The global CNG vehicles market is expected to show growth over the forecast period owing to an increase in demand for Bi-fuel. They offer similar performance as compared to gasoline-powered automobiles, and the comparatively low cost of CNG to gasoline is expected to drive market growth. Increasing concern for the environment may drive the demand for compressed natural gas vehicles over the next seven years as they provide comparatively less harmful gas emissions as compared to gasoline or diesel-powered automobile. Government initiatives toward the reduction of air pollution and encouraging the adoption of eco-friendly technologies are expected to favor CNG vehicles industry growth. The easy availability of gas-powered automobiles and easy financing schemes may be a major factor driving industry demand over the forecast period. Increasing compressed natural gas stations may also enable switching to these environmentally-friendly automobiles.
Technological advancement leading to better performance, fuel-efficient, and low cost may be a major factor driving revenue growth. These automobiles offer safety benefits such as fuel storage cylinders of CNG automobiles being much stronger than gasoline or diesel tanks. In case of any accident compressed natural gas dissipates into the atmosphere while gasoline or diesel pool on the ground. Tax incentives given by the government, such as state and the federal government of the U.S. may also favor CNG vehicles industry growth over the next seven years. The growth of new eco-friendly fuels may hinder the CNG vehicles market over the forecast period. They are costlier than petrol or diesel-powered automobiles, which may affect revenue growth, but the lower fuel cost is anticipated to offset the difference. The low engine capacity and power of these vehicles may restrict industry demand.
The CNG vehicles market can be segmented as light commercial and passenger cars. Passenger cars are anticipated to be a key segment over the forecast period owing to expanding gas infrastructure, dual fuel options, and cost-effectiveness. Light commercial vehicles may see an increase in the adoption CNG powered engines over the next seven years. The Asia Pacific is expected to be a key regional segment followed by North America and Europe. India, China, and Iran are anticipated to be major regional segments in the Asia Pacific. The presence of price-conscious end-user and higher prices of crude oil may boost Asia Pacific demand over the forecast period. Europe is anticipated to witness growth owing to strict emission standards by the European Union (EU).
Key CNG vehicles industry participants include Fiat S.P.A., Ford Motor, General Motors, Hyundai Motor Group, Suzuki Motor Corporation, Opel, Volkswagen, Honda Motor Co. Ltd., Landi Renzo, Impco, Skoda Auto, Venchurs, Westport, and Tomasetoo Achile. Volkswagen offers a wide range of compressed natural gas-powered vehicles such as Volkswagen up! EcoFuel, Volkswagen Passat 1.4 Variant EcoFuel, Volkswagen Touran 1.4 EcoFuel, Volkswagen Caddy Maxi 2.0 EcoFuel. These automobiles can also run on petrol however they are designed primarily for CNG and the petrol option is integrated as backup. According to Volkswagen EcoFuel produces around 80% less carbon monoxide and 80% fewer nitrous oxides as compared to petrol engines. Honda Motor launched its new variant of CNG compatible Honda Amaze.
In May 2015, Chevrolet announced that it will expand its compressed natural gas lineup to include bi-fuel Silverado 3500HD chassis cab to operate vehicles on compressed natural gas. In May 2015, Ford Motor announced that it will offer 2016 F-150 with available gasoline prep packages that will enable 5.0-liter V8-powered models to run on compressed natural gas or propane and this may make it the only manufacturer of CNG/Propane half-ton pickup. In May 2015, SEAT, Volkswagen-Audi Spain, and EDP announced the signing of Memorandum of Understanding (MoU) to promote the development of compressed natural gas automobiles and infrastructures. In November 2013, SEAT and GAS NATURAL FENOSA joined and Volkswagen Group signed a strategic agreement to promote alternate fuel solutions in Spain. In December 2013, SEAT handed over alternated fuel power automobiles to the port of Barcelona to promote this technology.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.