Natural Gas Vehicles Market to Reach USD 86.9 Billion by 2034 | Growth Driven by Eco & Cost Benefits

Market Size and Growth Projections

The global Natural Gas Vehicles (NGVs) market was valued at US$ 47.4 billion in 2023 and is projected to reach US$ 86.9 billion by 2034, growing at a CAGR of 5.3%. Growth is fueled by the increasing demand for cleaner alternative fuels, supportive government policies, and rising adoption of NGVs in commercial transportation for cost and emission benefits.

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The global Natural Gas Vehicles (NGVs) market is on a robust growth trajectory, fueled by the increasing demand for cleaner transportation alternatives, rising fuel costs, and supportive government policies. As the world shifts towards sustainable mobility, NGVs-powered by Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG)-are emerging as viable solutions for reducing vehicular emissions and operational costs.

Industry Overview

Natural Gas Vehicles utilize natural gas as a cleaner alternative to traditional fuels like gasoline and diesel. CNG and LNG are the two primary forms of natural gas used in vehicles, offering benefits such as lower emissions, reduced fuel costs, and abundant availability. NGVs are particularly popular in regions with established natural gas infrastructure and are commonly used in public transportation, commercial fleets, and private vehicles.

Analysis of Key Players in the Natural Gas Vehicles Market

Leading companies in the global natural gas vehicles (NGVs) market are increasingly offering aftermarket compressed natural gas (CNG) kits to address the rising cost of petrol and diesel. These kits can be easily installed in the vehicle boot, offering consumers a cost-effective and eco-friendly fuel alternative.

Prominent players operating in the NGV industry include:
• FAW Group
• Stellantis
• Ford Motor Company
• General Motors
• Great Wall Motor
• Honda Motor Co., Ltd.
• HYUNDAI MOTOR GROUP
• Landi Renzo S.p.A.
• Mahindra & Mahindra Ltd.
• Nissan Motor Co., Ltd.
• SAIC Motor Corporation Limited
• Suzuki Motor Corporation
• Tata Motors Limited
• Tomasetto Achille Spa
• TOYOTA MOTOR CORPORATION
• Volkswagen Group
• Westport Fuel Systems Inc.

These players have been evaluated in the NGVs market report on parameters such as company overview, business segments, product portfolio, financial performance, business strategies, and recent technological or commercial developments.

Key Developments in the Natural Gas Vehicles Market

• April 2024: Great Wall Motor entered a strategic collaboration with Eaton to implement the Electromechanical Actuation System (EMAS) in its hybrid electric vehicles (HEVs). This technology supports Early Intake Valve Closing (EIVC), which reduces air entrapment and pumping losses in the engine, significantly boosting fuel efficiency.

• 2023: Tata Motors introduced the Altroz iCNG, a novel dual-cylinder CNG car. The vehicle features twin CNG tanks strategically placed beneath the boot floor, optimizing storage space while enhancing fuel flexibility and efficiency.

Market Segmentation

By Fuel Type
• Compressed Natural Gas (CNG): Dominates the market, accounting for over 95% of the volume share in 2022.
• Liquefied Natural Gas (LNG): Gaining traction, especially in heavy-duty transportation due to its higher energy density.

By Vehicle Type
• Passenger Cars: Significant adoption in urban areas for personal and taxi services.
• Light Commercial Vehicles (LCVs): Used for intra-city goods transportation.
• Heavy-Duty Vehicles (HDVs): LNG-powered trucks are increasingly used for long-haul freight.

By Application
• Public Transportation: Buses and transit vehicles utilizing CNG for cleaner urban mobility.
• Commercial Fleets: Delivery and logistics companies adopting NGVs to reduce fuel costs.
• Private Use: Individuals opting for NGVs due to lower operating expenses.