CNG and LPG Vehicle Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The CNG and LPG Vehicle Market Report is Segmented by Fuel Type (Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG)), Vehicle Type (Passenger Cars and Commercial Vehicles), Sales Channel (OEM and Retrofitting), and Geography (North America (United States, Canada, and Rest of North America), Europe (Germany, United Kingdom, France, Italy, and Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and Rest of the World (Middle East and Africa and South America)). The Report Offers the Market Size in Value (USD) and Forecasts for all the Above Segments.

CNG and LPG Vehicle Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

CNG LPG Vehicle Market Size

CNG and LPG Vehicle Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 7.20 Billion
Market Size (2030) USD 10.10 Billion
CAGR (2025 - 2030) 7.00 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration Low

Major Players

CNG and LPG Vehicle Market  Major Players

*Disclaimer: Major Players sorted in no particular order

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CNG LPG Vehicle Market Analysis

The CNG LPG Vehicle Market size is estimated at USD 7.20 billion in 2025, and is expected to reach USD 10.10 billion by 2030, at a CAGR of 7% during the forecast period (2025-2030).

Over the medium term, the market for CNG and LPG vehicles is expected to expand due to growing environmental concerns, higher fuel costs, and the emphasis on energy diversification. Significant advancements in CNG and LPG vehicle technologies have been made in recent years, including fuel storage, engine efficiency, and safety features. These improvements have increased the competitiveness of CNG and LPG vehicles in terms of performance and reliability.

As the world moves toward sustainable energy, CNG and LPG vehicles are expected to remain important, particularly in areas with underdeveloped EV infrastructure. Ongoing advancements in vehicle technology and fuel infrastructure could further increase the attractiveness of CNG and LPG vehicles in the market.

Lower operational costs, stemming from the cheaper prices of CNG and LPG compared to petrol and diesel, are significant factors driving their usage. This benefit is especially attractive for commercial and high-mileage vehicles. The tightening of emission regulations globally is also leading to increased adoption of CNG and LPG vehicles, as they produce fewer pollutants compared to conventional fuels.

Asia-Pacific is the largest market for automobiles in the world. Despite the slow growth in the Chinese market, the largest automobile market globally, the region is expected to drive growth in the CNG and LPG vehicle market during the forecast period.

CNG LPG Vehicle Industry Overview

The CNG and LPG vehicle market is dominated by several global and local players. Some of the major players are Hyundai Motor Company, Suzuki Motor Corporation, Nissan Motor Co. Ltd, Volkswagen AG, and Honda Motor Company. The major companies are launching new products and forming joint ventures to cement their market positions. For instance:

  • In June 2024, at the Bharat Mobility Global Expo 2024, Tata Motors unveiled the Nexon iCNG, marking the fifth introduction to Tata's CNG lineup. Notably, the Nexon iCNG is the first turbo-petrol car equipped with a factory-fitted CNG kit. This innovative offering showcases Tata's commitment to eco-friendly and efficient mobility solutions.
  • In November 2023, the Indian government announced its commitment to significantly expanding the network of CNG stations, with an ambitious target to increase the count from 6,000 to 17,700 by 2030. This strategic move aims to close the gaps in the existing gas infrastructure, which is expected to substantially drive the growth of the CNG and LPG vehicle market.

CNG LPG Vehicle Market Leaders

  1. Hyundai Motor Company

  2. Suzuki Motor Corporation

  3. Volkswagen AG

  4. Ford Motor Company

  5. Honda Motor Co. Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
CNG and LPG Vehicle Market Concentration
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CNG LPG Vehicle Market News

  • June 2024: Sacania United Kingdom announced the launch of an innovative new three-axle (6×2) CNG truck. This new 44-tonne 6×2 vehicle is set to become one of the most sought-after articulated truck formats in the United Kingdom.
  • June 2023: The National Economic Council (NEC) approved the proposal by the National Automotive Design and Development Council (NADDC) for initiating large-scale production of electric vehicles and vehicles powered by CNG in Nigeria.

CNG and LPG Vehicle Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Deliverables
  • 1.2 Study Assumptions
  • 1.3 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Increasing Demand for Clean Energy Driving the Market
  • 4.3 Market Restraints
    • 4.3.1 Rising Safety Concerns Anticipated to Restrain the Market
  • 4.4 Value Chain/Supply Chain Analysis
  • 4.5 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.5.1 Threat of New Entrants
    • 4.5.2 Bargaining Power of Buyers/Consumers
    • 4.5.3 Bargaining Power of Suppliers
    • 4.5.4 Threat of Substitute Products
    • 4.5.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION (Market Size in Value (USD))

  • 5.1 By Fuel Type
    • 5.1.1 Compressed Natural Gas (CNG)
    • 5.1.2 Liquefied Petroleum Gas (LPG)
  • 5.2 By Vehicle Type
    • 5.2.1 Passenger Cars
    • 5.2.2 Commercial Vehicles
  • 5.3 By Sales Channel
    • 5.3.1 OEM
    • 5.3.2 Retrofitting
  • 5.4 By Geography
    • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.1.3 Rest of North America
    • 5.4.2 Europe
    • 5.4.2.1 Germany
    • 5.4.2.2 United Kingdom
    • 5.4.2.3 France
    • 5.4.2.4 Italy
    • 5.4.2.5 Spain
    • 5.4.2.6 Rest of Europe
    • 5.4.3 Asia-Pacific
    • 5.4.3.1 India
    • 5.4.3.2 China
    • 5.4.3.3 Japan
    • 5.4.3.4 South Korea
    • 5.4.3.5 Rest of Asia-Pacific
    • 5.4.4 Rest of the World
    • 5.4.4.1 South America
    • 5.4.4.2 Middle East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles*
    • 6.2.1 Hyundai Motor Company
    • 6.2.2 Suzuki Motor Corporation
    • 6.2.3 Nissan Motor Co. Ltd
    • 6.2.4 Volkswagen AG
    • 6.2.5 Honda Motor Company
    • 6.2.6 IVECO SpA
    • 6.2.7 AB VOLVO
    • 6.2.8 Ford Motor Company
    • 6.2.9 Tata Motors Limited
    • 6.2.10 Traton SE
    • 6.2.11 Scania AB

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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CNG LPG Vehicle Industry Segmentation

The CNG (compressed natural gas) and LPG (liquefied petroleum gas) vehicle market refers to the segment of the automotive industry that involves the production, sale, and use of vehicles powered by CNG or LPG instead of traditional fuels such as petrol and diesel. The market includes a variety of vehicles, ranging from passenger cars to commercial vehicles such as buses and trucks, depending on the region.

The market is segmented by fuel type, vehicle type, sales channel, and geography. 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 retrofitting. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. For each segment, the market sizing and forecast have been done based on the value (USD).

By Fuel Type Compressed Natural Gas (CNG)
Liquefied Petroleum Gas (LPG)
By Vehicle Type Passenger Cars
Commercial Vehicles
By Sales Channel OEM
Retrofitting
By Geography North America United States
Canada
Rest of North America
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific India
China
Japan
South Korea
Rest of Asia-Pacific
Rest of the World South America
Middle East and Africa
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CNG and LPG Vehicle Market Research FAQs

How big is the CNG LPG Vehicle Market?

The CNG LPG Vehicle Market size is expected to reach USD 7.20 billion in 2025 and grow at a CAGR of 7% to reach USD 10.10 billion by 2030.

What is the current CNG LPG Vehicle Market size?

In 2025, the CNG LPG Vehicle Market size is expected to reach USD 7.20 billion.

Who are the key players in CNG LPG Vehicle Market?

Hyundai Motor Company, Suzuki Motor Corporation, Volkswagen AG, Ford Motor Company and Honda Motor Co. Ltd. are the major companies operating in the CNG LPG Vehicle Market.

Which is the fastest growing region in CNG LPG Vehicle Market?

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in CNG LPG Vehicle Market?

In 2025, the Asia-Pacific accounts for the largest market share in CNG LPG Vehicle Market.

What years does this CNG LPG Vehicle Market cover, and what was the market size in 2024?

In 2024, the CNG LPG Vehicle Market size was estimated at USD 6.70 billion. The report covers the CNG LPG Vehicle Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the CNG LPG Vehicle Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

CNG and LPG Vehicle Industry Report

Statistics for the 2025 CNG LPG Vehicle market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. CNG LPG Vehicle analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.