Africa CNG and LPG Vehicle Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.28 Billion |
| Market Size (2029) | USD 1.9 Billion |
| CAGR (2024 - 2029) | 6.78 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Africa CNG and LPG Vehicle Market Analysis
The Africa CNG And LPG Vehicle Market size is estimated at USD 1.28 billion in 2024, and is expected to reach USD 1.9 billion by 2029, growing at a CAGR of 6.78% during the forecast period (2024-2029).
Africa's transportation sector is undergoing a gradual shift toward cleaner and more sustainable fuels, primarily driven by a focus on environmental concerns and the reduction on the dependence on traditional fossil fuels and government policies that promote cleaner energy sources. Thus, the market for CNG and LPG vehicles is gaining traction as viable alternatives to conventional gasoline and diesel vehicles.
While the adoption of CNG and LPG vehicles in Africa is still relatively modest compared to other regions, there is a growing interest and investment in these alternative fuel technologies. The market size varies across different countries within the continent with some regions experiencing faster growth rates due to supportive regulatory frameworks and infrastructure development.
The increasing awareness about the environmental impact of conventional vehicles, including air pollution and greenhouse gas emissions, is prompting consumers and policymakers to seek cleaner alternatives. CNG and LPG typically offer cost advantages over gasoline and diesel, making them attractive options for fleet operators and individual vehicle owners seeking to lower fuel expenses.
Many African governments are implementing policies and incentives to encourage the adoption of alternative fuels, including tax incentives, subsidies, and regulatory measures such as emissions standards and fuel mandates.
Investment in expanding refueling infrastructure, including CNG/LPG stations and distribution networks, presents a significant opportunity for private investors and government agencies.
Considering these factors, demand for CNG and LPG vehicles is expted to witness positive growth rate during the forecast period.
Africa CNG and LPG Vehicle Market Trends
Compressed Natural Gas will Hold Highest Growth Potential
The low fuel cost of compressed natural gas, which reduces the per kilometer driving cost of the vehicles, is encouraging more vehicle users, especially taxi fleet operators, to convert their conventional fuel vehicles.
Nearly half of the CO2 emissions on the African continent come from South Africa, which is the 12th largest emitter of the gas in the world. This is mostly attributed to coal-fired power generation, transportation, and mining making the environmental pollution worsen. The largest metropolis in sub-Saharan Africa, Johannesburg, ranked as the eighth most polluted city in the world. The nation is taking significant steps to develop a climate plan to reach the peak of its national emissions by 2025. This is fuelled by adopting economical and best alternative of gasoline vehicles that is CNG powered vehicles.
In every situation examined and tested, CNG has been proven to be less expensive than competing fuels in terms of fuel cost and efficiency. The difference varies between 35% and 75% when compared to diesel and gasoline, 20% when compared to electric vehicles, and 60% when compared to gasoline-electric hybrid vehicles as well.
These CNG fuels offer an engine efficiency that is 50% quieter and offers a low CO2 rate of between 7% and 16%. With ongoing research and innovation in fuel technology, Bio-CNG, which is still in its early stages of development, has been seen as a potential alternative to cut CO2 emissions completely. The price of fuel and the cost of purchasing the vehicle are the two main economic considerations at play.
CNG typically offers cost savings compared to gasoline and diesel fuels. The lower cost of natural gas, coupled with potential government incentives and subsidies for CNG adoption, makes it an economically attractive option for fleet operators and individual vehicle owners looking to reduce fuel expenses.
While infrastructure for CNG refueling is still developing in Africa, there is momentum in establishing CNG filling stations and distribution networks across the continent. The improvement and expansion of infrastructure is expected to faclitate greater adoption of CNG vehicles and contribute to market growth.
Considering these factors, the demand for compressed natural fuel is anticipated to experience the highest growth potential during the forecast period.
Egypt Dominates the Market in Africa
Egypt is expected to dominate the market over other African countries. The conversion rate of old conventional fuel-based vehicles in the country is rising because of the low operational cost.
Under the conversion program initiative, Egypt’s government is spending heavily on providing the infrastructure required for the promotion of CNG vehicles in the country. The conversion program aims to increase the conversion rate of vehicles to about 2,600 per month by encouraging owners to utilize the low-cost advantages and access to finance, aiming to facilitate and expand the infrastructure of natural gas fueling stations and conversion centers. Egyptian fuel station operator Gastec has also strategically partnered itself with Eni in order to develop multi-energy stations across the country which will offer alternative fuels apart from diesel and gasoline.
Egypt has demonstrated a proactive approach toward promoting the adoption of CNG and LPG vehicles through various government policies and initiatives. These include incentives such as tax breaks, subsidies, and regulations that favor alternative fuel vehicles. Such support creates a favorable environment for market growth and encourages consumers and businesses to embrace CNG and LPG vehicles.
Egypt has invested significantly in building out infrastructure for CNG and LPG including a comprehensive network of refueling stations and conversion centers. This extensive infrastructure provides convenient access to alternative fuels for vehicle owners across the country, thereby facilitating higher adoption rates compared to other African nations where infrastructure may be less developed.
Egypt has emerged as a leader in the region in the manufacturing, distribution, and servicing of CNG and LPG vehicles. The presence of local industry players, along with partnerships with international manufacturers and technology providers, contributes to the growth and development of the market in Egypt.
Considering these developments and factors, Egypt is expted to lead the Africa CNG and LPG vehicle market during the forecast period.
Africa CNG and LPG Vehicle Industry Overview
The African CNG and LPG vehicle market is fragmented, and many players account for a small market share. Some of the prominent companies in the African CNG and LPG Vehicle Market are ExoGas, Seat SA, Volkswagen AG, BRC Gas Equipments and others. These players are investing heavily in the research and development of CNG and LPG vehicles.
For instance, in August 2022, CNG Holdings and Scania, with their mutual alliances, delivered South Africa's first dedicated natural gas truck. The CNG trucks that were introduced follow the Euro VI compliance standards.
Africa CNG and LPG Vehicle Market Leaders
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Seat S.A.
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Exo Gas
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Zavoli
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BRC Gas Equipment
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Cummins Inc.
*Disclaimer: Major Players sorted in no particular order
Africa CNG and LPG Vehicle Market News
- November 2023: Tanzania introduced its inaugural integrated facility for compressed natural gas (CNG), marking the country's debut of a combined CNG filling station and conversion center.
- September 2023: Asiko, a company specializing in clean energy solutions within Nigeria's energy sector, introduced a 300 metric tonnes liquefied petroleum gas (LPG) and compressed natural gas (CNG) depot in Utesi, located in the Ikpoba Okha local government area of Edo state. This initiative directly supports the federal government's primary goal of achieving a 5 million MT consumption target for LPG by 2023.
- May 2022: TAQA Arabia, an Egyptian midstream hydrocarbon infrstracture provider, delivered the first five CNG vehicles to Equatorial Guinea. The vehicles were supplied under a supply agreemnent with the Ministry of Mines and Hydrocarbon to collaborate on the Central African gas market expansion plans.
- March 2022: Suzuki introduced its second generation Celerio in South Africa. The car is fitted with OE CNG kit in order to improve the car fuel efficiency.
Africa CNG and LPG Vehicle Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Investments in Refueling Infrastructure Is Driving the Market Growth
4.2 Market Restraints
4.2.1 Inadequate Regulatory Frameworks is Anticipated to Restrain the Market Growth
4.3 Porters Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Fuel Type
5.1.1 Compressed Natural Gas
5.1.2 Liquified Petroleum Gas
5.2 Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
5.3 Sales Channel
5.3.1 OEM
5.3.2 Aftermarket
5.3.3
5.4 Country
5.4.1 Egypt
5.4.2 Nigeria
5.4.3 South Africa
5.4.4 Morocco
5.4.5 Ethiopia
5.4.6 Rest of Africa
5.4.7
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Seat SA
6.2.2 ExoGas
6.2.3 BRC Gas Equipments
6.2.4 Cummins Inc.
6.2.5 Zavoli
6.2.6 Valtec
6.2.7 African Gas Equipment
6.2.8 Iveco S.p.A
6.2.9 Volkswagen AG
6.2.10 AB Volvo
6.2.11 Ford Motor Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Africa CNG and LPG Vehicle Industry Segmentation
Motor vehicles powered with alternative fuels including liquified petroleum gas and compressed natural gas in order to reduce greenhouse emissions are referred to as CNG and LPG vehicles.
The Africa CNG and LPG vehicle market is segmented by fuel type, vehicle type, sales channel, and country. By fuel type, the market is segmented into compressed natural gas (CNG) and liquefied petroleum gas (LPG). By vehicle type, the market is segmented into passenger cars and commercial vehicles. By sales channel, the market is segmented into OEM and aftermarket, and on the basis of country, the market is segmented into Egypt, Nigeria, South Africa, Northern Africa, Morocco, Ethiopia, and the Rest of Africa. For each segment, the market sizing and forecasting are based on value (USD).
| Fuel Type | |
| Compressed Natural Gas | |
| Liquified Petroleum Gas |
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| Sales Channel | |
| OEM | |
| Aftermarket |
| Country | |
| Egypt | |
| Nigeria | |
| South Africa | |
| Morocco | |
| Ethiopia | |
| Rest of Africa |
Africa CNG and LPG Vehicle Market Research FAQs
How big is the Africa CNG And LPG Vehicle Market?
The Africa CNG And LPG Vehicle Market size is expected to reach USD 1.28 billion in 2024 and grow at a CAGR of 6.78% to reach USD 1.9 billion by 2029.
What is the current Africa CNG And LPG Vehicle Market size?
In 2024, the Africa CNG And LPG Vehicle Market size is expected to reach USD 1.28 billion.
Who are the key players in Africa CNG And LPG Vehicle Market?
Seat S.A., Exo Gas, Zavoli, BRC Gas Equipment and Cummins Inc. are the major companies operating in the Africa CNG And LPG Vehicle Market.
What years does this Africa CNG And LPG Vehicle Market cover, and what was the market size in 2023?
In 2023, the Africa CNG And LPG Vehicle Market size was estimated at USD 1.19 billion. The report covers the Africa CNG And LPG Vehicle Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa CNG And LPG Vehicle Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Africa CNG and LPG Vehicle Industry Report
Statistics for the 2024 Africa CNG and LPG Vehicle market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa CNG and LPG Vehicle analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Africa CNG and LPG Vehicle Market Report Snapshots
