Asia-Pacific Automotive Natural Gas Vehicle Market Witness Substantial Growth of CAGR in the Upcoming years by 2032
Asia-Pacific Automotive Natural Gas Vehicle Market
The Asia-Pacific automotive natural gas vehicle (NGV) market is expanding rapidly, particularly in countries like China, India, and Thailand, where natural gas is a widely available and cost-effective fuel. Governments in the region are promoting NGVs as a cleaner alternative to gasoline and diesel vehicles to combat rising pollution levels and reduce reliance on oil imports. China, in particular, is a major market for NGVs, with a significant portion of its commercial vehicle fleet running on natural gas. India is also seeing increased adoption of NGVs, especially in urban areas where pollution levels are a major concern.
The availability of natural gas resources, government incentives, and the development of natural gas fueling infrastructure are key drivers of market growth. However, the market faces competition from electric vehicles (EVs) and hydrogen fuel cell vehicles, which are also gaining popularity in the region. Despite these challenges, the Asia-Pacific NGV market is expected to grow as countries focus on reducing emissions and improving air quality.
The automotive natural gas vehicle (NGV) market is witnessing significant growth globally, driven by environmental concerns, energy security, and economic incentives. This analysis delves into the key trends, drivers, challenges, and future outlook of the Automotive Natural Gas Vehicle Market.
Market Research Future Insights
According to MRFR analysis, the Global Automotive Natural Gas Vehicle market is expected to register a CAGR of 5.18 % from 2024 to 2032 and hold a value of over ~USD 21.6 billion by 2032.
The automotive natural gas vehicle market is rapidly growing due to the increased demand for natural gas as an alternative fuel source. Natural gas vehicles are becoming more popular because of their features and functionalities, such as low emissions. The need for cleaner fuels is driving the market growth of automotive natural gas vehicles.
The coronavirus pandemic has had a devastating effect on economies across the globe, causing a severe health crisis. Now people are more concerned about their health and trying to recover from the many challenges they face daily. Pollution is a big problem, especially in urban cities, and that’s why the government is taking so many necessary steps to address it. Because of these things, the demand for and value of automated natural gas vehicles is growing. This market is expected to rise shortly due to its functionalities.
Regional Analysis
Asia Pacific is expected to grow at a higher rate than other regions during the forecast period due to the increased manufacturing and sales of passenger cars. 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).
North America is expected to witness stable growth attributed to the exponential increase in the adoption of NGV by fleet operators.
Market Segmentation
The global Automotive Natural Gas Vehicle market has been segmented into fuel type and vehicle type.
Based on fuel type, the market has been segmented into CNG and LNG. CNG currently holds the largest share of the automotive fuel market. The expansion of the CNG market is largely due to the stringent emission norms being implemented by various countries to curb emissions from vehicles.
Based on vehicle type, the market has been segmented into Light-duty, Medium-duty, and Heavy-duty. The passenger car segment is projected to dominate the market. Due to the deteriorating air quality and environment, consumers are becoming more inclined to adopt low greenhouse gas emitting fuels like CNG and LPG. Economically, CNG cars provide significant savings as they are 50% more cost-effective than gasoline and 40% more cost-effective than diesel.
Key Companies in the Automotive Natural Gas Vehicle Market Include
Dongfeng Motors Group Limited (China)
AB Volvo (Sweden)
BeiqiFoton Motors Group Limited (China)
Shaanxi Automobile Group Limited (China)
Daimler AG (Germany)
CNH Industrial NV (The Netherlands)
Landi Renzo (Italy)
Westport (Canada)
Automotive Natural Gas Vehicle Industry Developments
Dongfeng Motor Group Limited (China)
New Model Launches: Dongfeng has recently introduced several new NGV models, including the Dongfeng Fengxing T5 EVO EV and the Dongfeng Fengxing T5 EVO PHEV. These vehicles offer consumers a range of options for their NGV needs.
AB Volvo (Sweden)
Hydrogen Fuel Cell Trucks: Volvo has been making significant progress in the development of hydrogen fuel cell trucks. The company has partnered with several other companies to develop and commercialize these vehicles.
Overall Trends in the Automotive NGV Industry
Government Incentives: Governments around the world are providing incentives to encourage the adoption of NGVs. These incentives include tax breaks, subsidies, and infrastructure development.
Environmental Benefits: NGVs offer significant environmental benefits compared to gasoline and diesel vehicles. They produce fewer greenhouse gas emissions and air pollutants.
Technological Advancements: The technology used in NGVs is constantly improving. This is making these vehicles more efficient, reliable, and affordable.
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