CNG and LPG vehicles are automobiles powered by alternative fuels. CNG is made up mostly of methane and serves as a substitute for gasoline or diesel in these vehicles. Meanwhile, LPG, consisting mainly of propane or butane, acts as an alternative fuel source instead of gasoline or diesel to operate LPG vehicles.
Africa CNG and LPG Vehicle Market Driving Factors and Challenges
The cost-effectiveness of Liquified Petroleum Gas (LPG) and Compressed Natural Gas (CNG) fuels, leading to reduced per kilometer driving expenses, is driving an increasing number of vehicle users, particularly taxi fleet operators, to switch from conventional fuels to Autogas-based vehicles. In Algeria, the government is providing incentives by paying the suppliers directly 50% of the cost of the conversion from traditional fuel to LPG. This government program's main goal is to promote the usage of gas-powered automobiles as a way to cut down on the import of crude oil and petroleum products into the nation. Furthermore, due to the worsening air quality and rising air pollution in the area, the government is actively promoting the conversion of conventional fuel vehicles to eco-friendly options like CNG and LPG fuels. These alternatives are known for their environmentally friendly nature and ability to reduce carbon dioxide emissions. Switching to CNG and LPG can play a crucial role in mitigating greenhouse gas emissions, making them a preferred choice for end-users looking to contribute to environmental preservation. All these factors contribute to the growth of CNG and LPG Vehicle market in Africa.
A significant challenge for the Africa CNG and LPG vehicle market is the limited availability of company-fitted CNG and LPG vehicles in the region. As a result, most vehicle conversions are conducted through aftermarket activities using imported conversion kits. The lack of widely accessible original equipment CNG and LPG vehicles hampers market growth and acceptance, as consumers may have reservations about retrofitted solutions regarding warranty, safety, and performance. The market's potential expansion is impeded by the necessity for more manufacturers to invest in producing vehicles with built-in CNG and LPG systems as a standard feature. The market's expansion may also be hampered by regulatory and policy obstacles, such as inconsistent or murky rules governing the usage and import of CNG and LPG cars. A more favourable climate for market expansion will be promoted by harmonising rules across various African nations.
Impact of COVID-19 on Africa CNG and LPG Vehicle Market
The COVID-19 pandemic's effects on the African CNG and LPG vehicle market were conflicting. Initial lockdowns, travel restrictions, and financial ambiguity slowed the selling of vehicles and the construction of infrastructure. Government pandemic response priorities caused incentives and policies favouring alternate fuels to be delayed. The crisis did, however, also highlight how crucial energy security and environmental sustainability are, which could increase demand in cleaner fuels like CNG and LPG. Opportunities for the market could be brought about by post-pandemic recovery efforts and a renewed emphasis on green activities. However, obstacles still exist, such as a lack of funding and the requirement for a more robust infrastructure in order to fully realise the potential of CNG and LPG vehicles in Africa.
Africa CNG and LPG Vehicle Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; African Gas Equipment, BRC Gas Equipments, Cummins Inc., EMER, ExoGas, Seat SA, Valtec, Zavoli, Others.
Africa CNG and LPG Vehicle Market Segmentation:
By Fuel Type: Based on the Fuel Type, Africa CNG and LPG Vehicle Market is segmented as; Compressed Natural Gas, Liquified Petroleum Gas.
By Vehicle Type: Based on the Vehicle Type, Africa CNG and LPG Vehicle Market is segmented as; Commercial Vehicles, Passenger Cars.
By Sales Channel: Based on the Sales Channel, Africa CNG and LPG Vehicle Market is segmented as; Aftermarket, OEM.
By Region: This research also includes data for Egypt, Ethiopia, Morocco, Nigeria, South Africa, Rest of the Africa.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.