CNG AND LPG VEHICLE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Regional Analysis

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The Asia Pacific region, led by India and Pakistan, will dominated the global CNG and LPG vehicle market with the market share by 37.2% in 2024. With rising fuel prices and deteriorating air quality in major cities, both countries have strongly promoted the use of cleaner alternate fuels like CNG and LPG in the transportation sector over the last decade. India, in particular, has one of the largest CNG vehicle fleets in the world with over 5 million vehicles currently running on CNG. This is bolstered by a widespread CNG refuelling infrastructure across major cities with over 3500 stations. Leading auto makers have also introduced popular CNG variants of best-selling models to capture this growing demand. The supportive government policies like fuel subsidies and tax benefits on CNG vehicles have further driven their adoption in the commercial segment.

The Asia Pacific region has emerged as the fastest growing market for CNG and LPG vehicles globally. Countries like Indonesia, Thailand, and Vietnam have seen tremendous growth in their vehicle in recent years due to rising incomes. While personal vehicles still mostly run-on gasoline, the commercial transportation sector is rapidly shifting towards CNG and LPG due to their lower operating costs. This is evident from the increasing number of CNG/LPG powered buses, taxis and delivery vans plying on the roads of major ASEAN cities. Local auto manufacturers have recognized this opportunity and are aggressively promoting eco-friendly models compatible with these alternate fuels. The governments of ASEAN nations are also incentivizing this shift by expanding the refuelling infrastructure and offering purchase incentives on CNG/LPG vehicles. This is expected to boost their regional market share over the coming years.