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.
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.
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.
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.
Key Players:
Ford Motor Company; Hondo Motor Company; Volkswagen and Hyundai; Motor Corp, etc.
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
Access Report Details for More In-Depth Information:
Author:
Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.
About Future Market Insights (FMI)
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