Automotive Natural Gas Vehicle Market To Reach $40.9 Billion By 2030

Automotive Natural Gas Vehicle Market Growth & Trends

The global automotive natural gas vehicle market size is expected to reach USD 40.9 billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to register a CAGR of 2.8% from 2025 to 2030. The growing adoption of natural gas as an alternative fuel in vehicles, especially in the transportation sector worldwide, is creating the demand for automotive natural gas vehicles (NGVs). The low emission properties of NGVs facilitated by clean fuel characteristics are expected to drive their demand in public transportation, therefore boosting the market growth. The need for cleaner fuels at lower costs is also expected to drive market growth.

Moreover, government support for the adoption of these vehicles will augment the demand. The government authorities in various countries are implementing stringent regulations to curb environmental damages arising from the emission of Particulate Matter (PM) and Greenhouse Gases (GHG) from vehicles. Simultaneously, with these regulations, authorities have also been continuously revising the emission standard policies to help protect the environment.

Government agencies across the globe are rolling out incentive programs to promote the adoption of NGVs owing to the high initial cost associated with the procurement of CNG and LNG vehicles. Some of the incentive programs to promote the adoption of these vehicles include the U.S. Congestion Mitigation and Air Quality Improvement Program (CMAQ), U.S. Environmental Protection Agency's (EPA) Diesel Emissions Reduction Act Program (DERA), and California Energy Commission’s Clean Transportation Program.

The governments in various countries are undertaking initiatives to develop and expand the natural gas distribution infrastructure and invest significantly in improving natural gas technology. The network of CNG and LNG refueling stations is expanding in various countries, boosting the adoption of NGVs. For instance, the Indian Ministry of Petroleum and Natural Gas announced the construction of 1000 LNG fueling stations on the major national highways across the country. The fueling stations will be commissioned by state-controlled companies, including Hindustan Petroleum (HPCL), IOC, and Bharat Petroleum (BPCL), and gas suppliers such as Gas Authority of India Ltd. (GAIL), Gujrat Gas, and Petronet LNG.

Asia Pacific held the largest share of the overall market in 2020 owing to the increased adoption of natural gas, such as CNG and LNG, in passenger cars, trucks, buses, and three-wheelers in countries, such as India, China, Thailand, Pakistan, and Bangladesh. The region has also emerged as a hub for automotive production in recent years.

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Automotive Natural Gas Vehicle Market Report Highlights

• CNG dominated the automotive natural gas vehicle market, accounting for a share of 95.3% in 2024.

• Passenger vehicles dominated the automotive natural gas vehicle market with a considerable market share. Growing concerns over air quality and environmental sustainability drive consumers to adopt natural gas-powered vehicles as an alternative to gasoline and diesel options.

• Asia Pacific automotive natural gas vehicle market dominated the automotive natural gas vehicle industry, accounting for a 54.0% share in 2024.

Automotive Natural Gas Vehicle Market Segmentation

Grand View Research has segmented the global automotive natural gas vehicle market on the basis of fuel type, vehicle type, and region:

Automotive Natural Gas Vehicle Fuel type Outlook (Revenue, USD Million, 2018 - 2030)

• CNG

• LNG

Automotive Natural Gas Vehicle Vehicle type Outlook (Revenue, USD Million, 2018 - 2030)

• Passenger vehicles

• Light duty & heavy duty buses and trucks

• Three wheelers

Automotive Natural Gas Vehicle Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Russia

  • Germany

  • France

  • Sweden

• Asia Pacific

  • Bangladesh

  • China

  • India

  • Thailand

• Latin America

  • Brazil

• Middle East & Africa

List of Key Players of Automotive Natural Gas Vehicle Market

• Hexagon Agility GmbH

• AB Volvo

• Foton International.

• CNH Industrial N.V.

• Clean Energy Fuels

• Cummins, Inc.

• PACCAR Inc.

• Navistar, Inc.

• Quantum Fuel Systems LLC.

• Westport Fuel Systems Inc.