According to market research 'Global CNG and LPG Vehicle Market Size, Share, Development, Growth and Demand Forecast to 2022 - Industry Insights by Fuel type (LPG, CNG), by Vehicle Type (Passenger Car, Light & Heavy Duty Trucks, Bus)' by P&S Market Research, the global CNG and LPG market was valued at 459 524 000 units in 2015, and it is expected to grow at a CAGR of 10.1% during 2016 - 2022.
Increasing population and urbanisation, 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 global demand for CNG and LPG vehicle is fuelled by the unstable conventional fuel prices, which is driving the interest of people towards using CNG and LPG vehicles, as the overall price of CNG and LPG when compared to the cost of either gasoline or refined diesel fuels is low. Increase in the development of the infrastructure network for CNG and LPG fuelling stations is expected to drive the demand for CNG and LPG vehicles in the coming years.
Rapid transit vehicles are gaining popularity due to their rapid mobility and high seating capacity. Increasing number of CNG/LPG powered transit buses during the forecast period drives the growth of the CNG and LPG vehicle market. Moreover, increasing use of waste collection vehicles, runs on CNG and LPG and is thus supporting the growth of the CNG and LPG 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 LNG fuelling networks. Technological innovation is producing more affordable light, medium and heavy duty natural gas truck options, as well as natural gas fuelled passenger vehicles. These factors are driving the growth of the CNG and LPG vehicle market in the 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 vehicle was the largest in passenger car segment in 2015, compared to other vehicle types.
Europe was the largest market for CNG and LPG vehicles in 2015. The major reason for the growth of the market in Europe includes high cost for diesel and stringent regulation by EU for low emission across the Europe. CNG and LPG vehicle market in South America is expected to increase at a significant rate, driven by growing automotive industry and increasing infrastructure for CNG and LPG fuelling stations.
Asia-Pacific was the second largest market for CNG and LPG vehicle in 2015. The infrastructural developments and high investments from major OEMs have fuelled the growth of personal and passenger vehicles, and thus the CNG and LPG vehicles market in the region.
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