The automotive natural gas vehicle market remains in its infant stage, despite sales growth in the last three to four years. The automotive natural gas vehicle market is expected to grow at a CAGR of 7% between 2022 and 2032.
The automotive natural gas vehicle market is growing in many countries due to low-cost CNG and LNG and higher diesel prices. Commercial vehicles’ conversion options make them appealing in terms of lowering operating costs and the overall cost of ownership. The low conversion cost and the possibility of significant emission reductions may increase the global penetration of alternative fuels.
Pioneering Forces Driving Automotive Natural Gas Vehicle Market Growth
Because it is more readily available, produces fewer emissions from moving vehicles, and has lower costs than conventional fuels like gasoline and diesel, natural gas is becoming more and more common as an alternative fuel.
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Players are encouraged to use Liquefied Natural Gas (LNG) trucks to route their activities due to the rising demand for automotive natural gas vehicles in the transportation sector. Vehicles powered by Liquefied Natural Gas (LNG) are increasingly in demand in the transit sector. The market for automotive natural gas vehicles (NGVs) is also anticipated to increase in the near future due to rising government initiatives to build natural gas distribution infrastructure.
The growing demand for automotive natural gas vehicles in transportation encourages players to use Liquefied Natural Gas (LNG) trucks to route their operations. The transportation industry is seeing a surge in demand for LNG vehicles. Furthermore, rising government initiatives to develop natural gas distribution infrastructure is expected to boost demand for automotive natural gas vehicles (NGVs) in the near future.
Automotive Natural Gas Vehicle Industry’s Obstacles
Electric vehicles are gaining popularity in Europe and Asia-Pacific, posing a significant challenge to the automotive natural gas vehicle market expansion in these regions.
Due to their low operating and maintenance costs, electric vehicles help to shift consumer focus away from natural gas-powered vehicles and toward electric vehicles. This is now a significant impediment to the automotive natural gas vehicle market. The disruption in the mining and supply chain of natural gas caused by social issues such as riots and war in reserve lands creates a barrier to the automotive natural gas vehicle market growth.
Analyzing Demand for Automotive Natural Gas Vehicles from Asia Pacific
The Asia Pacific automotive natural gas vehicle market is expanding due to the province’s increased production and sales of passenger cars. Due to the development of natural gas infrastructure in countries, China is recognized as the largest adopter of NGVs.
China is expected to increase CNG and LNG usage due to massive infrastructure growth, and natural gas may help operators reduce operating costs. The government’s numerous incentives to encourage the use of natural gas serve as primary drivers of automotive natural gas vehicle market growth.
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Tracking the Consumption of Automotive Natural Gas Vehicles in United States
Natural gas is readily available in the United States, and the region is the world’s lowest-cost manufacturer. As a result, it opens up many automotive natural gas vehicle market growth opportunities. Furthermore, increased shale gas extraction across the United States has increased the natural gas supply.
Key Takeaways:
- The Asia Pacific region accounted for more than 55% of the automotive natural gas vehicle market and is expected to maintain its lead with a significant CAGR.
- China accounted for nearly a quarter of APAC passenger car sales.
- The European automotive natural gas vehicle market is expected to grow throughout the forecast period.
- Natural gas is abundant in the United States, and the country is the world’s lowest-cost producer.
Competitive Landscape:
Ford Motor Company, Hondo Motor Company, Volkswagen, and Hyundai Motor Corp are the key participants in the global demand for automotive natural gas vehicles.
Companies emphasize providing technologically driven and advanced products to enhance their market offerings. To expand in the automotive natural gas vehicle market, the companies are also pursuing strategic initiatives such as regional expansions, acquisitions, mergers, partnerships, and collaborations.
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Key Segments Covered in the Automotive Natural Gas Vehicles Market Report
Fuel Type:
- Compressed Natural Gas (CNG)
- Liquefied Natural Gas (LNG)
Vehicle Type:
- Passenger Vehicles
- Commercial Vehicles
Region:
- North America
- Latin America
- Western Europe
- Eastern Europe
- APEJ
- Japan
- Middle East & Africa
Recent Development:
- Agility Fuel Solutions announced a merger with Hexagon Mobile Pipeline in February 2021 to strengthen its position among natural gas and renewable natural gas mobility solution providers.
- Westport Fuel Systems Inc. announced a definitive agreement with its joint venture partner, UNO MINDA Group, in September 2020. The agreement allowed the company to serve India’s growing NGV market better.
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Future Market Insights, Inc. (ESOMAR certified, Stevie Award – recipient market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.
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