Global Compressed Natural Gas (CNG) Truck Market 2023-2030

Global Compressed Natural Gas (CNG) Truck Market 2023-2030

Global Compressed Natural Gas (CNG) Truck Market Size, Share & Trends Analysis Report by Type (Special Fuel, Dual Fuel), by Application (Light-duty Vehicle, Medium-duty Vehicle, Heavy-duty Vehicle), by Technology (Manual, Semi-Automatic, Automatic), and by End-User Industry (Transport, Construction, Mining, Agriculture), Forecast Period (2023-2030)

The global CNG truck market is anticipated to grow at a considerable CAGR of 5.0% during the forecast period (2023-2030). The growth of the market is attributed to factors such as the increasing adoption of eco-friendly transportation solutions and the need to reduce carbon emissions. Moreover, the demand for CNG trucks is expected to rise in various end-user industries, including transport, construction, mining, and agriculture, which will fuel the market growth. For instance, the mining sector is witnessing a surge in the adoption of CNG trucks due to their lower emissions and cost-effective fuel options. In addition, turbocharged engines are preferred in CNG trucks owing to their ability to enhance power, efficiency, and performance. The turbocharger increases air pressure, improving fuel combustion and reducing consumption. This technology enables CNG engines to maintain performance at high altitudes and reduces emissions, making them environmentally friendly. For instance, in June 2022, Ashok Leyland launched the ecomet STAR 1115 CNG truck, which is equipped with a 144 HP turbocharged engine and has a cylinder capacity ranging from 300 to 400 liters. The truck has a gross vehicle weight of 11,500 kg and offers a wide variety of load options ranging between 17-22 feet. The CNG cylinder capacity of the truck is between 300 to 400 liters.

Segmental Outlook:

The global CNG truck market is segmented based on its type, application, technology, and end-user industry. The market is categorized into special fuel and dual fuel based on its type. For application, the market is further segmented into light-duty vehicle, medium-duty vehicle, and heavy-duty vehicle. In terms of technology, the market is divided into manual, semi-automatic, and automatic options. Moreover, based on the end-user industry, the market is segmented into transport, construction, mining, and agriculture.

The Heavy-Duty Vehicle Category is Expected to Witness Significant Growth during the Forecast Period

Among these segments, the heavy-duty vehicle category is expected to witness significant growth during the forecast period. The increasing demand for CNG trucks in heavy-duty applications, such as environmentally-friendly, long-haul transportation and heavy cargo operations, is driving this growth. Various market players such as VOLVO, Tata Motors, and Renault Trucks, among others comes up with new heavy-duty vehicle to cater the market demand of CNG trucks. For instance, in September 2022, Tata Motors introduced India's first CNG-powered truck in the medium and heavy commercial vehicle segment. The Signa CNG trucks offer low operational costs, high durability, and multiple-use applications. They are powered by a 5.7-litre SGI engine, generating 180hp and 650Nm of torque. The launch aims to tap into the growing market for environmentally-friendly and cost-effective commercial vehicles.

Regional Outlook

The global CNG truck market is divided into regions, namely North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World, encompassing the Middle East & Africa, and Latin America. The market can be analyzed for a particular region or country level as per the requirement. Among these regions, Europe is expected to experience substantial growth, owing to strict emission regulations and government incentives promoting the adoption of CNG as a cleaner fuel alternative. The Asia-Pacific region is also projected to witness significant growth during the forecast period, driven by the increasing adoption of CNG trucks in emerging economies and the growing focus on sustainable transportation solutions.

The North American Region is Anticipated to Hold a Significant Share in The Global CNG Truck Market

The North American region, including the US and Canada, is anticipated to hold a significant share in the global CNG truck market. This growth is primarily driven by supportive government policies, R&D investments for clean energy, advancements in CNG infrastructure, and the presence of well-established transportation networks. For instance,

In May 2023, federal government invested $10 billion in developing America’s clean hydrogen capabilities, the integration of future fuels into the gas infrastructure can expand options and accelerate nation’s ability to reduce emissions.

In March 2023, the US Department of Energy (DOE) allocated $1.5 billion for technology research, development, and demonstration projects to reduce the cost of clean hydrogen alternative power.

Market Players Outlook

The major companies serving the global CNG truck market include Volvo Group, Mitsubishi Fuso Truck and Bus Corp., Renault Trucks, Tata Motors Ltd., and Volkswagen AG, and others. These market players are considerably contributing to the market growth by adopting various strategies such as mergers and acquisitions, partnerships, collaborations, funding, and new product launches to stay competitive in the market. For instance, in May 2023, Toyota and Daimler agreed to merge their truck brands, Hino and Mitsubishi Fuso, under a holding company. Both companies will invest equally in the merged truck makers and focus on developing hydrogen, autonomous, connected, and electrified technology.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global CNG trucks market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.