuels to gasoline. The rising costs of gasoline and the demand for highly refined engines are also making LPG and CNG vehicles more popular. New innovations, such as high-mileage passenger vehicles and advanced features like dual-fuel systems that allow switching between CNG and petrol, are enhancing the market’s appeal.
Governments are actively promoting the lower pollution levels and efficient performance of CNG and LPG vehicles through subsidies and incentives, further driving market growth.
The United States is the leading market for CNG and LPG vehicles in North America, holding a market share of 15.2% in 2022. Growth in this region is driven by government policies limiting gasoline-powered vehicles, environmentally conscious consumers, and strong promotion of CNG and LPG options.
Germany is another significant market in Europe, with a market share of 7.1% in 2022. Its growth can be attributed to its role as a hub for the automotive transition from gasoline to natural gas, bolstered by the presence of numerous brands in the region.
India’s CNG and LPG vehicles market is projected to grow at a CAGR of 4.5% from 2023 to 2033, driven by proactive government initiatives for energy transition and subsidies.
China’s market is expected to grow at a CAGR of 4.7% during the forecast period.
In terms of fuel type, CNG leads the market, accounting for a significant share of 78.5% in 2022.
The passenger cars segment dominates the market based on vehicle type, holding 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.
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
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
Associate Vice President at Future Market Insights, Inc. has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.