According to a new report by P&S Market Research, the global compressed natural gas (CNG) and liquefied petroleum gas (LPG) market is expected to grow at a compound annual growth rate of 10.1% during the time period of 2016 to 2022.
Increasing population and urbanization, growing demand for passenger and commercial vehicles mainly in developing economies, and stringent emission control norms across the globe are expected to drive the demand for CNG and LPG vehicles over the forecast period. The report says global demand for CNG and LPG vehicles is fueled by unstable conventional fuel prices, which are driving people toward using CNG and LPG vehicles.
An increase in the development of the infrastructure network for CNG and LPG fueling stations is expected to continue driving the demand for CNG and LPG vehicles in the coming years.
The report notes that specifically, an increasing number of CNG- and LPG-powered transit buses during the forecast period is expected to drive the growth of the market. Moreover, the increasing use of waste collection vehicles running on CNG and LPG is also supporting the growth of the vehicle market in developed regions. Wider use of natural gas in both short-haul fleets and long-distance trucking is being facilitated by the development of CNG, LPG and liquefied natural gas fueling networks.
Technological innovation is producing more affordable light-duty, medium-duty and heavy-duty natural gas truck options, as well as natural gas-fueled passenger vehicles. These factors are driving the growth of the CNG and LPG vehicle market in developed economies.
Based on fuel type, the market of LPG vehicles has been larger than CNG vehicles in 2015. The market of CNG and LPG vehicles was the largest in passenger car segments in 2015 compared with other vehicle types.
According to the report, Europe was the largest market for CNG and LPG vehicles in 2015. The major reason for the growth of the European market includes high cost for diesel and stringent regulation by the Eurpoean Union for low emissions across Europe. The CNG and LPG vehicle market in South America is expected to increase at a significant rate, driven by a growing automotive industry and increasing infrastructure for CNG and LPG fueling stations.
The report says Asia-Pacific was the second-largest market for CNG and LPG vehicles in 2015. The infrastructural developments and high investments from major original equipment manufacturers have fueled the growth of personal and passenger vehicles and, thus, the CNG and LPG vehicles market in the region.
Some of the major players operating in the global CNG and LPG vehicle market include Ford Motor Co., Suzuki Motor Corp., Fiat Chrysler Automobiles NV, Honda Motor Co., Volkswagen Group, Hyundai Motor Group, General Motors Co., Groupe Renault, Kia Motors Corp., Mercedes-Benz, The Volvo Group, Isuzu Motors Ltd., Toyota Motor Corp. and Mitsubishi Motors Corp.