• US: +1-408-610-2300
  • Toll Free: +1-866-831-4085
  • Login / Register
Automotive Natural Gas Vehicle (NGV) Market Growth Report, 2027

Automotive Natural Gas Vehicle (NGV) Market Analysis Report By Fuel Type, By Vehicle Type, By Region And Segment Forecasts From 2020 To 2027

Report ID: MN17619758  |  Published: May 2020  |  No of Pages: 86
Format: Electronic (PDF)  |  Industry: Automotive & Transport  |  Publisher: Grand View Research

Industry Insights

The global automotive natural gas vehicle (NGV) market was accounted for 28,201.3 thousand units in 2019. It is projected to register the CAGR of around 3.5% over the forecast period, 2020-2027. Rising adverse impact of harmful gas emission is anticipated to trigger the transportation industry to seek for natural gas-fueled vehicles. In addition, increasing trend of natural gas-based vehicles owing to supportive government initiatives is projected to propel the market growth.

Growing trend of innovative and advanced technology in engine development is projected to drive market growth. In addition, the automotive industry is also enhancing the applications of liquefied natural gas (LNG) and compressed natural gas (CNG) for the vehicles. In addition, natural gas-fueled vehicles are also gaining traction among consumers. All these key factors are projected to increase the demand for NGV vehicles across the transportation and trucking industry.

Asia Pacific automotive NGV market

Disruptive pricing associated with gasoline and diesel is mainly increasing the demand for NGVs. Moreover, the gas & oil industry is changing with economic fluctuations. This is due to changing supply and demand for oil, growing manufacturing sector, and rising electricity demand. However, prices of natural gases are declining from 2008 owing to the emergence of advent drilling technology.

Moreover, government authorities across the world are focusing on reducing greenhouse gases emission to support the environment. Various governments have designed standard policies for protection of environment. This factor is expected to positively impact the market growth in the coming years. Moreover, advancement in technology is also boosting the process of natural gases production. Thus, increased natural gas production is expected to bode well with growing demand for NGV vehicles. Some of the key initiatives by Environment Protection Agency (EPA), National Green Tribunal (India), and other such agencies are promoting usage of LNG and CNG across the automotive sector.

However, COVID-19 pandemic is projected to restrain the market growth of automotive industry. For example, automotive industry in U.S., has shut down its manufacturing operations in Detroit. In China, automobile sales have declined to 80.0% in February 2020. In addition, various motor shows like motor show of Geneva, Auto Expo are canceled owing to coronavirus spread across the globe.

Fuel Type Insights

The CNG vehicle is estimated to grow significantly owing to the supportive initiatives by the government. Increasing adoption of CNG based vehicles with other benefits like environment sustainability are anticipated to boost the growth of NGV vehicles in the next few years. CNG based fuel system is designed with safety standards set by the Federal Motors Vehicle in U.S.

The LNG fuel segment is projected to grow at a higher CAGR during the forecasted period. Increasing demand from aviation and locomotive industries is supporting the market growth. For example, East coastal railway of Florida has developed LNG based fleet called GE ES44AC. Furthermore, various research activities are also being carried out for this development, which in turn is expected to boost the market growth.

Vehicle Type Insights

Based on the type of vehicle, the automotive natural gas vehicle market is divided into light-duty & heavy-duty trucks and buses, passenger vehicles, heavy & light-duty trucks & buses. In 2019, passenger vehicles dominated the market with the highest share. Air quality across the world is declining owing to rising emission of hazardous greenhouse gases. Thus, in developing countries like India, China, Saudi Arabia and Iran, consumers are shifting towards alternative solutions.

Global automotive NGV market

LNG and CNG are cost-effective owing to high performance and high fuel efficiency. For example, according to NGV journal data, CNG is over 50.0% economical than gasoline, and over 40.0% economical than diesel. In addition, growing penetration of light-duty & heavy-duty buses and trucks in countries like India, Bangladesh, and Thailand is also expected to foster the segmental growth.

Regional Insights

In 2019, Asia Pacific led the global automotive NGV market. Growing advancements in CNG vehicles across Asia Pacific is projected to propel the market growth. Moreover, strict policies by the government across the region regarding environment protection are anticipated to surge the market growth. For example, in Thailand, the government provides financial support to the consumers of CNG vehicles through lower interest rates and loans offerings. This is anticipated to bolster the regional growth over the forecast period.

However, rising consumer inclination towards electric vehicle is projected to restrain market growth. In addition, COVID-19 pandemic has impacted the automotive sector across the world. In 2020, Chinese auto industry has already suffered decline in their sales by around 80.0%.

COVID-19 Impact Insights

COVID-19 pandemic has slowdown the growth of automotive industry. Global passenger vehicle sales in July 2020 have been declined by 25.0% owing to coronavirus crisis and lockdown situation. This is projected to impact the growth of automotive natural gas vehicle market.

However, supportive government initiative with focus on reducing emission of gases is expected to boost the market growth over the forecast period. For example, Indian Auto LPG Coalition is aiming to promote natural gas fueled vehicles in the country. The market is recovering, as the most of automobile companies have re-opened. The market for light duty and heavy duty vehicles is projected to grow at steady rate during the forecast period.

Automotive Natural Gas Vehicle (NGV) Market Share Insights

Leading players operating in this industry include, AB Volvo; Cummins, Inc.; Beiqi Foton Motor Co., Ltd; Navistar; Westport Fuel Systems; and PACCAR, Inc. These companies are engaged in strategic acquisitions, partnerships, and collaboration to remain competent in the industry.

For example, Quantum fuel system LLC has collaborated with Quantitative bioscience, Inc. in 2019. This partnership is projected to develop biofuel-based production center. Similarly, a Westport fuel system has signed agreement with Snam SPA, in 2018 for selling CNG compressor in Italy market.

Report Scope

Attribute

Details

Market demand in 2020

29,439.37 thousand units

Market demand in 2027

37,373.83 thousand units

Growth Rate

CAGR of 3.5% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2027

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors and trends

Segments covered

Fuel type, vehicle type, and region

Regional scope

North America, Europe, Asia Pacific, South America & Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany, Russia, France, Sweden, China, India, Bangladesh, Thailand, and Brazil.

Key Companies Profiled

Agility Fuel Solutions; AB Volvo; Beiqi Foton Motor Co., Ltd.; CNH Industrial N.V.; Clean Energy Fuels; Cummins, Inc.; PACCAR, Inc.; Navistar, Inc.; Quantum Fuel Systems LLC; and Westport Fuel Systems Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global automotive natural gas vehicle market report on the basis of fuel type, vehicle type, and region:

• Fuel Type Outlook (Volume, Thousand Units, 2016 - 2027)
    • CNG
    • LNG

• Vehicle Type Outlook (Volume, Thousand Units, 2016 - 2027)
    • Passenger Vehicles
    • Light duty & Heavy-duty Buses and Trucks
    • Three wheelers

• Regional Outlook (Volume, Thousand Units, 2016 - 2027)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Russia
        • Germany
        • France
        • Sweden
    • Asia Pacific
        • China
        • India
        • Bangladesh
        • Thailand
    • South America
        • Brazil
    • Middle East & Africa (MEA)

What questions do you have? Get quick response from our industry experts. Request More information
Key questions answered in the report include
key questions
We also offers customization on reports based on specific client requirement.
Request for Customization

Choose License Type

Research Assistance

Ryan Manuel
Ryan Manuel

Research Support Specialist, USA

  1. Phone: +1-408-610-2300
  2. Toll Free: +1-866-831-4085
  3. Email: [email protected]
  • World's largest premium report database
  • Transparent pre & post sale customer engagement model
  • Unparalleled flexibility in terms of rendering services
  • Safe & secure web experience
  • 24*5 Research support service
  • 100% Secure Payments
  • Our Promise
  • 100% Service Assurance
  • Market Monitoring
  • Service Flexibility
  • 24X5 Care available