Automotive Natural Gas Vehicle Market Demand To Reach 38,856.33 Thousand Units By 2028

 Automotive Natural Gas Vehicle Industry Overview

The global automotive natural gas vehicle market demand was valued at 29,793.76 thousand units in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 3.3% from 2021 to 2028. Natural gas is gaining popularity across the world as an alternative fuel owing to easy availability, lower vehicular emissions, and lower costs compared to conventional fuels, such as gasoline and diesel. The growing need for alternative fuel solutions in the transportation sector is encouraging the players in the transportation industry to adopt Liquefied Natural Gas (LNG) trucks to run their operations. Subsequently, the demand for LNG vehicles is increasing in the transportation industry. Moreover, the growing government initiatives for the development of natural gas distribution infrastructure are expected to boost the demand for natural gas vehicles (NGVs) over the forecasted period.

Gather more insights about the market drivers, restrains and growth of the Global Automotive Natural Gas Vehicle market

The unstable and disruptive pricing structure associated with gasoline and diesel is one of the prominent factors driving the adoption of NGVs. The oil & gas industry is witnessing economic instabilities on account of various factors, such as the fluctuation in the strength of the U.S. dollar, changing demand and supply of oil, and the growth of energy-intensive sectors, such as transportation, electricity, and manufacturing. These factors are expected to lead to the volatility of crude oil prices. Therefore, the automotive NGV industry is anticipated to grow considerably over the forecast period. The rise in the extraction of shale gas across the U.S. has increased the supply of natural gas. This significant increment can be attributed to the rapid growth of unconventional gas sources and shales since 2008, coupled with evolving advanced drilling technologies, such as fracking. As a result, natural gas prices have decreased since 2008 for both commercial and residential consumers.

Government regulations pertaining to environmental protection and Greenhouse Gas (GHG) emissions worldwide are becoming more stringent. As a result, there is a rise in the adoption of natural gas for different applications across various industries. Throughout the world, government agencies and authorities are undertaking numerous measures to protect the environment and are rolling out multiple programs and initiatives. For instance, Natural Gas STAR Program and Methane Challenge Program by the Environmental Protection Agency (U.S.), the European Green Vehicles Initiative (EGVI), National Green Tribunal (India), National Climate Change Plan of the UAE 2017–2050, and the Sustainable and Livable Cities Initiative (SLCI) of China, India, and Brazil are encouraging the adoption of alternative fuels, such as Compressed Natural Gas (CNG) and LNG, in the automotive sector. 

However, the economy worldwide has experienced a massive setback due to the COVID-19 pandemic, negatively impacting automotive production. The pandemic is expected to hamper the market growth to some extent as it is creating political, economic, and social disruptions in significant industries. The aftermath of the pandemic has resulted in supply chain disruptions, with several production facilities coming to a halt. The outbreak has negatively affected the sales of passenger and commercial automobiles, subsequently impacting the demand for NGVs in the automotive sector. According to the German Association of the Automotive Industry (VDA), in Europe, 5.1 million passenger cars were registered in the first half of 2020, which is 39% less compared to 2019. Moreover, the sales of passenger cars in the U.S. reduced by around 26% in 2020 compared to the previous year. Furthermore, China experienced a drop of 80% in its auto sales in February 2020.


Browse through Grand View Research's Automotive & Transportation Industry Research Reports.

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  • Internal Combustion Engine Market - The global internal combustion engine market size was estimated at 169,603.7 thousand units in 2021 and is projected to register a compound annual growth rate (CAGR) of 9.3% from 2022 to 2030. The market witnessed tremendous growth and is expected to increase owing to a rise in demand for passenger and commercial vehicles in developed and emerging countries.

 

Automotive Natural Gas Vehicle Market Segmentation

Grand View Research has segmented the global automotive natural gas vehicle market on the basis of fuel type, vehicle type, and region:

Automotive NGV Fuel Type Outlook (Volume, Thousand Units, 2016 - 2028)

  • CNG
  • LNG

 

Automotive NGV Vehicle Type Outlook (Volume, Thousand Units, 2016 - 2028)

  • Passenger
  • Light-duty & Heavy-duty Buses and Trucks
  • Three-wheelers

 

Automotive NGV Regional Outlook (Volume, Thousand Units, 2016 - 2028)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)

 

Key Companies profiled:

Some prominent players in the global Automotive Natural Gas Vehicle market include

  • 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.

 

Order a free sample PDF of the Automotive Natural Gas Vehicle Market Intelligence Study, published by Grand View Research.

 

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

 

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