Infrastructural Push from Government to Drive CNG Vehicles Market
With rising awareness for use of clean energy and increased demand for environment-friendly transit options, the CNG vehicles market is expected to witness healthy growth. CNG vehicles run on Current Natural Gas (CNG), instead of conventional fuels such as petrol and diesel. The CNG vehicles market is estimated to witness a 5.96% CAGR during the assessment period, according to the latest report published by Market Research Future. Such growth is attributable to factors including rising prices of conventional fossil fuels, government initiatives to support CNG based automobiles, and stringent laws regarding emission of pollutants from automobiles to encourage adoption of clean energy based vehicles.
Segmental Analysis
The CNG vehicles market has been segmented on the basis of product type, application, and region. On the basis of product type, the market has been segmented into OEM and car modification. Among the types of products in CNG vehicles, the segment of car modifications has accounted for the largest market share in 2017 and is expected to witness the same during the forecast period. The market for car modifications is expected to note the fastest growth rate during the forecast period. Hike in the prices of conventional fuels and rising demand for environment-friendly automobiles are some of the factors responsible for the surge in demand for CNG vehicles in the market.
Based on application, the CNG vehicles market has been segmented into personal use and commercial use. The widespread range of products within the CNG conversion kit for cars, trucks, and buses will boost demand in both, the personal use segment as well as the commercial use segment. The segment of personal use is expected to grow at the fastest pace during the forecast period. In addition, the personal use segment is also projected to capture the largest market share for CNG vehicles. A rise in the affordability of CNG based vehicles and an increasing number of refueling stations for CNG vehicles are factors that are likely to induce market growth for the same.
Detailed Regional Analysis
According to the MRFR report, the CNG vehicle market has been regionally segmented into North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW). RoW accounts for 46% share of the global market for CNG vehicles. The government in various economies comprised in RoW market has initiated policies such as tax reduction, subsidies, affordable pricing, and tough emission norms to promote the use of CNG vehicles. Countries like Thailand, South Africa, Egypt, Iraq, Columbia, Argentina, Brazil, Iran, and Pakistan are some of the major contributors to the CNG market in the RoW. Iran has mandated a dual fuel capacity in all new cars, further promoting the use of CNG vehicles. Dubai and Saudi Arabia are also creating awareness about the benefits of CNG vehicles, driving the CNG vehicles market.
China is projected to experience significant growth during the forecast period and accounts for 18% of the global share for CNG vehicles. In addition, Japan is expected to pose as a potential market for CNG vehicles owing to the presence of major CNG automobile manufacturers such as Nissan, Honda, Suzuki, and Toyota.
Key Players
Some of the prominent players in the CNG vehicle market include 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.
Industry Updates
February 27, 2019: Kwik Trip is expected to be a primary dispenser of renewable natural gas (RNG) produced at the Wisconsin county’s landfill biogas project when it reaches completion later this year.
February 12, 2019: ECO-GATE has introduced the ECO-G brand, designed to rename natural gas for CNG based vehicles. ECO-GATE is a European consortium co-financed by the European Union and led by NEDGIA (Naturgy group’s gas distributor).