"Market Intelligence for High-Geared Performance"
A natural gas-powered vehicle (NGV) is powered by alternative fuels like LPG (Liquified petrol gas) and CNG (Compressed natural gas). The combustion of oxygen (O2) and methane (CH4) into water (H2O) and carbon dioxide (CO2) powers the engine of NGV’s. NGV’s are being promoted as low-cost alternative fuel vehicles since they produce fewer greenhouse gases than conventional fossil fuels based vehicles.
The market of Natural gas-powered vehicles is steadily growing and is expected to grow further. This can be attributed to the prices of CNG and LPG, which are comparatively less than diesel. Also, due to stunted emissions, natural gas will emerge out as the leading player in the alternative fuel market worldwide. The increasing demand for alternative fuel in the transportation sector is attributed to the private players increasing the use of natural gas vehicles in their operations.
However, the economies worldwide have been hit hard by the COVID-19 pandemic, which has adversely affected automotive and commercial vehicle production.
The growing influence of electric vehicles, especially in the Europe and Asia-Pacific region, is hampering the expansion of the automotive natural gas vehicle market. Low operational and maintenance costs of electric vehicles contribute to shifting the consumer focus from natural gas-powered vehicles to electric vehicles. Hence this is one of the key restraining factors of the market.
Key Market Driver -
Stringent emission norms due to environmental concerns are fueling factors for deep penetration in the fuel market, the oil market is experiencing economical turmoil leading to volatility in crude oil prices and in such scenario low cost of natural gas is a fueling factor for the expansion of this market.
Key Market Restraint -
The aftermath of COVID-19 has left the automobile and commercial vehicle market disrupted owing to the rattled supply chains and reduced productions due to logistical issues, also consumer priority is shifting towards electric vehicles due to their low operational and maintenance cost. These are some of the restraining factors for the market.
The Automotive Natural Gas Vehicle market is segmented by fuel type (CNG and LPG), by vehicle type (Passenger and commercial), and by geography.
By fuel type, the market is segmented into CNG and LPG. CNG held the largest share of the market in 2020. The non-toxic nature of this fuel acts as a catalyst in its promotion as a Clean Energy. The expansion of the CNG market can be attributed to the stringent emission norms being implemented by various countries to curb emissions of vehicles owing to environmental concerns. The LPG segment is expected to exhibit a higher CAGR during the forecast period, owing to governments incentivizing it under federal policy support. The road transport industry, which includes the goods & carrier commute and the public commute, is a major contributor to the widespread adoption of LPG-based vehicles.
By vehicle type, the market is segmented into natural gas-powered passenger cars and commercial vehicles. The passenger car segment dominated the market in 2020. Due to the depreciating air quality and environment, consumers are inclined to adopt low greenhouse gas emitting fuels like CNG & LPG. Economically, CNG cars provide significant savings as it is 50% more cost-effective than gasoline and 40% more cost-effective than diesel. These factors are propelling the growth of this segment.
Major players operating in the global automotive natural gas vehicle market are Dong-Feng group company limited (China), AB Volvo (Sweden), Daimler AG (Germany), CNH Industrial NV (Netherland), and Tata Motors (India), among others.
Geographically, the automotive natural gas vehicle market is segmented into North America, Europe, Asia Pacific, and the rest of the world.
Asia Pacific is expected to exhibit a higher CAGR during the forecast period due to increased manufacturing and sales of passenger cars in this region. In countries such as India, the Ministry of Petroleum and Natural Gas is encouraging the adoption of natural gas by drafting the city gas distribution policy (CGD). Under this scheme, the government is boosting natural gas infrastructure across the country. Some cities have even started converting their city buses from diesel engines to natural gas-powered engines.
North America is expected to show steady growth during the forecast period. This can be attributed to the exponential increase in the adoption of NGV by fleet operators.
Europe, on the contrary, is witnessing slower growth, which can be attributed to the fact that except Italy, no major European country is keen on developing the natural gas fueling infrastructure. Also, European countries are more focused on producing and selling hybrid and electric vehicles rather than natural gas-powered vehicles, which is hampering the expansion of this market.
To gain extensive insights into the market, Request for Customization
By Fuel Type
By Vehicle Type
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry