CNG Vehicles Market Projected to Reach USD 347.25 billion, at a 14.72% CAGR By 2023 to 2032 – Report by Market Research Future (MRFR)
Market Research Future
7 min read
Market Research Future
CNG Vehicles Market Growth Boost by Growing Need for Alternative Fuel in the Auto Industry for Emission Control and Advancements
New York, US, June 09, 2023 (GLOBE NEWSWIRE) -- According to a Comprehensive Report by MRFR/Market Research Future (MRFR), “CNG Vehicles Market Information by Product Type, Application, and Region - Forecast till 2032", The market for CNG vehicles to surge from USD 115.75 billion in 2023 to USD 347.25 billion by 2032, attaining a growth rate of 14.72% from 2023 to 2032.
CNG Vehicles Market Overview
The automotive industry as a whole has begun to seek dependable solutions for greener fuels as the drive towards alternative modes of transportation becomes stronger than ever. While compressed natural gas (CNG), a somewhat cleaner fuel choice, can assist support the drive to minimise emissions, electric vehicles are unquestionably on the route to becoming the major mode of passenger transportation in the near future.
According to a well-to-wheel analysis, CNG is more cost-effective than traditional fuels and is now becoming more prevalent in the personal mobility market. It offers a decrease in greenhouse gases of between 15 and 27 per cent when compared to conventional fuels.
The affluent companies in the CNG vehicles industry are
Volkswagen Group
Ford Motor Company
Suzuki Motor Corporation
Renault
Volvo Group
General Motors
Groupe PSA
Fiat Chrysler Automobiles
Hyundai Motor Company
Daimler AG
Honda Motor Co. Ltd
Among others.
Market USP Covered:
CNG Vehicles Market Restraints:
Over the projection period, the development of new eco-friendly fuels could be a hindrance for the market for CNG automobiles. Although their higher price may have an impact on revenue growth, the lower cost of fuel is expected to make up for the difference. They are more expensive than cars driven by petrol or diesel. The industry demand may be constrained by the small engine size and power of these vehicles.
Report Scope:
Report Metrics
Details
Market Size 2032
2032: USD 347.25 billion
CAGR during 2023-2032
14.72 % CAGR
Base Year
2022
Forecast
2023-2032
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
Product Type, Application, and Region
Key Market Opportunities
Increase in affordability Increasing inclination toward advanced automotive vehicles.
Key Market Dynamics
Growing need for alternative fuel in the auto industry for emission control, fuel efficiency, and cost-effectiveness, Growing demand for cars having dual fuel systems like CNG and petrol, concerns about constant swelling pollution
Browse In-depth Market Research Report (188 Pages) onCNG Vehicles Market:
Due to an increase in demand for biofuel, the global market for CNG vehicles is anticipated to expand over the forecast period. They perform similarly to cars driven by petrol, and the market is anticipated to develop as a result of the relative affordability of CNG compared to petrol. Over the next seven years, there may be a rise in demand for compressed natural gas vehicles due to their comparative lack of dangerous gas emissions compared to those driven by petrol or diesel.
Industry growth for CNG vehicles is anticipated to be aided by government attempts to reduce air pollution and promote the adoption of eco-friendly technologies. An important aspect fuelling industry demand during the predicted period may be the accessibility of gas-powered cars and simple financing options. It might also be possible to switch to these eco-friendly cars if compressed natural petrol stations increase.
One of the main factors influencing revenue growth may be technological development that results in higher performance, fuel efficiency, and low cost. The fuel storage cylinders in CNG cars, for example, are far more durable than tanks for petrol or diesel, which increases their safety. When an accident occurs, pressurised natural gas escapes into the atmosphere while petrol or diesel collects on the ground. The expansion of the CNG car sector over the following seven years may also be influenced by tax incentives provided by the government, including state and federal tax incentives in the US.
CNG Vehicles Market COVID 19 Analysis
Despite a significant decline in total demand for natural gas, given the strong association between GDP growth and natural gas demand, the precise estimation of long-term demand has been largely contingent on how government stimulus packages alter energy regulations and the course of the economy. Given that natural gas demand is not primarily driven by transportation as it is in the case of oil, natural gas markets are somewhat protected from price fluctuations. In some nations, natural gas accounts for a sizeable portion of the electricity mix, making it important for heating homes and running important enterprises even during the Covid-19 pandemic.
The OEM and car modification segments of the CNG Vehicles Market are with respect to the product type. Due to the rising demand for environmentally friendly vehicles and the increase in fuel prices, the automobile modification category dominated the market. Additionally, the expansion of product lines for CNG conversion kits for cars, trucks, and buses is boosting the segment's growth.
By Application
Personal use and commercial usage are also included in the CNG Vehicles Market segmentation, in terms of the application. The market was dominated by the personal use segment, which also grew as a result of more CNG automobile filling stations opening up and prices becoming more accessible.
Regional Insights
The market for CNG vehicles will be dominated by North America by virtue of the region's growing demand for dual-fuel vehicles, such as those that run on CNG and petrol, as well as the auto industry's increasing need for alternative fuels for emission control and fuel economy.
Due to the auto industry's technological developments, rising worries about carbon emissions, and stringent environmental restrictions, which have compelled auto makers to concentrate on alternative fuel vehicles, Europe's CNG Vehicles market holds the second-largest market share. Additionally, the UK CNG Vehicles market was expanding at the fastest rate in the region, while the German CNG Vehicles market had the greatest market share.
From 2023 to 2032, the CNG vehicle market in Asia-Pacific is anticipated to expand at the fastest rate.
This is because of the region's prosperous automotive centres, strong government regulations on vehicle emissions, high potential consumer base, and booming automotive sector. In addition, the Indian CNG Vehicles market had the quickest rate of growth in the Asia-Pacific region, while China's CNG Vehicles market had the largest market share. The government of India's ministry of environment and forest reports that 50,000 vehicles have already been converted in Delhi to run on compressed natural gas instead of fuel and diesel. With the introduction of BS-III& BS-IV, top automakers across all vehicle categories have made considerable investments in the development of CNG variants. Some manufacturers have expressed optimism that as India's CNG infrastructure advances, the number of CNG vehicles would rise. Automobile makers ought to think about talking with CNG dealers about what has to be done to promote the expansion of this industry. In this sense, a comprehensive collaboration strategy between all the important and significant players in the automotive ecosystem would be quite helpful. India's market for CNG vehicles has enormous growth potential.
Related Reports:
CNG Compressor Market Research Report Information by Technology, Applications, and Region – Forecast till 2030
Market Research Future (MRFR) is a global market research company that takes pride in its services, offering a complete and accurate analysis regarding diverse markets and consumers worldwide. Market Research Future has the distinguished objective of providing the optimal quality research and granular research to clients. Our market research studies by products, services, technologies, applications, end users, and market players for global, regional, and country level market segments, enable our clients to see more, know more, and do more, which help answer your most important questions.
CONTACT: Market Research Future (Part of Wantstats Research and Media Private Limited) 99 Hudson Street, 5Th Floor New York, NY 10013 United States of America +1 628 258 0071 (US) +44 2035 002 764 (UK) Email: sales@marketresearchfuture.com Website: https://www.marketresearchfuture.com
