Automotive Natural Gas Vehicle Market Forecasts to 2030 – Global Analysis By Fuel Type (Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) and Other Fuel Types), Vehicle Type (Passenger cars, Commercial vehicles, Light-duty & Heavy-duty Buses and T

Automotive Natural Gas Vehicle Market Forecasts to 2030 – Global Analysis By Fuel Type (Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) and Other Fuel Types), Vehicle Type (Passenger cars, Commercial vehicles, Light-duty & Heavy-duty Buses and Trucks, Three-wheelers, Hatchback, Sedan and Other Vehicle Types) and By GeographyAccording to Stratistics MRC, the Global Automotive Natural Gas Vehicle Market is accounted for $13.0 billion in 2023 and is expected to reach $22.87 billion by 2030 growing at a CAGR of 8.4% during the forecast period. Natural gas (CNG or LNG) has a lower carbon content as compared to diesel or gasoline. When these gases are used, fuel burns more efficiently and produces fewer emissions. Additionally, the cost of natural gas is more predictable and stable than that of diesel. Because fleet operators can save on fuel and lessen their carbon footprint, natural gas trucks and buses are becoming more popular.

According to the German Association of the Automotive Industry (VDA), in Europe, 5.1 million passenger cars were registered in the first half of 2021, which is 39% less compared to 2020.

Market Dynamics:

Driver:

Cost effectiveness and fuel price stability

The natural gas market for automobiles benefits from the fuel's inherent cost-effectiveness. Since natural gas is typically less expensive than gasoline and diesel, NGVs are a financially appealing option for fleet owners, public transportation organizations, and companies with high fuel consumption requirements. Additionally, compared to petroleum-based fuels, natural gas prices tend to be more stable and less prone to unexpected price changes. In times of volatile fuel markets, this stability offers cost predictability for NGV users, giving them a competitive advantage.

Restraint:

Limited infrastructure for refueling

The lack of readily accessible refueling infrastructure is one of the major barriers to the growth of the automotive natural gas vehicle (NGV) market. Although the infrastructure for refueling with liquefied natural gas (LNG) and compressed natural gas (CNG) is expanding, it is still less extensive than traditional networks for refueling with gasoline and diesel. However, this restriction prevents the widespread use of NGVs, especially in areas with a dearth of refueling stations, raising worries about range anxiety and limiting the flexibility of NGV users' travel.

Opportunity:

Initiatives for green transportation

The global Automotive Natural Gas Vehicle market expected to drive growth during the forecast period, due to the growing emphasis on environmentally friendly transportation options. Green transportation initiatives are being supported by governments and environmental organizations all over the world to reduce greenhouse gas emissions and combat air pollution. Due to their lower carbon dioxide and particulate matter emissions, NGVs represent a more environmentally friendly option to traditional gasoline and diesel vehicles. Additionally, the chance lies in promoting NGVs as a crucial component of achieving sustainability goals, luring eco-aware customers, and cultivating alliances with governmental and non-governmental organizations supporting green mobility.

Threat:

Price variations for natural gas

The global Automotive Natural Gas Vehicle market expected to hamper growth during the forecast period. Natural gas price fluctuations can affect how cost-effectively using NGVs versus conventional gasoline and diesel vehicles is compared in the automotive natural gas vehicle (NGV) market. The cost advantages of NGVs may be diminished by sudden increases in natural gas prices, which will reduce their appeal to fleet operators and consumers. Additionally, the erratic nature of the global energy market may make long-term planning for the adoption of NGVs uncertain, possibly causing hesitation in investment choices.

Covid-19 Impact:

COVID-19 pandemic was spread across the globe in 2020. The pandemic caused production to be disrupted, the supply chain to experience difficulties, and consumer demand to decline. Lockdowns, travel restrictions, and economic ambiguity caused a decline in vehicle sales as well as a delay in investments in cutting-edge technologies like NGVs. The pandemic's drop in oil prices had an effect on how reasonably priced natural gas was as a transportation fuel. However, as the world moves toward recovery, the emphasis on environmentally friendly and sustainable transportation options may present new opportunities for the NGV market, particularly in the commercial and public transportation sectors looking for affordable and responsible substitutes.

The Compressed Natural Gas (CNG) segment is expected to be the largest during the forecast period

The Compressed Natural Gas (CNG) segment is expected to be the largest share during the forecast period. CNG is preferred for transportation applications due to its practicality, ease of handling, and affordability. Due to its high-pressure storage, compressed natural gas (CNG) is suitable for a variety of vehicles, including passenger cars, buses, and commercial fleets. This high-pressure storage also enables CNG to be stored compactly and has longer driving ranges. Furthermore, its dominance in the NGV market is further supported by the well-developed infrastructure for CNG refueling stations in many regions.

The Passenger Cars segment is expected to have the highest CAGR during the forecast period

The Passenger Cars segment is anticipated to witness the fastest CAGR growth during the forecast period. The demand for electric vehicles (EVs), particularly in the passenger car segment, has been fueled by the growing emphasis on environmentally friendly and sustainable transportation solutions. Moreover, the quick expansion of electric passenger cars has been facilitated by improvements in battery technology, charging infrastructure, and government incentives for EV adoption. The growth of electric passenger cars has outpaced that of other automotive industry segments as consumers and governments prioritize cutting carbon emissions and shifting to greener mobility.

Region with largest share:

The Asia-Pacific region market is estimated to witness a largest share of the global Automotive Natural Gas Vehicle market during the forecast period. The region's sizeable population, rapid urbanization, and expanding middle-class population with rising purchasing power are all factors contributing to its dominance. Major contributors to the Asia-Pacific automotive market include South Korea, China, India, and Japan. Strong industrial growth and economic expansion in the area have increased demand for two-wheelers, commercial vehicles, and passenger cars. Additionally, regional demand for cars has been boosted by government initiatives, growing urbanization, and infrastructure growth.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period. Numerous well-known automakers are based in Europe, which has a rich automotive history. The automotive industry in the area is distinguished by a wide variety of automobiles, including luxury cars, high-end brands, and powerful automobiles. European nations also have strict emissions regulations and a growing interest in sustainability, which has resulted in substantial investments in electric and hybrid vehicles. Furthermore, the demand for cutting-edge automotive solutions is fueled by European consumers' preferences for safety, cutting-edge technology, and premium features.

Key players in the market

Some of the key players in Automotive Natural Gas Vehicle market include Audi AG, BMW Group, Ford Motor Company , General Motors, Honda Motor Co., Ltd., Hyundai Motor India Ltd., ISUZU MOTORS LIMITED, Landi Renzo SPA, Maruti Suzuki India Limited, Mercedes, Navistar, Inc., Nissan Motor Co., Ltd., PACCAR Inc., Quantum Fuel Systems LLC., Renault Group, Suzuki Motor Corporation, Tata Motors, Toyota Motor Corporation, Volkswagen Group, Volvo Group and Westport Fuel Systems Inc.

Key Developments:

In October 2022, Volvo partnered with CMB.TECH, a developer and integrator of hydrogen solutions. Through this partnership, the company aimed to advance the dual-fuel hydrogen-powered technologies development for land and sea applications. The partnership will involve small-scale industrialization projects along with some pilot projects, offering them access to hydrogen solutions for decreasing emissions of greenhouse gases.

In September 2022, Westport Fuel Systems unveiled H2 HPDI, a fuel system developed for heavy-duty vehicles. The H2 HPDI is designed to decrease CO2 emissions to conform to the decarbonization goals of the EU. The hydrogen solution offers increased energy efficiency and is workable with existing manufacturing assets and engines.

In August 2022, Hexagon took over Cryoshelter, a developer of cryogenic tank technology from Austria. Through this acquisition, the company focused on strengthening its attempts of decarbonizing heavy-duty vehicles by incorporating the disruptive technology of Cryoshelter. The acquisition primarily focused on the European market where the limited space available on trucks had increased the demand for energy-efficient and clean cryogenic RLNG/LNG fuels.

Fuel Types Covered:
• Compressed Natural Gas (CNG)
• Liquefied Natural Gas (LNG)
• Other Fuel Types

Vehicle Types Covered:
• Passenger cars
• Commercial vehicles
• Light-duty & Heavy-duty Buses and Trucks
• Three-wheelers
• Hatchback
• Sedan
• Other Vehicle Types

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements