Dublin, Sept. 12, 2023 (GLOBE NEWSWIRE) -- The "Global CNG Powertrain Market: Analysis By Drive Type (Front Wheel Drive, All-wheel Drive, & Rear Wheel Drive), By Fuel Type (Bi-fuel & Mono-fuel), By Vehicle Type (Passenger & Commercial), By Region, Size & Forecast with Impact Analysis of COVID-19 and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.
The global Compressed Natural Gas (CNG) powertrain market, valued at US$79.58 billion in 2022, is poised for remarkable expansion, with expectations to reach a staggering US$198.75 billion by 2028.
This extraordinary growth, driven by a compelling Compound Annual Growth Rate (CAGR) of 16.48% during the forecast period of 2023-2028, underscores the industry's pivotal role in the shift towards cleaner and more sustainable transportation solutions.
The automotive industry, propelled by mounting environmental concerns, is experiencing a transformative shift towards alternative fuel technologies. CNG powertrains have emerged as a promising green and economically viable alternative to conventional internal combustion engines.
Front-Wheel Drive Dominates: In 2022, the front-wheel-drive segment emerged as the market leader. These vehicles offer advantages such as lightweight construction, improved fuel efficiency, and balanced weight distribution, enhancing stability on diverse terrains. Additionally, front-wheel drive translates to cost savings for consumers through reduced maintenance requirements and enhanced fuel economy.
Mono-Fuel Segment Soars: The mono-fuel CNG powertrain segment is poised to achieve the fastest CAGR during the forecasted period. These vehicles exclusively run on compressed natural gas, optimized for superior mileage and performance compared to bi-fuel counterparts. This segment caters to niche markets and specialized applications seeking exceptional fuel economy.
Passenger Vehicle Dominance: The passenger vehicle segment, encompassing cars, SUVs, and personal-use vehicles equipped with CNG powertrains, held the largest market share. CNG's affordability, especially in regions with abundant natural gas resources and lower prices, positions it as a cost-effective choice for budget-conscious consumers. The expansion of refueling infrastructure further propels the adoption of CNG-powered passenger vehicles.
Asia Pacific Leads the Way: Asia Pacific claimed the highest share in the global CNG powertrain market. The region's diverse landscape includes rapidly developing nations and highly industrialized economies grappling with severe air pollution challenges.
Government initiatives promoting cleaner alternatives to traditional gasoline and diesel vehicles are driving CNG powertrain adoption. Furthermore, abundant natural gas reserves in countries like China and India strengthen the region's commitment to reducing oil dependency and supporting CNG powertrain growth.
As the CNG powertrain market continues to surge, it reinforces its pivotal role in delivering sustainable and environmentally friendly transportation solutions, aligning with the evolving demands of a greener automotive industry.
Market Dynamics:
Growth Drivers: Increasing environmental regulations and sustainability has emerged as a significant driving factor for the CNG powertrain market. CNG is considered a cleaner alternative to traditional fossil fuels, such as gasoline and diesel, due to its lower emissions of greenhouse gases and pollutants.
Environmental regulations, imposed by governments and regulatory bodies, have become increasingly stringent over the years to address the negative impact of transportation on air quality and climate change. These regulations often include emission standards that encourage the use of cleaner fuels and technologies. CNG powertrains have gained popularity as they meet these stringent regulations and offer reduced emissions of carbon dioxide (CO2), nitrogen oxides, and particulate matter.
Further, the market is expected to increase due to low running costs, abundant natural gas resources, advancements in CNG powertrain technology and government incentives and infrastructure development.
Challenges: However, some challenges are impeding the growth of the market such as increasing shift to electric vehicles and high upfront cost. The increasing shift to electric vehicles (EVs) has had a significant impact on the compressed natural gas (CNG) powertrain market, leading to several challenges and hindrances.
EVs offer numerous advantages over CNG-powered vehicles, including lower emissions, reduced dependence on fossil fuels, and improved energy efficiency. As a result, the popularity and demand for EVs have been steadily rising, while CNG powertrain sales have been declining. One of the main reasons for the decline in the CNG powertrain market is the growing availability and infrastructure development for EV charging stations.
Trends: A major trend gaining pace in CNG powertrain is increasing adoption of dual-fuel systems. Dual-fuel systems enable vehicles to run on a combination of CNG and diesel or gasoline, providing greater flexibility and efficiency to end users.
More trends in the market are believed to augment the growth of CNG powertrain market during the forecasted period include advancements in CNG fuel storage and distribution infrastructure, integration of renewable natural gas (RNG), etc.
Competitive Landscape and Recent Developments:
The CNG powertrain market is consolidated with the presence of few number of players dominating worldwide. Prominent players are adopting strategies such as expansion, mergers & acquisitions, and partnerships to strengthen their market presence in various regions.
Organic growth remains the key strategy for most of the market's incumbents. As such, CNG powertrain manufacturers are focused on enhancing their existing product offerings and brand awareness to gain a competitive edge in the market.
Market Dynamics
Growth Drivers
- Increasing Environmental Regulations and Sustainability
- Low Running Costs
- Abundant Natural Gas Resources
- Advancements in CNG Powertrain Technology
- Government Incentives and Infrastructure Development
Challenges
- Increasing Shift to Electric Vehicles
- High Upfront Cost
Market Trends
- Increasing Adoption of Dual-Fuel Systems
- Advancements in CNG Fuel Storage and Distribution Infrastructure
- Integration of Renewable Natural Gas (RNG)
Key players of the CNG powertrain market are:
- Robert Bosch GmbH
- Cummins Inc.
- Ford Motor Company
- Iveco Group (FPT Industrial)
- Hyundai Motor Company
- Maruti Suzuki India Limited
- Honda Motor Co., Ltd.
- General Motors Company
- Volvo Group
For more information about this report visit https://www.researchandmarkets.com/r/emy6ta
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