A compressed natural gas (CNG) vehicle is equipped with a spark-ignited internal combustion engine, which operates as a gasoline engine. Natural gas in CNG vehicles is stored in a fuel tank or cylinder, which is usually placed at the back. The exhaust system of such vehicles channels the exhaust gases from the engine to the air through the tailpipe. This system has a three-way catalyst that reduces engine-out emissions. In liquified petroleum gas (LPG) vehicles, the size of the fuel tank is smaller than that of a diesel or petrol-based automobile. 

Globally, alternative fuel vehicles such as CNG and LPG vehicles are being increasingly preferred over petrol and diesel-based automobiles, owing to the surging air pollution levels caused due to combustion of these  petroleum products. Thus, the increasing shift toward clean energy, primarily on account of the surging environmental concerns and toughening emission laws, will help the CNG and LPG vehicle market is to advance at 5.9% CAGR during 2020–2030. The market recorded sales of 56.2 million units in 2019 and it is expected to sell 102.3 million units by 2030.

Moreover, the low running cost of such alternative fuel-powered automobiles, in comparison to gasoline and diesel-powered vehicles, is also fueling the adoption of CNG and LPG vehicles worldwide. For instance, in Europe, the cost of a CNG gallon is around 40–75% lesser than that of a diesel or gasoline gallon, on a gasoline–gallon equivalent basis. Similarly, in the U.S. the cost of a gallon of LPG is approximately 50% lesser than that of a gasoline or diesel gallon. Additionally, the low installation cost of LPG refueling systems and smaller size of LPG fuel tanks also fuel the adoption of LPG vehicles in the coming years.   

Furthermore, the flourishing e-commerce sector, primarily on account of the rising internet and connected devices penetration and changing shopping patterns of people, will also boost the usage of CNG and LPG automobiles in the foreseeable future. E-commerce companies across the world are relying on greener and cheaper transportation alternatives to be more responsible toward the environment. Additionally, the rising implementation of stringent emission norms will also encourage e-commerce companies to shift toward CNG and LPG vehicles in the forthcoming years.

In recent years, CNG and LPG vehicle manufacturers, such as Ford Motor Co., Suzuki Motors Corp., Fiat Chrysler Automobiles N.V., Honda Motors Co. Ltd., Tomasetto Achille SpA, Daimler AG, General Motors Co., and Tata Motors Ltd., have been engaging in partnerships to reach out to a greater number of customers. For instance, in July 2019, LeasePlan Corp., a fleet management company, signed a partnership agreement with Grupo DISA to allow Canary Island-based companies to operate Autogas automobiles on renting mode. Under this agreement, the refueling of such vehicles is guaranteed by the LPG station network of Grupo DISA. 

According to P&S Intelligence, APAC dominated the CNG and LPG vehicle market in the past, due to the flourishing automotive industry in India, Japan, China, and South Korea. These APAC countries are witnessing a rapid surge in the adoption of CNG vehicles for public transport and commercial purposes. Whereas, Latin America and Middle East and Africa (LAMEA) is expected to adopt CNG and LPG vehicles at the fastest pace in the forthcoming years. This will be due to the mounting purchasing power of people in developing countries such as Argentina and Brazil. 

Thus, the escalating environmental concerns and expanding e-commerce industry will augment the need for CNG and LPG vehicles in the upcoming years.