PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514947
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514947
Automotive Natural Gas Vehicle Market size was valued at USD 13,542.2 Million in 2023, expanding at a CAGR of 7.50% from 2024 to 2032.
Automotive natural gas vehicles use natural liquefied gas or compressed natural gas instead of gasoline, diesel, or any other fuel. Automotive natural gas vehicles do not pollute the environment and are less expensive. The burning of methane and oxygen produces water and carbon dioxide, which powers automobile natural gas vehicles. Natural gas vehicles provide excellent mileage, whereas centrally supplied fleets provide comparable fuel ranges for large distances. Furthermore, automobile natural gas vehicles provide lower transportation expenses and higher fuel efficiency.
Automotive Natural Gas Vehicle Market- Market Dynamics
Stringent Air Pollution Regulations Drive Demand for Automotive Natural Gas Vehicles
Stringent air pollution control rules are expected to greatly boost the future growth of the automotive natural gas vehicle market. Air pollution is the contamination of air by any physical, chemical, or biological pollutants that are damaging to both animals and people. Governments are concerned about the harmful impacts of air pollution and have begun to establish various pollution-control legislation. This has raised demand for automotive natural gas vehicles, which have minimal emissions due to the fuel's lower carbon content. For instance, the World Health Organization's Global Air Quality Guidelines, which go into effect in September 2021, aim to save lives and improve air quality caused by pollution. These guidelines also highlight best practices for managing specific types of particulate matter, such as elemental carbon, sand particles, ultrafine particles, and dust storms, in order to establish air quality guidelines.
Automotive Natural Gas Vehicle Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 7.50% over the forecast period (2024-2032)
Based on Fuel Type segmentation, the CNG category has the biggest volume share in 2023 and will rise at a steady CAGR between 2024 and 2032.
Based on Vehicle Type segmentation, in 2023, the passenger vehicle segment accounted for the greatest volume share.
On the basis of region, Asia Pacific was the leading revenue generator in 2023
The Global Automotive Natural Gas Vehicle Market is segmented on the basis of Fuel Type, Vehicle Type, and Region.
The market is divided into two categories based on Fuel Type: CNG and LNG. The CNG category has the highest volume share in 2023 and will grow at a steady CAGR from 2024 to 2032. The growing CNG segment can be attributable to an increasing number of government efforts aimed at reducing automotive emissions and ensuring environmental security. The benign nature of CNG reduces environmental damage. Furthermore, CNG fuel systems are intended to meet the Federal Motor Vehicle Safety Standards 303 and 304 (U.S.), which provide the specific criteria for fuel system integrity when used in dedicated CNG and dual-fuel CNG automobiles.
The market is divided into three categories based on Vehicle Type: Passenger Vehicles, Light-duty & Heavy-duty Buses and Trucks, and Three-wheelers. The passenger vehicle type segment had the highest volume share in 2023. The excess emissions of pollutants and GHG generated by the combustion of fossil fuels, such as coal, gasoline, and diesel, are causing global air quality to worsen. People in nations such as China, India, Saudi Arabia, Iran, and Pakistan are increasingly turning to alternate fuel sources and related technologies as their environments and air quality deteriorate.
Automotive Natural Gas Vehicle Market- Geographical Insights
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. The Asia Pacific region is anticipated to continue to dominate the global market, with a projected significant compound annual growth rate (CAGR) in 2023, when it held the biggest share globally. This increase is due to the region's increasing sales and production of passenger automobiles. China accounted for about half of all passenger car sales in Asia-Pacific. NGV adoption is highest in this region due to the development of natural gas infrastructure in countries like China, India, and Pakistan.
The North American, Automotive Natural Gas Vehicle Market is expected to grow at the fastest CAGR between 2024 and 2032 owing to rising demand for low-emission powertrains, and uncertainty about gasoline and diesel costs in North America is driving up demand for natural gas vehicles.
CNH Industrial N.V., Agility Fuel Solutions, Beiqi Foton Motor Co., Ltd., AB Volvo, and Cummins, Inc. are among the leading automotive natural gas vehicle manufacturers. Market participants are also engaging in a variety of strategic initiatives to grow their worldwide presence, with significant market developments including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. To grow and thrive in a more competitive and expanding market, the automotive natural gas vehicle business must provide cost-effective products.
In February 2021, Agility Fuel Solutions introduced a merger with Hexagon Mobile Pipeline to boost its position among natural gas and renewable natural gas mobility solution suppliers.
GLOBAL AUTOMOTIVE NATURAL GAS VEHICLE MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Agility Fuel Solutions
AB Volvo
Beiqi Foton Motor Co., Ltd.
CNH Industrial N.V.
Clean Energy Fuels
Cummins, Inc.
PACCAR, Inc.
Navistar, Inc.
Quantum Fuel Systems LLC
Westport Fuel Systems Inc.
Others