"We Envision Growth Strategies Most Suited
to Your Business"
Liquid fossil fuels are suitable and inexpensive, but they are not the only fuels that engines can use. Alternative fuels have been accessible for the same amount of time as internal combustion engines have been invented. Currently, fewer vehicles use wood gas to run, but several other alternative fuels are obtainable, and many more are being invented. For instance, compressed natural gas (CNG) and liquid petroleum gas (LPG) are gained from fossil fuels. Rest of them, such as biodiesel, renewable diesel, ethanol, and biogas, are attained from energy crops or organic leftovers. Alternative Fuel Vehicles Industry is expected to witness a significant growth owing to the growing environmental awareness. As per a report by Fortune Business Insights™, the market for alternative fuel vehicles was USD 293.45 billion in 2020. It is projected to grow from USD 330.45 billion in 2021 to USD 1,681.80 billion by 2028, exhibiting a CAGR of 26.2% during the 2021-2028 period.
Growth Prospects of Alternative Fuels Production:
Alternative fuels are categorized by constant or deteriorating fuel rates, owing to economies of scale. The price of alternative fuels is majorly reliable on biomass obtainability, origin, and feedstock treatments. Gaining more effective energy crops and cost-friendly materials for alternative fuel production pooled with the invention of more proficient conversion technologies are set to result in a considerable cost decline in the generation of alternative fuels and augment their competitiveness in comparison with fossil fuels.
As per the International Energy Agency, electric automotive sales faced speedy growth of 60% per year over the last decade excluding 2019. In 2019, the growth deteriorated by 6%. Furthermore, in the first half of 2020, global electric car sales observed an average of 15% lower sales in comparison with the first half of 2019, owing to the commotion in the supply chain system, guideline changes in China, and reducing passenger automotive sales in prime markets.
Additionally, Alternative Fuel Vehicles (AFVs), such as natural gas vehicles, are expected to observe an enticing growth post the prominent retrieval of the automobile industry. For example, in the aftermath of the COVID-19 pandemic, the public sector budget is predicted to be devastated. Therefore, it would be difficult for the government bodies to validate the expenditure of multibillion dollars on EV grants leading to subsidy reductions. Furthermore, deteriorated subsidies are estimated to surge the demand for natural gas automobiles in the coming years which will further boost this industry.
Fortune Business Insights™ Lists the Best Alternative Fuel Vehicle Manufacturers in 2022
Tesla is among the top alternative fuel vehicle manufacturers of pure electric vehicles and is headquartered in California, U.S. The company is involved in designing, creating, manufacturing, and commercializing electric vehicles, energy generation, and storage systems. It also offers vehicle service centers, charging stations, and self-driving technologies. In 2020, Tesla sold the highest number of electric vehicles than any other producer. Tesla is incessantly developing and fortifying its vehicles with progressive technologies to improve the driving experience and refine the security features of its automotive.
BYD Company Ltd. is one of the dominating electric vehicle producers located in China. The company has a strong product portfolio with a variety of electric vehicles equipped with progressive technology. Moreover, the company's product portfolio involves an extensive variety of electric passenger cars and commercial vehicles. In November 2019, Toyota and BYD Company Ltd. signed a deal to establish a joint venture in China for the research and development of battery electric vehicles (BEVs)
Nissan Motor Corporation is one of the dominating auto-manufacturers located in Japan. The company is a fragment of the Renault-Nissan-Mitsubishi strategic alliance. It is located in Yokohama, Japan. Nissan Leaf model is one of the most popular mass-market EVs from Nissan Motor Corporation. Furthermore, in 2020, Nissan sold 62,029 units EVs throughout the globe.
Toyota Motor Corporation is one of the dominating multinational automakers headquartered in Japan. The company provides numerous alternative fuel automobiles, including plug-in hybrid, fuel cell electric, hybrid electric, and others. Furthermore, in 2020, Toyota was one of the top 10 producers of alternative fuel vehicles. In 2020, its hybrid vehicle sales augmented by 23% in comparison with 2019.
Ford Motor Company is one of the top multinational automotive producers located in the U.S. The company produces automobiles, including cars, trucks, and SUVs under the brand names Ford and Lincoln. Ford Motor Company functions in North America and over 125 nations worldwide. It has a sturdy position in the North America and Europe markets. The company is intending to electrify its entire vehicle portfolio. For example, in June 2021, Lincoln, a brand operating under Ford Motor Company, declared its plan to electrify its complete vehicle portfolio by 2030.
Growing Environmental Awareness to Augment the Usage of Alternate Fuel vehicle
Utilizing alternative fuel vehicles could be an efficient method to decrease harmful carbon releases. Burning fossil fuel emits carbon into the atmosphere, which was initially deposited below the ground.
Biofuels, contrarily, emit the carbon that is derived from the atmosphere by the plantations that they are created from. This is the reason biofuels are considered net-CO2-free fuels. Likewise, renewable natural gas fuel created from landfills or sewer gas can be measured as a fuel with negative carbon strength. Conservative fossil fuels, such as gasoline and diesel, are usually opportune and reasonable, but there are circumstances where alternative fuels are inexpensive. Natural gas, precisely, has been constantly cost-effective compared to gasoline and diesel when scaled on a gasoline gallon equivalent base. Drivers of city buses, dumpster trucks, and other commercial automobiles have been able to conserve millions of dollars by transforming their fleets to drive on CNG. These factors are expected to augment the usage and adoption of such vehicles in future.