Automotive Natural Gas Vehicle Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Natural gas in the car has been a topic of interest for a long time. The increase in the use of natural gas cars is mainly due to the increasing demand for the car, which is based on the stricter regulation of the environment and the global shift towards cleaner fuels. Natural gas has a lower carbon footprint than both gasoline and diesel. The development of the natural gas network, technological innovations in vehicle construction and the increasing availability of CNG refueling stations are the main reasons for the growth of the natural gas car market. The major players in the industry, such as Scania, Scania, and Westport, are investing heavily in R & D to improve the efficiency and performance of natural gas cars. Strategic initiatives, such as the expansion of the refueling network and collaborations to develop next-generation NGV technology, also show the commitment of these companies to capitalize on the growing demand for sustainable solutions.

Regional Market Size

Regional Deep Dive

The Automotive Natural Gas Vehicle Market is undergoing varied dynamics in different regions, driven by factors such as regulations, fuel availability and technological advancements. In North America, the market is characterized by a growing interest in alternative fuels, especially in cities where air quality is of concern. In Europe, regulations are in place to promote the use of cleaner vehicles. In Asia-Pacific, rapid growth is expected, mainly due to urbanization and government incentives. In the Middle East and Africa, natural gas is being considered as a viable alternative to other fuels, largely due to the availability of the fuel. Latin America is also experiencing a rise in interest in natural gas vehicles. Brazil, for example, is investing in the natural gas vehicle conversion in order to promote its use. The overall growth of the market is highly dependent on government regulations and the preferences of consumers.

Europe

• The European Union has set ambitious targets for reducing greenhouse gas emissions, leading to increased investments in natural gas vehicle technology and infrastructure, particularly in countries like Germany and Italy.
• The European Commission's 'Green Deal' initiative is promoting the use of alternative fuels, including natural gas, which is expected to drive innovation and adoption in the automotive sector.

Asia Pacific

• China is rapidly expanding its natural gas vehicle market, supported by government subsidies and initiatives aimed at reducing urban air pollution, with companies like SAIC Motor Corporation leading the charge.
• India is also making strides in the NGV sector, with the government promoting compressed natural gas (CNG) vehicles as part of its broader strategy to enhance energy security and reduce emissions.

Latin America

• Brazil is leading the charge in Latin America with its Proconve program, which encourages the use of natural gas vehicles to meet environmental standards and reduce urban pollution.
• Argentina has a well-established network of natural gas refueling stations, making it one of the most advanced markets for NGVs in the region, supported by local manufacturers like Iveco.

North America

• The U.S. Environmental Protection Agency (EPA) has introduced stricter emissions standards, encouraging the adoption of natural gas vehicles (NGVs) as a cleaner alternative, particularly in commercial fleets.
• Companies like Clean Energy Fuels and Westport Fuel Systems are expanding their infrastructure for natural gas refueling stations, enhancing the accessibility of NGVs across major highways.

Middle East And Africa

• Countries like Iran and Qatar are leveraging their abundant natural gas reserves to promote NGVs, with government initiatives aimed at reducing reliance on gasoline and diesel.
• The UAE is investing in natural gas infrastructure, including refueling stations, to support the growing interest in NGVs among both consumers and commercial fleets.

Did You Know?

“Natural gas vehicles can reduce greenhouse gas emissions by up to 30% compared to traditional gasoline vehicles, making them a significant player in the fight against climate change.” — U.S. Department of Energy

Segmental Market Size

Natural gas cars are a growing market, driven by growing concern for the environment and the need for cleaner fuels. The demand for natural gas cars is also driven by stricter government regulations aimed at reducing greenhouse gas emissions, and a growing preference among consumers for sustainable transport solutions. A greater emphasis on natural gas in both vehicle design and fuel supply will further increase the attractiveness of natural gas cars as a viable alternative to petrol and diesel cars. Natural gas cars are already in widespread use in several countries, with Italy and Germany leading the way. There are also many natural gas cars on the Swedish market. For example, Scania and Volvo are both active producers of natural gas cars, and they have a range of vehicles for both the commercial and the private market. There are also a number of natural gas cars on the Swedish market for private use. The main applications are in the public transport sector, logistics and long-distance transport, where cost savings and lower emissions are of major importance. These vehicles are generally heavier than petrol or diesel cars, which makes them less suited to urban driving. The trend towards stricter regulations aimed at reducing greenhouse gas emissions and greater use of sustainable transport solutions is further accelerating the development of the market. New technological developments such as compressed natural gas (CNG) and liquefied natural gas (LNG) will also continue to shape the development of the market.

Future Outlook

The automobile natural gas vehicle (NGV) market will show a significant growth from 2024 to 2032, with an increase from $14.41 billion to $21.59 billion, at a compound annual growth rate (CAGR) of 5.18%. The main driving force for this market is the increasing emphasis on reducing greenhouse gas emissions and switching to cleaner fuels. In particular, the penetration of NGVs in public transport and commercial fleets is expected to increase. The share of NGVs in the automobile market is expected to reach about 10% in the United States and Europe in 2032. Technological advancements, such as the development of engine efficiency and the expansion of refueling stations, will also promote the growth of the market. Also, the integration of RNG into the supply chain will make NGVs more sustainable, thus attracting consumers and enterprises that are concerned about the environment. Also, the expansion of natural gas refueling stations will be a major contributor to market penetration. These factors will make the NGV market a vital part of the automobile industry, driven by both government policy and consumers' demand for cleaner transportation.