According to Transparency Market Research’s new report, the global CNG market was valued at US$ 56.32 billion in 2013 and is expected to reach US$ 126.19 billion in 2020, expanding at a CAGR of 12.3% from 2014 to 2020. This report has sub-categorized the different vehicle classes into four major end-user segments: light duty (LD) vehicles, medium duty/heavy duty (MD/HD) buses, medium duty/heavy duty (MD/HD) trucks and three-wheeler vehicles, generally prevalent in Asia-Pacific and Latin America.
The LD vehicle segment occupied the maximum market share last year in terms of both vehicle units and CNG consumption. The segment accounted for nearly 93% of the global NGV fleet in 2013, while its share of fuel consumption for the same year stood at around 48%. These vehicles utilize an average of 2,000 m3 of CNG annually, while consumption by large HD trucks can reach up to 32,000 m3 annually. Furthermore, fuel consumption by the LD vehicle segment is subject to driving patterns of individual owners.
On the other hand, HD buses and trucks generally cover long distances on a daily basis. Owing to these factors, large bus and truck fleet owners are finding it increasingly profitable to convert their existing fleets to CNG. These vehicles can obtain brisk payback periods of 2.5 years, while payback periods for passenger vehicles are generally over four years. National governments around the world have passed strict vehicular emission mandates and are increasingly supporting the adoption of natural gas as transportation fuel.
The LD vehicle segment is likely to retain its position as the fastest growing market during the forecast period. Significant initiatives have been taken to convert buses and trucks to CNG; however, these are limited to certain regions. The LD vehicle segment is anticipated to witness attractive growth rate across all the regions. Overall, the NGV market seems promising around the globe; attractive growth rate in consumption can be expected throughout the forecast period.
Source: Transparency Market Research