India CNG Market is expected to grow at a CAGR of 13.3% throguh 2029

The India CNG market is rising due to increasing environmental regulations and growing demand for cleaner, cost-effective fuel alternatives in transportation and industrial sectors in the forecast period 2026-2030F.

According to TechSci Research report, “India CNG Market - Industry Size, Share, Trends, Opportunity, and Forecast 2030”, India CNG Market was valued at USD 22.7 billion in 2024 and is expected to reach at USD 48.45 Billion in 2030 and project robust growth in the forecast period with a CAGR of 13.3% through 2030.

The cost-effectiveness of CNG compared to gasoline and diesel fuels is a significant driver for its market growth in India. CNG is generally cheaper than petrol and diesel, leading to substantial savings on fuel costs for consumers and businesses alike. This economic advantage is particularly attractive for commercial fleets and public transportation operators, who benefit from reduced operational expenses. Additionally, the stable pricing of CNG, supported by its domestic production and lower price volatility compared to crude oil-based fuels, enhances its economic appeal. The combination of lower fuel costs and operational savings drives widespread adoption of CNG vehicles and infrastructure.

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Based on Source, the India CNG market was predominantly driven by the use of Non-Associated Gas, a segment expected to maintain its dominance throughout the forecast period. Non-Associated Gas, which refers to natural gas extracted from fields not directly associated with crude oil production, has become the primary source for CNG due to its abundance and suitability for various applications. This type of gas is increasingly favored because it offers a stable and continuous supply, essential for meeting the growing demand for CNG in transportation and other sectors. The expansion of the CNG infrastructure and the government's push for cleaner fuel alternatives have amplified the reliance on Non-Associated Gas, as it aligns with India's energy strategy of reducing reliance on imported fuels and improving energy security. Additionally, advancements in technology and investments in infrastructure have enhanced the efficiency and cost-effectiveness of harnessing Non-Associated Gas, making it a more viable option compared to Associated Gas, which is often found in conjunction with crude oil and can be subject to more fluctuating supply conditions. Unconventional sources, such as biogas and coal bed methane, while gaining traction, still represent a smaller fraction of the market. The scalability and reliability of Non-Associated Gas position it as the preferred choice for CNG production, ensuring its continued dominance in the Indian market. The strategic development of this gas segment aligns with India's goals of fostering sustainable energy solutions and meeting the increasing demand for CNG across various sectors, including public transportation and industrial applications. As such, Non-Associated Gas is set to remain a cornerstone of the India's CNG market throughout the forecast period.

The West region of India is emerging as the fastest-growing area in the CNG market due to a combination of strategic factors driving its rapid development. One of the primary catalysts is the region's robust industrial base and economic growth, which has heightened the demand for cleaner transportation solutions and alternative fuels. Cities like Mumbai, Pune, and Ahmedabad, being major commercial hubs, have witnessed substantial investments in CNG infrastructure, including refueling stations and distribution networks, to meet the rising demand from both personal and commercial vehicles. Additionally, state governments in Western India have been proactive in promoting the adoption of CNG through favorable policies and incentives, further fueling market growth. The region's commitment to reducing air pollution and aligning with national environmental goals has led to the establishment of comprehensive CNG infrastructure and increased public awareness about the benefits of CNG over conventional fuels.

The West's strategic geographic location also enhances its appeal as a CNG market leader. The presence of major ports and transportation networks facilitates the efficient distribution and supply of CNG, reducing logistical challenges and costs. Furthermore, the West region benefits from a relatively developed infrastructure compared to other parts of India, enabling a faster rollout of CNG refueling stations and support services. This infrastructure advantage supports the region's growing fleet of CNG vehicles, including public transport buses, auto-rickshaws, and private cars. Economic incentives and subsidies from both state and central governments have played a crucial role in accelerating the adoption of CNG vehicles. Initiatives such as reduced taxes, financial incentives for CNG vehicle purchases, and subsidies for infrastructure development have made CNG a more attractive option for consumers and businesses alike. The West region's alignment with national policies aimed at promoting sustainable and environmentally friendly energy solutions underscores its leadership in the CNG market.

Rising consumer awareness and a shift towards eco-friendly alternatives are contributing to the West's dominance in the CNG market. As urban areas in the West experience increased vehicular congestion and air quality concerns, the appeal of CNG as a cleaner and cost-effective fuel solution becomes more pronounced. Overall, the West region's economic vitality, supportive infrastructure, government incentives, and environmental commitment position it as the fastest-growing segment of India's CNG market, setting a benchmark for other regions to follow.

Key market players in the India CNG Market are: -

• Indian Oil Corporation Limited
• Bharat Petroleum Corporation Limited
• Hindustan Petroleum Corporation Limited
• GAIL (India) Limited
• Tata Power Company Limited
• Reliance Industries Limited
• Mahanagar Gas Limited
• Indraprastha Gas Limited
• Sabarmati Gas Limited
• Gujarat Gas Limited

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“The India CNG market presents several promising opportunities. The growing emphasis on reducing urban air pollution opens avenues for increased adoption of CNG as a cleaner fuel alternative. Expanding infrastructure, such as CNG refueling stations, particularly in tier-2 and tier-3 cities, enhances accessibility and boosts market growth. Additionally, government incentives and subsidies for CNG vehicles stimulate consumer demand and investment in cleaner technologies. Technological advancements in CNG vehicle efficiency and storage solutions further drive market expansion. As the Indian government continues to focus on sustainable energy solutions, there is significant potential for partnerships and investments in CNG infrastructure and vehicle conversions, aligning with national environmental and energy goals.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.

“India CNG Market By Source (Associated Gas, Non-Associated Gas, Unconventional Sources), By Application (Light Duty Vehicles, Medium/Heavy Duty Buses, Medium/Heavy Duty Trucks, Others), By Region, Competition, Forecast and Opportunities, 2020-2030F”, has evaluated the future growth potential of India CNG Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in India CNG Market.

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