DUBLIN--(BUSINESS WIRE)--The "Automotive Natural Gas Vehicle Market Size, Share & Trends Analysis Report by Fuel Type, by Vehicle Type, by Region, and Segment Forecasts, 2020-2027" report has been added to ResearchAndMarkets.com's offering.
The global automotive natural gas vehicle market demand is expected to reach 37,373.8 thousand units by 2027. The market is anticipated to witness a CAGR of 3.5% from 2020 to 2027.
The adoption of natural gas as a fuel for the vehicles is increasing in the transportation sector across the globe, owing to its low emission properties. Natural gas vehicles (NGV) are safer to refuel compared to diesel or gasoline engines. Incumbents of the transportation sector have realized that cars running on conventional fuels, such as diesel and gasoline, are causing pollution and emitting greenhouse gases on a large scale. Rise in government regulation to reduce the greenhouse emissions due to vehicular pollution and the need of a cleaner fuel at a lower cost is expected to drive the demand for the automotive NGV market.
The market for the automotive natural gas vehicles is expected to grow on account of various factors, including government support for the adoption of natural gas vehicles. Governments of different countries have put in place stringent regulations aimed at curbing the environmental damages stemming from the emissions of greenhouse gases and Particulate Matter (PM) from vehicles. Along with these regulations, authorities have also been amending the emission standard policies continuously to protect the environment.
Also, having realized the high initial costs associated with the adoption of LNG and CNG vehicles, governments, and authorities across the globe have launched various incentive programs to smoothen the promotion process of such automotive vehicles. Incentive programs launched in the U.S. include the EPA's Clean Construction and Clean Agriculture Program, the Voluntary Airport Low Emission (VALE) program, and the Congestion Mitigation and Air Quality (CMAQ) Improvement Program.
Modern technologies have continuously emerged through dedicated collaborative R&D centers or manufacturer's independent technology centers, where researchers focus on building optimal solutions for their automotive natural gas vehicle customers. The government across the globe is taking initiatives and investing significant resources to improve natural gas technologies. Also, infrastructure improvement for natural gas is being carried out across the nations.
CNG and LNG fueling stations are established strategically across transportation routes by the companies such as Clean Energy Fuels and Southern California Gas Co. The companies have come up with mobile fueling solutions that are home refueling and virtual pipelines to provide infrastructure to the infrastructure-lacking regions.
Market Highlights
- Stringent regulations laid down by governments of various nations, to reduce emissions of greenhouse gases and Particulate Matter (PM) are expected to positively influence market growth over the forecast period
- Refueling solutions such as home refueling and time-fill refueling prove to be economical, along with providing convenience to customers. For instance, Southern California Gas Company (a subsidiary of Sempra Energy) is a U.S.-based company that offers home refueling appliance for NGV owners, called PHILL
- COVID - 19 (Coronavirus Disease) outbreak has produced numerous disruptions in several major industries, including the energy and auto industry. For instance, according to Sublime China Information (SCI99), the demand for CNG in China is expected to be 10bn m3 less in the year 2020 than earlier
- Less noise produced from a CNG engine due to the lower level of the sound pressure will be the demand driving factor from densely populated cities
Companies Profiled
- 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.
For more information about this report visit https://www.researchandmarkets.com/r/ftquw0
