Sep 4, 2019
Global CNG vehicle market recorded revenue of USD 1,09,783.6 Mn in 2017 and is expected to appreciate to an approximate market value of USD 1,85,422.3 Mn. The global market is slated to witness growth at a CAGR of 5.96% during the forecast period from 2019 to 2025.

Pune, India - September 4, 2019 /MarketersMedia/ —
Compressed natural gas (CNG) can be referred to as natural gas under pressure, that remains odorless, colorless, and non-corrosive. It can be used as a greener, cheaper, and more efficient alternative to conventional diesel and petrol fuels for vehicles. CNG comprises methane gas, which, like gasoline, can produce engine power when combined with air and fed into the combustion chamber of an engine. Natural gas is compressed so that sufficient fuel can be stored in the vehicle to expand the range of driving, like gasoline tanks in any vehicles.
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Global Market for CNG Vehicles - Competitive Landscape
Toyota Motor Corporation, Honda Motor Co. Ltd., Daimler AG, Hyundai Motor Company, Fiat Chrysler Automobiles, Groupe PSA, General Motors, Volvo Group, Renault, Suzuki Motor Corporation, Ford Motor Company, and Volkswagen Group.
CNG vehicles Market Overview
The global CNG vehicle market stood at USD 1, 09,783.6 Mn in 2017 and is expected to attain a valuation of approximately USD 1, 85,000 Mn by the end of the forecast period of 2018-2025, reveals Market Research Future (MRFR) in an exhaustive study. Fueled by renewed interest in the usage of natural gas as a vehicular fuel, the global CNG vehicle market has expanded significantly in the past decade. Crude oil reserves have started to show a decline of late which has raised the price for crude oil steeply and, in turn, induced demand for CNG vehicles. The demand is complemented by growing awareness towards sustainable use of fossil fuels has driven the market for CNG vehicle. Moreover, a large pool of consumers has shifted preference towards alternative fuel options considering the rising prices for petrol and diesel.
Benefits of CNG Vehicles Over Gasoline
Cheaper: CNG is considered cheap and costs almost one third the price of super gasoline, which results in savings in fuel costs.
Reduced maintenance cost: CNG does not contain any additives, burns cleanly, and does not leave any by-products behind which contaminates engine oil and spark plugs. The engine remains clean, thereby reducing engine wear. Also, the combustion chamber parts function at peak output for an extended period before it requires service.
Environment-Friendly: As CNG has a higher-octane rating over gasoline, CNG engines run more quietly and produce minimum exhaust emissions. Harmful emissions like carbon dioxide, carbon monoxide, and nitrous oxide can be minimized compared to gasoline-powered vehicles.
Safer: CNG components are specifically designed and made to international standards. They are monitored to assure safe operation. These fuel systems are sealed, which further prevents spillage and evaporation losses.
Look & Feel Like Conventional Cars: While the fuel systems and engines of CNG vehicles are modified to make use of natural gas, these vehicles are similar to existing diesel and gasoline cars. A conventional car can also be converted to run on natural gas.
CNG Hybrids Available: Some of the CNG cars are specifically designed to run on gasoline as well as CNG, thereby eliminating the range anxiety, and enabling the driver to drive for a long time.
Global market for CNG Vehicles – Segmental Analysis
MRFR’s report offers a detailed segmental analysis of the market based on product type and application. By product type, the market has been segmented into OEM and car modification. The car modifications segment accounted for the largest share of the market in 2017 and is expected to be the largest as well as the fastest growing segment over the forecast period. The hike in fuel price and high demand for environment-friendly vehicles is likely to induce demand for car modifications in the aftermarket. The increase in product ranges of CNG conversion kit for cars, trucks, and buses will further boost the demand for car modification. By application, the market has been segmented into personal use and commercial use.
Drivers Shaping the CNG Vehicles Market
CNG vehicles represent a prominent segment of the existing vehicle categories promoting the notion of clean technology adoption. Carmakers across the globe have identified the market opportunity in CNG vehicles and are highly investing in promoting its growth. Cars with a dual fuel system are high on demand. Besides being environmental-friendly, CNG vehicles are also fuel efficient, which is a prime marketing pitch for such vehicles with a high number of price-sensitive customers. CNG vehicles are more affordable compared to diesel and petrol vehicles, which further promotes its demand among consumers.
Light CNG Vehicles: Increasing Demand
Lightweight vehicles are in huge demand these days and will retain its growth in the coming years. The increasing sales of per passenger vehicles will propel the demand for light CNG vehicles among the consumers. Per capita spending has increased, especially in developing economies like China, India, and Nigeria. Also, climate awareness and higher vehicle mileage have created an ambient ecosystem for CNG vehicles to propel in these nations. Meanwhile, heavy-duty vehicles like trucks and buses will exhibit sluggish growth due to the higher emphasis on electric trucks and buses across the globe.
Regional Outlook
China is a significant growth pocket and accounts for approximately 18% share of the global market. Increase in tax wavier initiatives, stringent regulations pertaining to vehicular emissions and low natural gas prices support the growth of the market in China.
Japan too is a potential market for CNG vehicles. Presence of major CNG vehicle manufacturers such as Nissan, Toyota, Honda, and Suzuki can be attributed to the growth of the market in Japan.
LIST OF TABLES
TABLE 1 MARKET SYNOPSIS 14
TABLE 2 LIST OF ASSUMPTIONS 17
TABLE 3 MANUFACTURING COST STRUCTURE OF CNG VEHICLES 33
TABLE 4 LABOR COST STRUCTURE: CNG VEHICLES 33
TABLE 5 GLOBAL CNG VEHICLE MARKET, BY PRODUCT TYPE, 2013-2017 (USD MILLION) 37
TABLE 6 GLOBAL CNG VEHICLE MARKET, BY PRODUCT TYPE, 2018-2025 (USD MILLION) 37
TABLE 7 GLOBAL CNG VEHICLE MARKET, BY PRODUCT TYPE, 2013-2017 (MILLION UNITS) 37
TABLE 8 GLOBAL CNG VEHICLE MARKET, BY PRODUCT TYPE, 2018-2025 (MILLION UNITS) 37
TABLE 9 GLOBAL CNG VEHICLE MARKET, BY APPLICATION, 2013-2017 (USD MILLION) 40
TABLE 10 GLOBAL CNG VEHICLE MARKET, BY APPLICATION, 2018-2025 (USD MILLION) 40
TABLE 11 GLOBAL CNG VEHICLE MARKET, BY APPLICATION, 2013-2017 (MILLION UNITS) 40
TABLE 12 GLOBAL CNG VEHICLE MARKET, BY APPLICATION, 2018-2025 (MILLION UNITS) 40
Continued…….
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