CNG and LPG Vehicle Market Trends,
Segmentation, Key Players And Forecast
A compressed natural gas (CNG) vehicle is equipped with a spark-ignited internal combustion
engine, which operates as a gasoline engine. Natural gas in CNG vehicles is stored in a fuel
tank or cylinder, which is usually placed at the back. The exhaust system of such vehicles
channels the exhaust gases from the engine to the air through the tailpipe. This system has a
three-way catalyst that reduces engine-out emissions. In liquified petroleum gas (LPG)
vehicles, the size of the fuel tank is smaller than that of a diesel or petrol-based automobile.
Globally, alternative fuel vehicles such as CNG and LPG vehicles are being increasingly
preferred over petrol and diesel-based automobiles, owing to the surging air pollution levels
caused due to combustion of these petroleum products. Thus, the increasing shift toward
clean energy, primarily on account of the surging environmental concerns and toughening
emission laws, will help the CNG and LPG vehicle market is to advance at 5.9% CAGR
during 2020–2030. The market recorded sales of 56.2 million units in 2019 and it is expected
to sell 102.3 million units by 2030.
This is credited to the growing deployment of CNG vehicles, especially in the emerging
economies of Asia-Pacific (APAC). When vehicle type is taken into consideration, the CNG
and LPG vehicle market is divided into bus, light and heavy-duty trucks, and passenger cars
categories. Out of these, the passenger car category held the largest share in the market in
2019, mainly because of the huge public awareness about the environmental degradation
caused due to the usage of diesel and gasoline-powered vehicles.
Additionally, the enactment of government policies for reducing air pollution in several
countries also contributed toward the expansion of the category. Globally, the CNG and LPG
vehicle market will demonstrate the fastest growth in Latin America, the Middle