The natural gas vehicle market was valued at US$17,100. 00 million in 2019 and is projected to reach US$ 28,805. 75 million by 2027; it is expected to grow at a CAGR of 6. 9% from 2020 to 2027.
New York, Jan. 22, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Natural Gas Vehicle Market Forecast to 2027 - COVID-19 Impact and Global Analysis By Fuel Type, Application, and Vehicle Type" - https://www.reportlinker.com/p06010078/?utm_source=GNW
Natural gas is popularly being used as an alternative fuel due to established distribution networks, easy domestic availability, and low cost and emissions.With the notable spike in the prices of gasoline in various countries, vehicle fleet managers and consumers seek alternative fuel for their vehicles.
According to the AFDC, in 2019, the US imported 3% of its petroleum needs from other countries, and the transportation industry in the country accounts for ~30% of its total energy needs and 70% of its petroleum consumption.Using natural gas as an alternative fuel, along with advanced technologies, to lower fuel consumption is reinforcing national energy security and decreasing transportation energy costs for consumers and businesses.
According to the Alternative Fuels Data Center (AFDC), as of July 2020, the average retail prices of CNG and LNG were US$ 0.04/GGE and US$ 0.04/DGE less, respectively, than the prices in April 2020. The reduction in the CNG and LNG prices fortifies the demand for natural gas vehicles. Natural gas also reduces overall maintenance costs; as this fuel does not react with metals, and it is less corrosive than diesel. Besides, several heavy-duty natural gas vehicles are capable of covering one million miles or more without overhaul.
On the contrary to price reduction with natural gas, the world is continuously experiencing hike in the cost of crude oil.Furthermore, the use of conventional fuels has triggered pollution levels in several countries with degrading air quality, leading to respiratory and skin diseases in humans.
To lessen these effects, governments across the world are encouraging the use of cost-effective transportation solutions. Thus, since natural gas is an environment-friendly fuel option that is available at a lower cost than crude oil-based options, it is preferred by increasingly high number of vehicle owners worldwide.
Presently, natural gas vehicles are among the cleanest commercial vehicles that generate ~20–30% less greenhouse gases (GHG) than gasoline- or diesel-powered vehicles.These vehicles can lower the emissions of carbon dioxide by ~30%, carbon monoxide by 85%, and carcinogenic particulate emissions by 99.
Moreover, the natural gas fuel costs less than diesel.Green transportation has gained significant pace in the past few years due to growing petrol and diesel prices across the world.
In May 2019, the Ministry of Transport in China and various other ministries mutually issued the Green Travel Action Plan for 2019–2022.The country would also continue to enhance public transportation facilities and information systems that are supporting green transportation.
Additionally, in July 2019, South Africa announced the launch of its first Green Transport Strategy (GTS) to promote an environment-friendly transport system for addressing its concern of swiftly growing GHG emissions. Similarly, government rules regarding GHG emissions and environmental protection are becoming more severe worldwide. Hence, there is a huge growth in the adoption of natural gas vehicles. Natural Gas STAR Program, National Green Tribunal (India), and the European Green Vehicles Initiative (EGVI) are a few of the initiatives launched by different governments to promote use of vehicles based on eco-friendly fuel source.
The automotive manufacturing and transportation industry is heavily dependent on manual labor.Owingto the strict lockdown regulations imposed by the majority of the countries across the globe, the industry is experiencing a significantly lower number of labors in respective manufacturing facilities.
This factor is hindering the automotive and transportation industry, thereby restraining the growth of the natural gas vehicle market.The US is a prominent market for natural gas vehicle due to rising government support to build infrastructure for the same.
The rapidly increasing number of COVID-19 confirmed cases and reported deaths in the country is adversely affecting the automotive and transportation industry.The factory and business shutdowns across the US, Canada, and Mexico are restricting the demand for natural gas vehicles.
North America comprises a large number of manufacturing and automotive companies; thus, the impact of the COVID-19 outbreak is quite severe on the market and it is likely to continue in 2021.
Overall size of the natural gas vehicle market has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market.
The process also serves the purpose of obtaining an overview and forecast for the natural gas vehicle market with respect to all the segments pertaining to the region.Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic.
The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultant such as valuation experts, research analysts and key opinion leaders, specializing in the natural gas vehicle market. A few of the major players operating in the market are AB Volvo, Agility Fuel Solutions LLC, America Honda Motor Company, CNH Industrial N.V., Cummins Westport, General Motors, Navistar Inc., Paccar Inc., The Ford Motor Company, and Volkswagen AG.
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