CNG Powertrain Market

CNG Powertrain Market Size (2022 - 2027):

The Global CNG Powertrain Market is expected to be valued at USD 232.8 billion by 2027, growing at a CAGR of 16.68% from 2022 to 2027.

CNG powertrains are propulsion systems used in vehicles that run on CNG as fuel. CNG is a clean-burning, domestically-produced fuel that compresses natural gas to high pressure. It is often used as an alternative to gasoline or diesel fuel in vehicles. CNG powertrains consist of a CNG fuel tank, a fuel delivery system, and an internal combustion engine modified to run on CNG. The fuel delivery system regulates the flow of CNG from the fuel tank to the engine, and the engine burns the CNG to generate power. CNG powertrains are typically used in vehicles designed to run on CNG from the factory, such as buses, garbage trucks, and some passenger cars. They are also used in vehicles converted to run on CNG by adding a CNG fuel system to a vehicle originally designed to run on gasoline or diesel fuel. CNG powertrains have several advantages over traditional gasoline or diesel powertrains. They emit fewer greenhouse gases and other pollutants and are typically cheaper to operate than gasoline or diesel vehicles due to the lower cost of CNG fuel. However, CNG vehicles generally have a lower range than gasoline or diesel vehicles, and the availability of CNG fueling stations can be limited in some areas.

Market Drivers:

The incentives provided by various governments across the world towards CNG vehicles are one of the primary factors driving the CNG powertrain market growth. Governments worldwide have implemented various incentives to encourage the adoption of CNG vehicles, such as tax credits, grants, and other financial incentives. These incentives have helped to drive the growth of the CNG powertrain market. In addition, the environmentally-friendly nature of CNG powertrains is further propelling the market growth. CNG powertrains are a more environmentally friendly alternative to gasoline and diesel powertrains, emitting fewer greenhouse gases and other pollutants. This has led to a growing demand for CNG vehicles in countries looking to reduce carbon footprints and meet emissions regulations.

In addition, lower fuel costs associated with CNG powertrains are anticipated to promote the market’s growth rate. CNG is cost-friendly compared to gasoline and diesel, a much better option for fleet operators and other commercial users looking for decreased fuel costs. The wide availability of natural gas is favoring the growth rate of the CNG powertrains market. Natural gas is a widely-available fuel source and is typically cheaper and easier to produce than gasoline or diesel fuel. This makes CNG a more attractive fuel option in abundant natural gas regions.

Furthermore, the growing adoption of technological developments is predicted to fuel the market’s growth rate. Advances in CNG fuel systems and internal combustion engine technology have made it possible to produce CNG vehicles with improved performance and range compared to earlier models. This has helped increase CNG vehicles' appeal to consumers and fleet operators.

Market Restraints:

One of the potential restraints limiting the growth of the CNG powertrain market is the limited availability of CNG fuelling stations. Furthermore, poor infrastructure, range limitations, and high costs associated with the CNG powertrains are anticipated to impact market growth during the forecast period negatively. In some countries, the infrastructure for distributing and storing CNG is underdeveloped, making it challenging to supply CNG to fueling stations and other users.

Market Opportunities:

The increasing demand for alternative fuel sources, as governments and consumers look for ways to reduce their reliance on traditional fossil fuels, is anticipated to offer growth opportunities to the participants in the CNG powertrain market. Furthermore, the increasing adoption of natural gas as a feedstock to produce chemicals, fertilizers, and other industrial products and this increased demand for natural gas is expected to lead to a corresponding increase in the production and use of CNG as a transportation fuel. It is expected to provide growth possibilities in the market. In addition, factors such as favorable government policies and incentives, the increasing availability of CNG refueling infrastructure, and the increasing cost competitiveness of CNG compared to other fuels are predicted to offer lucrative growth possibilities in the CNG powertrain market.

Market Key Developments:

• In March 2022, the Indian government announced introducing 100 buses powered by compressed natural gas (CNG) to the capital of India in March 2022. CNG is a clean-burning alternative fuel that can be used in place of gasoline or diesel in internal combustion engines. Using CNG in public transportation, such as buses, can help reduce air pollution and greenhouse gas emissions. It is not uncommon for governments to implement plans to introduce alternative fuel vehicles into their transportation fleets to reduce transportation's environmental impact.

CNG POWERTRAIN MARKET REPORT COVERAGE:

Market Segmentation:

CNG Powertrain Market – By Drive:

• All-wheel Drive
• Rear Wheel Drive
• Front Wheel Drive

Based on the drive, the front-wheel drive segment accounted for more than half of the global market share in 2021. The front-wheel drive segment's growth is likely driven by a desire to reduce the environmental impact of transportation. CNG is a clean-burning alternative fuel that can help reduce air pollution and greenhouse gas emissions when used in place of gasoline or diesel. Front-wheel drive vehicles are also typically more fuel efficient than rear-wheel drive vehicles, which may also be a factor in the growing usage of front-wheel drive CNG powertrains.

CNG Powertrain Market – By Fuel Type:

• Mono Fuel
• Bi-fuel

Based on fuel type, the bi-fuel segment captured the most significant share of the global market in 2021, and the domination of the segment is expected to continue during the forecast period owing to the benefits associated with bi-fuel. Bi-fuel vehicles offer several benefits. For example, they can provide a more convenient and cost-effective alternative to vehicles specifically designed to run on a single fuel, such as CNG-only vehicles. Bi-fuel vehicles can switch between fuels, depending on availability and price. This can be especially useful in areas where CNG infrastructure is limited.

CNG Powertrain Market – By Vehicle:

• Passenger Vehicle
• Commercial Vehicle

Based on vehicles, the passenger segment had a significant share of the global CNG powertrain market in 2021. On the other hand, the commercial segment is predicted to grow at a healthy CAGR during the forecast period.

CNG Powertrain Market – By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Geographically, the Asia-Pacific region was predicted to dominate the CNG powertrain market in 2021. The APAC region is a large and diverse region that includes countries such as China, India, Japan, and Australia, among others. The CNG powertrain market in this region is likely driven by various factors, including the availability and price of CNG, government incentives and regulations related to alternative fuels, and consumer demand for fuel-efficient and environmentally friendly vehicles. The CNG powertrain market in the APAC region is likely growing as CNG is increasingly seen as a viable alternative to gasoline and diesel. This is partly because CNG is a cleaner-burning fuel that can help reduce air pollution and greenhouse gas emissions. It is also typically more affordable than gasoline or diesel in many APAC countries. In addition, government policies and initiatives in the region may promote the use of CNG and other alternative fuels in the transportation sector.

COVID-19 Impact on the Global CNG Powertrain Market:

The COVID-19 pandemic has shown a severe negative impact on the global CNG powertrain market in the recent past. Due to the COVID-19 pandemic, the demand for CNG powertrain systems has been affected significantly. In addition, the economic downturn and reduced demand for transportation fuels, in general, further hampered the market’s growth rate. To control the widespread coronavirus, many countries across the world have implemented strict lockdowns and travel bans, which led to a significant decline in travel and transportation and resulted in reduced demand for CNG powertrain systems. Despite these challenges, the global CNG powertrain market is predicted to recover and register a healthy CAGR during the forecast period.

Market Key Players:

1. Cummins Inc.
2. AB Volvo
3. Robert Bosch GmbH
4. FPT Industrial S.P.A.
5. Ford Motor Company