Auto Gas Market By Type (Compressed Natural Gas, Liquefied Petroleum Gas, Liquefied Natural Gas, Others) , By Application (Passenger Vehicles, Commercial Vehicles, Two-Wheelers, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Auto Gas Market
The auto gas market was valued at $51.9 billion in 2023 and is projected to reach $78.3 billion by 2033, growing at a CAGR of 4.2% from 2024 to 2033.
Auto gas is a clean burning fuel used as an alternative to diesel and petrol in internal combustion engine (ICE) vehicles. It is a volatile & flammable liquid derived from crude oil through refining processes such as distillation and catalytic cracking. The composition of auto gas comprises hydrocarbons such as alkanes, cycloalkanes, and aromatic compounds. The major benefits of using auto gas include its cost efficiency, low environmental impact, and diversification of energy sources.
Increase in concerns pertaining to surge in pollution from ICE vehicles operating on diesel and petrol has fueled the demand for auto gas, which propels the growth of the market. In addition, the low cost of the gas as compared to other fuels acts as a significant driver of the market. Moreover, rise in government support in the form of incentives and tax reductions to promote the adoption of auto gas augments the development of the market. A notable trend acquiring traction in the market is the combination of auto gas with other clean fuels such as hydrogen. The blend of hydrogen and auto gas produces a cleaner burning fuel that further reduces emissions and minimizes the environmental impact of vehicles.
However, the limited infrastructure of auto gas such as the non-availability of refueling stations at several locations deters vehicle owners from switching to clean fuels, which hinders the growth of the market. Furthermore, the emergence of alternative green technologies such as electric vehicles (EVs) presents stringent competition to auto gas and restrains the market development. For instance, according to the International Energy Agency, EV sales in 2023 were higher by 3.5 million from 2022, which was a 35% year-on-year increase. Contrarily, the development of innovative engines that specifically operate on auto gas is poised to open new avenues for the market by enhancing the penetration of the fuel in the automotive industry.
Segment ReviewThe auto gas market is segmented into type, application, and region. On the basis of type, the market is divided into compressed natural gas, liquefied petroleum gas, liquefied natural gas, and others. Depending on application, it is classified into passenger vehicles, commercial vehicles, two-wheelers, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of type, the liquefied petroleum gas segment held a notable share of the market in 2023.
Depending on application, the passenger vehicles segment dominated the market in 2023.
Region wise, Asia-Pacific was the highest revenue generator in 2023.
Competition AnalysisThe leading players operating in the global auto gas market include BP p.l.c., China Petroleum & Chemical Corporation, Flogas Britain Limited, Aygaz A.S., Lange & Co GmbH, Total Energies SE, Westfalen GmbH, Shell plc, SHV Energy N.V., and Likitgaz Distribution and Industry Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.
Key Market SegmentsBy TypeCompressed Natural Gas
Liquefied Petroleum Gas
Liquefied Natural Gas
Others
By ApplicationPassenger Vehicles
Commercial Vehicles
Two-Wheelers
Others
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
Rest of LAMEA
Key Market PlayersBP plc
China Petroleum & Chemical Corporation
Flogas Britain Limited
Aygaz A.S.
Lange & Co GmbH
Total Energies SE
Westfalen GmbH
Shell plc
SHV Energy N.V.
Likitgaz Distribution and Industry Inc.