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Automotive Natural Gas Vehicles Market Set To Double By 2031, Reaching $20.4 Billion | Growing At A CAGR Of 6.4%

Apr 24, 2024 (MENAFN via COMTEX) --

(MENAFN - EIN Presswire)

- Automotive Natural Gas Vehicle

PORTLAND, OREGAON, UNITED STATES, April 24, 2024 /EINPresswire / -- Allied Market Research published a report on automotive natural gas vehicle market size that provides a detailed insight into the factors influencing the market development, segmentation, arising futuristic trends, and regional analysis. The report states that the market is projected to generate revenue of $20.4 billion by 2031 at a CAGR of 6.4% during the forecast period.

Automotive natural gas vehicles (NGVs ) are alternative fuel vehicles that use compressed natural gas (CNG) or liquified natural gas (LNG) as a substitute for petrol or diesel. Their functioning is, however, similar to the engines powered by gasoline. A variety of automotives are operated through natural gas, including vans, buses, trucks, and cars. These vehicles are gaining significant traction recently as they have cleaner emissions and less to no harmful effect on the environment.

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Futuristic Trends of the Automotive Natural Gas Vehicle Market

Three-way Catalytic Converters :
Earlier limited to conventional engines, these converters are now being incorporated into the exhaust systems of NGVs to enhance their emission reductions. Moreover, the catalytic converters are being deployed with onboard diagnostics (OBD) features & nanotechnology, which detect malfunctions at an early stage and extend the efficiency of the vehicles and their engines. The basic principle of the working of three-way catalytic converters is that they oxidize the pollutants of the exhaust gas.

Renewable Natural Gas (RNG) :
It is biomethane gas captured from the decomposed organic waste from landfills, livestock manure, or wastewater treatment facilities. RNG is a "drop-in" fuel that is used interchangeably with conventional natural gas systems. It is considered as the fuel of the future owing to its low-to-negative carbon intensity.

High-pressure Direct Injection (HPDI) :
This technology is gaining traction in natural gas vehicles due to the advantage of compression engine, similar to that of gasoline, while using natural gas as the primary fuel. A small quantity of diesel fuel is required to ignite the natural gas in a compression-ignition cycle. HPDI is now being used for heavy duty vehicles, thereby reducing their carbon emissions and enhancing their effectiveness in the long run.

Market Dynamics

A variety of growth factors, restraints, and opportunities are responsible for the overall growth of the market. The factors driving the growth of the market include rise in environmental awareness among people, disruptive pricing structure of gasoline, and favorable government initiatives to promote the adoption of natural gas.

However, increase in popularity of electric vehicles (EVs) owing to their low operation and maintenance costs is posing notable challenges for the market. In addition, the refueling stations available for natural gas are significantly low, thus hampering the growth of the market. On the contrary, surge in demand for natural gas vehicles from several emerging countries is presenting new opportunities for the market. This is attributed to the high initial investment of purchasing an EV, which inclines consumers toward a cheaper and sustainable alternative.

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Key Players Profiled in the Market Report :

Mercedes-Benz Group AG
BMW Group
Toyota Motor Corporation
Ford Motor Company
AB Volvo, Navistar, Inc.
Nissan Motor Co., Ltd.
Tata Motors
Cummins, Inc.
Honda Motor Co., Ltd.
Volkswagen AG
CNH Industrial

Market Segmentation

The report reviews the segments of the automotive natural gas vehicle market based on vehicle type and fuel type. As per vehicle type, the market is bifurcated into commercial vehicles and passenger cars. By fuel type, the classification is LNG and CNG.

Major Questions Addressed in the Report

What is the projected industry size of the automotive natural gas vehicle market?

Which are the top companies garnering the market share in the market?

What is the leading application of the automotive natural gas vehicle market?

Which region is expected to grow with the highest CAGR?

What are the upcoming trends in the market globally?

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Regional Analysis

In the report, the automotive natural gas vehicle market is assessed across North America, Asia-Pacific, Europe, and LAMEA. North America is expected to grow with the highest CAGR in the future. In North America, the market is analyzed across Canada, Mexico, and the U.S. The countries of Asia-Pacific where the market is studied are South Korea, Japan, China, and India. Similarly, in Europe the countries analyzed include Germany, Netherlands, France, and the UK. The market is assessed in Africa, Latin America, and the Middle East in LAMEA.