Global Automotive Natural Gas Vehicle Market Insights Forecasts to 2032
- The Automotive Natural Gas Vehicle Market Size was valued at USD 12.6 Billion in 2022.
- The Market Size is Growing at a CAGR of 7.1% from 2022 to 2032
- The Worldwide Automotive Natural Gas Vehicle Market Size is expected to reach USD 22.5 Billion by 2032
- Asia Pacific is expected to grow the fastest during the forecast period
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The global Automotive Natural Gas Vehicle Market is expected to reach USD 22.5 billion by 2032, at a CAGR of 7.1% during the forecast period 2022 to 2032.
Natural gas vehicles are a subset of alternative fuel vehicles that use natural gas as their fuel, such as compressed natural gas (CNG) or liquefied natural gas (LNG). Vehicles powered by natural gas operate similarly to those with petrol engines. A fuel tank, or cylinder, usually located at the back of a natural gas vehicle is where the fuel is kept. Through the use of fuel lines, the fuel system moves the high-pressure gas from the fuel tank to the combustion chamber. The fuel is then combined with the air inside the combustion chamber, compressed, and ignited by a spark plug. Additionally, natural gas vehicles are highly efficient and emit little pollution.
Impact of COVID 19 On Global Automotive Natural Gas Vehicle Market
The outbreak of COVID 19 pandemic has caused significant impact on the supplychain which has caused low sales of passenger cars and temporary suspension of vehicle production across the world which has resulted in the reduction in the sales of natural gas vehicles. For instance, in September 2020, Europe has resulted in the decrease of the sales of passenger cars that are running on fuels like LPG, ethanol, and natural gas in the year 2020 than 2019. Apart from this, the import and export activities between the nations were halted on a temporary basis owing to the national emergency that resulted in the shortage of supply, replacement, and return of automotive parts and finished items. In fact, various automotive manufacturers have witnessed shortage of components like semiconductor chips and others that has led to the delay in the production of automobiles, thus led to the decrease in the production of natural gas vehicles. Having said that, after pandemic some companies have witnessed a increasing sales of natural gas based vehicles which is going to drive the growth of the market.
Global Automotive Natural Gas Vehicle Market Report Coverage
|Market Size in 2022 :
|USD 12.6 Billion
|Forecast Period 2022-2032 CAGR:
|2032 Value Projection:
|USD 22.5 Billion
|Historical Data for:
|No. of Pages:
|Tables, Charts & Figures:
|By Fuel Type, By Vehicle Type, by Region
|TOYOTA MOTOR CORPORATION., Hexagon Agility, General Motors, Volkswagen, Caterpillar., ISUZU MOTORS LIMITED, Westport Fuel Systems Inc., Landi Renzo S.p.a., Daimler AG., Quantum Fuel Systems LLC., Navistar, Inc., PACCAR Inc., Cummins Inc., Clean Energy Fuels., CNH Industrial N.V., Foton Motor Inc., AB Volvo, Suzuki Motor Corporation, Honda Motorcycle & Scooter India Pvt. Ltd., HYUNDAI MOTOR GROUP
|Pitfalls & Challenges:
|COVID-19 Empact,Challenges, Future, Growth, & Analysis
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Key Market Drivers
Natural gas, being an alternative fuel is gaining popularity across the world due its easy availability, lower costs, and lower vehicular emissions than regular fuels like diesel and gasoline. Apart from this, the rising demand for alternative fuel solutions in the transportation segment is inspiring the market players to opt for Liquefied Natural Gas trucks in order to route their operations. Hence, LNG trucks are witnessing the increasing demand in the transportation industry. Moreover, the increasing initiatives taken by the government for the development of natural gas distribution infrastructure are going to fuel the need for NGVs in the upcoming years.
Key Market Challenges
Electric vehicles have started gaining huge momentum in the Asia Pacific as well as European region which is creating a tough challenge for the growth of the automotive natural gas vehicles in these regions. Due to low operations cost as well as maintenance cost, electric vehicles are contributing a shift on the consumer focus from natural gas powered vehicles to electric vehicles. Thus, it is acting as the major restraining factors of the global automotive natural gas vehicle market. Furthermore, the abruption the supply chain and mining of natural gas owing to the increasing prevalence f social issues like a war or riots are going to create problems in the global automotive natural gas vehicle market.
Fuel Type Insights
CNG segment accounted the largest market share over the forecast period
On the basis of fuel type, the global automotive natural gas vehicle market is segmented into CNG and LNG. Among these, CNG segment accounted the largest market share over the forecast period. The rise in government measures to reduce rising vehicle emissions and protect the environment is responsible for the CNG market's expansion. As CNG is nontoxic, less environmental harm results. The Federal Motor Vehicle Safety Standards 303 and 304 (U.S.), which guarantee the precise requirements for fuel systems' integrity employing CNG fuel systems of dedicated CNG and dual-fuel CNG automobiles, are also compliant with CNG fuel systems.
LNG, segment on the other hand is witnessing the fastest market growth over the forecast period. The category is primarily encouraged by favourable government policy, the price difference between diesel and LNG, and the growing logistics sector supported by stronger economic growth. The main force behind the adoption of LNG is the road transport sector. The adoption of LNG Heavy-Duty Trucks (HDT) is higher than other types of LNG vehicles. Considering the research and development efforts taking place in numerous nations, LNG has enormous potential as an automotive fuel.
Vehicle Type Insights
Passenger Type segment is dominating the market with the largest market share over the forecast period
Based on the vehicle type, the global automotive natural gas vehicle market is segmented into Passenger, Light-duty & Heavy-duty Buses & Trucks. Among these, passenger type segment is dominating the market with the largest market share over the forecast period. The excessive emissions of pollutants and GHG produced by the combustion of fossil fuels, such as coal, petrol, and diesel, are making the air quality throughout the world worse. People are more likely to adopt alternative fuel sources and related technologies as a result of the deteriorating environment and air quality in nations like China, India, Saudi Arabia, Iran, and Pakistan.
Natural gases, such as CNG and LNG, are also economical due to their superior fuel economy. For instance, statistics from NGVJournal shows that CNG is around 50% more economical than petrol and about 40% more economical than diesel. This is one of the main causes pushing people to fuel their cars with natural gas. Due to the greater number of three-wheelers that operate on natural gas that are currently on the road in Asian nations like Thailand, India, and Bangladesh, the three-wheelers segment had a sizable market share.
Asia Pacific is dominating the market with the largest market share over the forecast period
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Asia Pacific is dominating the global Automotive Natural Gas Vehicle market over the forecast period. The growth is attributed to the increase in the production as well as sales of passenger cars. In fact, China holds 50% of share in terms of the sales of passenger car in Asia Pacific. The region has witnessed the increasing adoption of NGVs on account of natural gas infrastructure development in nations like China, Pakistan, and India. China is going to witness an increase in LNG and CNG usage because of the enormous growth in the infrastructural segment.
North America, on the other hand is anticipated to witness the fastest market growth over the forecast period. The growth is attributed to the lots of growth opportunities for the Automotive natural gas vehicle market. Apart from this, the increasing extraction of shale gas in the United States has boosted the supply of natural gas.
Recent Market Developments
- In February 2021, Agility Fuel Solutions has merged with Hexagon Mobile Pipeline in order to strengthen its position in the list of renewable natural gas and natural mobility solution providers.
List of Key Market Players
- TOYOTA MOTOR CORPORATION.
- Hexagon Agility
- General Motors
- ISUZU MOTORS LIMITED
- Westport Fuel Systems Inc.
- Landi Renzo S.p.a.
- Daimler AG.
- Quantum Fuel Systems LLC.
- Navistar, Inc.
- PACCAR Inc.
- Cummins Inc.
- Clean Energy Fuels.
- CNH Industrial N.V.
- Foton Motor Inc.
- AB Volvo
- Suzuki Motor Corporation
- Honda Motorcycle & Scooter India Pvt. Ltd.
- HYUNDAI MOTOR GROUP
This study forecasts revenue at global, regional, and country levels from 2019 to 2032. Spherical Insights has segmented the global Automotive Natural Gas Vehicle Market based on the below-mentioned segments:
Automotive Natural Gas Vehicle Market, Fuel Type Analysis
Automotive Natural Gas Vehicle Market, Vehicle Type Analysis
- Light Duty & Heavy Duty Buses and Trucks
Automotive Natural Gas Vehicle Market, Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
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