CNG, LPG Vehicle Market to Grow 10% a Year by 2022
The global compressed natural gas (CNG) and liquefied petroleum gas (LPG) market is expected to grow by more than 10% a year over the next six years due to the increase in population and urbanization, a growing demand for passenger and commercial vehicles, and stringent emission control regulations, according to a new forecast.
The global CNG and LPG market was valued at 45,952.4 thousand units in 2015, and is expected to grow at a compound annual growth rate (CAGR) of 10.1% from 2016 to 2022, according to a November report from P&S Market Research. CAGR is a term for the geometric progression ratio that provides a constant rate of return over the time period.
The global demand for vehicles powered by CNG and LPG (also known as propane autogas) is further fueled by unstable conventional fuel prices, according to the report.
“Vehicles must be certified to new demanding emission limits that require today’s motor vehicles to be 90% cleaner for most pollutants in European and other developed nations,” stated the report, which is titled "Global CNG and LPG Vehicle Market Size, Share, Development, Growth and Demand Forecast to 2022 - Industry Insights by Fuel Type (LPG, CNG), by Vehicle Type (Passenger Car, Light & Heavy Duty Trucks, Bus)."
Europe was the largest market for CNG and LPG vehicles in 2015, which was due in part to the high cost of diesel and stringent regulations by the European Union for low emissions across Europe, according to the report. Meanwhile, the CNG and LPG vehicle market in South America and Asia-Pacific region is expected to increase at a significant rate due in part to the increasing infrastructure for CNG and LPG fueling stations.