CNG and LPG vehicle refers to vehicles that consume CNG and LPG as their primary or secondary fuel. Natural gas is the cleanest burning fossil fuel and consequently has emissions advantage over diesel and gasoline.
The demand for CNG and LPG vehicles has increased considerably in the past few years, primarily due to increasing population and urbanization, and growing demand for passenger and commercial vehicles mainly in developing economies. The global demand for CNG and LPG vehicles is fueled by the unstable conventional fuel prices. People are inclined toward using CNG and LPG vehicles, as the overall price of CNG and LPG when compared to the cost of gasoline or refined diesel fuels is low. Increase in the development of infrastructure network for CNG and LPG fueling stations is expected to drive the demand for CNG and LPG vehicles in the coming years.
Also, increasing level of air pollution across the globe is a key global concern. Different governments are formulating stringent regulations for regulating air pollution and monitoring air quality. Governments in different countries have framed stringent norms to control air pollution, especially vehicular pollution. Vehicular emission also causes global warming, which is a major environmental challenge across the globe. Different governments and international organizations are framing stringent environmental regulations, in order to reduce the emission of greenhouse gases. CO2 is the main greenhouse gas produced by vehicles, especially diesel and petroleum fueled vehicles.
Rapid transit vehicles are gaining popularity due to their rapid mobility and high seating capacity. Increasing number of CNG/LPG powered transit buses during the forecast period drives the growth of the CNG and LPG vehicle market. Moreover, increasing use of waste collection vehicles, including garbage truck, dustcart, dustbin lorry, bin lorry or bin van, runs on CNG and LPG and is thus supporting the growth of the CNG and LPG vehicle market in developed regions. Wider use of natural gas in both short-haul fleets and long distance trucking is being facilitated by the development of CNG, LPG and LNG fueling networks.
Some of the key market players operating in the global CNG and LPG vehicle market include Suzuki Motor Corporation, Ford Motor Company, Honda Motor Company, Fiat Chrysler Automobiles NV, Groupe Renault, General Motors Company, AB Volvo, Daimler AG, Mitsubishi Motors Corporation and Toyota Motor Corporation.
