As global decarbonization ambitions collide with real-world economics, compressed natural gas (CNG) is quietly reasserting itself as a pragmatic, low-emission solution for heavy-duty trucking.
Amid rising diesel costs, tightening emissions rules and infrastructure and economic constraints that continue to slow electric and hydrogen adoption, fleets across North America are revisiting CNG as a proven, immediately deployable technology; and the companies enabling its performance and efficiency through innovation are emerging as key beneficiaries.
CNG-powered trucks have always been part of the alternative fuel landscape, but their economic and environmental profile is gaining new relevance. Diesel’s price volatility and evolving emissions regulations have made cost predictability a strategic advantage. According to the US Energy Information Administration, retail natural gas fuel prices have remained consistently 50 to 60 percent below diesel prices since 2015, and it’s forecast to continue through 2026.
Proven alternative
CNG’s stability is already translating into renewed fleet interest.
In its analysis on alternative fuels, the North American Council for Freight Efficiency notes that natural gas remains the most proven and scalable low-emission fuel for heavy-duty applications, offering a credible path to lower total cost of ownership while meeting sustainability goals. “These big rigs travel an average of 400 to 600 miles per day and require strong pulling power. CNG and LNG have proven to be the best alternatives to diesel for these trucks, meeting their required range and performance criteria while burning cleaner than diesel,” the council states.
Recent market analyses reinforce this trend: Data from Global Growth Insights show the global CNG heavy-duty truck market is projected to expand from US$7.1 billion in 2024 to nearly US$12 billion by 2033, a compound annual growth rate of 5.7 percent, driven largely by fleet conversions and new OEM integrations.
Innovation is key
CNG offers fleets an appealing blend of cost efficiency, regulatory compliance and operational familiarity. Unlike battery electric or hydrogen systems, CNG relies on existing fueling infrastructure and mature vehicle technology. According to the US Department of Energy’s Alternative Fuels Data Center, CNG engines cut greenhouse gas emissions by 15 to 25 percent compared to diesel, and can deliver additional air-quality benefits through lower nitrogen oxide and particulate output.
The latest CNG systems also deliver performance that was once reserved for diesel. The High Pressure Direct Injection (HPDI) system, which was developed by Westport Fuel Systems (NASDAQ:WRPT,TSX:WPRT) and now sits in Cespira, Westport’s joint venture with Volvo Group, enables trucks to achieve market-leading fuel efficiency, with full engine braking, 500 horsepower and over 600 miles of range. The system retains diesel-like torque and drivability, resolving one of the major barriers to broader natural gas adoption.
Westport: Focused market strategy
Westport has been strategically reshaped to capitalize on the expanding CNG market dynamic. Following the 2025 sale of its light-duty business, Westport has redirected capital to expand its high-pressure controls and HPDI businesses, simplifying operations and reducing its corporate cost structure while sharpening its focus on heavy-duty and industrial applications.
Through Cespira, Westport owns 55 percent of a growing platform that already powers approximately 9,000 HPDI-equipped trucks across 31 countries, certified to Euro VI standards and ready for Euro VII compliance. Volvo Trucks alone has reported more than 25 percent in sales growth on its HPDI-equipped gas-powered trucks in 2024. Cespira, meanwhile, has generated US$62.6 million in trailing 12 month revenue as of mid-2025, a clear indicator of commercial traction.
Technologically, Westport’s proposition centers on its ability to bring diesel efficiency to gaseous fuels. The HPDI system utilizing CNG will store natural gas at up to 700 bar, leveraging the same high-pressure innovations used in hydrogen systems and delivering a combustion process nearly identical to diesel.
The company is now adapting that 700 bar architecture to CNG applications for the North American market, where LNG adoption has lagged. This new configuration promises to make CNG trucks even more efficient and versatile, supporting not only conventional natural gas but also blends of CNG and hydrogen, a critical bridge toward future zero-emission mobility.
From an investment perspective, Westport’s strategy offers several attractive angles: immediate market relevance as CNG is already deployed and being adopted by fleets across the world; proven technology base and flexibility with its HPDI engines delivering relatively lower total cost of ownership metrics when compared to diesel; the ability to transition to hydrogen blend or full hydrogen combustion; and strategic partnerships, exemplified by the Cespira JV.
Investor takeaway
CNG is emerging as a strategic, practical solution to the trucking industry’s decarbonization efforts.
It can be deployed today at scale, delivering real emissions reductions and cost savings without waiting for the infrastructure, technology or economics of hydrogen or battery electric trucks to mature.
For investors, CNG’s resurgence is creating near-term opportunities across fueling, engine integration and control systems. With its advanced HPDI technology, focused balance sheet and strong OEM partnerships, Westport may be one of only a handful of companies strategically placed to not just participate in this transition, but enable it.
This INNSpired article is sponsored by Westport (NASDAQ:WPRT,TSX:WPRT). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Westport in order to help investors learn more about the company. Westport is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Westport and seek advice from a qualified investment advisor.
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