Automotive Natural Gas Vehicle Market

Automotive Natural Gas Vehicle Market Size (2023-2028)

The Automotive gas vehicle market is estimated to flourish at a strong CAGR of 6.2% over the forecast period. This will be attributed to varied factors like rising interest in automobiles, burgeoning bourgeoisie population, and increasing concerns about the environment. However, the rising inclination of individuals towards advanced automotive vehicles is probably going to foster the expansion of the worldwide automotive gas vehicle market.

An alternative fuel vehicle that uses liquefied natural gas or natural gas as a cleaner option in contrast to other fossil fuels is known as a natural gas vehicle. Cars powered by propane possess fundamentally various compositions and are unique from gas vehicles. As petroleum reserves are rapidly depleting, many developing nations extensively depend upon foreign countries for oil export. Due to this, governments specialize in controlling their export spending, which ends up in high demand for abundantly and inexpensively available gas. Gas is taken into account environment-friendly and results in the economic process of the country.

IMPACT OF COVID-19 ON THE AUTOMOTIVE NATURAL GAS VEHICLE MARKET

2020 is on the way to encountering the biggest recorded interest stun throughout the entire existence of worldwide natural gas markets. The COVID-19 pandemic hit a previously declining gas request, confronted with truly mellow temperatures over the principal months of the year. Gas utilization is relied upon to fall by 4% in 2020, under the progressive effects of lower warming interest from the warm winter, the execution of lockdown quantifies in practically all nations and regions to slow the spread of the infection, and a lower level of movement brought about by the coronavirus initiated macroeconomic emergency.

Confronted with this phenomenal stun, natural gas markets are experiencing a solid supply and exchange modification, bringing about generally low spot costs and high unpredictability. Gaseous petrol request is relied upon to continuously recoup in 2021, anyway the COVID-19 emergency will have longer-enduring effects on natural gas markets as the primary medium-term drivers are dependent upon high vulnerability.

Melted natural gas is relied upon to remain the fundamental driver behind worldwide gas exchange development, yet it faces the danger of delayed overcapacity as the development in new fare limits from past venture choices outpaces more slowly than anticipated interest development.

AUTOMOTIVE NATURAL GAS VEHICLE MARKET REPORT COVERAGE:

Drivers and Restraints of the Automotive Natural Gas Vehicle Market:

Market Drivers:

In the current situation, the market penetration of the natural gas vehicle in automotive is less, due to the average price of NGV is above than that of petrol diesel vehicle. Because of the scarcity of fuel resources in future, it's predicted that the penetration of the gas vehicles will increase globally. Interest of vehicles is rising day by day as per capita income of individuals is increasing, but the petrol and diesel sources are depleting with it, this is often also a serious reason for continuous growth in prices of petrol and diesel from past 8-10 years. It opens opportunity for the gas vehicles. Unique equipment manufacturers (OEM’S) are generally advertising their products to extend the interest of the NGV by showcasing their high fuel efficiency and ecofriendly behavior.

Market Restraints:

However, the lack of CNG infrastructure in different nations is believed to dampen the expansion of the worldwide automotive natural gas vehicle market.

Automotive Natural Gas Vehicle Market Segmentation

By Vehicle Type:

• Medium-Duty Commercial Vehicles

• Heavy-Duty Commercial Vehicles

Passenger cars are further divided into Hatchbacks, sedans, and SUVs/MUV, passenger cars have a major market share in NGVs because the interest in passenger cars is high.

By Fuel Type:

• CNG

• LNG

Natural gas (CNG or LNG) has lesser carbon content as compared to diesel or gasoline. The use of those gases leads to a cleaner burning of fuel wherein the emissions produced also are low. However, the worth of gas is relatively lower and more stable than diesel. This has resulted in a rise in the adoption of gas trucks and buses as fleet operators can save on fuel also as reduce their carbon footprint. The gas trucks and buses market has seen a rise in adoption by government fleets thanks to the environmental benefits. The usage of gas helps the government to scale back the direct impact of the rising petroleum price.

Automotive Natural Gas Vehicle Market Region-wise analysis:

Marked Segmentation based on the region:

1. North America

   1. U.S

   2. Canada

2. Europe

   1. Norway

   2. Germany

   3. Sweden

3. Asia Pacific

   1. China

   2. India

   3. Japan

4. Latin America

   1. Brazil

   2. Mexico

   3. Argentina

5. Middle East and Africa

a. Middle East

b. Africa

North America has seen an honest growth within the numbers for NGV’S. U.S.A is among the highest 5 automobile production counties within the world it's the foremost share in North American region for the sales of NGV’S. Europe has high interest for gas that arises from trucks and bus fragments. The govt. policies, subsidies, growing petrol and diesel prices, stringent pollution rules are the boost in interest for automotive natural gas vehicles in Europe. The Asia Pacific has stringent rules for carbon emissions, increasing automobile production. Interest for gas is extremely significant for commercial vehicle segment in Asia pacific. China and India are among the highest 10 countries in automobile production. These countries also are having excellent fuel infrastructure; the amount has also raised in NGV’S in Asia Pacific from 2016-2018. Latin America and Middle East & Africa region are forecast to grow at significant pace thanks to the growing sales of CNG vehicles. The emission from of the automotive gas vehicle is relatively less than diesel and gasoline counterparts. This may help in reduction of dangerous pollutants like nitrogen gas, non-methane organic gas, carbon monoxide gas, and CO2 and end in rising demand for automotive gas vehicle within the Middle East and Africa.

Recent Developments:

• VW has chosen to not grow new natural gas vehicles, only two years after predicting that vehicles fueled by compressed natural gas (CNG) could eventually account for up to 10 percent of the European fleet and assume a key job in emissions decreases. Rather, the firm will focus on battery electric vehicles (BEVs).

• Volkswagen trench natural gas to concentrate on e-cars. The 12-brand VW group has defined itself the objective of selling 32 million electric and hybrid vehicles by 2029.

•  Isuzu Motors Limited and Honda R&D Co., Ltd., a R&D helper of Honda Motor Co., Ltd., marked an agreement to endeavor joint exploration on uncompromising trucks, utilizing energy components (FC) as the powertrain.

• Maruti Suzuki is banking on moderate green vehicles including those running for compacted natural gas (CNG) and on hybrid innovation to drive in volumes and cut emissions throughout the following not many years.

• Other than working intimately with Suzuki Motor Corp on introducing low-cost electric car technology, Toyota is additionally considering propelling rebadged CNG vehicles from Maruti Suzuki.

Key Players of Market:

1. Volkswagen AG

2. Isuzu Motors Ltd

3. Suzuki Motor Corporation Ltd

4. Caterpillar Inc

5. Honda Motor Company Ltd