Global Automotive Natural Gas Vehicle Market Analysis, Drivers, Restraints, Opportunities, Threats, Trends, Applications, and Growth Forecast to 2028
“Global Automotive Natural Gas Vehicle Market Trends and Opportunities, Various Applications, Growth, and Global Forecast till 2028” is a recently created study report by MarketResearch.biz. The target market report has been segmented on the basis of fuel type, vehicle type, and region/ country.
Automotive Natural Gas Vehicle: Overview
A natural gas-based vehicle requires CNG (compressed natural gas) and LPG (liquefied natural gas) to function. It is an economical and eco-friendly option over diesel or petrol and is widely used in lift trucks, light and heavy-duty trucks, buses, vans, cars, motorcycles, and locomotives.
Global Automotive Natural Gas Vehicle Market: Dynamics
Significantly high demand for natural gas-based vehicles which meets the emission targets along with increasing extraction of natural gas is a factor that is expected to drive growth of the target market. In addition, increasing investments in vehicles and retail infrastructure are expected to support growth of the target market. Moreover, growing demand for cheap and eco-friendly fuel alternatives, original equipment manufacturers (OEMs) are promoting products by showcasing the fuel efficiency and emission-free features. This factor is expected to fuel demand for automotive natural gas vehicles. Furthermore, inclination towards technologically enhanced automotive vehicles is expected to foster automotive natural gas vehicle market growth.
Stringent regulations laid down by governments of various countries such as the Corporate Average Fuel Economy (CAFE) and Federal Emissions Standards to reduce emissions of greenhouse gases and particulate matter (PM) from diesel and gasoline vehicles are expected to positively influence target market growth. According to document released by US Energy Information Administration (EIA) in 2017, China emerged as the world's second-largest importer of LNG – mainly driven by spiraling adoption of LNG by the nation's trucking industry.
However, increasing inclination and adoption of electric vehicles in order to reduce dependency on fossil fuels to run the vehicles and intense concerns regarding constant depletion of non-renewable resources across the globe is a factor that could have a negative impact on the target market growth significantly. Moreover, availability of biofuels obtained from vegetable oils or animal fats is also expected to hinder target market growth. In 2017 for instance, the Indian government provided direct subsidy to buyers of electric cars and scooters along with benefits such as nil VAT and 50% reduction in road tax for buying non-polluting vehicles.
Some of the key trends observed in the market include growing adoption of fuel alternatives at economical rates such as LNG and CNG in the truck business sector, infrastructural development, and modification of various diesel-based fleet vehicles to vehicles with natural gas. In 2016 and 2017, certain natural gas market players such as Finland-based Gasum Oy and Gazprom in Russia have made considerable contributions in order to develop infrastructure in natural gas sector by establishing innovative LNG and CNG fuel stations.
Automotive Natural Gas Vehicle Market: Segment Analysis
By Fuel Type:
Among the two fuel type segments, the LNG segment is anticipated to record considerable share in terms of value in the global market. the CNG segment is anticipated to grow at a significant growth rate in the next 10 years in the target market.
By Vehicle Type:
Among the vehicle type segments, the passenger car segment is estimated to record substantial revenue share in the target market.
Automotive Natural Gas Vehicle Market: Regional Analysis
Currently, the automotive natural gas vehicle market in North America accounts for higher market share in terms of revenue in the global market. This is attributed to high production of CNG trucks, increasing extraction and production activities in the US and Canada. In November 2017 for instance, Florida East Coast Railway (FEC) of North America adopted liquefied natural gas (LNG) for modifying fleet of 24 GE ES44AC locomotives. The Asia Pacific (APAC) automotive natural gas vehicle market is projected to be the largest automotive natural gas vehicle adopter. The major reasons for growth of the market are development of infrastructure for natural gas, along with stringent policies by government associated with concerns about the environmental impact.
Global Automotive Natural Gas Vehicle Market Segmentation:
Segmentation by Fuel Type:
- Compressed Natural Gas (CNG)
- Liquefied Natural Gas (LNG)
Segmentation by Vehicle Type:
- Passenger Vehicle
- Commercial Vehicle
Segmentation by Region:
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Particular Scope Region
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
Actual Year 2019 Estimated Year 2020 Forecast Period 2020–2029 Revenue in US$
- AB Volvo
- Beiqi Foton Motor Co. Ltd.
- Dongfeng Motor Group Company Limited
- CNH Industrial NV
- Daimler AG
- Westport Innovations Inc.
- Clean Energy Fuels Corp.
- Landi Renzo SPA
- Clean Air Power Ltd.
- Agility Fuel Systems Inc.
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