North America Autogas Market By Type (Compressed Natural Gas, Liquefied Petroleum Gas, Liquefied Natural Gas, Others), By Application (Passenger Vehicles, Commercial Vehicles, Two-Wheelers, Others), By Country, By Competition, Forecast and Opportunities 2020-2030F

Market Overview

The North America Autogas Market was valued at USD 19.6 Billion in 2024 and is expected to reach USD 24.4 Billion by 2030 with a CAGR of 3.70% during the forecast period. Autogas, commonly known as liquefied petroleum gas (LPG) when used as an automotive fuel, is increasingly gaining traction in North America as an eco-friendly alternative to conventional gasoline and diesel.

Comprising primarily propane, autogas is used in internal combustion engines, offering lower carbon emissions and better fuel efficiency compared to gasoline. The North America Autogas market is poised for significant growth due to several factors. Stringent environmental regulations in the U.S. and Canada are pushing for cleaner transportation fuels, making autogas a favorable option given its lower carbon footprint and reduced particulate matter emissions.

Autogas is more cost-effective than gasoline or diesel, as it offers a lower price per gallon, making it particularly attractive for commercial fleets and consumers seeking to reduce fuel expenses. This price advantage is amplified by the abundant supply of natural gas and propane in North America, contributing to stable pricing. Another key driver is the rising adoption of autogas vehicles by both individual consumers and businesses, particularly in the fleet and logistics sectors, where operational cost savings are crucial.

In Canada, government incentives for clean fuel adoption have further promoted the use of autogas, creating a favorable policy environment. The market’s growth is also supported by advancements in autogas infrastructure, such as the expansion of refueling stations and availability of retrofit kits for existing gasoline-powered vehicles. With growing environmental awareness and cost-effectiveness, the North America Autogas Market is expected to see a steady rise, expanding beyond commercial fleets to include a broader consumer base in both urban and rural areas.

Key Market Drivers

Increasing Environmental Regulations and Policies Favoring Cleaner Fuels

The North America Autogas Market is significantly influenced by the increasing focus on reducing vehicular emissions and improving air quality, largely driven by stringent environmental regulations and policies implemented by the governments in the United States and Canada. With growing concerns about climate change and the adverse effects of greenhouse gas emissions, governmental bodies have adopted policies aimed at transitioning to cleaner fuels. Autogas, which is primarily composed of liquefied petroleum gas, offers significant environmental benefits over conventional gasoline and diesel, emitting fewer pollutants such as carbon dioxide, nitrogen oxides, and particulate matter. This makes it an attractive alternative fuel in markets where regulatory pressures for emissions reduction are mounting.

In response to these regulatory trends, both federal and state governments in the United States have increased their support for cleaner alternative fuels, including autogas, through various incentives and tax rebates. For instance, the Environmental Protection Agency’s (EPA) Clean Air Act aims to curb emissions from transportation sources, and several states have adopted stricter vehicle emission standards, encouraging the use of autogas. Similarly, Canada’s Clean Fuel Standard encourages the adoption of lower-emission fuels across the country. These policies not only promote a shift towards cleaner alternatives but also make autogas more appealing to consumers and fleet operators who face increasingly stringent emission requirements. Consequently, the regulatory environment is expected to drive significant growth in the adoption of autogas in both countries as a viable and eco-friendly solution for transportation. As of 2024, the United States has over 1,200 refueling stations offering liquefied petroleum gas, supporting the adoption of autogas by businesses and consumers alike, with a projected 10% year-over-year growth in refueling infrastructure over the next five years.

Cost-Effectiveness of Autogas Compared to Gasoline and Diesel

One of the key drivers for the growth of the North America Autogas Market is the significant cost advantage it offers over traditional gasoline and diesel fuels. Autogas is typically cheaper than both gasoline and diesel, which makes it a highly attractive option for consumers, especially in a time of rising fuel prices. With volatility in the oil markets and fluctuating gasoline prices, autogas provides a more stable and cost-effective alternative. For both private vehicle owners and commercial fleet operators, the cost-saving potential of using autogas as a primary fuel source is substantial, contributing to its increasing adoption across North America.

The affordability of autogas is compounded by the fact that it offers better fuel efficiency compared to gasoline. A vehicle running on autogas tends to use less fuel to cover the same distance, which results in long-term savings for the vehicle owner or operator. Additionally, the infrastructure for autogas is relatively well-established in North America, and its use does not require expensive modifications to existing vehicles, making the switch both affordable and practical. As a result, businesses, especially those in logistics, transportation, and delivery services, are increasingly turning to autogas-powered vehicles to reduce operational costs and boost overall profitability. Autogas users in North America save an estimated 20-30% in fuel costs annually compared to gasoline users, with commercial fleet operators seeing savings of up to USD 0.50 per gallon in fuel costs.

Technological Advancements and Vehicle Retrofits for Autogas

The North America Autogas Market is experiencing growth due to significant technological advancements that make autogas vehicles more efficient and cost-effective. These advancements include improvements in autogas fuel injection systems, enhanced engine performance, and better emission control technologies. Innovations in engine design have allowed manufacturers to optimize vehicles for autogas, making it a more practical and efficient fuel choice for a wide range of vehicles, from personal cars to heavy-duty trucks.

The availability of retrofit kits for converting gasoline-powered vehicles to autogas-powered vehicles has played a crucial role in the market's growth. This technology allows consumers and businesses to convert their existing vehicles to run on autogas, thus reducing the overall cost of adoption. The retrofit process is relatively affordable, and many companies offer warranties on these kits, making the switch to autogas even more appealing. This trend is particularly important in the commercial vehicle sector, where fleet operators can retrofit their entire fleets to reduce fuel costs and emissions without the need to purchase new vehicles. As these technological advancements continue, more vehicles are expected to adopt autogas, further fueling the market’s expansion. Over 50,000 vehicles in North America have been retrofitted to run on autogas in the past three years, with a projected annual increase of 8-10% in vehicle conversions over the next five years.

Growing Consumer Awareness and Environmental Consciousness

The increasing awareness among North American consumers about the environmental impact of traditional fuels is another key driver for the growth of the autogas market. As more individuals become conscious of climate change and the environmental degradation caused by conventional gasoline and diesel fuels, there is a rising preference for cleaner, sustainable alternatives. Autogas offers a solution by significantly reducing greenhouse gas emissions and pollutants, making it an appealing option for environmentally-conscious consumers.

The growing popularity of electric vehicles and other green technologies has contributed to a broader cultural shift toward sustainability, which has further pushed interest in autogas. As more consumers demand eco-friendly transportation solutions, government incentives and industry support for autogas adoption are becoming more prominent. This has led to increased media coverage and public discourse around the benefits of autogas, which in turn drives higher adoption rates. With this growing consumer awareness, particularly in urban centers and regions with high environmental standards, autogas is positioned to continue its upward trajectory as a mainstream alternative fuel in North America. Consumer surveys indicate that 37% of vehicle owners in major North American cities are considering switching to autogas or hybrid fuels as part of their efforts to reduce their carbon footprint in the next five years.

Download Free Sample Report

Key Market Challenges

Limited Refueling Infrastructure Expansion

One of the most significant challenges faced by the North America Autogas Market is the limited expansion of refueling infrastructure. While there has been progress in increasing the number of refueling stations, the infrastructure for autogas is still significantly behind that of traditional gasoline and diesel stations. This presents a major obstacle to the widespread adoption of autogas, as vehicle owners and fleet operators need to be assured of easy access to refueling stations. The scarcity of refueling stations in many parts of North America, particularly in rural areas and smaller cities, limits the practicality and convenience of using autogas-powered vehicles.

The development and expansion of refueling infrastructure require substantial investment, which can be a deterrent for fuel station operators. Although there are incentives for the installation of autogas stations, the upfront capital costs for setting up such facilities can be prohibitive. Additionally, fuel station operators must balance the demand for autogas with other fuel types, which can lead to prioritization issues. Without a more extensive and easily accessible refueling network, the growth potential of the autogas market in North America will remain constrained, limiting its market share compared to other alternative fuels such as electric vehicles and compressed natural gas.

High Initial Vehicle Conversion Costs

Another challenge to the growth of the North America Autogas Market is the high initial cost associated with converting gasoline-powered vehicles to autogas. Although retrofitting vehicles to run on autogas can lead to significant savings in fuel costs over time, the initial investment required for such conversions can be a deterrent for consumers and businesses. The retrofitting process involves the installation of specialized equipment, such as fuel injectors and tanks, which can be expensive, especially for heavy-duty commercial vehicles.

For many consumers and fleet operators, the high upfront costs can be a significant barrier, particularly when the return on investment may take several years to materialize. While the long-term fuel savings are evident, the initial expense can make autogas less attractive compared to other alternative fuel options, such as electric vehicles, which offer lower conversion or infrastructure setup costs. Furthermore, the lack of widespread knowledge about the benefits of autogas and its cost-effectiveness may prevent potential adopters from considering it as a viable alternative. Without effective financial incentives and increased awareness, the high initial conversion costs could continue to impede the broader adoption of autogas in North America.

Limited Consumer Awareness and Perception Issues

Despite the environmental and economic benefits of autogas, consumer awareness and perception remain a significant challenge for the North America Autogas Market. Many consumers are unfamiliar with the concept of autogas as a viable alternative fuel for their vehicles. This lack of knowledge about the fuel’s benefits, safety, and overall viability can result in hesitancy to adopt it, even among environmentally conscious or cost-driven consumers. Autogas has historically been overshadowed by more widely recognized alternative fuels, such as electricity and natural gas, which enjoy more prominent marketing and advocacy.

There are misconceptions about the performance and safety of autogas, which can further contribute to consumer reluctance. Some consumers perceive autogas as less reliable or efficient than traditional fuels, which may not be the case. These perceptions, often fueled by a lack of clear information and consumer education, hinder the broader acceptance of autogas-powered vehicles. For the North America Autogas Market to grow, addressing these knowledge gaps and changing public perception through targeted marketing campaigns, educational initiatives, and demonstrative case studies will be essential to overcoming this challenge.

Key Market Trends

Increasing Government Support for Alternative Fuels

Governments across North America are increasingly offering support for the adoption of alternative fuels, including autogas. This trend is driven by growing concerns over environmental issues and the need to reduce greenhouse gas emissions. Government policies, such as tax incentives, subsidies, and grants for fleet operators, are creating a favorable environment for the expansion of the autogas market. The promotion of autogas aligns with broader objectives to transition to cleaner energy sources, and governments are encouraging the use of autogas in both public and private transportation sectors. Additionally, several local and state governments are incorporating autogas vehicles into their fleets, setting an example for other sectors to follow. This trend is helping to overcome barriers to adoption, such as high conversion costs and limited infrastructure, by making autogas more economically viable and accessible to a broader range of users.

Technological Advancements in Autogas Vehicles

Technological innovations in autogas vehicle engines and fueling systems are helping drive the growth of the North America Autogas Market. With improvements in engine efficiency and fuel injection systems, autogas vehicles are becoming more reliable, offering better performance and fuel efficiency than ever before. These advancements are making autogas-powered vehicles a more attractive option for fleet operators and individual consumers, as they provide an environmentally friendly and cost-effective alternative to traditional fuels. In particular, advancements in engine tuning and fuel management systems are ensuring that autogas vehicles perform at par with gasoline-powered vehicles. As technology continues to evolve, the market for autogas is expected to grow as consumers gain more confidence in the reliability and efficiency of these vehicles.

Rising Awareness of Environmental Benefits

There is a growing awareness of the environmental benefits of autogas, which is driving its increasing adoption in North America. As consumers and businesses become more environmentally conscious, they are actively seeking cleaner fuel alternatives to reduce their carbon footprints. Autogas is considered a low-emission fuel, emitting fewer particulate matters and hydrocarbons compared to traditional gasoline and diesel fuels. This trend is particularly prevalent among organizations seeking to meet sustainability targets and reduce the environmental impact of their operations. Additionally, the rise in awareness about climate change and air quality has spurred interest in adopting autogas as part of broader efforts to reduce dependence on fossil fuels. As more people understand the environmental advantages of autogas, demand for autogas-powered vehicles is expected to increase.

Segmental Insights

Type Insights

In 2024, the Liquefied Petroleum Gas segment dominated the North America Autogas Market and is expected to maintain its dominance throughout the forecast period. Liquefied Petroleum Gas has emerged as the preferred choice for autogas due to its widespread availability, cost-effectiveness, and lower emissions compared to conventional fuels such as gasoline and diesel. As a versatile fuel, Liquefied Petroleum Gas can be used in a wide range of vehicles, including light-duty cars, commercial fleets, and heavy-duty trucks, making it highly adaptable to various transportation needs. The infrastructure for Liquefied Petroleum Gas refueling stations is more established in North America compared to other alternatives, contributing to its dominance.

Liquefied Petroleum Gas is a highly efficient fuel, offering a high energy density, which allows vehicles to travel longer distances between refueling. This, combined with the increasing regulatory pressures to reduce carbon emissions and growing consumer awareness about the environmental benefits of Liquefied Petroleum Gas, positions it as the leading segment in the market. The expanding network of Liquefied Petroleum Gas refueling stations and the availability of government incentives to adopt alternative fuels further bolster the position of Liquefied Petroleum Gas in the North America Autogas Market.

Liquefied Petroleum Gas's lower conversion costs for vehicles, compared to other alternative fuels like compressed natural gas or liquefied natural gas, make it an attractive choice for both individual consumers and fleet operators. As the trend towards cleaner energy solutions continues to grow, the demand for Liquefied Petroleum Gas as an autogas fuel is expected to rise, ensuring its continued dominance in the North American market over the forecast period.

Download Free Sample Report

Country Insights

Largest Country

In 2024, the United States continued to solidify its position as the dominant player in the North America Autogas Market. The country’s extensive adoption of alternative fuels, particularly Liquefied Petroleum Gas, has been a driving factor in this dominance. The U.S. has seen significant growth in the number of refueling stations dedicated to autogas, particularly in urban areas and regions with large fleet operations. This widespread infrastructure development makes autogas a more convenient and accessible fuel option for both private and commercial vehicle owners.

The U.S. government’s supportive policies, including tax incentives and subsidies for alternative fuel adoption, have further boosted the market. With environmental concerns gaining traction, the shift towards cleaner fuels, such as Liquefied Petroleum Gas, aligns with the country’s sustainability goals. The U.S. has also seen an increase in the adoption of autogas-powered vehicles in both private and public fleets, further contributing to its market leadership.

The economic advantages of using Liquefied Petroleum Gas, including lower fuel costs and reduced maintenance expenses, have made it an attractive option for fleet operators. As the trend towards cleaner and more cost-effective energy solutions continues, the United States is expected to remain a key player in the North America Autogas Market through continued infrastructure development and government support.

Emerging Country

Canada is rapidly emerging as a key player in the North America Autogas Market due to increasing government support for alternative fuels and growing environmental awareness. With a strong push toward reducing carbon emissions, Canada has been promoting the use of cleaner fuels like Liquefied Petroleum Gas, particularly in urban centers and commercial fleets.

The country is witnessing a rise in the number of refueling stations and the adoption of autogas vehicles, spurred by government incentives and regulations aimed at sustainability. Canada’s significant focus on energy efficiency and lowering greenhouse gas emissions is aligning well with the benefits offered by autogas, positioning the country for continued growth in this market.

Recent Developments

• In April 2025, Phillips 66 completed the acquisition of EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP for USD 2.2 billion. This acquisition enhances Phillips 66's position in the midstream energy sector, integrating NGL pipelines and fractionation facilities. It strengthens their delivery capabilities, supporting production from key basins to Gulf Coast markets and aligning with long-term growth strategies.
• In September 2024, the Indian Auto LPG Coalition (IAC) urged the government to actively promote Auto LPG as a clean and cost-effective alternative fuel. In a formal letter addressed to Bhupender Yadav, Minister of Environment, Forest, and Climate Change, Suyash Gupta, Director General of IAC, highlighted the significant environmental and economic benefits of accelerating the adoption of Auto LPG across India’s transportation sector. The coalition emphasized that broader use of Auto LPG could contribute meaningfully to emissions reduction and air quality improvement, while also offering a practical solution for affordable clean mobility.

Key Market Players

• Shell Plc
• Chevron Corporation
• Exxon Mobil Corporation
• BP p.l.c.
• Phillips 66 Company
• Gasco Energy Inc.
• Amerco Inc.
• Linde plc

Report Scope:

In this report, the North America Autogas Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• North America Autogas Market, By Type:

o   Compressed Natural Gas

o   Liquefied Petroleum Gas

o   Liquefied Natural Gas

o   Others            

• North America Autogas Market, By Application:

o   Passenger Vehicles

o   Commercial Vehicles

o   Two-Wheelers

o   Others

• North America Autogas Market, By Country:

o   United States

o   Canada

o   Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the North America Autogas Market.

Available Customizations:

North America Autogas Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

North America Autogas Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]