| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 6.58 % |
| Fastest Growing Market | Africa |
Major Players*Disclaimer: Major Players sorted in no particular order |
MEA & India CNG and LPG Vehicle Market Analysis
The MEA And India CNG and LPG Vehicle Market is expected to register a CAGR of 6.58% during the forecast period.
Factors driving the market growth are environmental and cost benefits associated with the use of natural gas vehicles (NGVs). NGVs are less polluting in comparison to petrol or diesel. They are also cheaper in comparison to the aforementioned fuels. But advancements in engine technology are bringing about cleaner petrol and diesel vehicles, which might hamper new NGV sales. Furthermore, the market's paradigm toward electric mobility, especially in India, is also expected to deter market growth.
Middle-East is the largest market due to the sheer number of vehicles present in prominent markets, like Iran and Turkey. India is also a considerable market in comparison. The passenger cars segment occupy the largest share in terms of both value and volume. It is also the fastest growing segment. Furthermore, CNG vehicles are more in number than LPG ones.
The market is neither fragmented nor consolidated with considerable number of global as well as local players (especially in-case of India) being present.
MEA & India CNG and LPG Vehicle Market Trends
Environmental And Cost Benefits Associated With Natural Gas Vehicles
Government measures across the world to reduce the environmental impact of road traffic have been a significant push for the adoption of cleaner vehicles since the past few decades. Legislations to improve fuel efficiency (and reduce CO2) and to limit atmospheric pollution have been put into effect by a number of countries and cities.
Earlier, the main emphasis for fuel efficiency measures has been for smaller vehicles. But now commercial vehicles and heavy goods vehicles are also being subject to such structures, which has seen the penetration of LPG and CNG into these class of vehicles. In a recent study conducted in 2019 by the Sustainable Gas Institute, emissions from natural gas fueled trucks were noticed to be 15% lower than those of diesel trucks. But the volume for these commercial vehicles is still considerably less, at around 1% of the total global volume of natural gas vehicles (NGVs).
Though new NGVs are costlier than their petrol (and sometimes diesel) counterparts, this initial trade-off is nullified in the medium- to long-term period post purchasing the vehicle, as there is considerable price difference between vehicles that run on gas and those that run on petrol and diesel.
The International Energy Agency (IEA) quotes a payback period of anywhere between two to four years in regions where there is a significant difference in fuel prices. Also, the cost of setting up refueling infrastructure is subsidized in some countries, which will result in more gas stations emerging, and in-turn, will lead to more people preferring to buy or use NGVs. This will further result in high-volume usage of NGVs, which will be in-line with legislations to improve environmental conditions.
The technology of natural gas engine development and conversion of engines to be fueled by natural gas is well established, and suitable equipment is readily available in the after-market. In quite a few parts across the world, people who initially buy petrol vehicles later get them converted to bi-fuel engines and have their vehicles run on both fuels based on necessity.
Automakers have identified this as an attractive proposition and are introducing vehicles that come factory fitted with NGV equipment. Customers are also preferring this type of set-up as the new-vehicle is covered under warranty and can be serviced in authorized centers.
The market comprising of various manufacturers offer natural-gas engines, either as dedicated (mono-fuel) otto-cycle engines or as duel fuel diesel-cycle engines. Companies, such as Volvo, Scania, and Iveco have all introduced new gas commercial vehicles.
In India, Maruti Suzuki, the country's largest vehicle manufacturer, has CNG option available for 8 of its models, which include both passenger cars and light commercial vehicles. Three-wheeler CNGs have also become very popular in the country over the years and are offered by manufacturers, like Bajaj, Mahindra, Piaggio, etc.
Also, in some cases, NGVs have lower maintenance cost as compared to conventional ICE vehicles. For instance, a 12-month comprehensive study between CNG and diesel transit buses revealed that gas fueled buses are cheaper to maintain by 12% in comparison to diesel ones.
All the aforementioned factors are expected to drive the market for NGVs over the forecast period.
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Tanzania Expected to be the Major Market in Africa
Tanzania has considerable reserves of natural gas, due to which, it does not need to import from neighboring countries, unlike the case with petroleum.
To capitalize on its reserves, the government, since the past few years, has been actively investing to bring natural gas vehicles on road. Earlier, the government invested nearly USD 65 million to start a project to supply nearly 30,000 households with CNG and power 8,000 cars in the city of Dar es Salaam.
Though it costs around USD 1,000 to USD 1,500 for converting a vehicle in the country into a gas-fueled one, many Tanzanian motorists are embracing this more efficient, cheaper, and cleaner transition.
To further support this transition, in July 2019, the Tanzania Petroleum Development Corporation (TPDC) issued an Expression of Interest for investments toward the construction of compressed natural gas (CNG) refueling stations to supply for vehicles.
The TPDC also took-up a project in 2018 to convert at least 800 buses to natural gas so as to cut fuel use by almost 50%. Also, few Uber and Taxify drivers are also planning to convert their vehicles. In lieu of all these developments, the market is expected to grow at a considerable pace over the forecast period.
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MEA & India CNG and LPG Vehicle Industry Overview
The MEA & Indian CNG and LPG vehicle market is neither fragmented nor consolidated due to the presence of both local and international players. Some of the players, like Maruti Suzuki India Limited, MAN SE, IVECO SpA, Bajaj Auto Limited, and TATA Motor Limited, covered more than 50% of the market studied in 2019.
Maruti Suzuki has been successfully satisfying Indian customers by offering contemporary technologies, such as auto gear shift, stylish products, such as Brezza, and eco-friendly options, such asfactory-fittedCNG vehicles at the price point of customer choice.
MAN SE remains to be a leader in the commercial vehicle CNG market, especially in the MEA market.
MEA & India CNG and LPG Vehicle Market Leaders
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Maruti Suzuki India Ltd.
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MAN Truck & Bus SE
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IVECO S.p.A.,
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Bajaj Auto Limited
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TATA Motor Limited
- *Disclaimer: Major Players sorted in no particular order
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MEA & India CNG and LPG Vehicle Industry Segmentation
This study takes into consideration the type of vehicles operable in the different geographical regions and the two categories of gaseous fuel i.e., CNG and LNG.
Market size (in revenue USD billion) and volume (in million units) are provided for all the segmentation types. Market volume is the number of vehicles that are in operation (on-road/registered).
| By Vehicle Type | Three-wheelers | ||
| Passenger Cars | |||
| Trucks ( Light, Medium, and Heavy) | |||
| Buses | |||
| By Fuel Type | CNG | ||
| LPG | |||
| Geography | Middle-East | Kingdom of Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Egypt | |||
| Qatar | |||
| Rest of Middle-East | |||
| Africa | South Africa | ||
| Kenya | |||
| Uganda | |||
| Tanzania | |||
| Nigeria | |||
| Rest of Africa | |||
| India | |||
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MEA & India CNG and LPG Vehicle Market Research FAQs
What is the current MEA And India CNG and LPG Vehicle Market size?
The MEA And India CNG and LPG Vehicle Market is projected to register a CAGR of 6.58% during the forecast period (2025-2030)
Who are the key players in MEA And India CNG and LPG Vehicle Market?
Maruti Suzuki India Ltd., MAN Truck & Bus SE, IVECO S.p.A.,, Bajaj Auto Limited and TATA Motor Limited are the major companies operating in the MEA And India CNG and LPG Vehicle Market.
Which is the fastest growing region in MEA And India CNG and LPG Vehicle Market?
Africa is estimated to grow at the highest CAGR over the forecast period (2025-2030).
What years does this MEA And India CNG and LPG Vehicle Market cover?
The report covers the MEA And India CNG and LPG Vehicle Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the MEA And India CNG and LPG Vehicle Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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MEA And India CNG and LPG Vehicle Industry Report
Statistics for the 2025 MEA And India CNG and LPG Vehicle market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. MEA And India CNG and 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.
