Automotive Natural Gas Vehicle Market Size, Sector / Industry Report & Analysis 2018-2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Automotive Natural Gas Vehicle Market


The global automotive natural gas vehicle (NGV) market demand was estimated at 24,400.00 thousand units in 2017. It is expected to exhibit a CAGR of 3.0% during the forecast period. Rising support from several governments worldwide for the adoption of NGVs is one of the primary growth stimulants for the market.
Stringent regulations, laid down by governments of various nations, focus on reduction of emissions of greenhouse gases and particulate matter from vehicles in order to curb environmental damage. Along with these regulations, authorities have also been amending emission standard policies dynamically in order to protect the environment. This, in turn, is projected to positively influence the growth of the market over the forecast period.
 
Incumbents of the automotive industry are enhancing their product portfolio and providing compressed natural gas (CNG) and liquefied natural gas (LNG) variants of vehicles in order to comply with evolving policies and standards. Surging demand for vehicles running on CNG and LNG coupled with increasing launches of a variety of natural gas vehicles is likely to propel the market.
Production of natural gas is becoming a safer process as authorities have been implementing strict regulations and industry standards to ensure safe production, storage, transportation, distribution, and use of natural gas. Technological advancements and government support have provided a push to the natural gas industry over the last decade. As a result, improved production and handling processes of natural gas are estimated to augment the market over the forecast period.

Market Segmentation, Outlook & Viewpoint: Global Automotive Natural Gas Vehicle Market


Fuel Type Market Segmentation & Outlook (Volume, Thousand Units, 2014 - 2025)

CNG

LNG


Vehicle Type Market Segmentation & Outlook (Volume, Thousand Units, 2014 - 2025)

Passenger vehicles

Three-wheelers

Light-duty & heavy-duty buses and trucks


Key Players, Recent Developments & Regional Insights: Global Automotive Natural Gas Vehicle Market


Based on vehicle type, the automotive NGV market has been classified into passenger vehicles, three wheelers, and light-duty & heavy-duty buses and trucks. The passenger vehicles segment dominated the market in 2017. Countries such as Thailand, India, and Bangladesh have a greater number of three-wheelers that run on natural gas in circulation.
CNG and LNG find prominent applications in the rail transport sector in countries such as India, U.S., Canada, and Japan. For instance, Florida East Coast Railway (FECR) of North America converted its locomotive fleet to LNG by modifying its GE ES44AC locomotives. Use of natural gas as a fuel for locomotives is still being studied by a few rail companies. Nevertheless, there is a growing potential for natural gas as a fuel for locomotives, considering ongoing research & development activities across countries.
In the marine industry, natural gas is prominently used in shipping activities. Major container liner companies are focusing on research & development activities for manufacturing of LNG-based ships. With emergence of hybrid ships and LNG-run passenger vessels, application of natural gas in the marine industry is growing rapidly.
Leading companies in the marine industry, such as British Columbia Ferry Services Inc.; Viking Line Abp; and Tarbit Shipping AB, are producing vessels that are capable of running on LNG. As a result, the marine industry is posting a spiraling demand for natural gas.
Fuel Insights
Based on fuel type, the market has been bifurcated into CNG and LNG. The LNG segment is poised to register a higher CAGR during the forecast period owing to increasing use of LNG in the locomotive and aviation industries.
The CNG segment is anticipated to dominate the market throughout the same horizon, owing to growing government initiatives. Having realized high initial costs associated with adoption of LNG and CNG vehicles, governments and authorities across the globe are launching various incentive programs in order to simplify process of adoption of such vehicles.
Incentive programs launched in the U.S. include the Voluntary Airport Low Emission (VALE) program, the Environmental Protection Agency’s (EPA) Clean Construction & Clean Agriculture program, and the Congestion Mitigation and Air Quality (CMAQ) Improvement Program.
 
Owing to several technological innovations in the trucking sector in recent times, there is a rising interest towards LNG as a fuel for heavy-duty trucks. Many truck fleets from the transportation sector are switching to alternative fuel technologies to comply with stringent government regulations concerning the environment. As a result, NGV manufacturers are focusing on LNG trucks that were previously not in demand. Many companies in the transportation sector are testing LNG trucks for haulage since these vehicles are cost-effective and have lower carbon emissions as compared to those with diesel engines.
Development of refueling infrastructure for CNG and LNG vehicles is gaining momentum worldwide. Energy gas companies such as Gasum Oy (Finland) and Gazprom (Russia) made significant contributions to natural gas infrastructure by establishing new CNG and LNG fueling stations in 2016 and 2017. Rising demand for natural gas from automotive consumers along with increasing adoption of CNG and LNG vehicles by commercial and government fleets is expected to promote more players to make investments in infrastructure development.

Regional Insights
Increasing advancements in development of CNG vehicles in North America is projected to drive the market in the region. In the U.S., domestic truck makers and automakers are announcing addition of new CNG trucks and cars to their production lines, which is likely to further boost the adoption of CNG vehicles in the region.
Concurrent extraction and discovery of large quantities of natural gas in Canada and the U.S. have led ship owners to consider switching to natural gas. The Great Lakes Maritime Research Institute has been involved in a study supported by industries and government agencies to promote acceptance of natural gas as a primary fuel for U.S. Great Lakes vessels.
Asia Pacific is estimated to emerge as the largest adopter of NGVs during the forecast period on account of development of natural gas infrastructure in countries such as China, India, and Pakistan. Additionally, stringent government policies concerning the environment are poised to spur the growth of the Asia Pacific market.
Robust growth of commercial sectors such as transport and construction is providing an upthrust to the overall market. Rising adoption of economic fuel alternatives such as CNG and LNG in the trucking sector, development of natural gas refueling infrastructure along transport routes, and conversion of fleet vehicles from diesel-based to natural gas-based are some of the key trends stimulating market growth. Additionally, governments are encouraging the use of alternative fuel technologies in vehicles.
Automotive NGV Market Share Insights
Key players operating in the market include AB Volvo; Cummins, Inc.; Beiqi Foton Motor Co., Ltd.; Navistar, Inc.; PACCAR, Inc.; and Westport Fuel Systems Inc. Suppliers in the value chain of the automotive market are chosen according to their offerings and quality standards to ensure that final quality of assembled vehicle meet expectations. Selection of suppliers is carried out through various means, such as direct negotiations, reverse auctions, or competitive bidding. A crucial component that makes up an NGV is the natural gas engine. Companies such as Cummins Westport, Inc. and Weichai Westport, Inc. design and build CNG engines and LNG engines, along with engines running on other alternative fuels.

Key Insights Covered: Global Automotive Natural Gas Vehicle Market
1.  North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Automotive Natural Gas Vehicle industry.
2. Global major manufacturers' operating situation (sales, revenue, growth rate and gross margin) of Automotive Natural Gas Vehicle industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Automotive Natural Gas Vehicle industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Automotive Natural Gas Vehicle industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Automotive Natural Gas Vehicle industry.

Research Methodology: Global Automotive Natural Gas Vehicle Market

Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other