Dublin, Oct. 22, 2024 (GLOBE NEWSWIRE) -- The "India CNG Market, By Region, Competition, Forecast and Opportunities 2020-2030F" report has been added to ResearchAndMarkets.com's offering.
The India CNG Market was valued at USD 22.7 billion in 2024, and is expected to reach USD 48.45 billion by 2030, rising at a CAGR of 13.30%
The India CNG (Compressed Natural Gas) market is experiencing significant growth driven by its advantages over conventional fuels. As India grapples with escalating air pollution and environmental concerns, CNG has emerged as a preferred alternative due to its lower emissions and cost-efficiency. Government policies and subsidies promoting cleaner energy solutions are further accelerating the market's expansion. 
The rise in vehicle adoption, especially among public transportation systems, and the expansion of CNG refueling infrastructure are contributing to this growth. Additionally, the push towards reducing the nation's reliance on imported crude oil and fostering energy security through domestic natural gas sources has bolstered the CNG sector.
The market's growth is also supported by technological advancements in CNG engine systems and increasing investments in infrastructure development. With urban areas increasingly adopting CNG for public transport and commercial fleets, alongside growing awareness of environmental benefits, the India CNG market is set for robust expansion in the coming years, positioning itself as a key player in the country's energy transition strategy.
Expansion of CNG Infrastructure
The expansion of CNG infrastructure is a key trend driving the growth of the India CNG market. The Indian government and private sector are significantly investing in the development of a robust CNG refueling network to improve accessibility and convenience for consumers. This includes the establishment of new CNG stations, expansion of existing networks, and the development of a comprehensive pipeline infrastructure for efficient CNG distribution.
The government's focus on promoting CNG as a cleaner alternative to diesel and petrol has led to increased approvals and support for infrastructure projects. Additionally, cities with high pollution levels are prioritizing CNG infrastructure to combat air quality issues. This trend is expected to continue, with ongoing investments aimed at covering more urban and rural areas, thereby increasing the market's reach and adoption rates.
Government Incentives and Policies
Government incentives and policies are pivotal in shaping the India CNG market. The Indian government has introduced various subsidies and incentives to encourage the adoption of CNG vehicles, including tax benefits, reduced registration fees, and financial assistance for conversion kits. The focus on cleaner fuels aligns with the broader objectives of reducing vehicular emissions and improving air quality.
Recent policies also include stricter emission standards for vehicles, which are driving the demand for CNG as a viable alternative. Additionally, supportive policies for the expansion of CNG infrastructure and the establishment of CNG as a priority fuel in urban transport are expected to further boost market growth. The continued evolution of these policies will play a crucial role in driving market dynamics and adoption rates.
Technological Advancements in CNG Vehicles
Technological advancements in CNG vehicles are transforming the market by enhancing fuel efficiency, performance, and consumer appeal. Recent innovations include improved CNG engine technologies, advanced fuel management systems, and enhanced safety features for CNG tanks and components. Automakers are investing in research and development to produce more efficient and reliable CNG vehicles, addressing previous concerns about performance and maintenance.
The integration of hybrid technologies, where CNG is used in conjunction with electric power, is also gaining traction. These advancements not only improve the overall driving experience but also contribute to the market's growth by making CNG vehicles more attractive to consumers. As technology continues to evolve, it is expected to drive further adoption and integration of CNG into the Indian automotive market.
Increasing Environmental Awareness
Rising environmental awareness among consumers and policymakers is significantly impacting the India CNG market. Growing concerns about air pollution, climate change, and environmental sustainability are leading to increased adoption of cleaner fuel alternatives. CNG, with its lower emissions compared to diesel and petrol, is seen as a more environmentally friendly option.
Public awareness campaigns and educational initiatives are further highlighting the benefits of CNG in reducing greenhouse gases and improving air quality. This shift in consumer behavior, coupled with the government's commitment to environmental sustainability, is driving demand for CNG vehicles and infrastructure. The trend towards eco-friendly solutions is expected to continue, influencing both consumer preferences and regulatory frameworks in favor of CNG.
Growth in CNG-Powered Public Transport
The expansion of CNG-powered public transport is a notable trend in the India CNG market. Many cities across India are transitioning their public transport fleets to CNG to address urban air pollution and improve air quality. This includes the adoption of CNG buses, auto-rickshaws, and taxis, which are being integrated into public transport systems to offer cleaner alternatives to conventional fuels.
Government initiatives and policies are supporting this transition by providing incentives for fleet operators and investing in the necessary infrastructure. The growth in CNG-powered public transport not only contributes to reduced emissions but also drives the overall demand for CNG fuel. As more cities implement similar measures, the market for CNG is expected to expand further, supported by increased usage in urban transport networks and continued government support.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 86 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value (USD) in 2024 | $22.7 Billion |
| Forecasted Market Value (USD) by 2030 | $48.45 Billion |
| Compound Annual Growth Rate | 13.3% |
| Regions Covered | India |
Report Scope:
Key Market Players
- Indian Oil Corporation Limited
- Bharat Petroleum Corporation Limited
- Hindustan Petroleum Corporation Limited
- GAIL (India) Limited
- Tata Power Company Limited
- Reliance Industries Limited
- Mahanagar Gas Limited
- Indraprastha Gas Limited
- Sabarmati Gas Limited
- Gujarat Gas Limited
India CNG Market, By Source:
- Associated Gas
- Non-Associated Gas
- Unconventional Sources
India CNG Market, By Application:
- Light Duty Vehicles
- Medium/Heavy Duty Buses
- Medium/Heavy Duty Trucks
- Others
India CNG Market, By Region:
- North India
- South India
- West India
- East India
For more information about this report visit https://www.researchandmarkets.com/r/8lk7c2
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