Market Overview
The Global CNG Powertrain Market is expected to reach a value of
USD 102.2 billion in 2023, and it is further anticipated to reach a market value of
USD 455.0 billion by 2032 at a
CAGR of 18.0%.
A CNG powertrain resembles a conventional gasoline internal combustion or IC engine, with slight variations in components. The fundamental process remains unchanged where the
fuel is blended with air and ignited within the cylinder to generate power, which highlights the similarity in the combustion mechanisms of CNG and gasoline engines.
Key Takeaways
- By Drive, Front wheel drive leads in 2023 & is anticipated to dominate throughout the forecasted period.
- In addition, All-wheel drive is expected to have significant growth over the forecasted period.
- By Fuel, Bi-fuel takes the lead & drives the market in 2023.
- Further, By Vehicle, Passenger vehicle accounts for major revenue share in 2023
- Asia Pacific has a 68.0% share of revenue in the Global CNG Powertrain Market in 2023
Market Dynamic
CNG powertrains expand significantly due to lower operational expenses compared to traditional petroleum vehicles, making them a cost-effective choice, mainly for frequent drivers. The upfront investment in CNG or LPG is quickly recouped through substantial savings within a few years, mainly as petroleum costs have grown while CNG & LPG prices have seen slower increases, which is a key driver in expanding the market share of CNG powertrains.
As global concerns about emissions intensify, the adoption of low-emission fuel vehicles like CNG & LPG is expected to accelerate. Many countries are prioritizing emission reduction goals, leading to more demand for such vehicles. Moreover, many nations have already incentivized the growth of alternative fuel vehicles to minimize emissions and reduce dependence on imported gasoline.
However, these vehicles tend to be pricier than traditional gasoline vehicles due to additional components., and may experience faster wear and tear in certain parts, requiring more frequent maintenance & potentially higher long-term costs compared to petrol vehicles, which often have a longer lifespan and require less frequent part replacements.
Research Scope and Analysis
By Drive
Front-wheel-drive segment leads in the overall market in 2023, driven by the favorable attributes of these vehicles. Front-wheel-drive
cars are prized for their lightweight design, enhanced fuel efficiency, & balanced distribution of vehicle weight, improving stability in challenging terrains. Further, the front-wheel-drive option proves cost-effective for consumers due to its lower maintenance requirements & the added benefit of increased mileage, contributing highly to the segment's substantial growth.
Moreover, the all-wheel-drive segment is anticipated to experience the highest expansion during the forecast period. As, the All-wheel-drive systems distribute power to each corner of the vehicle, enhancing grip capacity, providing better acceleration, & ensuring smooth handling. With better traction that prevents slipping on icy, wet, and uneven roads, the all-wheel-drive CNG powertrain emerges as a broadly preferred option, surpassing other alternatives in the market.
By Fuel
Bi-fuel systems dominated the market in 2023, capturing the majority share. The broad adoption of advanced technologies like S-CNG, facilitating smooth transitions between gasoline & CNG without compromising engine performance, played a vital role in the sector's growth. Further, the introduction of fuel injection technology allows direct CNG injection into the combustion chamber boosting sales of bi-fuel CNG powertrains.
Also, the mono-fuel market is expected to have substantial growth in the forecasted period, as the advantages of using CNG as a fuel, like minimal main and tailpipe pollution, are driving this trend. Further, with the cost of gasoline & diesel exhibiting high variability, the affordability of CNG per gallon becomes a major advantage for owners of CNG vehicles. In addition, there is a rising demand for mono-fuel CNG engines, driven by the economic benefits associated with CNG.
By Vehicle
The market is categorized based on vehicle type, including passenger vehicles and commercial vehicles. The passenger vehicle segment played an essential role in the expansion of overall revenue in 2023, holding a majority share, which can be attributed to the comparatively lower initial cost of CNG-powered vehicles in comparison to other eco-friendly alternatives like electric powertrains.
Moreover, the commercial vehicle segment is expected to have significant expansion during the forecast period, which is driven by the growth in the adoption of CNG-powered buses for school & public transportation, focused on restraining environmental degradation. In addition, government initiatives in emerging nations are expected to boost the prevalence of CNG commercial vehicles, fostering demand for CNG powertrains in the market.
The CNG Powertrain Market Report is segmented on the basis of the following
By Drive
- All-wheel Drive
- Rear Wheel Drive
- Front Wheel Drive
By Fuel
By Vehicle
- Passenger Vehicle
- Commercial Vehicle
Regional Analysis
Asia Pacific region emerged as a dominant force in the market in 2023, commanding a substantial 68% share, driven by the quick expansion of the automotive sector in countries like China & India. Further, significant technological steps, especially in the expansion of Compressed Natural Gas (CNG) infrastructure are driving the market in the region. Also, key players like Maruti Suzuki in the region are adopting S-CNG technology for their passenger vehicles, featuring an efficient fuel injection system and CNG engines that optimize performance and enhance maneuverability in diverse terrains.
Moreover, Latin America is expected to have significant growth during the forecasted period, as increased per capita incomes in countries like Argentina, Brazil, and Colombia have spurred greater consumer spending on automobiles. The region is witnessing a growth in the popularity of CNG-powered cars due to their affordability, environmental sustainability, and practicality, reflecting a growing trend among consumers in the area.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The global CNG powertrain market exhibits a competitive landscape with various players competing for market share. Companies focus on technological advancements, affordable solutions, and environmental considerations. Intense competition drives innovation, leading to the development of efficient CNG powertrain systems.
In February 2023, Cummins Inc. announced its plan to debut the latest integrated powertrain & digital connectivity innovations at the American Trucking Association's Technology & Maintenance Council's annual meeting and transportation exhibition, which introduces the first-ever fully integrated Cummins powertrain, featuring engine, transmission, axles, & fuel delivery system to exhaust after-treatment, with all equipped with advance digital technologies & service enhancements, making it a major development for fleet professionals in North America.
Some of the prominent players in the global CNG Powertrain Market are:
- Cummins Inc
- AB Volvo
- Robert Bosch GmbH
- Nissan Motor Co. Ltd.
- Volkswagen
- Honda Motor Company
- Hyundai Motor
- FPT Industrial S.P.A.
- Ford Motor Company
- Maruti Suzuki India Ltd
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global CNG Powertrain Market:
The COVID-19 pandemic & following economic recession highly impacted the global CNG powertrain market. As disruptions in supply chains, workforce shortages, & reduced consumer spending on non-essential goods led to a reduction in the production and sales of CNG powertrain vehicles. Further, lockdowns and travel restrictions dampened demand for transportation, affecting the market adversely.
In addition, economic uncertainties allowed consumers & businesses to postpone vehicle purchases, affecting the overall market outlook. Despite these challenges, there is an increase in recognition of the need for sustainable & cost-effective transportation solutions, which could drive the recovery of the CNG powertrain market as economies stabilize and priorities shift towards environmentally friendly options in the post-pandemic era.
Recent Developments
- In January 2023, Maruti Suzuki India introduced two new CNG options for its mid-sized SUV, the Grand Vitara. Priced between INR 12.85 lakh & INR 14.84 lakh (ex-showroom Delhi), which comes with a five-speed manual gearbox & boasts an excellent fuel efficiency of 26.6 km per kg, while aiming to provide eco-friendly choices for customers.
- In January 2023, Toyota Kirloskar Motor announced the pricing for the CNG version of its well-liked Toyota Urban Cruiser Hyryder in Indi, which starts at INR 13.29 lakh and reaches up to INR 15.29 lakh, which reflects Toyota's commitment to offering a range of options to cater to the diverse preferences of Indian consumers.
- In March 2022, the Indian government announced the rollout of 100 vehicles running on compressed natural gas (CNG) in Delhi, the capital of the nation, which aligns with efforts to promote cleaner & more sustainable transportation in the city, contributing to environmental conservation & minimizing the carbon footprint in the capital.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 102.2 Bn |
| Forecast Value (2032) |
USD 455.0 Bn |
| CAGR (2023-2032) |
18.0% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Drive (All-wheel Drive, Rear Wheel Drive, Front
Wheel Drive), By Fuel (Mono Fuel and Bi-fuel), By
Vehicle (Passenger Vehicle and Commercial Vehicle) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Cummins Inc, AB Volvo, Robert Bosch GmbH, Nissan
Motor Co. Ltd., Volkswagen, Honda Motor Company,
Hyundai Motor, FPT Industrial S.P.A., Ford Motor
Company, Maruti Suzuki India Ltd, and Other Key
Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global CNG Powertrain Market size is estimated to have a value of USD 102.2 billion in 2023 and is
expected to reach USD 455.0 billion by the end of 2032.
Asia Pacific has the largest market share for the Global CNG Powertrain Market with a share of about
68.0% in 2023.
Some of the major key players in the Global CNG Powertrain Market are Cummins Inc, AB Volvo, Robert
Bosch GmbH, and many others.
The market is growing at a CAGR of 18.0 percent over the forecasted period.