Automotive natural gas vehicle market is projected to grow at approximately 6% CAGR by 2027.
The factors that are responsible for the growth of automotive natural gas vehicle market are lower fuel cost, reduction in greenhouse gas emission, and production of less carbon dioxide per unit of energy consumed. Other key drivers expected to contribute towards the growth of automotive natural gas vehicle market are growth in refueling station infrastructure and rising crude oil price. In addition to that, conversions or retrofitting are available across different platforms for consumers to get the desired fuel efficiency.
The automotive natural gas vehicle market is segmented based on fuel type and vehicle type. On the basis of fuel type, Compressed Natural Gas (CNG) is widely used and covers the majority of the automotive natural gas vehicle market. On the basis of vehicle type, heavy-duty vehicles, such as transit buses, road tractors, and trucks, have the largest demand for the automotive natural gas vehicle. There are very few Liquefied Petroleum Gas (LPG) fuel options available in light-duty and medium-duty vehicles.
The key players in automotive natural gas vehicle market are Dongfeng Motors Group Limited (China), AB Volvo (Sweden), Beiqi Foton Motors Group Limited (China), Shaanxi Automobile Group Limited (China), Daimler AG (Germany), and CNH Industrial NV (The Netherlands), Landi Renzo (Italy), and Westport (Canada).
The market is segmented based on America, Asia Pacific, Europe, and Rest of the World. Asia Pacific region is expected to dominate the market in future, due to the largest market share for commercial vehicle and fleet operators. For instance, China is showing growth in refueling infrastructure for CNG and LNG fuel. The America region is second to the Asia Pacific region in the automotive natural gas vehicle market due to increase in the adoption rate of the natural gas driven vehicle. Thus, the automotive natural gas vehicle market is estimated to grow at approximately 6% CAGR during the period of 2017 to 2023.
Natural gas is the most efficient and abundant source of energy. It is one of the cleanest burning commercial fuels available in the market. There is a huge demand for a natural gas vehicle that satisfies emission targets of fleet operators, consumers, and manufacturers. Currently, there are more than 400,000 units of natural gas vehicles present on the road. However, there are some shortcomings in operating performance of the natural gas vehicle, such as short driving range and extra space needed for fuel storage.
Natural gas vehicle enjoys significant advantages over gasoline and diesel propelled vehicles, such as long-term price stability, very narrow flammability range, high auto-ignition temperature, relatively cheap, and simplified fuel system. These fuel characteristics make natural gas favorable to use in high-duty vehicles. Recently, natural gas production is increased due to technology advancement in natural gas extraction method. This leads to a reduction of commodity price for natural gas. The price fluctuation of natural gases is minimum as compared to crude oil price fluctuation. The rise in crude oil prices and emission of greenhouse gasses will enable the fleet operators to adopt natural gas vehicle.
The report for Global Automotive Natural Gas Vehicle Market of Market Research Future comprises extensive primary research along with the detailed analysis of qualitative as well as quantitative aspects by various industry experts, key opinion leaders to gain the deeper insight of the market and industry performance. The report gives the clear picture of current market scenario which includes historical and projected market size in terms of value and volume, technological advancement, macro economical and governing factors in the market. The report provides details information and strategies of the top key players in the industry. The report also gives a broad study of the different market segments and regions.
|Market Size||2027: Significant Value|
|CAGR||6% CAGR (2020 to 2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Fuel Type and Vehicle Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Dongfeng Motors Group Limited (China), AB Volvo (Sweden), Beiqi Foton Motors Group Limited (China), Shaanxi Automobile Group Limited (China), Daimler AG (Germany), and CNH Industrial NV (The Netherlands), Landi Renzo (Italy), and Westport (Canada)|
|Key Market Opportunities||Increased due to technology advancement in natural gas extraction method|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global automotive natural gas vehicle market is maturing at a whopping 6% CAGR over the review period of 2017 to 2023.
A few significant players of the global automotive natural gas vehicle market are AB Volvo (Sweden), Dongfeng Motors Group Limited (China), Beiqi Foton Motors Group Limited (China), among others.
The CNG segment is expected to drive market growth over the review period.
The growing reduction in greenhouse gas emission, lower fuel cost, refueling station infrastructure is subsequently driving the automotive natural gas vehicle market growth.
The heavy-duty segment is likely to witness the highest demand in the automotive natural gas vehicle market.