Global Automotive Natural Gas Vehicle Market by Vehicle Type (Light-duty & Heavy-duty Buses & Trucks, Passenger), by Fuel Type (CNG, LNG) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global automotive natural gas vehicle demand was valued at 29,793.76 million units in 2020. It is expected to increase at a compound annual rate (CAGR of 3.3%) between 2021 and 2028. Because of its low cost, ease-of-use, and lower emissions than conventional fuels like gasoline and diesel, natural gas is becoming more popular around the globe. To meet the growing demand for alternative fuels in the transportation sector, players in the industry are adopting LNG trucks to operate their businesses. The demand for LNG vehicles in the transportation sector is growing. The government's increasing efforts to develop natural gas distribution infrastructure will also be expected to increase the demand for natural gasoline vehicles (NGVs), over the forecasted time.

NGVs are being adopted because of the unstable and disruptive pricing structure of gasoline and diesel. Due to a variety of factors, including the fluctuations in the U.S. Dollar, shifting demand and supply of crude oil and the growth in energy-intensive sectors such as transport, electricity and manufacturing, the oil and gas industry is experiencing economic instability. These factors will likely lead to volatility in crude oil prices. The automotive NGV market is expected to expand significantly over the forecast period. Natural gas supply has been increasing due to the increased extraction of shale gas in the United States. The rapid growth in unconventional gas sources and shales, as well as the development of advanced drilling technologies such fracking, has led to a significant increase in natural gas supply. Natural gas prices for residential and commercial consumers have declined since 2008.

Global regulations regarding environmental protection and Greenhouse Gas emissions are getting more stringent. There is an increase in natural gas adoption for various applications across different industries. Many programs and initiatives are being launched by government agencies around the globe to protect the environment. The Natural Gas STAR Program and Methane Challenge Program of the Environmental Protection Agency (U.S.), the European Green Vehicles Initiatives (EGVI), National Green Tribunal of India (India), National Climate Change Plan of the UAE 2017-2050 and the Sustainable and Livable Cities Initiatives (SLCI of China, India and Brazil encourage the use of alternative fuels such as CNG (CNG), and LNG in the automotive industry.

The COVID-19 pandemic has caused a huge setback in the global economy, which negatively impacted automotive production. Market growth will be affected by the pandemic, which is causing significant disruptions in key industries and creating political, economic and social problems. Many production facilities were shut down as a result of the pandemic. The pandemic has had a negative impact on the sales of passenger and commercial cars, which in turn has affected the demand for NGVs within the automotive industry. According to the German Association of the Automotive Industry, (VDA), 5.1 million passenger vehicles were registered in Europe in the first half of 2020. This is 39% lower than in 2019. In the United States, passenger car sales decreased by 26% in 2020 in comparison to the previous year. China saw a drop in auto sales of around 80% between January and February 2020.

Fuel Type Insights

CNG accounted for over 95% of the total volume in 2020. It will continue to grow at a steady CAGR between 2021 and 2028. CNG's growth can be attributed to increasing government initiatives to reduce vehicular emissions and improve environmental security. CNG is non-toxic, which results in lower environmental damage. CNG fuel systems comply with Federal Motor Vehicle Safety Standards 303 (U.S.) which set out the requirements for the fuel system integrity of CNG fuel systems in dedicated CNG or dual-fuel CNG vehicles.

From 2021 to 2028, the LNG segment will experience the fastest CAGR. This segment is primarily incentivized by government policies, diesel-LNG price differential and a developing logistics industry that is driven by stronger economic growth. The key driver of LNG adoption is the road transport industry. The adoption of LNG Heavy-Duty Trucks is higher in terms of LNG vehicles. Given the number of countries that have conducted research and development on LNG, there is potential for growth in this fuel.

Vehicle Type Insights

In 2020, the passenger vehicle segment was responsible for 87% of the total volume. Global air quality is deteriorating because of the excessive emission of pollutants and greenhouse gases from fossil fuels like coal, gasoline, diesel. People are more inclined to use alternative fuels and related technologies as a result of the deteriorating environment and worsening air quality in countries like China, India and Saudi Arabia.

Natural gases such as CNG or LNG are also more cost-effective due to their higher fuel economy. According to NGVJournal data, CNG is approximately 50% cheaper than gasoline and 40% less expensive than diesel. This is why natural gas is so popular. Due to the greater number of three-wheelers running on natural gas, this segment held a significant market share.

Regional Insights

Asia Pacific accounted for more than 53% of the world's market share in 2020. It is expected to continue leading the global market and register a substantial CAGR over the forecast period. This is due to the increased production and sale of passenger cars in this region. China was responsible for approximately 50% of passenger car sales in APAC. Due to the development of natural gas infrastructure in countries such as India, China and Pakistan, this region is the largest user of NGVs. The City Gas Distribution policy (CGD), was drafted by the Ministry of Petroleum and Natural Gas in India. The policy would see the government expanding CNG infrastructure in the country. The market growth is being hampered by the increasing interest in Electric Vehicles (EVs), and the slow infrastructural growth for NGVs. The pandemic has also disrupted the auto and energy industries around the world.

Market Share Insights & Key Companies

To gain a competitive advantage, the market companies are focused on growing their customer base. To increase their market offerings, they are focusing on offering technologically advanced and well-designed products. To grow their market share, the companies are also taking strategic initiatives such as regional expansions and mergers, partnerships, or collaborations.

These players are also consolidating their market share by engaging in M&A activities. Agility Fuel Solutions, for example, announced in February 2021 a merger of Hexagon Mobile Pipeline and Agility Fuel Solutions to increase its position as a provider of natural gas and renewable gas mobility solutions. Westport Fuel Systems Inc., its joint venture partner, announced a final agreement in September 2020 with UNO MINDA Group. This agreement allowed the company to better serve India's growing NGV market. The following are some of the most prominent players in the global automotive gas vehicle (NGV), market:

• 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.

Up Market Research published a new report titled “Automotive Natural Gas Vehicle Market research report which is segmented by Vehicle Type (Light-duty & Heavy-duty Buses & Trucks, Passenger), by Fuel Type (CNG, LNG), By Players/Companies Quantum Fuel Systems LLC, Clean Energy Fuels, Navistar Inc, AB Volvo, PACCAR Inc, Agility Fuel Solutions, Cummins Inc, CNH Industrial NV, Beiqi Foton Motor Co Ltd, Westport Fuel Systems Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Automotive Natural Gas Vehicle Market Report Segments:

The market is segmented by Vehicle Type (Light-duty & Heavy-duty Buses & Trucks, Passenger), by Fuel Type (CNG, LNG).

Automotive Natural Gas Vehicle Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Automotive Natural Gas Vehicle Market

Overview of the regional outlook of the Automotive Natural Gas Vehicle Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Automotive Natural Gas Vehicle Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Automotive Natural Gas Vehicle Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Light-duty & Heavy-duty Buses & Trucks

                2. Passenger

                1. CNG

                2. LNG

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Automotive Natural Gas Vehicle Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Automotive Natural Gas Vehicle Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.