"While the sparse variety of available vehicle models and the slow spread of NGV refueling infrastructure remain key concerns in many countries, it's clear that the low cost of natural gas, combined with geopolitical forces, will expand the market for these vehicles," said senior research analyst Dave Hurst. "Many governments have promoted the growth of NGVs, either by offering reduced taxes on the vehicles or by increasing investment in refueling infrastructure."

Light-duty natural gas trucks, such as small commercial vehicles, will outsell passenger cars in most regions, because consumer demand for NGVs continues to lag. However, strong consumer markets and taxi usage in Argentina, Brazil, Iran, and Egypt are accelerating passenger car sales in Latin America and the Middle East.

Moreover, the largest regional market for NGVs by the end of this decade will be Asia Pacific, thanks largely to Pakistan, as well as strong growth in countries like Thailand, India, and China. Sales of NGVs will also grow at a healthy pace in North America, with a compound annual growth rate of 10.2% from 2012 to 2019.

Source: Pike Research