CNG Truck Market

CNG Truck Market: Introduction

• Manufacturers have been looking for alternative fuel sources for trucks due to a rise in fuel prices globally. It is vital for manufacturers to find alternatives, as the cost of transportation of goods is soaring. CNG is an easily available and dependable alternative to petrol and diesel. It provides equal amount of power and torque to any diesel truck.
• CNG trucks require less maintenance as compared to LPG trucks. CNG gas tanks need to be hydro tested every three years, which makes the trucks very easy to maintain.

Key Drivers of CNG Truck Market:

• The conversion of old diesel trucks to CNG trucks is a hassle-free overall conversion process. This not only repurposes old trucks but also reduces pollution and the operating cost of these trucks. Repurposing old vehicles also reduces the overall carbon footprint instead of buying a new vehicle.
• Rising prices of diesel reduce the operation cost of a CNG truck by half as compared to that of a conventional diesel vehicle. Hence several operators have begun to prefer CNG trucks over diesel trucks.
• Easy availability of CNG has played an important role in boosting the preference for CNG vehicles. CNG is a cleaner fuel alternative to petrol and diesel, as it produces less toxic by-products on combustion.

CNG Truck Market to Offer Attractive Opportunities:

• The easy conversion of old diesel trucks to CNG trucks reduces the need for high investment cost of new vehicles
• According to Tata Motors, CNG trucks are 35% more profitable than their diesel counterparts. According to Volvo Motors, CO2 emissions are reduced by up to 70%.
• The extensive network of CNG lines being laid globally is likely to make it easy to transport gas over long distances without any risk or major delivery cost

Safety Precautions to be Taken for Storage of CNG to Hamper Market

• Many areas do not have a reliable supply of CNG, unlike diesel or petrol. CNG storage takes up considerable space as compared to that taken by petrol and diesel.
• CNG, being a gas, is more unstable and can be dangerous during an accident, as the tanks may not be able to hold the gas after an accident. Diesel has a flash point of 52°C, which is very high as compared to CNG, making diesel a safer fuel.
• CNG needs to be stored at a pressure of 200 – 250 bar, making it a safety hazard. The tanks need to be hydro tested as well for any cracks or defects formed on the tank. These steps need to be taken in order to prevent any catastrophe from occurring.
• Overall space requirement and option of LNG may result in numerous end-users switching to LNG over time. This may hamper the CNG truck market.
• Several governments throughout the world are looking to phase out IC engine vehicles and replace them with electric trucks, which may hamper the CNG truck market.

CNG Truck Market to Expand Rapidly Globally

• Demand for CNG trucks has increased significantly in countries such as India, the U.S., and a others in Europe
• Prices of crude oil are projected to increase throughout the globe. CNG is expected to be a viable option, as it does not require major processing before being used.

Key Players Operating in CNG Truck Market

The CNG truck market is highly fragmented with top companies across the globe. Some of the key players operating in the global CNG truck market are:

• AB Volvo
• Tata Motors
• Eicher
• ASHOK LEYLAND
• MAN
• Peterbilt
• Daimler Truck
• SML ISUZU MOTORS INDIA
• Ashok Leyland

CNG Truck Market: Research Scope

CNG Truck Market, by Vehicle Type:

• Light-duty vehicle
• Heavy-duty vehicle

CNG Truck Market, by Engine System Type:

• Dedicated Fuel
• Bi-fuel
• Dual Fuel

CNG Truck Market, by CNG Kit Type:

• Venturi CNG
• Sequential CNG

CNG Truck Market, by Sales Channel

• OEM
• Aftermarket

CNG Truck Market, by Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Russia & CIS
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • ASEAN
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa