The global CNG and LPG vehicle market is gaining strong traction as the automotive industry shifts toward cleaner and more economical fuel alternatives. With rising gasoline and diesel prices and a growing demand for affordable, eco-friendly vehicles, the market is expected to expand steadily.
The market, valued at USD 3.93 billion in 2024, is projected to reach USD 6.75 billion by 2034, growing at a CAGR of 4.93% during 2025–2034. Asia Pacific currently leads the market, with North America anticipated to witness significant growth.
Market Highlights
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Leading Region: Asia Pacific
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Strongest Segment by Vehicle Type: Passenger cars
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Fastest-Growing Vehicle Type: Light Commercial Vehicles (LCVs)
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Dominant Fuel Type: CNG
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Fastest-Growing Fuel Type: LPG
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Leading Sales Channel: OEMs
Market Drivers
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Rising Fuel Prices – The U.S. Department of Energy reports gasoline prices rose from USD 2.17 per gallon in 2020 to USD 3.5 in 2023.
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Eco-Friendly Alternatives – Increasing demand for fuel-efficient vehicles among middle-income populations in countries such as India, China, and Egypt.
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Technological Advancements – Automakers are launching advanced CNG and LPG variants with improved mileage and safety.
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Market Segmentation
By Vehicle Type
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Passenger Cars – Largest share driven by affordability and demand in emerging markets.
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LCVs – Growing adoption in logistics, utilities, and e-commerce sectors.
By Fuel Type
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CNG Vehicles – Widely adopted due to cost efficiency and growing OEM investment.
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LPG Vehicles – Projected to grow due to government initiatives and adoption by fleet operators.
By Sales Channel
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OEMs – Preferred due to warranties and better quality.
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Retrofitting – Rising adoption in developing countries due to affordability.
Regional Insights
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Asia Pacific: Largest market share, driven by India, China, and Japan. Rapid adoption of CNG taxis and strong presence of OEMs.
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North America: Strong growth expected due to investments in CNG infrastructure and eco-friendly truck demand.
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Europe & Latin America: Gradual adoption supported by environmental regulations.
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Top Companies in the CNG and LPG Vehicle Market
1. Maruti Suzuki
About: India’s largest automobile manufacturer, leading in CNG car production.
Products: CNG passenger cars including Maruti WagonR CNG, Swift CNG, Dzire CNG.
Market Cap: Approx. USD 40 billion (as of 2025).
2. Hyundai Motor Company
About: A South Korean global automotive leader with a strong focus on eco-friendly mobility.
Products: CNG and LPG passenger cars such as Hyundai Aura CNG, Hyundai Exter Hy-CNG Duo.
Market Cap: Approx. USD 33 billion.
3. Mahindra & Mahindra
About: A leading Indian multinational in automotive and commercial vehicles.
Products: Mahindra Veero CNG (LCV), SUVs and tractors with CNG integration.
Market Cap: Approx. USD 24 billion.
4. IVECO
About: Italian industrial vehicle manufacturer, specializing in commercial vehicles.
Products: CNG-powered buses, vans, and heavy-duty trucks.
Market Cap: Approx. USD 3.5 billion.
5. Kion Group
About: German multinational specializing in material handling and mobility solutions.
Products: LPG and CNG-powered forklifts and industrial vehicles.
Market Cap: Approx. USD 7.8 billion.
6. Nikki Co. Ltd.
About: A Japanese company producing automotive components, including CNG and LPG fuel systems.
Products: Bi-fuel systems, carburetors, and engine management solutions.
Market Cap: Approx. USD 1.1 billion.
Industry Developments
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Honda launched Elevate CNG in India (April 2025).
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Mahindra unveiled Veero CNG LCV (January 2025).
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Ashok Leyland introduced an 18.5T CNG long-haul truck with a 1150 km range (August 2023).
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Government of India announced LPG vehicle promotion initiative (September 2024).
FAQs
Q1. What is the projected market size of the CNG and LPG vehicle market by 2034
The market is projected to reach USD 6.75 billion by 2034.
Q2. Which region currently leads the CNG and LPG vehicle market
Asia Pacific holds the largest share, driven by India, China, and Japan.
Q3. Which fuel type dominates the market
The CNG segment dominates the market due to cost efficiency and wide adoption.
Q4. Who are the top companies in this market
Key players include Maruti Suzuki, Hyundai Motor Company, Mahindra & Mahindra, IVECO, Kion Group, and Nikki Co. Ltd.
Q5. What factors are driving the growth of the CNG and LPG vehicle market
Key drivers include rising fuel prices, demand for eco-friendly alternatives, and government support for cleaner fuels.
Source : https://www.towardsautomotive.com/insights/cng-and-lpg-vehicle-market-sizing
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