CNG And LPG Vehicle Market is Estimated to Witness High Growth Owing to Rising Environmental Concerns

The CNG and LPG vehicle market has seen significant growth in recent years owing to stringent government regulations regarding vehicular emissions. CNG and LPG vehicles are seen as economically viable and environment-friendly alternatives to gasoline and diesel vehicles. Both CNG and LPG offer lower operating costs and emit fewer emissions as compared to gasoline and diesel vehicles. CNG vehicles deliver savings of around 40-50% whereas LPG vehicles offer around 30-35% savings on fuel costs.

Key Takeaways

Key players operating in the CNG and LPG vehicle market are HYUNDAI MOTOR GROUP, Fiat Chrysler Automobiles, Honda Motor Co. Ltd., Suzuki Motor Corporation, General Motors, Groupe Renault, Tata Sons Private Limited, Landi Renzo S.p.a., Volkswagen AG, AC S.A., Nissan, Navistar Inc., Ford Motor Company, KION GROUP AG, and AB Volvo. Major players are focusing on expanding their product portfolio and building infrastructure for refueling to tap the increasing demand.

The rising environmental consciousness and government initiatives to promote the use of clean vehicle technologies present significant growth opportunities for players in the market. Countries across regions are supporting the deployment of CNG And LPG Vehicles Market Demand through fiscal incentives, policy guidelines.

With the growing acceptance of CNG and LPG vehicles worldwide, key players are expanding their manufacturing and servicing footprint globally. Players are setting up production plants in high growth regions and exporting vehicles to international markets.

Market Drivers

Stringent vehicular emission norms imposed by governments across countries are a key factor driving the demand for CNG and LPG vehicles. Rising environmental pollution levels from vehicular emissions have increased policy focus on curbing vehicular pollution. Depleting reserves of fossil fuels and volatility in crude oil prices also contribute to the adoption of greener CNG and LPG vehicles which offer savings on fuel costs. The economic and environmental benefits of CNG and LPG vehicles are boosting their popularity as viable alternatives to gasoline and diesel vehicles.

PEST Analysis

Political: The governments across various countries are encouraging the use of clean energy vehicles such as CNG And LPG Vehicles Market Analysis through tax incentives and subsidies. Many countries have also set strict emission norms which is positively impacting the demand for CNG and LPG vehicles.

Economic: The fluctuating price volatility of petrol and diesel is a major factor influencing consumers to switch to cheaper and more economical fuel options like CNG and LPG. The operational cost of these vehicles is lower as compared to conventional petrol and diesel vehicles.

Social: Growing awareness about environmental protection and focus on reducing carbon footprint are major social factors promoting adoption of green vehicles. Consumers are inclined towards greener options to contribute towards environmental sustainability.

Technological: Advancements in engine technologies have enhanced the driving range and performance of CNG and LPG vehicles. Dual fuel technology allows vehicles to run on both CNG as well as gasoline. This provides operational flexibility to consumers.

The market for CNG and LPG vehicles in terms of value is majorly concentrated in Asia Pacific region. Countries like India, Pakistan, Indonesia, China have witnessed significant growth in adoption of CNG vehicles in past years due to large fleet of public transport running on CNG. India alone accounts for over 50% of global share in CNG vehicles market.

In terms of fastest growth, Latin American countries such as Brazil, Argentina are emerging as hotspots driven by supportive government policies for cleaner alternatives and growing environmental concerns. Countries in the region have introduced subsidies and tax breaks for CNG vehicles to promote their use and lessen reliance on imported diesel and gasoline. The market is expected to witness strongest growth trajectory in the coming years from Latin America.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)