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Air Powered Vehicle Market Trends

ID: MRFR//6014-HCR | 100 Pages | Author: Swapnil Palwe| June 2024

Air-Powered Vehicle Market Overview:

Air Powered Vehicle Market Size was valued at USD 0.2 Billion in 2023. The air-powered vehicle market industry is projected to grow from USD 0.31 Billion in 2024 to USD 6.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 45.82% during the forecast period (2024 - 2032). Growing government regulations and emission standards to decrease carbon footprints, increased public awareness of environmentally friendly vehicles, and higher fuel prices are the key market drivers enhancing market growth.

Air-Powered Vehicle Market

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Air-Powered Vehicle Market Trends

  • Increasing public awareness of green vehicles is driving the market growth

Being a fossil fuel, petrol is not a renewable energy source and is likely to run out soon. Developing and utilizing alternative fuel sources is crucial to promoting sustainable development. This entails the employment of gas-free, more cost-effective than traditional automobiles, environment-friendly vehicles like electric mobility and air-powered vehicles. As a result of the tailpipe of the vehicle emitting chlorofluorocarbons and other dangerous gases, emissions created by internal combustion engines of the vehicles worsen the environment to a much greater level. On the other hand, air-powered cars are the answer to these problems because they produce no exhaust gas pollution. As a result, driving more energy-efficient automobiles, such as plug-in electric and air hybrid models, has become crucial to maintaining the increasing trend of reducing petroleum imports globally. This is due to the reduction of fossil fuel reserves and increased businesses' desire to maximize profits from these oil reserves. Thus, these factors spur the development of improved air-propelled vehicle technologies, which drives market expansion. Thus, driving the air-powered vehicle market revenue.

Governments and environmental organizations worldwide are passing strict emission standards and laws to minimize car emissions in response to growing environmental concerns. Major regulatory actions include strict emission objectives for reducing nitrogen oxides (NOx) and carbon dioxide (CO2) in the air. The United States is speeding up efforts to make transportation cleaner due to high greenhouse gas emissions from vehicles. FOR INSTANCE, the US Environmental Protection Agency (EPA) declared that it was developing new regulations to cut down on nitrogen oxide (NOx) and other pollution emissions from heavy-duty trucks. The agency also finalized federal greenhouse gas (GHG) emissions regulations for US light vehicles and autos until 2026. The final rules take advantage of developments in clean auto technology to generate $190 billion in net benefits for Americans, including a decrease in climate pollution, an improvement in public health, and cost savings for motorists. Therefore, the burden on vehicle manufacturers, particularly those of commercial vehicles, has increased with the implementation of the emission restrictions for fossil fuel-powered vehicles. In turn, it is anticipated that during the predicted period, demand for air-powered vehicles will increase.  

Air-Powered Vehicle Market Segment Insights:

Air Powered Vehicle Energy Mode Insights

Based on energy mode, the global automotive air powered vehicle market segmentation includes single-energy and dual-energy modes. This market segment single-energy is predicted to dominate the industry because single-energy mode air-powered vehicles only use compressed air for propulsion. Additionally, there is a rising demand for emission-free vehicles in cities and developing nations, which is anticipated to account for a sizeable portion of the market during the forecast period.

Figure 1: Air-Powered Vehicle Market by Energy Mode, 2022 & 2032 (USD Billion)

Air-Powered Vehicle Market by Energy Mode, 2022 & 2032

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Air Powered Vehicle Type Insights

Based on vehicle type, the air powered vehicle market segmentation includes passenger cars, LCV and HCV. Due to the improvement in urban and suburban pollution restrictions and the fact that air-powered vehicles are emission-free and comply with emission rules, the passenger car category currently retains the largest share of the global market. Throughout the forecast period, this is expected to further fuel demand for air-powered vehicles in the passenger car segment. Additionally, the market for air-powered vehicles is anticipated to grow globally due to the rising demand for small and light vehicles.

Air Powered Vehicle Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. According to estimates, North America will have a sizable portion of the global market for air-powered vehicles. The US dominates the market in this area and provides close to 70% of the revenue. The market in this region is primarily driven by the development of clean energy for transportation and rising environmental consciousness.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Air Powered Vehicle Market Share By Region 2022 (USD Billion)

Air Powered Vehicle Market Share By Region 2022

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's air-powered vehicle market accounts for the third-largest market share as the market experiencing implementation of various government initaitives to promote green vehicles such as air powered vehicles. Further, the German air-powered vehicle market held the largest market share, and the UK air-powered vehicle market was the fastest-growing market in the European region.

Over the forecast period, the market in the Asia Pacific region is anticipated to see the highest CAGR. Some growing economies, like China and India, each with sizable vehicle markets, define this region. The demand for air-powered vehicles in this region is also being driven by expanding environmental protection activities by governments and other relevant agencies. Due to low production costs, the availability of trained labor at reasonable rates, and the presence of technologically advanced infrastructure, this region is recognized as a major exporter of air-powered vehicles.

Air Powered Vehicle Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the air-powered vehicle market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The air-powered vehicle industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global air-powered vehicle industry to benefit clients and increase the market sector. The air-powered vehicle industry has offered some of the most significant advantages in recent years. Major players in the air-powered vehicle market, Motor Development International SA (France), Honda Motor Company, Ltd. (Japan), Tata Motors (India),  Engineair Pty Ltd (Australia), Groupe PSA (France), and Phinergy (Israel) are attempting to increase market demand by investing in research and development operations.

Motor Development International SA (MDI), a Luxembourg-based firm that designs devices for mobility and energy storage, uses a compressed air engine. Guy Nègre founded the Luxembourg firm MDI, which has administrative and manufacturing facilities in Carros, southeast France. MDI has created an environmentally friendly automobile engine that propels pistons with compressed air. Tata Motors and MDI had also come to a deal for OneCAT vehicles to be built and sold in India. In May 2012, Tata Motors declared that the design had been evaluated as passing phase 1, or "proof of the technical concept," in the direction of full manufacturing for the Indian market. Phase 2 of the compressed air engine's development by Tata is now complete and will be used in particular fixed and mobile applications.

With its headquarters in Minato, Tokyo, Japan, Honda Motor Co., Ltd. is a publicly traded international conglomerate that produces cars, motorbikes, and power equipment.

 Since 1959, Honda has been the greatest motorcycle producer in the world, with 400 million motorcycles produced by the end of 2019. With an annual production of more than 14 million internal combustion engines, it is also the world's largest internal combustion engine producer. In 2001, Honda overtook Toyota as the second-largest producer of automobiles in Japan. Honda ranked as the eighth-largest automaker globally in 2015. Honda was the first Japanese automaker to introduce Acura, a luxury-focused brand, in 1986. Honda produces a variety of items in addition to its primary markets of automobiles and motorcycles, including garden tools, marine engines, personal watercraft, and power generators. Honda has been working on robotics and artificial intelligence research since 1986, and in 2000, they unveiled their ASIMO robot. With the founding of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, whose manufacturing started in 2012, they have also entered the aerospace industry. Dongfeng Honda and Guangqi Honda are Honda joint ventures in China.

Key Companies in the air-powered vehicle market include

Air Powered Vehicle Industry Developments

February 2017: According to Dr. Tim Leverton, president and head of Tata's Advanced and Product Engineering, the first phase of the company's project was finished, and the second stage had started a few years earlier. Tata was in the process of "starting industrialization," introducing the first vehicles by the year 2020. According to other sources, Tata is also considering bringing back ideas for a compressed-air version of the Tata Nano, which was previously being considered as part of their partnership with MDI.

Air-Powered Vehicle Market Segmentation:

Air Powered Vehicle Energy Mode Outlook

  • Single Energy Mode

  • Dual Energy Mode

Air-Powered Vehicle Type Outlook

  • Passenger Car

  • LCV

  • HCV

Air Powered Vehicle Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

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