Automotive Natural Gas Vehicle Market Size, Share & Trends Analysis Report By Fuel Type (CNG, LNG), By Vehicle Type (Passenger, Light-duty & Heavy-duty Buses & Trucks), By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global automotive natural gas vehicle market size was exhibited at USD 2,979,377.0 thousand in 2023 and is projected to hit around USD 4,202,705.5 thousand by 2033, growing at a CAGR of 3.5% during the forecast period of 2024 to 2033.

Automotive Natural Gas Vehicle Market Size 2024 To 2033

Key Takeaways:

  • The Asia Pacific region accounted for the largest share of more than 55% in 2023
  • The CNG segment accounted for the largest volume share of over 95% in 2023
  • The passenger vehicle type segment accounted for the largest volume share of over 89% in 2023.

Automotive Natural Gas Vehicle Market: Overview 

The automotive industry is witnessing a paradigm shift towards sustainable mobility solutions, with natural gas emerging as a promising alternative fuel. This overview delves into the dynamics driving the Automotive Natural Gas Vehicle (NGV) market, providing insights into its growth trajectory, key trends, challenges, and opportunities.

Automotive Natural Gas Vehicle Market Growth

The growth of the Automotive Natural Gas Vehicle (NGV) market is propelled by several key factors. Firstly, heightened environmental concerns are driving demand for cleaner transportation options, with NGVs offering reduced emissions of greenhouse gases and pollutants compared to conventional vehicles. Additionally, the cost efficiency of natural gas relative to gasoline or diesel presents a compelling economic incentive for fleet operators and consumers alike. Moreover, the push towards energy security and diversification of fuel sources further bolsters the adoption of NGVs, leveraging domestically-produced natural gas. Furthermore, ongoing technological advancements in NGV technology, including improvements in engine efficiency and fuel storage, are enhancing vehicle performance and expanding market opportunities. Collectively, these factors underscore the significant growth potential of the automotive NGV market, positioning it as a key player in the transition towards sustainable mobility solutions.

Automotive Natural Gas Vehicle Market Report Scope

 Report Coverage  Details
Market Size in 2024 USD 2,979,377.0 Thousand
Market Size by 2033 USD 4,202,705.5 Thousand
Growth Rate From 2024 to 2033 CAGR of 3.5%
Base Year 2023
Forecast Period 2024-2033
Segments Covered Fuel Type, Vehicle Type, Region
Market Analysis (Terms Used) Value (US$ Million/Billion) or (Volume/Units)
Regional Scope North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa
Key Companies Profiled Agility Fuel Solutions; AB Volvo; Beiqi Foton Motor Co., Ltd.; CNH Industrial N.V.; Clean Energy Fuels; Cummins, Inc.; PACCAR, Inc.; Navistar, Inc.; Quantum Fuel Systems LLC; Westport Fuel Systems Inc.

 

Automotive Natural Gas Vehicle Market Dynamics

  • Environmental Sustainability Drive:

The Automotive NGV market is strongly influenced by increasing environmental concerns and regulatory pressures to reduce vehicle emissions. NGVs offer a compelling solution by emitting lower levels of greenhouse gases and air pollutants compared to traditional gasoline and diesel vehicles. This factor aligns with global efforts to mitigate climate change and improve air quality, driving demand for cleaner transportation options. Government mandates and incentives aimed at promoting the adoption of alternative fuel vehicles further bolster the growth of the NGV market. As sustainability continues to be a priority for consumers, businesses, and policymakers alike, the Automotive NGV market is poised to benefit from this overarching trend.

  • Cost Efficiency and Economic Incentives:

Cost efficiency plays a pivotal role in driving the adoption of automotive natural gas vehicles. Natural gas typically costs less than gasoline or diesel on a per-mile basis, offering significant savings for fleet operators and individual consumers. Additionally, governments often provide financial incentives such as tax credits, grants, and subsidies to promote the adoption of NGVs, further enhancing their attractiveness from an economic standpoint. These incentives, coupled with the long-term cost savings associated with natural gas fuel, contribute to the growing market appeal of NGVs. As businesses seek to optimize operational costs and consumers prioritize affordability, the cost efficiency of NGVs positions them as a compelling alternative in the automotive market landscape.

Automotive Natural Gas Vehicle Market Restraint

  • Limited Refueling Infrastructure:

One of the primary restraints hindering the widespread adoption of NGVs is the limited availability of refueling infrastructure. Unlike conventional gasoline and diesel vehicles, which benefit from an extensive network of refueling stations, NGV refueling infrastructure remains relatively sparse in many regions. This lack of infrastructure poses a barrier to consumer adoption, as drivers may be hesitant to invest in NGVs without convenient access to refueling stations. Moreover, the cost and logistical challenges associated with establishing new refueling infrastructure present a significant hurdle for market expansion. 

  • Vehicle Range and Performance Limitations:

Another key restraint facing the Automotive NGV market is the perceived limitations in vehicle range and performance compared to traditional gasoline and diesel vehicles. While advancements in NGV technology have improved vehicle efficiency and performance in recent years, some consumers remain skeptical about the range and power capabilities of NGVs, particularly for long-distance travel or heavy-duty applications. Additionally, the availability of NGV models and options may be limited compared to conventional vehicles, further constraining consumer choice and adoption. 

Automotive Natural Gas Vehicle Market Opportunity

  • Government Support and Regulatory Incentives:

Government support and regulatory incentives present a significant opportunity for the growth of the Automotive NGV market. Many governments around the world are implementing policies and regulations aimed at reducing greenhouse gas emissions and promoting clean transportation solutions. As part of these initiatives, governments offer various incentives such as tax credits, subsidies, grants, and preferential treatment for NGVs. Additionally, regulatory measures such as emissions standards and vehicle procurement mandates further encourage the adoption of NGVs by fleet operators and government agencies. 

  • Technological Advancements and Innovation:

Continuous technological advancements and innovation present a significant opportunity for the Automotive NGV market. With ongoing research and development efforts, manufacturers are continuously improving NGV technology to enhance vehicle performance, efficiency, and user experience. These advancements include innovations in engine design, fuel storage systems, lightweight materials, and vehicle integration technologies. Additionally, advancements in renewable natural gas (RNG) production and distribution offer opportunities to further enhance the environmental benefits of NGVs by utilizing renewable and low-carbon fuel sources. 

Automotive Natural Gas Vehicle Market Challenges

  • Limited Refueling Infrastructure:

A primary challenge hindering the widespread adoption of NGVs is the limited availability of refueling infrastructure. Unlike conventional gasoline and diesel vehicles, which benefit from an extensive network of refueling stations, NGV refueling infrastructure remains relatively sparse in many regions. This lack of infrastructure poses a barrier to consumer adoption, as drivers may be hesitant to invest in NGVs without convenient access to refueling stations. Moreover, the cost and logistical challenges associated with establishing new refueling infrastructure present a significant hurdle for market expansion. 

  • Consumer Perceptions and Awareness:

Another key challenge facing the Automotive NGV market is consumer perceptions and awareness. Despite the environmental and economic benefits of NGVs, many consumers remain unfamiliar with this alternative fuel technology or hold misconceptions about its performance, range, and availability. Additionally, the limited visibility and marketing of NGV options compared to conventional vehicles contribute to low consumer awareness and adoption rates. Overcoming these challenges requires targeted education and outreach efforts to raise awareness about the benefits and capabilities of NGVs among consumers, businesses, and fleet operators. 

Segments Insights:

Fuel Type Insights

The CNG segment accounted for the largest volume share of over 95% in 2023 and will expand further at a steady CAGR from 2023 to 2033. The growth of the CNG segment can be attributed to the increasing number of government initiatives to curb the increasing vehicular emissions and environmental security. The nontoxic nature of CNG leads to lower environmental damage. Moreover, CNG fuel systems are designed to comply with the Federal Motor Vehicle Safety Standards 303 and 304 (U.S.), which ensure the specific requirements for fuel systems' integrity using CNG fuel systems of dedicated CNG and dual-fuel CNG automobiles.

The LNG segment is projected to register the fastest CAGR from 2023 to 2033. The segment is majorly incentivized by government policy support, diesel-LNG price differential, and developing logistics industry driven by more robust economic growth. The road transportation industry is the key contributor to LNG adoption. In terms of LNG vehicles, the adoption of LNG Heavy-Duty Trucks (HDT) is higher. LNG has growth potential as a fuel for automotive, considering the research & development activities across various countries.

Vehicle Type Insights

The passenger vehicle type segment accounted for the largest volume share of over 89% in 2023. The air quality worldwide is worsening due to the excess emission of pollutants and GHG generated through the burning of fossil fuels, such as coal, gasoline, and diesel. As a result of the worsening environment and air quality in countries, such as China, India, Saudi Arabia, Iran, and Pakistan, people are inclined toward adopting alternative sources of fuel and related technologies.

Automotive Natural Gas Vehicle Market Share, By End-use, 2023 (%)

In addition, natural gases, such as CNG and LNG, are cost-efficient on account of their better fuel economy. For instance, according to the data from NGVJournal, CNG is around 50% more economical as compared to gasoline and approximately 40% more economical compared to diesel. This is one of the prominent factors encouraging people to use natural gas in their vehicles. The three-wheelers segment accounted for a significant market share in Asian countries, such as Thailand, India, and Bangladesh, owing to the higher number of three-wheelers that run on natural gas in circulation.

Regional Insights

The Asia Pacific region accounted for the largest share of more than 55% in 2023 and is anticipated to continue to lead the global market, registering a significant CAGR over the forecast period.

Automotive Natural Gas Vehicle Market Share, By Region 2023 (%)

This growth can be attributed to increased production and sales of passenger cars in the region. China accounted for around 50% of the passenger car sales in APAC. The region is the largest adopter of NGVs on account of natural gas infrastructure development in countries, such as India, China, and Pakistan. For instance, in India, the Ministry of Petroleum and Natural Gas drafted the City Gas Distribution (CGD) policy. Under the policy, the government would be expanding the CNG infrastructure across the country. However, the growing interest in Electric Vehicles (EVs) and the stagnant infrastructural growth of NGVs are the factors posing a challenge for the market growth. Furthermore, the pandemic has disrupted the energy and auto industries worldwide.

Some of the prominent players in the automotive natural gas vehicle market include:

  • Agility Fuel Solutions
  • AB Volvo
  • Beiqi Foton Motor Co., Ltd.
  • CNH Industrial N.V.
  • Clean Energy Fuels
  • Cummins, Inc.
  • PACCAR, Inc.
  • Navistar, Inc.
  • Quantum Fuel Systems LLC
  • Westport Fuel Systems Inc.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2023 to 2033. For this study, Nova one advisor, Inc. has segmented the global automotive natural gas vehicle market.

Fuel Type

  • CNG
  • LNG

Vehicle Type

  • Passenger Vehicles
  • Light-duty & Heavy-duty Buses and Trucks
  • Three-wheelers

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa (MEA)

Frequently Asked Questions

The global automotive natural gas vehicle market size was exhibited at USD 2,979,377.0 thousand in 2023 and is projected to hit around USD 4,202,705.5 thousand by 2033

The global automotive NGV market is expected to grow at a compound annual growth rate of 3.5% from 2024 to 2033 to reach 4,202,705.5 thousand units by 2033.

Some key players operating in the automotive NGV market include Agility Fuel Solutions; AB Volvo; Beiqi Foton Motor Co., Ltd.; CNH Industrial N.V.; Clean Energy Fuels; Cummins, Inc.; PACCAR, Inc.; Navistar, Inc.; Quantum Fuel Systems LLC; and Westport Fuel Systems Inc.

Chapter 1 Methodology and Scope

1.1 Market Segmentation and Scope

1.2 Market Definition

1.3 Information Procurement

1.3.1 Purchased Database

1.3.2 Internal Database

1.3.3 Secondary Sources & Third-Party Perspectives

1.3.4 Primary Research

1.4 Information Analysis

1.5 Market Formulation & Data Visualization

1.6 Data Validating & Publishing

Chapter 2 Executive Summary

2.1 Market Outlook

Chapter 3 Market Variables, Trends, and Scope

3.1 Penetration and Growth Prospect Mapping

3.2 Automotive Natural Gas Vehicle Market - Value Chain Analysis

3.3 Automotive Natural Gas Vehicle Market Dynamics

3.3.1 Market Drivers Analysis

3.3.2 Market Restraint Analysis

3.4 Automotive Natural Gas Vehicle Industry Analysis - PESTLE

3.5 Automotive Natural Gas Vehicle Industry Analysis - Porter's Five Forces Analysis

Chapter 4 Automotive Natural Gas Vehicle Market: Fuel Type Estimates & Trend Analysis

4.1 Fuel Type Movement Analysis & Market Share, 2024 & 2033

4.2 Market Volume & Forecasts and Trends Analysis, 2024 to 2033 for the following:

4.2.1 CNG

4.2.2 LNG

Chapter 5 Automotive Natural Gas Vehicle Market: Vehicle Type Estimates & Trend Analysis

5.1 Vehicle Type Movement Analysis & Market Share, 2024 & 2033

5.2 Market Volume & Forecasts and Trends Analysis, 2024 to 2033 for the following:

5.2.1 Passenger Vehicles

5.2.2 Light-duty & Heavy-duty Buses and Trucks

5.2.3 Three-wheelers

Chapter 6 Automotive Natural Gas Vehicle Market: Regional Estimates & Trend Analysis

6.1 Regional Movement Analysis & Market Share, 2024 & 2033

6.2 Market Volume & Forecasts and Trends Analysis, 2024 to 2033 for the following:

6.2.1 North America

6.2.1.1 U.S.

6.2.1.2 Canada

6.2.2 Europe

6.2.2.1 Russia

6.2.2.2 Germany

6.2.2.3 France

6.2.2.4 Sweden

6.2.3 Asia Pacific

6.2.3.1 China

6.2.3.2 India

6.2.3.3 Bangladesh

6.2.3.4 Thailand

6.2.4 Latin America

6.2.4.1 Brazil

6.2.4.2 Mexico

6.2.5 Middle East & Africa

Chapter 7 Competitive Landscape

7.1 Key Company Analysis, 2020

7.2 Company Profiles

7.2.1 Agility Fuel Solutions

7.2.1.1 Company Overview

7.2.1.2 Financial Performance

7.2.1.3 Product Benchmarking

7.2.1.4 Strategic Initiatives

7.2.2 AB Volvo

7.2.2.1 Company Overview

7.2.2.2 Financial Performance

7.2.2.3 Product Benchmarking

7.2.2.4 Strategic Initiatives

7.2.3 Beiqi Foton Motor Co., Ltd.

7.2.3.1 Company Overview

7.2.3.2 Financial Performance

7.2.3.3 Product Benchmarking

7.2.3.4 Strategic Initiatives

7.2.4 CNH Industrial N.V.

7.2.4.1 Company Overview

7.2.4.2 Financial Performance

7.2.4.3 Product Benchmarking

7.2.4.4 Strategic Initiatives

7.2.5 Clean Energy Fuels

7.2.5.1 Company Overview

7.2.5.2 Financial Performance

7.2.5.3 Product Benchmarking

7.2.5.4 Strategic Initiatives

7.2.6 Cummins, Inc.

7.2.6.1 Company Overview

7.2.6.2 Financial Performance

7.2.6.3 Product Benchmarking

7.2.6.4 Strategic Initiatives

7.2.7 PACCAR, Inc.

7.2.7.1 Company Overview

7.2.7.2 Financial Performance

7.2.7.3 Product Benchmarking

7.2.7.4 Strategic Initiatives

7.2.8 Navistar, Inc.

7.2.8.1 Company Overview

7.2.8.2 Financial Performance

7.2.8.3 Product Benchmarking

7.2.8.4 Strategic Initiatives

7.2.9 Quantum Fuel Systems LLC

7.2.9.1 Company Overview

7.2.9.2 Financial Performance

7.2.9.3 Product Benchmarking

7.2.9.4 Strategic Initiatives

7.2.10 Westport Fuel Systems Inc.

7.2.10.1 Company Overview

7.2.10.2 Financial Performance

7.2.10.3 Product Benchmarking

 

7.2.10.4 Strategic Initiatives

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