Compressed Natural Gas (CNG) Vehicle System Market Size - By Product, By Vehicle, By System, By End Use, Growth Forecast, 2025 - 2034

Compressed Natural Gas Vehicle System Market Size

The global compressed natural gas (CNG) vehicle system market size was valued at USD 14.7 billion in 2024. The market is expected to grow from USD 15.8 billion in 2025 to USD 27.3 billion in 2034 at a CAGR of 6.2%, according to latest report published by Global Market Insights Inc.

Governments across major automotive markets are implementing strict emission and carbon reduction standards, compelling OEMs and fleet operators to adopt cleaner fuel alternatives like CNG. Notably, compared to diesel and gasoline vehicles, CNG vehicles produce much lower levels of CO₂, NOx and particulate matter, making the way for compliance with both regulatory market mandates toward more sustainable modes of transportation such as Euro 6 and Bharat Stage VI standards particularly for passenger and commercial vehicles.
 

The cost differential between CNG and conventional engines is a leading driver of market growth. CNG costs approximately 30–40% less per kilometer than gasoline, as well as diesel thus creating an additional incentive toward adoption, particularly for fleet operators and budget-conscious consumers. With the volatility of the crude oil price globally, even governments are beginning to “encourage” the adoption of CNG to stabilize fuel prices and reduce reliance on imported oil particularly in emerging economies in Asia and Latin America.
 

The continued investment in CNG distribution and refueling infrastructure is improving market accessibility and uptake of CNG technology. The implementation of public-private partnerships and state-funded programs is expanding the number of CNG stations in urban corridors and on highways. This growth in infrastructure addresses the consumer's range anxiety when it comes to CNG refueling and significantly increases consumer sentiment in CNG vehicles. The use of digital station mapping combined with mobile payment functionality is making the refueling experience easier for consumers, increasing the chances that they will try CNG-based vehicles rather than conventional vehicles.
 

Automotive OEMs are now incorporating factory-installed CNG systems in their brand-new models that increase engine performance, safety and efficiency. Technological advancements in CNG injectors, regulators and storage tanks, especially those made up of lightweight composite materials, are improving vehicle range and reducing emissions. As leading automotive OEMs strive to meet emissions standards, dual-fuel and dedicated CNG engine technologies are becoming mainstream and are being offered as sustainable alternatives to conventional technologies. All these advancements help to make CNG vehicles attractive options in the commercial and passenger vehicle markets.
 

North America and Europe are leading the way in developing CNG vehicle systems, due to aggressive emission standards, sustainability ambitions, and increased investment into clean mobility solutions. Governments are encouraging alternative fuels through a combination of carbon-reduction mandates and tax credits, which is initiating OEMs and Tier-1 suppliers to increase R&D facilities dedicated to next-generation CNG systems.
 

The Asia-Pacific region is being positioned as a growth center for CNG vehicle systems, primarily due to urbanization, increased vehicle production and significant government efforts to reduce diesel and gasoline imports and pollution from vehicles. Countries such as India, China, and Thailand, are investing heavily in expanding existing CNG refueling infrastructure and providing incentives to switch fleets from diesel to compressed natural gas. Local manufacturers are working with global technology and manufacturing organizations to locally produce their storage tanks, regulators, and injectors.
 

Compressed Natural Gas Vehicle System Market Trends

The industry is experiencing a shift from traditional CNG to bio-CNG or renewable natural gas (RNG) derived from organic waste and biomass. This is aligned with circular economic objectives while also supporting governmental carbon-neutral transportation strategies. Countries including India, and European nations are investing in infrastructure for bio-CNG, which is then increasing the demand for bio-CNG storage tanks and bio-CNG injection systems. Original Equipment Manufacturers (OEM) are also looking into developing engines that will be optimized to use renewable gas. In addition, bio-CNG presents an environmentally friendly and affordable fuel solution for fleets.
 

Digitalization has started to touch on the CNG vehicle ecosystem, as manufacturers begin adding smart sensors, telematics, and real-time fuel monitoring systems to facilities and vehicles to help maximize efficiencies and measure leakage, as well as capture and optimize the fuels being used. Fleet operators are realizing a lot of benefits from predictive maintenance, remote diagnostics and data analysis to reduce downtime and operational savings. The digital process improves safety and enhances trackability of fuel usage involved with the anticipated use of connected, data usage, vehicle management systems for commercial vehicle fleets and passenger vehicle fleets.
 

Automotive OEMs are increasingly partnering with suppliers of CNG components, fuel distributors, and government agencies as they look to grow an effective CNG ecosystem. These partnerships, centered on developing factory-fitted CNG models, complying with the industry's global emission legislation, and building national refueling networks, are creating operational synergies that bolster innovation around CNG tanks, CNG injectors, and CNG regulators. Partnerships and strategic alliances allow technology transfer, a pathway to scale enterprise development capacity, and position OEMs to meet the global demand for effective low-emissions affordable mobility solutions.
 

The market is experiencing solid momentum for dual fuel and dedicated CNG powertrains. The dual-fuel powertrain provides drivers with the flexibility to switch from gasoline or diesel to CNG, thus expanding the vehicle's ability to travel longer ranges. Dedicated CNG engines are designed with compression and combustion efficiency, vehicle performance, and reduction of emissions in mind. While addressing the substantial opportunity in the market, OEMs are also providing increased reliability and power through enhanced combustion systems, bridge materials, and accelerometer fuel injector systems. This will provide a long-term, sustainable fleet solution, while reducing operating costs.
 

Compressed Natural Gas Vehicle System Market Analysis

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Based on product, the compressed natural gas vehicle system market is divided into CNG storage systems, fuel delivery systems, conversion kits and other components. The CNG storage systems segment dominated the market, accounting for 45% share in 2024 and is expected to grow at a CAGR of over 6% through 2034.
 

• CNG storage systems are the largest segment of the entire segment, accounting for a market size of USD 6.66 billion in 2024 and projected to reach USD 12.21 billion by 2034. This segment continues to benefit from new developments in low-weight composites, with published NREL research showing the potential for a 30-50% reduction in costs for manufacturing composite tank storage systems.
   
•  Type III and Type IV composite tanks, which are a component of storage systems have a manufacturer-defined useful life of 15-25 years, and they are reported to have a better potential lifespan than a conventional steel alternative.  Storage systems are required to be inspected every 36 months and/or at 36,000 miles. The market is expected to continue to grow, driven by the adoption of new vehicles onto the road and the replacement of end-of-life tanks; life cycle evaluation studies of composite storage systems have shown they retain structural integrity for 15 years and longer.
   
• Fuel delivery systems segment includes fuel injection systems, pressure regulators and electronic control units that have been optimized to work with the combustion characteristics of CNG as a fuel. Natural gas's high pump octane number of 120+ vs. gasoline's octane number of 84-93 increases the ability to utilize advanced combustion strategies to optimize performance, according to the National Renewable Energy Laboratory.
   
• Advanced Digital fuel delivery systems can provide high performance or ultra-low NOx CNG engines that are approximately 0.02 g/mi NOx the Alternative Fuels Data Center meets the California Air Resources Board near-zero emissions standards. Digital fuel delivery systems with integrated capabilities can also enable monitoring, diagnostic, and performance optimization in real-time, which corresponds to the trend toward smart fuel management systems.
   

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Based on vehicle, the compressed natural gas vehicle system market is segmented by passenger cars, commercial vehicles and off-highway vehicles. Commercial vehicles segment dominates the market with 52% share in 2024, and the segment is expected to grow at a CAGR of 5.5% from 2025 to 2034.
 

• The commercial vehicle segment leads the market with a valuation of USD 7.57 billion in 2024, thereby highlighting a significant economic incentive for operating high-mileage fleets. According to the Government Accountability Office, CNG is typically priced at 40-60% the cost of similar gasoline fuel (in terms of energy equivalent), which incentivizes savings for commercial operators who may drive more than 15,000 miles per year.
   
• In cases of heavy-duty CNG applications, the Alternative Fuels Data Center states there is a lifecycle greenhouse gas emissions reduction of around 20%, with a reduction of 99% for petroleum fuel, which support fleet sustainability goals and regulations. In addition, ongoing adoption of commercial vehicles is also driven by fueling infrastructure attributed to commercial vehicles with dedicated CNG refueling infrastructure.
   
• Passenger cars are growing at 7.7% CAGR from 2025-2034, the strongest growth of the vehicle segments. The growth of the market is limited as there are no new light-duty CNG vehicles being built by OEMs, with the National Renewable Energy Laboratory acknowledging as of Q1 2022 that the number of OEMs offered vehicles appears stagnant. Consequently, this reliance on retrofitting aftermarket vehicles costing roughly $609-$2,609 per the Government Accountability Office fifty years ago, has exacerbated difficulties tracking registration as well as understanding the degree of CNG in the vehicle market as per the National Renewable Energy Laboratory.
   

Based on system, the compressed natural gas (CNG) vehicle system market is segmented bydedicated CNG systems, bi-fuel (CNG/Gasoline) systems and dual-fuel (CNG/Diesel) systems. The dedicated CNG systems segment dominates the market with 47% share in 2024, and the segment is expected to grow at a CAGR of 7.8% from 2025 to 2034.
 

• Dedicated CNG vehicles have become popular options for fleets and transit markets in urban environments due to their emissions and fuel economy. The trend will continue to grow due to environmental regulations and incentives for low-emission vehicles. Existing CNG refueling infrastructure, however, has limited flexibility. Manufacturers are contributing to reliability and utility by investing in optimized engine designs and storage systems and are making dedicated systems a primary focus of their sustainable transportation efforts.
   
• Bi-fuel CNG/gasoline systems are also gaining popularity because they allow drivers flexibility in how, when, and where to fuel the vehicle by being able to switch whether it is using CNG or gasoline based on the availability of CNG. The flexibility makes it attractive to the market sectors where there is limited infrastructure for CNG, as it helps reduce range anxiety associated with refueling a CNG vehicle. Renewed attention for the environment, government incentives, and increased demand for cleaner mobility will continue to drive growth. OEMs are increasingly designing engines and fuel management systems to optimize efficiency; thus bi-fuel systems can act as a practical transitional technology.
   
• Dual-fuel CNG/diesel systems are emerging as a leading technology to support heavy-duty and commercial vehicles. Diesel has a high energy density, and dual-fuel systems support many benefits of CNG, including environmental benefits. A dual-fuel system assists operators with maintaining the operating standards of the diesel engine while reducing emissions. This trend is fueled by regulation of commercial fleets, the advancement of dual-fuel technology, and retrofits, and to drive replacement of diesel units.
   

Based on end use, the market is segmented into OEMs and aftermarket. The OEMs is expected to dominate the CNG vehicle system market with a share of 64% in 2024, driven by strong brand trust, integrated solutions, and extensive production capabilities.
 

• OEMs are increasingly installing sophisticated CNG systems into their new vehicles, concentrating on ensuring their engines operate to optimum levels, minimizing emissions, and maximizing fuel efficiency. The cost-effective design and manufacture of these CNG systems is made possible through strategic partnerships and OEM-developed R&D departments that deliver reliable and high-performance vehicles in compliance with increasingly stringent emissions controls. OEMs thus become industry leaders in delivering efficient, high-performance, and environmentally friendly vehicles to the marketplace.
   
• OEMs are leveraging brand loyalty and global distribution networks to fasten CNG adoption in public transport and commercial fleets. With factory-installed CNG systems, OEMs can reduce re-equipping costs, help ensure safety compliance, and contribute to the transition to sustainable mobility while enhancing their market position and sustainability strategy.
   
• The availability of aftermarket CNG systems is expanding due to increased demands in areas with limited CNG vehicle availability. Independently operated aftermarket workshops or installers can install flexible aftermarket CNG systems in various applications, including passenger and commercial vehicles, providing lower-cost options to converting existing engines to continued use and extend the life of these older mass-produced engine-based vehicles while achieving environmental regulations.
   
• This growth of the aftermarket segment is driven by increasingly knowing the cost of fuel and availability of gas under regulation. This applies equally to fleet operators and the individual owner alike. The development of technology used in storage, regulators, and injectors has made aftermarket systems safer while improving engine efficiency and affordability in markets with limited, if any, OEMs penetration.
   

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In 2024, US compressed natural gas vehicle system market had a market share of 91% and market size of USD 106.4 million in North America region.
 

• The US market has developed into a mature yet small component of the larger market opportunity. Like the CNG vehicle system market, the US market is a small piece of the market due in part to a focus on other alternative fuel technologies, while the US remains a petroleum rich nation.
   
• There is a robust federal policy framework supporting the U.S market from the Energy Policy Act of 1992, which established CNG as an alternative fuel. Federal fleet mandates are for government agencies to convert 25 to 75% of their vehicles into alternative fuel vehicles. Thus, these channels are established to support middle/large-sized private fleets CNG adoption as an alternative fuel vehicle option since it increases operational viability with fleet vehicle usage.
   
• The Clean Fuel Infrastructure program, which provides USD 2.5 billion for CNG infrastructure, provides market opportunities. As the funds support increased refueling access for market development, the Alternative Fuel Corridors program has recognized 21,800 (USD) miles of CNG ready corridors in 42 states.
   

North America dominated the compressed natural gas (CNG) vehicle system market with a market size of USD 117.5 million in 2024.
 

• The adoption of CNG vehicles in North America is being spurred by stricter emissions regulations, along with federal, provincial, and municipal incentives, especially for commercial fleets and public transport. Urban centers are also investing in CNG refueling infrastructure, which does allow for range anxiety to ease, while enabling fleet operators to explore CNG vehicles. OEMs are focusing on optimizing new engines, while aftermarket conversions are gaining appeal among cost-sensitive operators looking for ways to reduce fuel-related expenses while remaining compliant with environment regulations.
   
• Increased fuel pricing and environmental awareness is also motivating fleet operators in North America to investigate CNG substitutes. OEMs provide factory-fitted solutions that boast high efficiency and reliability, while aftermarket conversions provide existing fleet vehicles with viable options. Collaboration with CNG suppliers and fleet operators in partnership with vehicle technology developers is also improving CNG use adoption by addressing safety, cost, and environmental factors across long-distance logistics, municipal transport, and urban parcel delivery.
   
• Innovative technology in North America is generating CNG and CNG vehicle conversions that are safer, and more efficient than vehicles and CNG technologies in the past. OEMs are harnessing these innovations in new CNG vehicles to differentiate against their competitors, and aftermarket service providers are working to expand audience segments through retrofitting existing vehicles. New CNG vehicles, along with government incentives and emissions reduction commitments, are paving the way for increased market share and operational efficiencies, while also establishing CNG as a viable sustainable alternative to traditional fuels in a variety of vehicle application segments.
   

Europe CNG vehicle system market accounted for a share of 14.1 % and generated revenue of USD 2,074.2 million in 2024 and is anticipated to show lucrative growth over the forecast period.
 

• European subsidies, tax breaks, and penalties associated with emissions encourage fleets and individual operators to adapt CNG systems into their operations. Urban delivery, municipal transit, and public transportation vehicles benefit from CNG-based operations with lower operating costs. Original equipment manufacturers in Europe emphasize performance (250,000+ miles), durability (7+ years), and maintenance costs associated with CNG vehicles, while aftermarket suppliers develop solutions to retrofit CNG demand.
   
• Research and design guidelines are in place in Europe to develop CNG vehicle technologies including improving storage tanks, injectors, and fuel management systems promoting safety and efficiency, and more specifically reliability based on operational stability. OEMs members integrate technologies implemented for storage and fuel management in new CNG vehicles, while aftermarket industry companies prepare freight fleets to be retrofitted for CNG systems.
   
• Integration of CNG with the broader energy suppliers and infrastructure developers leads to reliable refueling networks and the remaining social need for fleets and private operators seeking to penetrate an eco-friendly CNG vehicle operational model with positive market penetration. In conjunction with the policies and legislation used to drive favorable environmental consequences for CNG, continued promotion in innovation for CNG vehicles and garnering strong environmental sector policies allow CNG technology to continue to grow markets in individuals and fleets.
   

Germany dominates the compressed natural gas (CNG) vehicle system market, showcasing strong growth potential, with a CAGR of 2.1% between 2025 and 2034.
 

• Germany's market is positively influenced by the fact that gasoline and diesel fuels have high taxes on them to be an economically competitive alternative for fuel consumption. The consumers' concern for the environment, along with their government incentives for CNG engagement, also contributes to the popularity of CNG vehicles beyond just economics. For this reason, many highways in Germany have an established network of refueling stations for extended distance for the operation of CNG vehicles.
   
• Commercial vehicles are leading the charge on growth of market engagement, while CNG buses, trucks, and delivery vehicles are proving to be operational and economic advantages. There is still limited interest in passenger vehicles beyond infrastructure for CNG vehicles and availability in some metropolitan areas.
   
• Germany is a participant in the greater European network for CNG and has approximately 1,000,000 natural gas vehicles and 3,000 CNG stations in the region. Cross-border infrastructure also supports international NGV expansion into bordering countries and enhances tourism and commercial transport.
   

The Asia Pacific compressed natural gas (CNG) vehicle system market is anticipated to grow at the highest CAGR of 7.1% between 2025 and 2034.
 

• The Asia Pacific region accounts for a 54.5% share in 2024, which is the largest of the regions and the fastest-growing regional market. According to the Center for Strategic and International Studies, China's government supports CNG through government policies under the Clean Vehicles Action program, which focuses on demonstration and use of CNG in buses and taxis. According to CSIS analysis, the 13th Five-Year Plan aimed at 10 million NGVs and 12,000 stations by the close of 2020.
   
• According to Center for Strategic and International Studies, Government price regulation kept CNG prices lower than gasoline and diesel prices historically until 2015, which helped maintain the foundation of the market. The West-to-East Gas Pipeline Projects helped build the supply infrastructure to facilitate market growth according to CSIS research.
   
• India represents a significant growth opportunity, with government initiatives promoting the adoption of CNG in public transportation and business vehicle sectors. The region also has considerable advantages surrounding high population density, existing public transportation systems already in place, and supportive government policies for alternative fuel adoption.
   

China compressed natural gas vehicle system market is estimated to grow with a CAGR of 7.5% between 2025 and 2034.
 

• China is both the largest and fastest-growing market for CNG vehicle systems in the world, due to governmental policies assisting the transition to clean transportation and accessing plentiful natural gas resources. The market benefits from a robust policy framework and swift infrastructure development in many of the larger or major metropolitan areas.
   
• West-to-East Gas Pipeline Projects, which has included natural gas supply infrastructure, is adding critical support systems for the development of this CNG market. These major infrastructure investments help ensure that a steady, safe, and plentiful supply of fuel is available as the number of CNG vehicles are increased across eastern China's major metropolitan areas.
   
• China has rapidly developed its CNG vehicles, growing from an initial demonstration project to roughly 48,800 CNG vehicles by 2008.The market focus is identified as primarily dual-fuel applications in taxis or a taxi fleet and in local bus systems.
   

Latin America compressed natural gas vehicle system market is expected to show lucrative growth over the forecast period.
 

• Latin America accounted for 19.5% market share and valued at US 2.86 billion in 2024 significantly due to Brazil's history of Market for CNG. Brazil has approximately 2.25 million natural gas vehicles (NGVs) making up about 3% of its fleet.
   
• Brazil is ranked 5th for adoption of NGVs globally and National Plan of Natural Gas (PLANGÁS), a government initiative started in 1987 and expanded in 1992. Fiscal support at the state level included reducing MVPT tax from 4% to 1% based on the vehicle value, in the state of Rio de Janeiro, and ICMS tax adjustments in the state of São Paulo as mentioned above.
   
• The New Gas Law (2021) amended the authority for ANP to open gas to the market as described by Americas Market Intelligence and the Fuel of the Future Law (2024) promotes mobility available to sustainable low-carbon fuel based on Mayer Brown commentary. Regionally, Latin America is favored because of available natural gas reserves and developing regulation.
   

Brazil CNG vehicle system market is estimated to grow with a CAGR of 4.1% to reach USD 1,027.5 million by 2034.
 

• Brazil possesses the world's fifth-largest compressed natural gas (CNG) vehicle fleet, with almost 2.25 million natural gas vehicles (NGVs) comprising 3% of the national fleet. The market has the best-successful outcome of large-scale CNG adoption in the world with existing governmental programs and incentives, along with favorable economic conditions.
   
• Rio de Janeiro has established MVPT tax reductions with a change from 4% to 1% of vehicle value which served as a powerful economic incentive for customers to adopt CNG vehicles. Similarly, São Paulo made ICMS tax changes which affected the competitiveness of gasoline vs CNG, supporting the economic advantages of CNG use compared to gasoline.
   
• Brazil's natural gas reserves and government pricing policies facilitate the adoption of alternate fuels offer economic advantages about CNG. The relatively high price of gasoline and coupled taxes further enhances CNG's competitiveness, aiding consumer decision-making on the adaptation of CNG.
   

The Middle East and Africa compressed natural gas (CNG) vehicle system market accounted for USD 1.7 billion in 2024 and is anticipated to show lucrative growth over the forecast period.
 

• In MEA, the growth in CNG interest has also been largely influenced by the low maintenance and operating costs and lower emissions relative to diesel and petrol, as well as the need to draw on domestic sources of energy. OEMs and aftermarket solution providers are establishing operational solutions that do not vertically integrate by providing integrated designs also and are supplying systems that can be installed into diesel and gasoline engines post-manufacture.
   
•  Various municipalities and transport operators are instituting cleaner fuels programs to catch up on sustainable transport operation. MEA municipalities, logistics organizations, and private fleet operators are focusing on CNG solutions simply as an enabling technology given that fuel prices are often subsidized and generally cheap relative to conventional fuels.
   
• Innovative technology related to vehicle and infrastructure CNG solutions including storage options, injectors, regulators, and management systems continue to improve safety, performance, ease of use and reliability compared to diesel and gasoline alternatives.
   

UAE market is expected to experience substantial growth in the Middle East and Africa compressed natural gas (CNG) vehicle system market in 2024, with a CAGR of 6.3%.
 

• The CNG vehicle systems market in the UAE represents a national strategic governmental agenda around diversifying transportation and achieving environmental needs. There are about 9,412 CNG/natural gas vehicles registered in Abu Dhabi which significantly highlights the level of uptake in government and commercial fleets.
   
• ADNOC Distribution has 31 CNG stations across the country, including one station only dedicated to CNG in Abu Dhabi. The Natural Gas for Vehicles project also includes 16 CNG pumps which support 10,000 vehicles per day [U.AE], indicating further investment in infrastructure and operational capability.
   
• The United Arab Emirates has large domestic natural gas resources which provide economic justification for CNG utilization, as the domestic delivery of natural gas provides a faster route to fuel security and price stability. The utilization of CNG advances the country’s environmental goals while sourcing its energy from domestic resources.
   

Compressed Natural Gas Vehicle System Market Share

The top 7 companies in the compressed natural gas (CNG) vehicle system industry are Parker Hannifin, Hexagon Composites, Cummins, Landi Renzo, Westport Fuel Systems, BRC Gas and Clean Energy Fuels contributing 13% of the market in 2024.
 

• Parker Hannifin holds the largest share, with 2.7% share, leveraging its broad range of fluid handling and motion control technologies. The company's CNG systems benefit from its extensive working experience in demanding high-pressure gas applications, virtual dominance in advanced materials engineering, and global manufacturing experience. Importantly, Parker Hannifin's market position is further bolstered by the ability to supply integrated solutions around storage, delivery, and control systems optimized for individual vehicle applications
   
• Hexagon Composites is dedicated to advanced composite pressure vessel technology for CNG storage applications. The company has expertise in Type III and Type IV composite tanks offering a useful life defined by the manufacturer of 15-25 years according to standards from the National Renewable Energy Laboratory and is prepared to meet critical market needs for durability and total cost of ownership. With a focus on lightweight solutions, Hexagon also reduces payload as another key requirement for maintaining safety standards when storing CNG at approximately 3,600 psi, according to NREL.
   
• Cummins has a portfolio of natural gas engines and through their integrated powertrain solutions. Cummins' ultra-low NOx CNG engines, achieving about 0.02 g/mi NOx emissions as evidenced by the Alternative Fuels Data Center, satisfy California Air Resources Board near-zero standards and establish Cummins as a leading player in emission-regulated markets. Cummins accesses the higher pump octane number (120+) of natural gas compared to gasoline (84-93) according to the National Renewable Energy Laboratory to enhance engine performance and efficiency.
   
• Landi Renzo focuses on the aftermarket conversion system and OEMs partnerships primarily in European and Latin American markets. The company is knowledgeable about bi-fuel and dual-fuel systems that fulfill markets with operational needs for flexibility, switching between CNG gas and conventional languages.
   
• Westport Fuel Systems develop natural gas fuel systems for commercial vehicle applications, alongside having an advantage due to the segment's market share and favorable economics as CNG's typical pricing of 40-60% of gasoline equivalent
   
• BRC Gas  emphasizes aftermarket conversion systems and supplies components into markets where conversions of vehicles represent the primary adoption pathway. The company’s focus is on conversion technologies and offers a unique advantage in market segments where OEMs CNG vehicles are not available. This focus is particularly relevant due to the National Renewable Energy Laboratory (NREL) reporting that there were no new light-duty CNG models offered by OEMs at any point during the first quarter of 2022.
   
• Clean Energy Fuels is an integrated fuel provider and infrastructure developer that offers comprehensive solutions to fleet operators, including fuel supply agreements and maintenance services. The company is benefitting from pre-established refueling infrastructure supported by the Alternative Fuel Corridors program, that includes 21,800 miles of supported corridors across 42 states according to NREL using CNG stations, that total approximately 1,500 nationwide, with an average investment of $1.89 million per station according to the NREL.
   

Compressed Natural Gas Vehicle System Market Companies

Major players operating in the compressed natural gas (CNG) vehicle system industry are:

• BRC Gas
• Clean Energy Fuels
• Cummins
• Galileo Technologies
• Hexagon Composites
• Landi Renzo
• Luxfer
• Parker Hannifin
• Westport Fuel Systems
• Worthington Industries
   
• Parker Hannifin Corporation utilizes its vast experience in motion control and fluid processing technologies to offer complete CNG system solutions. Parker Hannifin is able to diversify into other industries, allowing for innovation across technologies and economies of scale. Parker Hannifin addresses lightweight composite material design considerations to follow the US Department of Energy's National Renewable Energy Laboratory's OSTI research report findings of up to a 30-50% reduction in manufacturing costs and supply chain advantage as increasing manufacturing costs becomes problematic in the future.
   
• Hexagon Composites ASA primarily famous for advanced composite pressure vessel technology, based on its Type III and Type IV composite tanks. The company's focus on lightweight tanks aligns with current market requirements while adhering to CNG safety regulations at the approximate 3,600 psi recommended by the NREL.
   
• Cummins' ultra-low NOx CNG engines achieve around 0.02 g/mi NOx emissions, per the Alternative Fuels Data Center, and satisfy California Air Resources Board near-zero emissions standards, positioning Cummins for market expansion in sectors with stricter emissions regulations. Specialized CNG Systems Providers Landi Renzo, specializes in aftermarket conversion systems and OEMs partnerships for CNG vehicles, predominantly in the European and Latin American markets, due to government incentives developing in these markets. Landi Renzo's experience in the design of bi-fuel and dual-fuel systems serves market segments that need to operate interchangeably between CNG or conventional fuels.
   
• Westport Fuel Systems is primarily focused on natural gas fuel systems tailored to commercial vehicle applications. Westport is in a good position given that CNG is typically priced at between 40-60% of gasoline equivalent and has associated economic advantages. BRC Gas Equipment focuses on the aftermarket with aftermarket conversion systems and supply of components focusing on markets where the primary means of adoption is through vehicle conversion.
   
• Clean Energy Fuels Corp operates as an integrated renewable diesel fuel supplier and infrastructure developer, providing fleet operators with a complete basin of solutions including fuel supply agreements and maintenance services. The company is supported by an expensive refilling infrastructure fueled under the Alternative Fuel Corridors program that covers roughly 21,800 miles of highways in 42 states, as compiled by the National Renewable Energy Laboratory.
   
• Worthington Industries, Luxfer Gas Cylinders, and Galileo Technologies are manufacturers of pressure vessels that offer CNG storage tanks in various technology categories. Companies will continue to benefit from the increasing demand for high-performance storage methods and technology that uses lightweight composite materials.
   

Compressed Natural Gas Vehicle System Industry News

• In January 2025, The US Environmental Protection Agency reported updated Renewable Identification Number (RIN) generation estimates for CNG applications using renewable natural gas (RNG) projecting somewhere between 1.17 - 1.36 billion RINs in the Federal Register for the 2026 and 2027 period. The announcement enhances the business case for operators of CNG vehicles by providing revenue generation from RIN monetization, especially for fleet vehicles using RNG for fuel.
   
• In December 2024, the Alternative Fuels Dependable Center (AFDC) continued to explore CNG refueling infrastructure to be built out with an increase of 532 operational landfill gas projects and approximately 470 commercial livestock anaerobic digesters creating renewable gas feedstock. Continuous building out of CNG infrastructure would allow for market expansion through increased availability and better reliability in the supply chains for CNG vehicle operators.
   
• In November 2024, Brazil passed the Fuel of the Future Law, which supports sustainable low-carbon mobility solutions for CNG applications, according to Mayer Brown’s analysis. The enactment of the Fuel of the Future Law boosts the government’s support of alternative fuel adoption in the LATAM market for CNG, with the number of NGV's remaining approximately 2.25 million NGV's (around 3 percent) of the national fleet per ScienceDirect.
   
• In October 2024, The National Renewable Energy Laboratory (NREL) published research indicating a potential reduction in manufacturing cost of 30%-50% for composite CNG tanks, by using advanced materials and manufacturing processes according to OSTI research. This research advances technology to mitigate significant market barriers related to the cost of vehicle conversion and total cost of ownership.
   

The compressed natural gas (CNG) vehicle system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipments (units) from 2021 to 2034, for the following segments:

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Market, By Product

• CNG storage systems
  • Type I (Steel)
  • Type II (Steel+composite)
  • Type III (Aluminum+composite)
  • Type IV (Full composite)
• Fuel delivery systems
  • Pressure regulators
  • Fuel injectors
  • Electronic control units
  • Fuel lines & fittings
• Conversion kits
  • Complete retrofit systems
  • Bi-fuel conversion kits
  • Dedicated CNG systems
• Other components
  • Safety systems
  • Gauges & indicators
  • Installation accessories

Market, By Vehicle

• Passenger cars
  • Sedan
  • SUV
  • Hatchback
• Commercial vehicles
  • Light commercial vehicles (LCV)
  • Medium commercial vehicles (MCV)
  • Heavy-duty commercial vehicles (HCV)
• Off-highway vehicles

Market, By System

• Dedicated CNG systems
• Bi-fuel (CNG/Gasoline) systems
• Dual-fuel (CNG/Diesel) systems

Market, By End use

• OEMs (Original equipment manufacturer)
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Poland
  • Romania
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Vietnam
  • Indonesia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Iran