Alternative Fuel Vehicles Market

Alternative Fuel Vehicles Market

Growth Factors of Alternative Fuel Vehicles Market

The alternative fuel vehicles market size was valued at USD 462.83 billion in 2023, and the market is now projected to grow from USD 570.70 billion in 2024 to USD 4699.06 billion by 2032, exhibiting a CAGR of 30.2% during the forecast period of 2024-2032.

The COVID-19 pandemic directly affected the electric car market causing a 6% slowdown in the end of 2019 and 15% decline at the beginning of 2020 because of supply chain issues and Chinese regulations. Lock down measures have aggravated production and sales hurdles however, remedial measures that are being implemented include the European Commission’s alternate fuel infrastructure plan. After the COVID-19 pandemic, the sales of natural gas vehicles are projected to make a recovery and increase, more so with less subsidies afforded to electric vehicles.

The increase of fossil fuel cost including the gasoline and Diesel together with high dependency on import have compounded pressure which has enhanced the need for AFVs in EMs. Crude oil prices increased for about 8% as stated by the U. S Energy Information Administration. Those aged 40 years and below reported higher unemployment rates of 35 % in December 2022 as compared to the previous year. This increase has further fueled public interest in AFVs as viable option for sustainable solution to the energy issues.

Increase in pollution, global warming, and pollution of the environment, especially in urban areas has caused concern and governments around the world to ban the use of vehicles that emit high levels of carbon emissions. Several emission standards are in the process of implementation to reduce pollutants from automobile emission. The growth of this market has been accelerated by government expenditures on electric and hybrid buses and other vehicles for public use in the next few years.

Comprehensive Analysis of Alternative Fuel Vehicles Market

The alternative fuel vehicles market growth is rising at an exponential rate due to its market segmentation. This market expansion rightly presents a detailed local analysis based on the forces such as supply and demand which define the industry. These segmentations are methodically segregated by fuel type analysis, and by vehicle type analysis. By fuel type analysis include battery electric vehicle (BEV), hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), fuel cell vehicle (FCV), CNG, biofuels, and other gaseous fuels. By vehicle type analysis include passenger cars and commercial vehicles.

The Asia Pacific region lead the alternative fuel vehicles market share by benefitting a market size of USD 248.93 billion in 2023 due the increasing number of regulatory policies and adoption of cleaner fuels.

The top players have a significant responsibility in the automotives industry for confirming industrial prospectus growth and determining the market trends. These players include, Honda Motor Co., Ltd., Toyota Motor Corporation, Nissan Motor Corporation, Daimler AG, Tesla, BYD Company Ltd., Ford Motor Company, MITSUBISHI MOTORS CORPORATION, SHELL International B.V., JAGUAR LAND ROVER AUTOMOTIVE PLC these market players provide a level-playing competitive landscape.

In January 2024, The Renewable Fuels Association showcased the Plug-in Hybrid Electric Flex Fuel Vehicle (PHEFFV) at the Washington, D.C. Auto Show, featuring tests on emissions, cost, and convenience.

Segmentation Table

ATTRIBUTE DETAILS

Study Period 2019-2032

Base Year 2023

Estimated Year 2024

Forecast Period 2024-2032

Historical Period 2019-2022

Growth Rate CAGR of 30.2% (2024-2032)

Unit Value (USD Billion) & Volume (Thousand Units)

Segmentation By Fuel Type

• BEV
• HEV
• PHEV
• FCV
• CNG
• Biofuels
• Other Gaseous Fuels

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Geography

• Americas (By Fuel Type, By Vehicle Type)
• Central & South America (By Fuel Type, By Vehicle Type)
• North Americas (By Fuel Type, By Vehicle Type)

 U.S. (By Fuel Type, By Vehicle Type)

 Canada (By Fuel Type, By Vehicle Type )

 Mexico (By Fuel Type, By Vehicle Type )

• Europe Middle East & Africa (By Fuel Type, By Vehicle Type)
• MEA (By Fuel Type, By Vehicle Type)
• Europe (By Fuel Type, By Vehicle Type)

 U.K. (By Fuel Type, By Vehicle Type)

 Germany (By Fuel Type, By Vehicle Type )

 France (By Fuel Type, By Vehicle Type )

 Rest of Europe (By Fuel Type, By Vehicle Type )

• Asia Pacific (By Fuel Type, By Vehicle Type)
• China (By Fuel Type, By Vehicle Type)
• India (By Fuel Type, By Vehicle Type)
• Japan (By Fuel Type, By Vehicle Type)
• South Korea (By Fuel Type, By Vehicle Type)
• Rest of Asia Pacific (By Fuel Type, By Vehicle Type)

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