Automotive Natural Gas Vehicle Market:

Market Research Future Insights

The automotive natural gas vehicle market was valued at USD 13.6 billion in 2023. It is forecasted to grow to USD 14.41 billion in 2024 and is expected to hit USD 21.6 billion by 2032. This reflects a CAGR of 5.18% over the 2024 to 2032 period.

The automotive natural gas vehicle (NGV) market is witnessing significant growth globally, driven by environmental concerns, energy security, and economic incentives. This analysis delves into the key trends, drivers, challenges, and future outlook of the Automotive Natural Gas Vehicle Market.

The automotive natural gas vehicle market is rapidly growing due to the increased demand for natural gas as an alternative fuel source. Natural gas vehicles are becoming more popular because of their features and functionalities, such as low emissions. The need for cleaner fuels is driving the market growth of automotive natural gas vehicles.

The coronavirus pandemic has had a devastating effect on economies across the globe, causing a severe health crisis. Now people are more concerned about their health and trying to recover from the many challenges they face daily. Pollution is a big problem, especially in urban cities, and that's why the government is taking so many necessary steps to address it. Because of these things, the demand for and value of automated natural gas vehicles is growing. This market is expected to rise shortly due to its functionalities.

Regional Analysis

Asia Pacific is expected to grow at a higher rate than other regions during the forecast period due to the increased manufacturing and sales of passenger cars. In countries such as India, the Ministry of Petroleum and Natural Gas is encouraging the adoption of natural gas by drafting the city gas distribution policy (CGD).

North America is expected to witness stable growth attributed to the exponential increase in the adoption of NGV by fleet operators.

United States Automotive Natural Gas Vehicle Market is driven by stringent emission norms and the growing adoption of alternative fuels. Key regions like California lead due to supportive policies and infrastructure. The Midwest sees rising fleet conversions, while the Southeast explores opportunities in LNG for heavy-duty vehicles, highlighting regional growth disparities.

Market Segmentation

The global Automotive Natural Gas Vehicle market has been segmented into fuel type and vehicle type.

Based on fuel type, the market has been segmented into CNG and LNG. CNG currently holds the largest share of the automotive fuel market. The expansion of the CNG market is largely due to the stringent emission norms being implemented by various countries to curb emissions from vehicles.

Based on vehicle type, the market has been segmented into Light-duty, Medium-duty, and Heavy-duty. The passenger car segment is projected to dominate the market. Due to the deteriorating air quality and environment, consumers are becoming more inclined to adopt low greenhouse gas emitting fuels like CNG and LPG. Economically, CNG cars provide significant savings as they are 50% more cost-effective than gasoline and 40% more cost-effective than diesel.

Key Companies in the Automotive Natural Gas Vehicle Market Include

Dongfeng Motors Group Limited (China)

AB Volvo (Sweden)

BeiqiFoton Motors Group Limited (China)

Shaanxi Automobile Group Limited (China)

Daimler AG (Germany)

CNH Industrial NV (The Netherlands)

Landi Renzo (Italy)

Westport (Canada)

Automotive Natural Gas Vehicle Industry Updates 2025

Shaanxi Automobile Group Limited (China)

Industry Development - March 2025

Shaanxi Automobile Group Limited unveiled its new X9000 Series of heavy-duty natural gas trucks with advanced cryogenic storage technology, enabling a 1,200 km range on a single fill. The announcement came during the company's quarterly product showcase in Xi'an. The X9000 Series features a new generation of natural gas engines that reduce methane slip by 85% compared to previous models, addressing one of the key environmental concerns with natural gas vehicles.

Daimler AG (Germany)

Industry Development - February 2025

Daimler AG announced a strategic partnership with European gas infrastructure provider Gas Net to develop 50 new biomethane refuelling stations across Europe by the end of 2025. The partnership aims to address infrastructure limitations for natural gas vehicles in the European market. The announcement coincided with Daimler's introduction of its updated Mercedes-Benz Actros NGT (Natural Gas Technology) truck series with 15% improved fuel efficiency and compatibility with 100% renewable biomethane.

Explore More Trending Report

Autonomous Bus Market
Bus HVAC Market
Car Microphone Market
Car Sharing Telematic Market
Construction Equipment Tire Market