CNG Powertrain Market Size, Share & Trends Analysis Report By Drive Type (All Wheel, Rear Wheel, Front Wheel), By Fuel Type, By Vehicle Type, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global CNG powertrain market size was exhibited at USD 72.0 billion in 2023 and is projected to hit around USD 358.11 billion by 2033, growing at a CAGR of 17.4% during the forecast period of 2024 to 2033.

Key Takeaways:

• Asia Pacific dominated the market in 2023 and accounted for over 67.0% of the share, owing to the rapid growth in the automobile sector in countries such as China and India.
• The front-wheel-drive segment dominated the overall market in 2023 and accounted for a revenue share of over 50.0%.
• Bi-fuel dominated the overall market in 2023 and accounted for a revenue share of over 80.0%.
• The passenger vehicle segment accounted for more than 77.0% of the overall revenue in 2023.

CNG Powertrain Market Report Scope

A growing need for an alternative transitional fuel leads toward the net-zero carbon emissions goal. Compressed Natural Gas (CNG) produces lesser carbon emissions and is free from particulate matter, which is a prominent source of vehicular pollution, thus CNG is expected to become a dominant energy source over other fuels such as diesel, petrol, and LPG. Governments worldwide are taking strategic initiatives to provide tax rebates, subsidies, and other benefits to CNG vehicle purchasers, which are expected to create high demand for CNG powertrain vehicles during the forecast period.

However, government initiatives and the rise in consumers’ inclination toward less carbon-emitting vehicles have increased the demand for CNG powertrain. COVID-19 negatively impacted its market sales. Thus, the new CNG powertrain vehicle production halted, leading to sluggish sales between 2019 and 2020. For instance, Volvo Group, a prominent automobile manufacturer, has sold 661,713 cars in 2020 and faced a decline in sales by 6.2% compared to 2019. The pandemic stalled manufacturing and production activities across the world. Post-pandemic, high demand for personal fuel-efficient vehicles was observed majorly from the developing nations of the Asia-Pacific region, thus fueling market growth.

The CNG powertrain manufacturers are majorly focusing on improving the vehicle's engine efficiency. They are investing in enhancing the engine performance by working on reducing the volumetric efficiency loss, increasing the flame propagation speed, and decreasing the fuel evaporation in engines. Additionally, prominent automobile manufacturers are implementing advanced technologies in CNG vehicles.

For instance, S-CNG technology is incorporated in passenger cars to enhance fuel economy by regulating the fuel and air ratio and synchronizing between the electric control units and intelligent fuel injection system. Besides, through technology integration, there is a better calibration of the CNG system with the powertrain, suspension, and braking system, thus the S-CNG technology improves the overall efficiency of the vehicle.

Moreover, the sales of CNG powertrain vehicles are hindered due to the limited number of fulling stations across the globe. According to the U.S Department of Energy, in 2023, about 900 CNG stations are available in the U.S., which is far less than the petrol and diesel station. Thus, to boost the sales of CNG powertrain vehicles, there is a need for the development of CNG refilling stations across various countries.

Drive Type Insights

The front wheel drive segment dominated the overall market in 2023 and accounted for a revenue share of over 50.0%. The segment growth is attributed to the advantageous features of front wheel drive vehicles such as lightweight, better fuel economy, and vehicle weight distribution balance, which enhances the overall stability of the automobile in difficult terrains. Additionally, a front wheel drive is a cost-effective option for consumers because drivetrains require lesser maintenance, and the engine offers extra vehicle mileage; these lucrative features are contributing to the significant segment growth.

The all-wheel drive segment is estimated to expand at the highest CAGR of 18.3% over the forecast period. The all-wheel drivetrain distributes power to each corner of the car, which increases the grip capacity of the vehicle, provides better acceleration, and offers smooth handling. The superior traction forces eliminate the possibility of a vehicle slipping on icy, wet, and sloppy roads, thus making all-wheel drive CNG powertrain a widely preferred option over others.

Fuel Type Insights

The bi-fuel dominated the overall market in 2023 and accounted for a revenue share of over 80.0%. The segment growth is attributed to the higher adoption of advanced technologies such as S-CNG technology, which offers easy switching between gasoline and CNG without affecting the engine performance. The development of fuel injection technology that allows direct injection of CNG into the existing combustion chamber has further increased the sales of bi-fuel CNG powertrain.

The mono-fuel segment is estimated to expand at a lucrative CAGR of 19.2% from 2022 to 2030. The use of CNG as a fuel offers significant advantages such as reduction of primary and tailpipe emissions. Further, the petrol and diesel prices are highly fluctuating while the cost of CNG per gallon is low, which provides relief to CNG vehicle owners. Therefore, the economic nature of CNG is expected to create high demand for a mono-fuel CNG powertrain vehicle.

Vehicle Type Insights

The passenger vehicle segment accounted for more than 77.0% share of the overall revenue in 2023. The segment growth is majorly due to the lower initial cost of the CNG powertrain vehicle over other environment-friendly substitutes such as electric powertrain vehicles. Based on vehicle type, the market is bifurcated into passenger vehicles and commercial vehicles.

The commercial vehicle segment is anticipated to expand at a lucrative CAGR of 18.9% over the forecast period. There is increasing adoption of CNG-powered buses for school and public transportation to reduce environmental degradation. For instance, in March 2022, the Indian government has planned to introduce 100 CNG powertrain A.C buses to the country’s capital. These buses are environmentally friendly and are expected to reduce the vehicular pollution level of the city at large. Thus, such initiatives of the government of emerging nations will increase the penetration of CNG commercial vehicles and are anticipated to create the demand for CNG powertrain in the market.

Regional Insights

Asia Pacific dominated the market in 2023 and accounted for over 67.0% share owing to the rapid growth in the automobile sector in countries such as China and India. Asia Pacific is undergoing numerous technological advancements, along with ever-developing CNG infrastructure. Prominent players in the region, such as Maruti Suzuki, are incorporating S-CNG technology into passenger vehicles, such as cars. The cars offered by the company are equipped with an intelligent fuel injection system and the CNG powertrain is calibrated to deliver optimum performance and improve the drivability for all terrains.

Latin America is anticipated to expand at the highest CAGR of 18.6% from 2022 to 2030. The growing per capita income of consumers based in Argentina, Brazil, and Colombia has resulted in increased expenditure on automobiles. Consumers are majorly investing in buying a personal vehicle as compressed natural gas powertrain vehicles are viable, cost-effective, and environmentally friendly, thus they are widely preferred in the region. Additionally, the government in Argentina is actively taking steps to increase the adoption of the CNG powertrain vehicles by launching the ‘Conectar Gas Industria’ program. Under this program, the government has planned to invest USD 517,000 to build CNG infrastructure and install a new 25 CNG station in the country.

Some of the prominent players in the CNG powertrain market include:

• Cummins Inc.
• AB Volvo
• Robert Bosch GmbH.
• FPT Industrial S.P.A.
• Ford Motor Company
• Maruti Suzuki India Limited
• Volkswagen AG
• Hyundai Motor Company
• Nissan Motor Co., Ltd.
• Honda Motor Company

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 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global CNG powertrain market.

Drive Type

• All-wheel Drive
• Rear Wheel Drive
• Front Wheel Drive

Fuel Type

• Mono Fuel
• Bi-fuel

Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

By Region

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