The CNG and LPG vehicle market has been gaining notable momentum worldwide on account of advantages such as lower operating costs and reduction in toxic emissions. CNG (Compressed Natural Gas) and LPG (Liquefied Petroleum Gas) are cleaner alternatives to gasoline and diesel with lesser carbon emissions. Vehicles running on CNG and LPG also offer enhanced fuel efficiency and are more economical over long-term usage.
The Global CNG and LPG Vehicle Market is estimated to be valued at US$ 5.33 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the CNG and LPG vehicle market are HYUNDAI MOTOR GROUP, Fiat Chrysler Automobiles, Honda Motor Co. Ltd., Suzuki Motor Corporation, General Motors, Groupe Renault, Tata Sons Private Limited, Landi Renzo S.p.a., Volkswagen AG, AC S.A., Nissan, Navistar Inc., Ford Motor Company, KION GROUP AG, and AB Volvo.
The key opportunities in the market include rising demand from fleet operators and logistics companies looking to reduce fuel costs. Many cities across countries like India and Brazil have started introducing mandatory retrofitting/ conversions norms for public transport vehicles which will drive future volumes.
Globally, various nations like India, Brazil, Argentina, and Pakistan are promoting use of CNG and LPG vehicles through financial incentives and awareness programs. Trucks and buses conversion has also been encouraged in European countries to achieve sustainability targets. OEMs are expanding their CNG and LPG vehicle lines to capitalize on the availability of supporting infrastructure in different regions.
Market Drivers
Stringent government norms regarding vehicular emissions are a key driver for CNG And LPG Vehicles Market Size adoption. Various cities and countries have enforced bans on old conventional vehicles, complemented with incentives for eco-friendly alternatives. This is prompting fleet operators to replace aging petrol and diesel vehicles with cleaner CNG and LPG models. Additionally, volatility in crude oil prices makes CNG and LPG attractive fuel choices for consumers and commercial transporters over the long-run.
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