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CNG and LPG Vehicle Market to Register Sales of 88.9 Million Units by 2022

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Published Date:   October 2016

The global compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicle market registered sales of 46.0 million units in 2015, which is projected to reach 88.9 million units by 2022, growing at a CAGR of 10.1% during the forecast period (2016–2022). Between, CNG and LPG fuel types, the LPG category was larger contributor to the market in 2015. Whereas, the CNG category is projected to witness faster growth during the forecast period.

Significant Low Running Cost of CNG and LPG Vehicles Compared to Gasoline Vehicles to Drive Market Growth

Vehicles that run on CNG and LPG typically have lower fuel costs than gasoline and diesel vehicles. In the U.S., CNG cost ranges from approximately $1.50 to $2.80 per gallon on a gasoline-gallon equivalent basis, resulting in 40–75% reduction in fuel cost as compared to the cost of diesel and gasoline. Businesses using CNG-fueled trucks often see payback on the conversion cost in as little as 24–36 months of use. Similarly, LPG cost is approximately $2.00 per gallon on a gasoline-gallon equivalent basis, resulting in up to 50% cost savings as compared to gasoline and diesel in the country.

As CNG provides better greenhouse gas (GHG) and fuel cost reductions, LPG can have other benefits. For instance, LPG refueling systems typically require low cost to install. LPG fuel tanks are also smaller than CNG, resulting in less loss of cargo or passenger capacity. Therefore, low running costs of CNG and LPG vehicles as compared to gasoline vehicles would fuel the demand for these vehicles across the globe, further boosting the CNG and LPG vehicle market.

Segmentation Analysis of CNG and LPG Vehicle Market

CNG and LPG Vehicle Market

The LPG category in fuel type segment held larger share in 2015 in the CNG and LPG vehicle market. Certain vehicle manufacturers, such as Maruti Suzuki India Ltd., have started manufacturing models, which are using LPG for their propulsion. This factor is adding substantial impetus to the market size.

The light & heavy duty truck category is expected to witness the fastest growth in the CNG and LPG vehicle market during the forecast period, primarily due to increasing adoption of CNG- and LPG-based light & heavy duty trucks in emerging economies and growing need for efficient transit system across the globe.

Geographical Analysis of CNG and LPG Vehicle Market

Geographically, the Asia-Pacific (APAC) CNG and LPG vehicle market is expected to witness the fastest growth during 2016–2022. This is majorly attributed to the increased vehicle production and strict emission norms. The production volume of passenger cars and light commercial vehicles (LCVs) in APAC accounted for more than 50% of the global production. The increasing production in the region is complemented by intensifying demand for passenger cars and LCVs. Moreover, rapid urbanization, increasing buying power, and rising living standards have enabled individual to spend more on personal vehicle transportation, which has boosted the sales of CNG and LPG vehicles in the region.

Competitive Landscape of CNG and LPG Vehicle Market

The CNG and LPG vehicle market has the presence of international players, including Suzuki Motor Corporation, Ford Motor Company, Honda Motor Co. Ltd., Fiat Chrysler Automobiles N.V., General Motors Company, Daimler AG, Groupe Renault, AB Volvo, Mitsubishi Motors Corporation, and Toyota Motor Corporation.

Explore Full Market Research Report at: https://www.psmarketresearch.com/market-analysis/cng-and-lpg-vehicle-market

Several strategic developments have been observed in the global CNG and LPG vehicle market. For instance, in December 2016, Renault, GCR (the Renault Dealerships Association), and the Groupe Laurent signed a letter of intent on strategic partnership to step up development on the auto spares supply market in France. Renault and GCR’s subsidiary CISCAR plan to take a 35% stake in the Groupe Laurent subsidiary EXADIS.

Furthermore, in October 2016, Suzuki Motor Corporation (Suzuki) and Toyota Motor Corporation (Toyota) announced that both companies have agreed to start exploring ideas that are directed toward a business partnership. Toyota and Suzuki just started exploring on any opportunities for collaboration, with the belief that it will help both companies solve their respective challenges.

GLOBAL CNG AND LPG VEHICLE MARKET SEGMENTATION

By Fuel Type

  • LPG
  • CNG

By Vehicle Type

  • Passenger Car
  • Light & Heavy Duty Trucks
  • Bus

GEOGRAPHICAL SEGMENTATION

  • Europe
    • Russia
    • Italy
    • Ukraine
    • Germany
    • France
    • Netherlands
    • Spain
    • Rest Of Europe
  • Asia-Pacific
    • India
    • South Korea
    • China
    • Thailand
    • Rest of Asia-Pacific
  • South America
    • Argentina
    • Brazil
    • Rest of South America
  • Middle East and Africa (MEA)
    • Iran
    • South Africa
    • Rest of MEA
  • North America
    • U.S.
    • Mexico
    • Canada