High convenience in adopting compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicles, on the account of their low cost and negligible environment pollution, as compared to diesel vehicles. Due to the above stated factors, the global CNG and LPG vehicle market is projected to report the sales of 102.3 million units by 2030, growing at a CAGR of 5.9% during the forecast period (2020–2030).
The outbreak of COVID-19 has led to the plummet of CNG and LPG vehicle industry. As per the government rules and regulations, such as lockdown, have negatively impacted many industrial sectors, including automobile. Moreover, the pandemic has impacted the consumer purchasing power that has contributed toward sharp fall in gasoline price, which ultimately results a negative effect on the market.
The CNG and LPG vehicle market is categorized into CNG and LPG, based on fuel type. The CNG category held larger market share in 2019, and is expected to witness higher CAGR during the forecast period, to maintain its market dominance. This is attributed to the increasing adoption of CNG vehicles, especially in developing countries of the Asia-Pacific (APAC) region.
Further, on the basis of vehicle type, the CNG and LPG vehicle market is categorized into passenger cars, light and heavy-duty trucks, and bus. The passenger cars category dominated the market 2019, primarily due to the increasing awareness of users toward environment protection, and government initiatives for reducing air pollution.
Geographically, APAC held the largest volume share in 2019 in the CNG and LPG vehicle market. The rising demand for CNG vehicles for public transport as well as for commercial usage is a key factor that drives the market in the region. Whereas, the LAMEA market is expected witness the highest CAGR during the forecast period. Developing economies of LAMEA, such as Brazil and Argentina, are offering growth opportunities for market players, due to the increasing buying power of individuals in these countries that allowing them to spend more on personal transportation, which is helping in the growth of the market.
Players in the CNG and LPG vehicle market are actively involved in partnerships to enhance their presence. For instance, in July 2019, LeasePlan Corp. (a fleet management company) and Grupo DISA announced a partnership agreement that allows Canary Islands-based companies to operate autogas vehicles on renting mode, with refueling guarantee offered by DISA’s LPG station network. The cooperation is expected to enhance the growth and expansion of both companies.
Similarly, in July 2019, Datrans Nederland BV partnered with Volvo AB and added two Volvo FH 420 LNG 4×2 tractors to its fleet. The transport company wants to contribute to cleaner transport, and maintain and safeguard the quality of air and promote cleaner transport services to customers.
Some of the major players operating in the global CNG and LPG vehicle market are Ford Motor Co., General Motors Co., Fiat Chrysler Automobiles N.V., Toyota Motor Corp., Suzuki Motors Corp., AB Volvo, and Volkswagen AG.