Tokyo, Dec. 15, 2021 (GLOBE NEWSWIRE) – According to Precedence Research, the global market size for alternative fuel vehicles was valued at US $ 468.83 billion in 2021. The global alternative fuels market has experienced a growth rate important due to the growing demand for fuel efficient vehicles and environmentally friendly transportation solutions. Strict government regulations aimed at reducing greenhouse gas emissions are encouraging customers to switch to alternative fuel vehicles around the world. The growing investments by automakers in the production of alternative fuel vehicles and the government subsidies granted to them are driving the overall growth of the global alternative fuel vehicle market.
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Technological advancements and growing government investments in the development of clean transportation for the public are driving sales of electric buses. In addition, the growing awareness of the population regarding the deterioration of environmental conditions due to increasing pollution levels encourages them to demand alternative fuel vehicles, especially in developed markets like Europe and Europe. North America. Oil reserves are rapidly running out across the world. Governments of various nations are investing heavily in the development of renewable energy sources. Hence, the alternative fuel vehicle market is expected to grow at a rapid rate during the forecast period.
Alternative fuel vehicle market share, by vehicle type, 2020 (%)
|Vehicle segment||2020 (%)|
Asia-Pacific was the dominant market for alternative fuel vehicles in 2020. Growing income levels of consumers and growing awareness of the negative effects of rising pollution levels on the environment are encouraging people to choose for alternative fuel vehicles to reduce vehicle emissions. In addition, rising pollution levels due to rapid industrialization in economies like China and India have compelled the government to take the necessary steps to reduce carbon emissions. Hence, government regulations aimed at restricting vehicle emissions are playing an outstanding role in the growth of the alternative fuel vehicle market.
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On the other hand, North America is expected to be the fastest growing market. The increase in disposable income of consumers, coupled with the growing demand for sustainable and environmentally friendly products, is driving the demand for alternative fuel vehicles. The US government plays an important role in enforcing appropriate laws regarding vehicle emissions which are expected to drive the market growth during the forecast period.
Alternative fuel vehicle market growth rate, 2020 to 2030 (%)
|Year considered||CAGR (%)|
|Growth rate in 2020||7.16||%|
|Growth rate in 2021||12h00||%|
|Growth rate in 2023||12.12||%|
|Growth rate in 2025||12.24||%|
|Growth rate in 2027||12.36||%|
|Growth rate in 2030||12.54||%|
Strict government standards and regulations regarding emissions
Enforcement of vehicle emissions laws in major countries like China, Germany, the United States and Italy has encouraged manufacturers to increase production of alternative fuel vehicles. The growing popularity of the zero emission vehicle is driving sales of electric and fuel cell vehicles. Hence, government regulations are expected to play a crucial role in the growth of the alternative fuel vehicles market.
High initial cost of acquiring electric vehicles
The cost of purchasing electric vehicles is high. Therefore, its adoption is limited in low- and middle-income countries. Consumers in low- and middle-income countries, especially middle-class consumers, should resist the adoption of expensive electric vehicles because of their low affordability.
Product launches and various development strategies to drive market growth
The alternative fuel vehicle market is fragmented due to the presence of many large market players. The various development strategies adopted by them, such as new product launches, acquisitions and partnerships, are expected to significantly boost the market growth in the coming years. For example, in September 2019, Ford Motor collaborated with Electrify America to offer super-fast charging for their electric vehicle.
Lack of infrastructure in developing and underdeveloped regions
The lack of appropriate infrastructure in underdeveloped and developing countries hampers the penetration of the alternative fuel vehicle. Lack of an adequate number of refueling stations and other alternative fuel stations can slow adoption. In addition, the lack of appropriate government regulations regarding vehicle emissions is a major challenge for market players.
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Highlights of the report
- On the basis of vehicle type, the passenger vehicle segment dominated the global alternative fuel vehicle market in 2020. The increase in disposable income, the desire for luxury vehicles and the improvement in living standards have dramatically increased. promoted the adoption of various passenger vehicles. In addition, the changing demographics of middle class consumers and changing consumer preferences towards environmentally friendly fuels are further expected to drive segment growth during the forecast period.
- On the basis of fuel type, the electric segment was the dominant segment in 2020 and is expected to be the fastest growing segment during the forecast period. Rising pollution levels and growing government and business sector initiatives to reduce the carbon footprint in order to achieve long-term sustainability are rapidly driving the adoption of electric fuel around the world.
Segments covered in the report
By vehicle type
- Tourism vehicle
- Commercial vehicle
By fuel type
- Gaseous fuels
- North America
- Asia Pacific
- South Korea
- Rest of the world
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