CNG Powertrain Market Forecasts to 2028 – Global Analysis By Drive Type (Front Wheel Drive, All-Wheel Drive and Rear Wheel Drive), Fuel Type (Bi-Fuel, Mono Fuel and Other Fuel Types), Vehicle Type (Commercial Vehicle and Passenger Vehicle), and By Geograp

CNG Powertrain Market Forecasts to 2028 – Global Analysis By Drive Type (Front Wheel Drive, All-Wheel Drive and Rear Wheel Drive), Fuel Type (Bi-Fuel, Mono Fuel and Other Fuel Types), Vehicle Type (Commercial Vehicle and Passenger Vehicle), and By Geography

According to Stratistics MRC, the Global CNG Powertrain Market is accounted for $82.14 billion in 2022 and is expected to reach $237.76 billion by 2028 growing at a CAGR of 19.38% during the forecast period. The pursuit of the net-zero carbon emissions target is driven by a rising need for an alternate transitional fuel. Compressed Natural Gas (CNG) is predicted to overtake other fuels like diesel, petrol and LPG as a dominating energy source since it emits fewer carbon emissions and no particle matter, which is a significant source of vehicle pollution. Governments all over the world are taking strategic steps to offer tax breaks, subsidies, and other incentives to people who buy CNG vehicles, which is anticipated to lead to a significant increase in demand for CNG powertrain vehicles during the projected period.

According to the International Energy Agency, in 2012, India had a stock of EV cars of about 2,800 units, which increased to about 23,000 units in 2021. According to the Ministry of Heavy Industries, more than 0.52 million EVs were registered in India in the last three years.

Market Dynamics:

Driver:

Increasing Demand for a Transitory Alternate Fuel

The rising demand for alternative transitional fuels is advancing the objective of achieving zero carbon emissions. Compared to other fuels including diesel, petrol and liquefied petroleum gas (LPG), compressed natural gas (CNG) emits less carbon dioxide into the atmosphere. Particulate matter, a major contributor to pollution, is absent from it. Governments all over the world are taking calculated actions to provide citizens with tax breaks, subsidies, and other benefits, therefore it is anticipated that a sizable demand for CNG powertrain vehicles will arise over the projection period.

Restraint:

High maintenance and investment costs

Since these vehicles have extra components, CNG and LPG powertrain are often more expensive than conventional petrol vehicles. Because most of these cars lack lubrication, they require more frequent maintenance, which over time increases the cost because some parts degrade more quickly than in gasoline-powered cars. The parts also need to be replaced more frequently than those in gasoline-powered cars, whose lifespan is usually longer. For instance, fleet operators that frequently travel for business purposes might use CNG. Only when they are used often can CNG and LPG vehicles be considered cost-effective.

Opportunity:

Manufacturer’s Primary Focus on Enhancing Engine Efficiency

The development of more efficient engines for CNG powertrain is a top priority for the industry. By lowering the volumetric efficiency loss, speeding up flame spread, and lowering petrol evaporation from the engine, they are making an investment in enhancing the engine's performance. Leading automakers are also putting innovative technologies onto their CNG vehicles. For instance, S-CNG technology is added to passenger cars to increase fuel efficiency. To do this, the fuel-to-air ratio is modified, and the intelligent fuel injection system is synchronised with the electric control units.

Threat:

Excessive initial outlay

Automobiles powered by CNG and LPG are more expensive than those powered by regular petrol. This is caused by the extra parts that have been added to these cars. Because most of these vehicles lack lubricants, different parts of them deteriorate more quickly than those powered by petrol, including parts that are more prone to overheating. As a result, these vehicles need a lot more regular maintenance over time, which increases their overall cost. Additionally, the parts need to be changed frequently, as opposed to petrol cars, which normally have a longer lifespan than comparable equipment.

Covid-19 Impact

The COVID 19 epidemic had paralysed the whole eco-system and stopped the manufacture and sale of new cars. Operations were negatively impacted since manufacturers had to wait for the lockdowns to be lifted before they could resume production. Automakers were forced to change their manufacturing volumes as a result. Additionally, the production of components was stopped, and tiny Tier 2 and Tier 3 manufacturers experienced cash flow issues. The automotive sector has high capital intensity and frequently needs finance to remain afloat. As a result, the pandemic's reduced demand and production standstill had a remarkable effect on the CNG Powertrain market.

The front wheel drive segment is expected to be the largest during the forecast period

The front wheel drive segment is estimated to have a lucrative growth, due to the benefits of front-wheel drive cars, including their light weight, better fuel economy, and balanced weight distribution, which helps the car's overall stability on rough terrain. Additionally, users can save money by choosing front-wheel drive because the drive trains need less maintenance and the engine has better fuel efficiency.

The bi-fuel segment is expected to have the highest CAGR during the forecast period

The bi-fuel segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the rising use of contemporary technologies like S-CNG. With this technology, switching between petrol and CNG is simple and doesn't affect engine performance. Sales of bi-fuel CNG powertrains have increased as a result of the advancement of fuel injection technology, which enables CNG to be directly injected into the existing combustion chamber.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the automotive industry's explosive growth in nations like China and India. With the help of important local enterprises, the region is also experiencing considerable technological improvements, particularly in the expansion of CNG infrastructure. These vehicles have a CNG engine that improves all-terrain manoeuvrability and provides excellent performance thanks to an effective fuel injection system.

Region with highest CAGR:

South America is projected to have the highest CAGR over the forecast period. Automobile spending has increased as a result of rising per capita incomes among consumers in Argentina, Brazil, and Colombia. Due to the viability, affordability, and environmental friendliness of automobiles powered by compressed natural gas, consumers are investing a lot of money to buy a personal vehicle. The Conectar Gas Industria programme was also started by the Argentine government to encourage the widespread usage of CNG-powered cars.

Key players in the market

Some of the key players profiled in the CNG Powertrain Market include FPT Industrial S.P.A., Nissan Motor Co. Ltd., Cummins Inc., Honda Motor Company., Maruti Suzuki India Limited, AB Volvo, Hyundai Motor Company, Robert Bosch GmbH., Volkswagen AG and Ford Motor Company.

Key Developments:

In June 2022, Volvo Energy invests in Connected Energy for the second-life battery business. Volvo Energy invests in the UK-based, second-life battery energy storage specialist Connected Energy in order to further accelerate Volvo Group's battery business and sustainability opportunities.

In June 2022, Volvo CE will be the first to deliver construction machines built using fossil-free steel to customers. The company will continue to introduce production using fossil-free steel into its machines and components, dependent on aspects such as steel availability.

Drive Types Covered:
• Front Wheel Drive
• All-Wheel Drive
• Rear Wheel Drive

Fuel Types Covered:
• Bi-Fuel
• Mono Fuel
• Other Fuel Types

Vehicle Types Covered:
• Commercial Vehicle
• Passenger Vehicle

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o 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 2020, 2021, 2022, 2025, and 2028
- 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