Global Alternative Fuel Vehicles Market Size, Share, and COVID-19 Impact Analysis, By Vehicle Type (Passenger Cars, Light Commercial Vehicles, and Medium & Heavy-duty Commercial Vehicles), By Fuel Type (BEV, HEV, PHEV, FCV, CNG, Biofuels, Other Gaseous Fuels), and by Region (North America, Europe, Asia-Pacific, South America, Middle East and Africa) Analysis and Forecast 2022-2030
KEY MARKET INSIGHTS
Global Alternative Fuel Vehicles (AFVs) Market Size is expected to be worth USD 478.83 million in 2021 and is estimated to reach up to USD 1341.57 billion by 2030, at a compound annual growth rate (CAGR) of 12.3% from 2022 to 2030.
Alternative fuel cars are considered a significant component of the automobile industry to enhance urban air quality, reduce reliance on foreign oil, and lower greenhouse gas emissions. Alternative fuels are those that are utilized in internal combustion engines instead of gasoline and diesel. Biofuels such as biodiesel and ethanol, CNG, biogas, LPG, fuel cells, hydrogen gas, electricity, and solar batteries are a few of these alternative fuels. Concern over the volume of emissions produced by the use of fossil fuels is the main cause causing an increase in the use and expansion of other fuels in transportation. Alternative fuels offer significant advantages over the use of fossil fuels, albeit being more expensive than fossil fuels.
The alternative fuel vehicles market is expanding as a result of factors like the global decline in oil reserves, the rise in fossil fuel prices, the expansion of clean mobility solutions, stricter government emission control standards, as well as the expansion of government policies encouraging.
The impact of the COVID-19 pandemic resulted in supply chain disruption, China's regulatory reforms, and a decline in passenger car sales in key regions, global sales of electric cars in the first half of 2020 were, on average, 15% lower than those in the same period in 2019. In addition, the government's limitations on travel, import-export activities, and other lockdown measures severely affected the supply chain, which led to a halt in production because the majority of the raw materials used in the production of automobiles came from Asian nations.
In addition, with the great recovery of the automobile industry, AFVs such as natural gas vehicles may have eye-catching expansion. For instance, it is anticipated that the public sector budget will be destroyed in the wake of the Covid19 pandemic. Therefore, the government would find it difficult to defend spending hundreds of billions of dollars on EV subsidies that would result in subsidy reductions. The demand for natural gas automobiles is also predicted to increase in the coming years due to diminishing subsidies.
Strict Regulation for Emission Control from Automotive is Fueling Market Growth
Urban air quality is deteriorating, global warming is becoming worse, and pollution levels are rising. As a result, governments all over the world are enacting a number of stringent laws to cut down on vehicular carbon emissions. In order to limit the emissions of pollutants from automobile exhaust, the government set a variety of emission standards for the manufacturers. Over the course of the forecast period, laws and government initiatives to invest in the electric and hybrid fleet for the public transportation system are expected to fuel market expansion.
Increasing Fossil Fuel Prices Supporting Market Growth
The cost of fossil fuels is increasing in many nations around the world. Due to a number of circumstances, including limited Russian gas supplies, severe weather, low storage levels, and carbon pricing, Europe saw a spike in gas prices in 2021. When a future mobility solution, alternative fuel vehicles are used as the cost of fossil fuels rises. Additionally, cars powered by fossil fuels release toxic gases and raise pollution levels. Alternative fuel vehicles are an effective mobility solution with minimal running costs because they don't produce dangerous gases or CO2 emissions. Therefore, an increase in the cost of fossil fuels is anticipated to result in a rise in the use of alternative fuels and hybrid vehicles throughout the forecast period.
Minimum Utilization Cost of Commercial Charging Stations Hamper Market Growth
DC fast-charging stations that are set up as multiple-charger stations can offer sizable capital cost returns. However, the percentage of time the electric car supply equipment supplies electricity determines how profitable these investments are. This element can reduce sales and the supply chain, maintaining a high utilization rate. For instance, traditional fuel stations in the United States, many of which have numerous pumps, see an average utilization rate of roughly 34%. However, hardly 5 to 10% of the commercial EV charging stations are being used.
The Global Alternative Fuel Vehicles Market is segmented by Vehicle Type, Fuel Type, and Region. Based on the Vehicle Type, the market is categorized into Passenger Cars, Light Commercial Vehicles, and Medium & Heavy-duty Commercial Vehicles. Based on Fuel Type, the market is categorized into BEV, HEV, PHEV, FCV, CNG, Biofuels, and Other Gaseous Fuels. Based on the Region, the market is categorized into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
The Global Alternative Fuel Vehicles Market is categorized into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
North America is expected to dominate the market share of the global alternative fuel vehicles market owing to the strict regulation for emission control in automobiles. The benefits of alternative fuels have been supported by a number of rules put in place by institutions like the alternative fuels data center and the U.S. government to regulate vehicle emissions and fuel imports. As a result, the market for alternative fuel vehicles in this region is expected to increase at a significant rate. However, Asia Pacific is anticipated to emerge as the fastest-growing region over the forecast period. India, China, South Korea, Japan, and other nations are part of the Asia-Pacific area. Additionally, over the course of the forecast period, the use of cleaner fuels and an increase in regulatory regulations will be the key drivers of regional growth. Additionally, the expansion of alternative fuel stations and public charging infrastructure in the market propel the market growth during the forecast period.
LIST OF KEY COMPANIES PROFILED:
- Honda Motor Co., Ltd.
- Toyota Motor Corporation
- Nissan Motor Corporation
- Daimler AG
- BYD Company Ltd.
- Ford Motor Company
- MITSUBISHI MOTORS CORPORATION.
- SHELL International B.V.
- JAGUAR LAND ROVER AUTOMOTIVE PLC
KEY INDUSTRY DEVELOPMENTS:
- June 2021- Jaguar Land Rover will create a prototype hydrogen-powered Defender fuel cell vehicle. An announcement regarding the creation of a defense fuel cell prototype fueled by hydrogen was made by Jaguar Land Rover Automotive PLC. In 2021, the business will begin testing hydrogen fuel cell electric vehicles (FCEV). The initiative is a component of the company's goal to reach carbon emissions zero across the supply chain, operations, products, and services by 2039 and zero tailpipe emissions by 2036.
- October 2020- To create a joint venture for the development of commercial battery electric vehicles, BYD and Hino will sign a contract. A joint venture agreement was struck by Hino Motors, Ltd. (Hino) and BYD Company Ltd. to create a new business for the development of commercial BEVs.
By Vehicle Type
- Passenger Cars
- Light Commercial Vehicles
- Medium & Heavy-duty Commercial Vehicles
By Fuel Type
- Other Gaseous Fuels
- North America- U.S., Mexico, Canada
- Europe- UK, France, Germany, Italy, Spain, Rest of Europe
- Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
- South America- Brazil, Argentina, Colombia, Rest of South America
- The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa