Home Automation & Process Control CNG Powertrain Market Size & Share, Demand, Growth, Revenue Analysis - 2030

CNG Powertrain Market

CNG Powertrain Market Size, Share & Trends Analysis Report By Drive Type (All-Wheel Drive, Rear Wheel Drive, Front Wheel Drive), By Fuel Type (Mono Fuel, Bi-Fuel), By Vehicle Type (Passenger Vehicle, Commercial Vehicle) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Report Code: SRAP2138DR
Study Period 2018-2030 CAGR 17.59%
Historical Period 2018-2020 Forecast Period 2022-2030
Base Year 2021 Base Year Market Size USD 71.20 Billion
Forecast Year 2030 Forecast Year Market Size USD 306.06 Billion
Largest Market Asia Pacific Fastest Growing Market Latin America
The sample report only takes 30 secs to download, no need to wait longer.

Market Overview

The global CNG powertrain market size was valued at USD 71.20 billion in 2021. It is projected to reach USD 306.06 billion by 2030, growing at a CAGR of 17.59% during the forecast period (2022–2030). A CNG powertrain is identical to a conventional internal combustion engine powered by gasoline. There are a few new components in the CNG powertrain, but the combustion process is identical. The fuel is combined with air before being burned in the cylinder to generate power. CNG necessitated a tank that could carry highly pressurized gas, unlike conventional fuel tanks.

When the gas leaves the tank, it is under high pressure. Increasing governments' investments worldwide to establish CNG and LPG infrastructure and buyer incentives will present opportunities for original equipment manufacturers to expand their income streams and geographic footprint. Manufacturers of CNG powertrains are primarily focused on enhancing engine efficiency. They are investing in engine performance improvement by working to reduce volumetric efficiency loss, increase flame propagation speed, and decrease fuel evaporation. Additionally, leading automakers are incorporating innovative technologies into CNG Powertrain.

Market Dynamics

Global CNG Powertrain Market Drivers

Increasing Demand for a Transitory Alternate Fuel to Drive Market

The goal of achieving zero carbon emissions is being driven forward by the growing demand for alternate transitional fuels. Compressed natural gas (CNG) generates fewer carbon emissions than other fuels, such as diesel, gasoline, and liquid petroleum gas (LPG). It does not contain particulate matter, which significantly contributes to pollution. As a result, CNG is anticipated to overtake these other fuels as the primary energy source shortly. Governments worldwide are taking strategic steps to offer tax breaks, subsidies, and other benefits to people, so it is expected that a significant demand for CNG powertrain vehicles will emerge during the period covered by the forecast.

Low Running Costs to Augment Market Growth Prospect

CNG and LPG vehicles have significantly lower operating costs compared to petroleum vehicles. Alternative fuels are more cost-effective, especially for frequent drivers, since gasoline prices rise due to increased demand and dwindling supplies. This is because the initial cost can be readily recouped in a few years, depending on how frequently the vehicle is driven. The price of petroleum has climbed dramatically, whereas CNG and LPG prices have increased by far smaller proportions. In the future, this may be one of the most important factors influencing the market share of CNG and LPG vehicles. CNG Powertrain can travel approximately 21 kilometers per kilogram of fuel, diesel vehicles can travel approximately 17 kilometers per liter, and gasoline vehicles can travel approximately 15 kilometers per liter. Thus, CNG and LPG Powertrain may travel much further at a lesser cost, decreasing their operating expenses.

Global CNG Powertrain Market Restraints

High Maintenance and Investment Costs to Restrict Market Growth

CNG and LPG powertrains are typically more expensive than ordinary gasoline automobiles due to the additional components to these vehicles. These vehicles need more frequent maintenance, which overtime costs more money because most of these cars lack lubrication, accelerating the deterioration of some parts compared to gasoline-powered vehicles. Additionally, the parts require more frequent replacement than those found in gasoline-powered vehicles, whose lifespan is typically longer. For instance, fleet providers frequently driving for their services may utilize CNG. CNG and LPG vehicles are only cost-effective when they are driven frequently.

Global CNG Powertrain Market Opportunities

Manufacturer’s Primary Focus on Enhancing Engine Efficiency to Spur Market Opportunities

The producers of CNG powertrains are placing significant emphasis on making the vehicle's engine more efficient. They are investing in improving the engine's performance by reducing the loss of volumetric efficiency, increasing the pace at which the flame propagates, and decreasing the amount of gasoline evaporating from the engine. In addition, leading automakers are incorporating cutting-edge technologies into their CNG automobiles. For example, S-CNG technology is installed in passenger automobiles to improve fuel economy. This is accomplished by adjusting the fuel-to-air ratio and synchronizing the electric control units with the intelligent fuel injection system.

Regional Analysis

The global CNG powertrain market is segmented into North America, Europe, Asia-Pacific, and LAMEA

Asia-Pacific dominates the global CNG powertrain market due to the rapid growth of the vehicle industry in China and India. The Asia-Pacific region is undergoing numerous technology developments and CNG infrastructural development. Notable regional players, including Maruti Suzuki, are adopting S-CNG technology in automobiles and other passenger vehicles. The company's automobiles have a sophisticated fuel injection system, and the CNG powertrain is calibrated to produce optimal performance and enhance all-terrain drivability.

Latin America's market is expected to grow at the highest CAGR of 19.6% during the forecast period. The rising per capita income of consumers in Argentina, Brazil, and Colombia has increased automotive expenditures. Consumers are spending significantly on purchasing a personal vehicle since compressed natural gas engine vehicles are viable, cost-effective, and ecologically friendly. In addition, the Argentine government has launched the "Conectar Gas Industria" program to promote the widespread use of CNG powertrain vehicles. Under this program, the government intends to invest USD 517,000 to construct CNG infrastructure and install 25 new CNG stations throughout the country.

Report Scope

Report Metric Details
Segmentations
By Drive Type
  1. All-Wheel Drive
  2. Rear Wheel Drive
  3. Front Wheel Drive
By Fuel Type
  1. Mono Fuel
  2. Bi-Fuel
By Vehicle Type
  1. Passenger Vehicle
  2. Commercial Vehicle
Company Profiles Cummins Inc. AB Volvo Robert Bosch GmbH. FPT Industrial S.P.A. Ford Motor Company Maruti Suzuki India Limited Volkswagen AG Hyundai Motor Company Nissan Motor Co. Ltd. Honda Motor Company.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Segmental Analysis

The global CNG powertrain market is segmented by drive type, fuel type, and vehicle type

On the Basis of Drive Type

Based on the drive type, the market is divided into All-wheel Drive, Rear Wheel Drive, and Front Wheel Drive.

The front-wheel-drive segment dominates the market, and this growth can be attributed to the advantageous characteristics of front-wheel-drive vehicles, such as their lightweight, improved fuel economy, and weight distribution balance, which increases the vehicle's overall stability on rugged terrains. Additionally, front-wheel drive is a cost-effective option for consumers because drivetrains require less maintenance, and the engine provides increased fuel economy.

The all-wheel-drive segment is anticipated to grow at a CAGR of 17.9% during the projected period. The all-wheel drivetrain transfers power to each corner of the automobile, boosting the vehicle's grip capability, improving acceleration, and ensuring a smooth driving experience. The increased traction forces prevent the danger of a vehicle slipping on slippery, rainy, and sloppy roads, making the all-wheel-drive CNG powertrain the most popular alternative.

On the Basis of Fuel Type

Based on fuel type, the market is divided into mono fuel and bi-fuel.

The bi-fuel dominates the market, and this rise is attributable to the increased usage of modern technologies such as S-CNG. This technology enables effortless changeover between gasoline and CNG without compromising engine performance. Bi-fuel CNG powertrain sales have surged due to the development of fuel injection technology that permits direct injection of CNG into the existing combustion chamber.

The mono-fuel segment is anticipated to rise at a lucrative CAGR of 18.92% during the forecast period. Using CNG as a fuel provides numerous benefits, including a reduction in primary and exhaust emissions. Therefore, it is anticipated that the inexpensive nature of CNG would generate a great demand for mono-fuel CNG powertrain vehicles.

On the Basis of Vehicle Type

Based on vehicle type, the market is divided into passenger vehicles and commercial vehicles.

The passenger vehicle segment dominates the market during the forecast period. The market's rise is mainly attributable to the cheaper starting cost of CNG powertrain vehicles compared to electric powertrain vehicles. The market is segmented into passenger and commercial vehicles based on vehicle type. The commercial vehicle market is projected to grow at a robust CAGR of 17.95% during the forecast period. Increasing numbers of school and public buses are fueled by compressed natural gas to reduce environmental deterioration. For instance, the Indian government plans to introduce 100 CNG-powered A.C. buses to the nation's capital by March 2022. Thus, these measures of the governments of emerging nations will enhance the market penetration of CNG commercial vehicles and are expected to increase demand for CNG powertrains.

Market Size By Drive Type

Market Size By Drive Type
  • All-Wheel Drive
  • Rear Wheel Drive
  • Front Wheel Drive
  • Recent Developments

    • In June 2022, Cummins Inc., hydrogen engine insights for fleet operators.
    • In June 2022, Volvo Trucks showcases a new zero-emissions truck.
    • In June 2022, Volvo Energy invests in Connected Energy for the second-life battery business.
    • In June 2022, Volvo CE will be the first to deliver construction machines built using fossil-free steel to customers.
    • In February 2022, Nissan India strengthened its focus on safety and technology.

    Top Key Players

    CNG Powertrain Market Share of Key Players

    CNG Powertrain Market Share of Key Players
    Cummins Inc. AB Volvo Robert Bosch GmbH. FPT Industrial S.P.A. Ford Motor Company Maruti Suzuki India Limited Volkswagen AG Hyundai Motor Company Nissan Motor Co. Ltd. Honda Motor Company. Others

    Frequently Asked Questions (FAQs)

    What is the growth rate for the Global Market?
    CNG Powertrain Market size will grow at approx. CAGR of 17.59% during the forecast period.
    Some of the top industry players in Global Market are, Cummins Inc., AB Volvo, Robert Bosch GmbH., FPT Industrial S.P.A., Ford Motor Company, Maruti Suzuki India Limited, Volkswagen AG, Hyundai Motor Company, Nissan Motor Co. Ltd., Honda Motor Company., etc.
    Asia Pacific has held a dominant position in the CNG Powertrain Market, with the largest market share.
    The Global Market has seen the most substantial growth rate in Latin America.
    The Global Market report is segmented as follows: By Drive Type, By Fuel Type, By Vehicle Type


    We are featured on :