Africa CNG and LPG Vehicle Market Report and Forecast 2025-2034

The Africa CNG and LPG vehicle market size reached approximately USD 1.51 Billion in 2024. The market is projected to grow at a CAGR of 7.10% between 2025 and 2034, reaching a value of around USD 3.00 Billion by 2034.

Key Trends in the Market

CNG and LPG vehicles are vehicles that are powered by alternative fuels. CNG, an acronym for compressed natural gas, is primarily composed of methane. CNG vehicles utilise natural gas as fuel instead of gasoline or diesel. On the other hand, LPG stands for liquefied petroleum gas, which primarily consists of propane or butane. LPG vehicles utilise liquefied petroleum gas as a fuel source instead of gasoline or diesel to operate.

• One of the primary factors favouring the Africa CNG and LPG vehicle market demand is the cost-effectiveness of liquified petroleum gas (LPG) and compressed natural gas (CNG). This is prompting vehicle users, particularly taxi fleet operators, to convert their conventional fuel vehicles to bio-fuel-based alternatives.
• The Africa CNG and LPG vehicle market growth is being propelled by the increasing urban population in various African countries. With road transport being the primary transport in the region, the demand for CNG and LPG vehicles is likely to surge amid the shift towards eco-friendly modes of transportation.
• One of the major Africa CNG and LPG vehicle market trends include the implementation of incentive plans by governments to support the transition from traditional fuel vehicles to eco-friendly fuel vehicles. This rising focus on the transition can be attributed to the deteriorating air quality and escalating air pollution in the area.

Market Segmentation

The report titled “Africa CNG and LPG Vehicle Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Fuel Type

• Compressed Natural Gas
• Liquified Petroleum Gas

Market Breakup by Kit Type

• Venturi
• Sequential

Market Breakup by Vehicle Type

• Passenger Cars
• Commercial Vehicles

Market Breakup by Fitting

• OEM
• Aftermarket

Market Breakup by Region

• South Africa
• Egypt
• Algeria
• Nigeria
• Others

Market Share by Fuel Type

According to the Africa CNG and LPG vehicle market analysis, compressed natural gas is likely to play a major role in the development of the market. The major factor driving the demand for compressed natural gas (CNG) can be attributed to its low cost, which significantly reduces the per-kilometre driving expenses for vehicles. This cost advantage has proven to be an attractive incentive, particularly for taxi fleet operators, leading to a growing trend of converting conventional fuel vehicles to CNG-powered alternatives.

Market Share by Region

Egypt is expected to hold major portion of the Africa CNG and LPG vehicle market share due to the extensive natural gas consumption in the country. The Egyptian government is one of the biggest investors and promoters of CNG vehicles, and it provides financial assistance to boost the adoption of such vehicles. It has also implemented a conversion programme that seeks to enhance the conversion rate to bio-fuel vehicles by leveraging the affordability of CNG.

Competitive Landscape

The comprehensive report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Africa CNG and LPG vehicle market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

Volkswagen Group

Volkswagen Group is a German-based multinational automotive manufacturer, serving as a prominent player in the global automotive sector and headquartered in Wolfsburg, Germany. Established in 1937, the company has achieved significant growth to secure its position as one of the largest automobile manufacturers worldwide.

Volvo Group

Volvo Group is a renowned Swedish multinational manufacturer with expertise in commercial vehicles, construction equipment, and solutions for marine and industrial applications. The company's headquarters are situated in Gothenburg, Sweden, and it was established in 1927.

Ford Motor Company

Ford Motor Company, an American multinational automaker, has its headquarters situated in Michigan. Established by Henry Ford on June 16, 1903, it holds a distinguished position as one of the oldest and largest automobile manufacturers worldwide.

Other Africa CNG and LPG vehicle market players include Hyundai Motor Company, Suzuki Motor Corporation, Landi Renzo S.p.A., Exogas Africa, Westport Fuel Systems Italia S.r.l., Iveco Group, and Innoson Vehicle Manufacturing, among others.