CNG Powertrain Market to 2030 Industry Size, Share, Revenue Analysis

Posted on 2023-06-01 by researchinsights in Internet & Online // 0 Comments

CNG Powertrain Industry Overview

The global CNG powertrain market size was valued at USD 71.99 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 17.2% from 2022 to 2030.

A growing need for an alternative transitional fuel leads toward the net-zero carbon emissions goal. Compressed Natural Gas (CNG) produces lesser carbon emissions and is free from particulate matter, which is a prominent source of vehicular pollution, thus CNG is expected to become a dominant energy source over other fuels such as diesel, petrol, and LPG. Governments worldwide are taking strategic initiatives to provide tax rebates, subsidies, and other benefits to CNG vehicle purchasers, which are expected to create high demand for CNG powertrain vehicles during the forecast period.

Gather more insights about the market drivers, restrains and growth of the Global CNG Powertrain Market

However, government initiatives and the rise in consumers’ inclination toward less carbon-emitting vehicles have increased the demand for CNG powertrain. COVID-19 negatively impacted its market sales. Thus, the new CNG powertrain vehicle production halted, leading to sluggish sales between 2019 and 2020. For instance, Volvo Group, a prominent automobile manufacturer, has sold 661,713 cars in 2020 and faced a decline in sales by 6.2% compared to 2019. The pandemic stalled manufacturing and production activities across the world. Post-pandemic, high demand for personal fuel-efficient vehicles was observed majorly from the developing nations of the Asia Pacific region, thus fueling the market growth.

The CNG powertrain manufacturers are majorly focusing on improving the vehicle’s engine efficiency. They are investing in enhancing the engine performance by working on reducing the volumetric efficiency loss, increasing the flame propagation speed, and decreasing the fuel evaporation in engines. Additionally, prominent automobile manufacturers are implementing advanced technologies in CNG vehicles.

For instance, S-CNG technology is incorporated in passenger cars to enhance fuel economy by regulating the fuel and air ratio and synchronizing between the electric control units and intelligent fuel injection system. Besides, through technology integration, there is a better calibration of the CNG system with the powertrain, suspension, and braking system, thus the S-CNG technology improves the overall efficiency of the vehicle.

Moreover, the sales of CNG powertrain vehicles are hindered due to the limited number of fulling stations across the globe. According to the U.S Department of Energy, in 2021, about 900 CNG stations are available in the U.S., which is far less than the petrol and diesel station. Thus, to boost the sales of CNG powertrain vehicles, there is a need for the development of CNG refilling stations across various countries.

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