ALTERNATIVE FUEL VEHICLES MARKET: OVERVIEW
The Global Alternative Fuel Vehicles Market Size was valued at USD 478.83 million in 2021. The market is projected to grow USD 1341.57 Million in 2030, at a CAGR of 12.2%. The market for alternative fuel cars is growing as a result of factors like the world's declining oil supplies, the rising cost of fossil fuels, the growth of clean mobility options, tighter government emission control rules, and the expansion of government policies that are supportive.
In order to improve urban air quality, lessen reliance on foreign oil, and reduce greenhouse gas emissions, alternative fuel vehicles are seen as an important part of the automotive industry. In place of gasoline and diesel, internal combustion engines can run on alternative fuels. Among these alternative fuels include biofuels like biodiesel and ethanol, CNG, biogas, LPG, fuel cells, hydrogen gas, electricity, and solar batteries. The key factor driving a growth in the usage and expansion of other fuels in transportation is concern over the number of emissions produced by the use of fossil fuels. Despite being more expensive than fossil fuels, alternative fuels have many advantages over using them.
The COVID-19 epidemic had an adverse effect on supply chains, China's regulatory reforms, and a fall in passenger car sales in important countries. As a result, global sales of electric cars in the first half of 2020 were, on average, 15% lower than those in the corresponding period of 2019. The government's restrictions on travel, import-export trade, and other lockdown measures also had a significant impact on the supply chain, which caused a halt in manufacturing because most of the raw materials required to make autos originated in Asian countries.
For instance, it is predicted that the budget for the public sector will be completely decimated after the Covid19 epidemic. The government would therefore have a hard time justifying spending hundreds of billions of dollars on EV subsidies that would lead to subsidy reductions. Due to declining subsidies, it is also anticipated that there will be a rise in the demand for natural gas-powered vehicles in the upcoming years.
ALTERNATIVE FUEL VEHICLES MARKET: TREND
Strict Regulation for Automotive Emission Control is Boosting Market Growth
Pollution levels are growing, global warming is getting worse, and urban air quality is declining. Governments around the world are as a result passing a number of strict measures to reduce automotive carbon emissions. The government established a number of emission regulations for the manufacturers to follow in order to control the pollution emissions from vehicle exhaust. Laws and government initiatives to invest in the electric and hybrid fleet for the public transportation system are anticipated to fuel market expansion over the course of the projected period.
Global Alternative Fuel Vehicles Market Report Coverage
|Market Size in 2021:||USD 478.83 million|
|Forecast Period 2021-2030 CAGR:||12.2%|
|2030 Value Projection:||USD 1341.57 Million|
|Historical Data for:||2017-2020|
|No. of Pages:||210|
|Tables, Charts & Figures:||79|
|Segments covered:||By Vehicle Type, By Fuel Type, By Region, COVID-19 Impact Analysis|
|Companies Covered:||Tesla, Inc., Bayerische Motoren Werke AG (BMW), Audi AG, Suzuki Motor Corporation, Ford Motor Company, Honda Motor Company, Others|
|Growth Drivers:||1) Strict Regulation for Automotive Emission Control is Boosting Market Growth. 2) Rising Fossil Fuel Prices Propel Market Growth|
|Pitfalls & Challenges:||Minimum Commercial Charging Station Utilization Cost Impede Market Expansion.|
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ALTERNATIVE FUEL VEHICLES MARKET: DRIVERS
Rising Fossil Fuel Prices Propel Market Growth
Fossil fuel prices are rising in numerous countries throughout the world. Gas prices in Europe increased significantly in 2021 as a result of a number of factors, including constrained Russian gas supplies, severe weather, insufficient storage, and the cost of carbon. Alternative fuel vehicles are employed as a future mobility solution when the price of fossil fuels grows. In addition, vehicles powered by fossil fuels emit harmful gases and contribute to pollution. Because they don't emit harmful gases or CO2, alternative fuel vehicles are an efficient transportation solution with low operating expenses. Consequently, it is projected that a rise in the price of fossil fuels will lead to an increase in the use of alternative fuels and hybrid vehicles.
ALTERNATIVE FUEL VEHICLES MARKET: RESTRAIN
Minimum Commercial Charging Station Utilization Cost Impede Market Expansion
Multiple-charger DC fast-charging stations can generate significant capital cost returns. How beneficial these investments are, however, depends on what portion of the time the electric vehicle supply equipment generates electricity. By reducing sales and the supply chain, this component can maintain a high utilization rate. For instance, the typical utilization rate for conventional gas stations in the United States, many of which contain several pumps, is about 34%. Only 5 to 10 percent of the commercial EV charging stations are really in operation.
The Global Alternative Fuel Vehicles Market is segmented by Vehicle Type, Fuel Type, and Region. Based on the Vehicle Type, the market is categorized into Passenger Cars, Light Commercial Vehicles, and Medium & Heavy-duty Commercial Vehicles. Based on Fuel Type, the market is categorized into BEV, HEV, PHEV, FCV, CNG, Biofuels, and Other Gaseous Fuels. Based on the Region, the market is categorized into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
MARKET SEGMENTATION: BY REGION
The Global Alternative Fuel Vehicles Market is categorized into North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.
North American is anticipated to have the largest market share of the worldwide market for alternative fuel vehicles due to the stringent rules for car emission control. A variety of regulations governing car emissions and fuel imports that have been put in place by organizations like the alternative fuels data center and the U.S. government serve as evidence of the advantages of alternative fuels. As a result, it is anticipated that the market for alternative fuel cars in this area would grow significantly. However, Asia Pacific is anticipated to see the greatest growth rate throughout the projected period of the global alternative fuel vehicles market due to the two main factors influencing regional growth will be the adoption of cleaner fuels and an increase in regulatory requirements. Additionally, during the projected period, the market will rise due to the expansion of alternative fuel stations and public charging infrastructure.
ALTERNATIVE FUEL VEHICLES MARKET: KEY PLAYERS
- Honda Motor Co., Ltd.
- Toyota Motor Corporation
- Nissan Motor Corporation
- Daimler AG
- BYD Company Ltd.
- Ford Motor Company
- MITSUBISHI MOTORS CORPORATION.
- SHELL International B.V.
- JAGUAR LAND ROVER AUTOMOTIVE PLC
ALTERNATIVE FUEL VEHICLES MARKET: RECENT DEVELOPMENT
- June 2021: Jaguar Land Rover will construct a prototype Defender fuel cell fueled by hydrogen. Jaguar Land Rover Automotive PLC released a statement addressing the development of a defense fuel cell prototype powered by hydrogen. Business will start experimenting with hydrogen fuel cell electric automobiles in 2021. (FCEV). The project is a part of the company's effort to eliminate carbon emissions from its operations, products, and services by 2039 and from its supply chain by 2036.
- October 2020, BYD and Hino will sign a contract to establish a joint venture for the development of commercial battery electric vehicles. To establish a new company for the development of commercial BEVs, Hino Motors, Ltd. (Hino) and BYD Company Ltd. entered into a joint venture agreement.
ALTERNATIVE FUEL VEHICLES MARKET: REPORT OVERVIEW
The scope of the report includes a detailed study of regional markets for Global Alternative Fuel Vehicles Market. The Global Alternative Fuel Vehicles Market is segmented by Vehicle Type, Fuel Type, and Region. It reveals the market situation and future forecast. The study also covers the significant data presented with the help of graphs and tables. The report covers information regarding the competitive outlook including the market share and company profiles of the key participants operating in the Global Alternative Fuel Vehicles Market.
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