Global Compressed Natural Gas (CNG) Vehicles Market 2017-2021

Overview of the global compressed natural gas (CNG) vehicles market

Technavio’s market research analyst predicts that the global CNG vehicles market will grow at a CAGR of nearly 5% during the forecast period. The introduction of stringent emission norms of odd-even policy in India to curb pollution is one of the primary drivers for market growth. India is one of the main countries for the global CNG vehicles market with nearly 60,000-70,000 units of CNG vehicles. Delhi excluded the use of privately owned cars on alternate days based on the registration number of cars, following the odd-even policy. The government had exempted the CNG vehicles from the stringent regulation to control pollution leading to the rising adoption of CNG fitted cars. Moreover, the government is also working on expanding the fuel stations selling natural gas thus allowing the motorists and private car owners to shift to CNG. Furthermore, CNG costs about 50% cheaper than petrol and is nearly 25% cheaper than diesel. With countries such as India being cost-centric, this will induce the adoption of CNG vehicles during the forecast period.

One of the latest trends that will gain traction in the global CNG vehicles market is the rising utilization of CNG in luxury vehicles. For instance, Audi’s A4 Avant g-tron can run on CNG or gasoline and is fitted with a 2.0 turbo fuel stratified injection (TFSI) engine, churning out 170 HP power, with a maximum torque of 270 Nm. Audi has changed the pistons and valves of the model for gas operation and to provide very low compression ration suitable for CNG vehicles. In the New European Driving Cycle, the Audi A4 Avant g-tron utilizes 3.8 kg of CNG per 100 km. The bi-fuel A4 Avant g-tron offers an estimated driving range of 500 km, with a tank capacity of 19 kg.

Competitive analysis and key vendors

The CNG vehicles market consists of few well-established vendors. Key vendors in the market are presently enhancing their customer base and raising their investments in R&D activities. The market is expected to witness competition based on technological advancements and government regulations. Also, the manufacturers are anticipated to involve in long-term collaborations with the vendors, since the quality of materials used and design are vital factors in managing costs that differentiate each vendor.

Key vendors in the market are:

• Ford Motor
• Volkswagen
• General Motors (GM)
• Honda Motor
• Nissan

Other prominent vendors include Audi and Chevrolet.

Segmentation by application and analysis of the CNG vehicles market

• Passenger cars
• Three wheelers
• M&HCV buses

During 2016, the passenger cars segment dominated the CNG vehicles market and the segment is expected to continue its dominance over the next four years as well. The rise in passenger cars powered by CNG in countries such as India and Europe due to government incentives and the increase in refuelling stations, will propel the segment’s growth in this global market.

Geographical segmentation and analysis of the CNG vehicles market

• Americas
• APAC
• EMEA

In terms of geography, EMEA dominated the CNG vehicles market during 2016 and is expected to continue its market dominance during the forecast period as well. The rising penetration of CNG-fitted passenger cars in countries such as Iran and Italy will drive the market’s growth in the region. Moreover, the rising growth of CNG vehicles in Europe due to reduced tax incentives on the use of natural gas as a fuel, will also contribute to the market’s growth in EMEA.

Key questions answered in the report include

• What will the market size and the growth rate be in 2021?
• What are the key factors driving the global CNG vehicles market?
• What are the key market trends impacting the growth of the global CNG vehicles market?
• What are the challenges to market growth?
• Who are the key vendors in the global CNG vehicles market?
• What are the market opportunities and threats faced by the vendors in the global CNG vehicles market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA .
• What are the key outcomes of the five forces analysis of the global CNG vehicles market?

Technavio also offers customization on reports based on specific client requirement.

Gasoline as a fuel has been under heavy scrutiny at present times, with concerns over environmental wellbeing. In the wake of looking for better alternatives in terms of being cost-effective and environmentally friendly, CNG (compressed natural gas) has come across as a preferred alternative. They are cheaper than gasoline, emit fewer pollutants, mix easily with air, and increase the life of the lubricating oil. To help clients in the automotive industry gain competitive advantage, Technavio offers a wide variety of industry research reports on related sectors such as automotive electronics, automotive components, and wheels and tires. Key aspects of business intelligence such as market size, competitive landscape, and study of alternative and complementary products are covered in this upcoming report on the global CNG vehicles market.

To accurately estimate the growth potential of the market, market research experts at Technavio follow a mix of quantitative and qualitative research by thoroughly examining factors such as the growth potential of the market across the geographical region and new applications of the product. Also, by analyzing data on consumer behavior, our upcoming report on global CNG vehicles market for the forecast period of 2017 to 2021 will help the client in understanding the changing customer demand patterns in order to bring relevant innovations in the market.

The upcoming report on global CNG vehicles market also considers the growth of related markets such as, global three-wheeler (3W) goods carrier market and global automotive biofuels market, which are expected to grow at a CAGR of 4% and 8%, respectively, for the forecast period of 2017 to 2021. Much of the growth of this market was suppressed due to low availability of CNG refilling centers, but in the recent times, government and concerned bodies have encouraged this fuel source by providing tax incentives and rebates. To help the vehicle manufacturers gain knowledge and insights on specific geographic market, Technavio also customizes research report as per client’s specification.

The upcoming market report on CNG vehicles market also identifies the major factors driving the growth in this market, and challenges faced by the vendors in the market, along with lucrative opportunities present. To offer aggregated view of the market the report also considers powertrain, automotive services, and auto accessories sectors.