Automotive CNG/LPG Kit Market Forecast and Trends
Indian Automotive CNG &
LPG kit Market has reached USD 5.15 Million units in 2019 and is projected to
expand with a growth rate of 7.77%, in Volume terms, during 2020 to 2026. The
market is expected to generate a revenue of USD 8.68 million units by 2026.
With a large number of Indian cities embarking for cleaner fuel, CNG is gaining
momentum in the Indian automotive market.
The use of CNG/LPG kit in
the transportation sector is primarily driven by the environmental and public
health imperatives. CNG & LPG gas supply and infrastructure costs are
generally lower than other alternative non-blended fuels. The cost of bulk CNG
& LPG supplied to the service stations is generally lower on an
energy-content basis than for gasoline. Rising demand for CNG & LPG gas is
not predictable to raise significantly the cost of LPG on the international
spot market relative to gasoline given the abundance of supplies. When petrol
and diesel costs `72 per litre, and `60 per litre while CNG costs only `45 per
kilogram*, it is obvious that vehicle will consider getting a CNG kit and leads
to drive market across Indian market.
Automotive CNG/LPG Kit Market Overview:
CNG is compressed natural
gas, mainly compressed by methane at a pressure of 200 to 248 bar. LPG is
liquefied petroleum gas, a 15 ° C mixture of liquefied propane with butane, and
a 1.7-7.5 bar pressure. Many types of LPG are mainly propane so in colloquial
terms, LPG is often referred to as propane. CNG is cheaper and cleaner but LPG
is higher in calorific value. While CNG produces greenhouse gases when
combusted, it is a safer alternative to other fossil fuels, such as gasoline or
LPG. A common addition to both LPG and CNG is ethanethiol or ethyl mercaptan.
Mercaptan has a foul, rotten-egg smell that facilitates the detection of gas
leaks in case of a spill due to the natural gas, CNG is also safer than other
fuels, being lighter than air, disperses rapidly when released. Given that LPG
generates more energy than CNG, natural gas can not simply be substituted. Only
gases which have the same Wobbe index is interchangeable. For LPG to have the
same Wobbe index as CNG, it is mixed with the air. A ratio of 60:40 for LPG: air
mixing is common but it depends on the LPG composition because LPG itself is a
mixture of propane and butane. This blend of LPG and air to replace natural gas
is known as synthetic natural gas (SNG). Use of SNG is common before the CNG
distribution network is fully operational.
The rising number of
passenger cars across India
The Indian automotive
industry has experienced steady growth in demand for and sales of passenger
cars due to improved economic conditions and increased disposable income for
consumers. The country has seen a gradual shift towards easy/comfortable
transport, from affordable transportation to luxurious and safe transport. With
the increasing presence of international car manufacturers and brands in the
country and the willingness of consumers to purchase and maintain new cars,
consumers have been willing to buy more than one passenger car to meet their
different daily needs and travel needs. With around 29 million passenger cars,
light commercial vehicles, and medium and heavy commercial vehicles produced,
India and China are the top demand generators for CNG & LPG automotive
cost of CNG/LPG gas
CNG & LPG gas supply and
infrastructure costs are generally lower than other alternative non-blended
fuels. The cost of bulk CNG & LPG delivered to service stations is usually
more economical in terms of energy content than for gasoline. Rising demand for
CNG & LPG gas is not predictable, given the abundance of supplies, to
significantly increase the cost of LPG on the international spot market
compared to gasoline.
in the region
Many cities are projected to
replace their current fuel-based bus fleet with electric busses. The growing
trend of replacing the public transport fleet based on fossil fuels with
electric busses would boost the growth of electric commercial vehicles during
the forecast period of 2020-2026 and will impede the demand for CNG & LPG
Indian kits. The Government of India has announced its National Electric Mobility
Mission Project (NEMMP) to support the local manufacturing capabilities of
automakers. With this roadmap, the Government of India plans to make electric
vehicles economically viable and self-sustaining by 2020. There is a wide range
of policies implemented by the government to support the implementation of EVs
Automotive CNG/LPG Kit Market: Kit type
Based on Kit type,
Automotive CNG/LPG Kit market segmented into CNG, LPG. CNG kit sector expected
to grow with a rapid race, CNG autos have the majority share in the total
number of CNG-run vehicles. Buses, cars, and light commercial vehicles are also
increasingly using this CNG fuel and indirectly contribute to drive demand of
CNG kit in Indian automotive CNG/LPG kit market. CNG kit market is projected to
expand with a growth at a significant rate during the forecast period from 2020
to 2026. LPG facing handling challenge in Indian market in terms of long
storage and tank size, which is expected to hamper growth rate of LPG kits in Indian
automotive CNG/LPG kit Market during the forecast period of 2020-2026.
Automotive CNG/LPG Kit Market: Vehicle type
Based on vehicle type, the
Automotive CNG/LPG Kit market segmented into Passenger Car, Light Commercial
Vehicle, Medium Commercial Vehicle, Others. The Passenger car segment is
estimated to dominating the product segment in the Automotive CNG/LPG Kit
market during the forecast period of 2026. Passenger vehicle segment expected
to boost the India automobile CNG/LPG kit market, with the rise of passenger
vehicle sales owing to improvement in economic condition and growth in the
consumers' disposable incomes. In addition to the driver's seat, passenger cars
are motor vehicles with at least four wheels, which are used for passenger transport
and have no more than eight seats. With the growing presence in the country of
international automotive manufacturers and brands, and consumers are willing to
buy new vehicles to become the main growth factor.
Automotive CNG/LPG Kit Market: Regional insights
Based on the region, the
Automotive CNG/LPG Kit market is segmented into Northern India, Southern India,
Eastern India, Western India. Northern India is projected to dominated the
Automotive CNG/LPG Kit market. The growing awareness about air pollution leads
to increased global adoption of Compressed Natural Gas (CNG) and Liquefied
Petroleum Gas (LPG) or AutoGas as substitutes for traditional vehicle fuel in
passenger cars, commercial vehicles, 3-wheelers, etc. Commonly, CNG is cheaper
than LPG. Propane produces more than twice as much energy as natural gas. In
the case of a spill, CNG is also safer than other fuels because natural gas,
being lighter than air, quickly disperses when released.
CNG/LPG Kit Market: Competitive Landscape
The major market players in
the Automotive CNG/LPG Kit are Maruti Suzuki, Hyundai Motor, Mahindra &
Mahindra, TATA Motors Limited, Bajaj, Piaggio, General Motors, Honda Motor Co.
Ltd., Ford Motor, Toyota Motor Corporation, Ashok Leyland, and Other Prominent
Players are expanding their presence in the market by implementing various
innovations and technology.
February 2020, BS6 compliant Maruti Suzuki WagonR now also
available in S-CNG. Introduction of WagonR with BS6 compliant CNG is aligned to
the Company’s Mission Green Million, announced at the Auto Expo-2020.
June 2018, Maruti Suzuki Ertiga S-CNG is country’s first BS6
compliant CNG MPV offering a mileage of 26.08 km/kg.
objective of the Study:
To analyze and forecast the
India Automotive CNG/LPG Kit market size of the market, in terms of value.
To examine the careful
market segmentation and forecast the market size, in terms value, based on the
region by segmenting the India Automotive CNG/LPG Kit market into five regions,
namely, Northern India, Southern India, Eastern India, Western India.
To outline, categorized and
forecast the India Automotive CNG/LPG Kit market based on the kit type, vehicle
type, and region.
To examine competitive
developments like technological advancement, services, and regulative framework
within the India Automotive CNG/LPG Kit Market.
To highlight the impact
analysis of the factors, affecting the market dynamics such as drivers,
restraints, opportunities, and challenges.
To strategically profile the
key players and comprehensively analyze their market shares along with
detailing the competitive landscape for market leaders.
Scope of the Report
Historical data –
Base Year – 2019
Forecast – 2020 – 2026
Revenue in USD
Northern India, Southern
India, Eastern India, Western India
By Kit type, Vehicle Type
Maruti Suzuki, Hyundai
Motor, Mahindra & Mahindra, TATA Motors Limited, Bajaj, Piaggio, General
Motors, Honda Motor Co. Ltd., Ford Motor, Toyota Motor Corporation, Ashok
Leyland, and Other Prominent Players
By Kit Type
By Vehicle Type
Light Commercial Vehicle
Medium Commercial Vehicle