CNG Vehicles Market to Register 4.7% CAGR between 2018 and 2028

According to the recently released report by Bekryl, CNG Vehicles market size is estimated to be valued over US$ 1,459 million in 2019 and will register a CAGR of 4.7% between 2018 and 2028.

Over 25.8 million vehicles worldwide are reported to be running on natural gas in 2018. Natural gas vehicles have high mileage making it preferred for choice among consumers over petrol and diesel vehicles. It is largely considered as clean source of transportation owing to reduced greenhouse gas emissions, better air quality and widespread distribution infrastructures. Moreover, horsepower and cruise speed is equivalent to conventional vehicles.

Depleting oil reserves and government push towards sustainable development is driving the demand for CNG vehicles globally. Global oil reserves has fallen by 0.9 billion since 2017. Oil reserves is expected to further deplete at higher pace with increasing energy demand. Moreover, rising gasoline prices has further de-accelerated the demand for conventional vehicles. Pollution and related economic burden on many country’s GDP has led government to opt for CNG/LPG and electric vehicles as viable mode of transportation.

Stringent regulations has also played a key role in overall sales of CNG vehicles worldwide. For instance, in May 2019, the government of U.S. state of Oklahoma extends tax incentives for CNG vehicles. Tax credits will be extended from January 2020 to 2027. In 2018, government of Delhi, India has proposed 50% less road tax for new CNG vehicles. Such move to curb pollution and meet sustainable development goal is expected to boost CNG vehicle sales.

Various companies are also emphasizing on expanding CNG vehicle fleets. For instance, in May 2019, Blue Bird launched Type-C school bus fueled by CNG. As of 2018, there are over 7000 CNG buses operational in around 150 U.S. district. Lower operational cost has created favorable demand for CNG in the country. As a result, various heavy duty vehicle manufacturers are coming up with CNG based vehicles.

In 2018, light weight vehicles dominated the global CNG vehicles market. The segment accounted for 73% share in 2018 and will continue to dominate the market throughout the forecast period. Growth in the segment is primarily driven by increasing sales of per passenger vehicles. Per capita spending has increased worldwide especially in developing region including India, China, Nigeria and ASEAN. At the same time, higher vehicle mileage and climate awareness has created ambient ecosystem for CNG vehicle to flourish in the region. Heavy duty vehicles including buses and trucks will have relatively sluggish growth. This is primarily due to higher emphasis on electric buses and trucks worldwide. Electric buses and trucks are registering double digit growth – replacing the conventional vehicle at higher pace. Heavy duty CNG vehicles will register a CAGR of 3.2% during the forecast period.

Asia Pacific dominated the global CNG vehicles market, with 31% market share in 2018. Growth in the region is primarily driven by China, India and Pakistan. In India, government policies has created favorable business environment for CNG vehicle players. It is expected that around half of the new vehicle sales will be CNG based in India by 2030. Under the proposed plan, the government of India unveiled Natural Gas Infrastructure Development Plan to set up 10,000 CNG stations by 2028 from 1,424 CNG stations recorded in 2018. This is a huge market opportunity for players considering the sheer size of vehicle demand in the country. As of 2019, Maruti Suzuki and Hyundai Motors accounted for highest share in India CNG vehicle market.

Bekryl Market Analysts
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New York
United States

Bekryl Market Analysts is a global market research and consulting service firm that helps industry stakeholders to take smarter decisions and achieve remarkable growth in today’s disruptive business environment. We bring together data, leader’s opinion and analytical service to help client define their growth strategy ranging from mergers and acquisitions based strategic decisions to finding market opportunity in business verticals namely chemicals, food & beverages, automotive, electronics and industrial production.

This release was published on openPR.