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

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 a CAGR of around 3.5% over the forecast period, 2020-2027. The rising adverse impact of harmful gas emissions is anticipated to trigger the transportation industry to seek natural gas-fueled vehicles. In addition, the increasing trend of natural gas-based vehicles owing to supportive government initiatives is projected to propel market growth.

The 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 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.

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, the growing manufacturing sector, and rising electricity demand. However, prices of natural gases are declining since 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 the protection of the 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 the growing demand for NGV vehicles. Some of the key initiatives by the Environment Protection Agency (EPA), the National Green Tribunal (India), and other such agencies are promoting the usage of LNG and CNG across the automotive sector.

However, the COVID-19 pandemic is projected to restrain the market growth of the automotive industry. For example, the automotive industry in the 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 the 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 environmental sustainability are anticipated to boost the growth of NGV vehicles in the next few years. The CNG-based fuel system is designed with safety standards set by the Federal Motors Vehicle in the 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, the 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 the rising emission of hazardous greenhouse gases. Thus, in developing countries like India, China, Saudi Arabia, and Iran, consumers are shifting towards alternative solutions.

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, the growing penetration of light-duty & heavy-duty buses and trucks in countries like India, Bangladesh, and Thailand is also expected to foster segmental growth.

Regional Insights

In 2019, Asia Pacific led the global automotive NGV market. Growing advancements in CNG vehicles across the Asia Pacific are projected to propel 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 vehicles is projected to restrain the market growth. In addition, the COVID-19 pandemic has impacted the automotive sector across the world. In 2020, the Chinese auto industry has already suffered a decline in its sales by around 80.0%.

COVID-19 Impact Insights

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

However, a supportive government initiative with a focus on reducing the emission of gases is expected to boost market growth over the forecast period. For example, the Indian Auto LPG Coalition is aiming to promote natural gas-fueled vehicles in the country. The market is recovering, as most automobile companies have re-opened. The market for light-duty and heavy-duty vehicles is projected to grow at a 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 a biofuel-based production center. Similarly, a Westport fuel system has signed an agreement with Snam SPA, in 2018 for selling CNG compressors in the Italian market.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of 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
    • the Asia Pacific
        • China
        • India
        • Bangladesh
        • Thailand
    • South America
        • Brazil
    • Middle East & Africa (MEA)