CNG Market Size in India | Forecast, Trends & Growth Outlook 2025

Q: What is the expected CAGR for the CNG market in India from 2025 to 2031?

The market is projected to expand at a compound annual growth rate (CAGR) of 12.8% during the forecast period 2025-2031.

Q: Why is CNG gaining popularity in India?

CNG is more affordable, eco-friendly, and emits fewer pollutants compared to traditional fuels like petrol and diesel.

Q: What are the key drivers behind the growth of the CNG market?

The key drivers of the market are rising fuel prices, government incentives, and increased infrastructure investments for CNG distribution.

Q: Which sectors are adopting CNG the most?

Commercial vehicles, public transport, and passenger vehicles are the primary adopters of CNG.

Q: What regions in India have the largest CNG market presence?

In India, Gujarat, Maharashtra, and Delhi NCR have the largest CNG market presence

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Code: MTA4552

Publication Date: Jun 2025

What is Driving the CNG Market in India?

According to 6Wresearch internal database and industry insights, the India CNG market is expected to grow at a compound annual growth rate (CAGR) of 12.8% from 2025 to 2031.

This growth is supported by the government initiatives promoting green energy, the expansion of CNG infrastructure, and increased adoption of CNG vehicles across both commercial and personal segments.

CNG market in India is experiencing for the substantial growth with the shift towards cleaner and more sustainable energy sources. As the concerns about air pollution is rising, increasing the cost of fuel respectively.

Key Growth Drivers of India CNG Market

Emphasizing on alternative fuels as part of India's green energy transition through government policies.
Investments in expanding CNG distribution networks, including pipelines and refuelling stations.
Increasing fuel prices pushing consumers towards affordable and cleaner CNG options.
Rising the adoption of CNG vehicles in the commercial and passenger vehicle sectors.
Growing awareness regarding sustainable energy that encourages businesses and individuals to switch the CNG.

India CNG Market Trends

The CNG market in India is expected for exceptional growth during the forecast period 2025-2031. As the market is driven by increasing demand for clean energy and the government's push for sustainable fuel adoption, the growth is likely to rise. The trends which drive the sales include the expansion of CNG infrastructure in tier-2 and tier-3 cities, development of dual-fuel engines for vehicles, and the introduction of policies which promotes adoption of CNG in public transport. Advanced technologies, such as smart metering and digitization of CNG stations, are also improving operational efficiency. In terms of region, Gujarat, Maharashtra, and Delhi NCR dominate the market. Simultaneously, states like Uttar Pradesh and Rajasthan are emerging as strong growth areas for CNG adoption.