Natural Gas Vehicle Market Share, Price, Value Analysis 2027

The natural gas vehicle market was valued at US$ 17,100.00 million in 2019 and is expected to reach US$ 28,805.75 million by 2027; it is estimated to grow at a CAGR of 6.9% during 2020–2027. 

Natural gas vehicle engines function similar to gasoline-powered vehicle engines that are typically spark-ignited internal combustion engines. Natural gas is stored in a cylinder or a fuel tank, usually embedded at the back of the vehicle. Batteries provide electricity for the functioning of the engine and power electronics in these vehicles. The electronic control module (ECM) controls the ignition timing, fuel mixture, and emissions system; it also observes the operation of the vehicle and detects the problems. Natural gas is eco-friendly fuel as it contributes less to pollution than petrol or diesel and its resources are extensively available worldwide. Moreover, the prospective benefits of using natural gas vehicles include low greenhouse gas emissions, cost reduction, noise reduction, and local air quality improvement. As per the Climate Technology Centre & Network (CTCN), compressed natural gas (CNG) is broadly used as vehicle fuel in the world. CTCN stated that there are ~10 million natural gas-powered vehicles and ~15,000 CNG refueling stations in ~75 countries. In countries with substantial gas reserves and limited oil reserves, the use of natural gas in transport can lower the dependency on costly oil imports. The global natural gas vehicle market is currently a niche market as the current share of natural gas in road transportation is small in a few countries. The prominent countries using CNG in vehicles are Pakistan, Argentina, Iran, and Brazil.

Heavy investments in vehicles and an increase in government support might be needed to establish the natural gas vehicle market since numerous countries are not likely to achieve natural gas vehicle markets with less penetration levels. The automobile industry is booming across the world, with a swift surge in the production of passenger cars and commercial vehicles. Moreover, extending the benefits of natural gas to a wider range of industries, in addition to the automobile industry, would attract more investments in transmission and distribution grids for the natural gas supply.     

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Natural Gas Vehicle Market: Strategic Insights

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Impact of COVID-19 Pandemic on Natural Gas Vehicles Market

The automotive manufacturing and transportation industry is heavily dependent on manual labor. Owing to the strict lockdown regulations imposed by the majority of the countries across the globe, the industry is experiencing a significantly lower number of labors in respective manufacturing facilities. This factor is hindering the automotive and transportation industry, thereby restraining the growth of the natural gas vehicle market. The US is a prominent market for natural gas vehicle due to rising government support to build infrastructure for the same. The rapidly increasing number of COVID-19 confirmed cases and reported deaths in the country is adversely affecting the automotive and transportation industry. The factory and business shutdowns across the US, Canada, and Mexico are restricting the demand for natural gas vehicles. North America comprises a large number of manufacturing and automotive companies; thus, the impact of the COVID-19 outbreak is quite severe on the market in North America, and it is likely to continue in 2021.

Market Insights– Natural Gas Vehicle Market 

Increasing Government Focus on Enhancing Energy Security

Energy security signifies the constant availability of cost-effective energy sources. It has numerous features, such as long-term energy security, chiefly handle timely investments to supply energy in line with environmental needs and economic developments. Short-term energy security revolves around the ability of energy systems to react quickly to unexpected changes in the supply-demand balance. The government of Pakistan has encouraged the introduction and development of CNG applications in the transportation industry through various policy measures. A huge number of natural gas vehicles (~2 million vehicles) are running on the roads in Pakistan, consuming 2.5 billion cubic meters (BCM) of natural gas every year. Various Asian countries, especially India, have introduced crucial energy pricing reforms in the oil, gas, coal, and electricity fields, which are essential to further open the energy market and enhance its financial health. India has taken substantial steps to develop its energy security by fostering domestic production of natural gas vehicles. With the rising concerns regarding the environmental impacts of using fossil fuels and the benefits of energy grids, engineers are progressively adopting energy storage solutions, thereby propelling the growth of the energy security industry. Adopting natural gas as a transit fuel to lower carbon emissions helps achieve sustainable development goals while addressing energy security worldwide. Thus, a surge in the focus of governments on enhancing energy security propels the growth of the natural gas vehicle market.    

Fuel Type - Based Insights

Based on fuel type, the natural gas vehicle market is bifurcated into CNG and LNG. The market for CNG vehicles continues to witness lucrative opportunities due to the increasing number of natural gas vehicles and growing preference for CNG vehicles worldwide. Further, the growth of the automotive industry influences the adoption of CNG vehicles.    

Application - Based Insights

Based on application, the natural gas vehicle market is bifurcated into on road and off road. In 2019, the on road segment led the market. Natural gas is used primarily for electricity generation and residential, commercial, and industrial applications. It is used as fuel for on road vehicles, especially in medium- or heavy-duty vehicles in centrally fueled fleets. It has also been also proposed for more generous use as a fuel for on road vehicles, particularly in light-duty vehicles.  

Vehicle Type-Based Insights

Based on vehicle type, the natural gas vehicle market is segmented into passenger vehicles, light and commercial vehicles, and heavy commercial vehicles. In 2019, the passenger vehicles segment led the market. The passenger cars is the leading segment in the CNG and LPG vehicles market in India. India’s top carmakers are focusing more on natural gas vehicle development than electric vehicles. The demand for passenger vehicles is increasing owing to the rise in per capita income and need for luxury. Public acceptance and strong government support for natural gas passenger vehicles would drive the growth of the natural gas vehicle market.

Natural Gas Vehicle Market Regional Insights

The regional trends and factors influencing the Natural Gas Vehicle Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Natural Gas Vehicle Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Natural Gas Vehicle Market Report Scope

Natural Gas Vehicle Market Players Density: Understanding Its Impact on Business Dynamics

The Natural Gas Vehicle Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Natural Gas Vehicle Market are:

1. AB Volvo
2. Agility Fuel Solutions
3. Cummins Westport Inc.
4. Ford Motor Company
5. PACCAR Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

The market players focus on new product innovations and developments by integrating advanced technologies and features in their products to compete with the competitors.

• In 2020, Agility Fuel Solutions urged the Indian automotive and fleet industry to implement long distance travel solutions with CNG. India’s Minister for Petroleum and Natural Gas launched India’s first long distance compressed natural gas (CNG) bus under a strategic program led by Indraprastha Gas Limited (IGL), the largest CNG distribution company in India.  

• In 2020, PACCAR Inc. has been honored as a global leader in environmental practices by the environmental reporting firm CDP. The company achieved a list by demonstrating best in class disclosure and reduction of greenhouse gas emissions in its commercial vehicles business and global facilities.   

Natural Gas Vehicle Market – by Fuel Type

• CNG
• LNG

Natural Gas Vehicle Market – by Application

• On Road
• Off Road

 Natural Gas Vehicle Market – by Vehicle Type  

• Passenger Vehicles
• Light Commercial Vehicles
• Heavy Commercial Vehicles   

 Natural Gas Vehicle Market – Companies Profiles

• AB Volvo
• Agility Fuel Solutions LLC
• America Honda Motor Company
• CNH Industrial N.V.
• Cummins Westport
• General Motors
• Navistar Inc.
• Paccar Inc.
• The Ford Motor Company
• Volkswagen AG