The Global Market for Natural Gas Vehicles (NGVs) is Forecast to Reach 41.1 Million Units by 2024

Difficult to Reduce Carbon Footprint of Conventional ICE Powered Vehicles & the Resulting Shift in Focus to Cleaner Technologies to Spur the Global Natural Gas Vehicles Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Natural Gas Vehicles (NGVs) market. The global market for Natural Gas Vehicles (NGVs) is forecast to reach 41.1 million units by 2024, driven by the inability of conventional internal combustion engine (ICE) powered vehicles to demonstrate desired reductions in CO2 emissions and the resulting focus on commercializing alternative fuel vehicles to sustainability goals.

Social and regularity pressure to improve the sustainability of automobiles and their production methods continue to grow strong even as OEMs inject millions of dollars into R&D for addressing these issues. The automotive industry accounts for close to 19% of global greenhouse gas (GHG) emissions, thus brining the industry into spotlight for making immediate technology changes to encourage ecological driving. The last couple of decades witnessed the industry’s carbon footprint grow bigger as a result of the growing vehicle population (PARC) on road. Tailpipe emissions are a leading cause of global warming and climate change. Combustion of petroleum-based fuels produces noxious chemicals which are released into the air via the vehicle’s exhaust system. Nitrogen dioxide (NO2), hydrocarbons, carbon dioxide, sulfur oxides and carbon monoxide are key pollutants produced by automobiles.

Despite advances in internal combustion (IC) engines, incomplete combustion of fuel inside the engine ranks as the leading cause of toxic exhaust tailpipe emissions. All technology defenses developed as an antidote to the problem till date have demonstrated variable performance capabilities in real world driving conditions. Despite all the ongoing innovations, a typical passenger car with a mileage rating of 21.6 miles per gallon and driven 11,400 miles per year emits approximately 4.7 metric tons of carbon dioxide per year. While laboratory tests publish high fuel efficiency and low CO2 emission, real on-road performance leaves a lot to be desired. The large gap between laboratory findings of the efficiency of new engine technologies and their actual on-road performance highlights the hype and the still difficult to achieve reduction in the carbon footprint of fossil fuel vehicles.

Against this backdrop, there is growing focus on alternative vehicles burning clean fuel. In this regard, as the cleanest burning transportation fuel, compressed and liquid natural gas (CNG/LNG) have long been in the spotlight as an eco-friendly alternative to traditional fossil fuel powered vehicles. Amid the recent revival of focus on the environment and climate change, growing public awareness, and increased regulatory pressures, natural gas vehicles (NGVs) have once again emerged into the spotlight as the future of sustainable transportation. Among all the available options for reducing CO2 emissions such as improvements in ICE vehicle technology, encouraging driver behavior changes, infrastructure measures to ease congestion, and CO2 taxation etc., the most feasible and achievable is encouraging the development of alternative sustainable fuels and related infrastructure. Myriad benefits of NGVs poised to drive their adoption include clean burning fuel as it generates less than 10% of allowable tailpipe emissions; helps reduce GHG emission and achieve CO2 reduction targets; quieter operation of vehicles as it produces over 85% less noise than conventional vehicles; reduced odor which a major benefit in densely populated cities; cost and economic benefits as natural gas is cheaper than gasoline and diesel; higher vehicle performance; reduced maintenance costs; and added safety against the risk of fire and ground contamination..

As stated by the new market research report on Natural Gas Vehicles (NGVs), Asia-Pacific represents the largest and the fastest growing market with a CAGR of 9.4% over the analysis period led by growing stringency of vehicle emission laws in emerging countries; growing seriousness of particulate matter (PM) pollution as a major public health concern and the resulting move to de-dieselize economies and encourage use of CNG for public transportation; high fuel tax policies in Southeast Asian countries like India that make gasoline and diesel more expensive than natural gas despite the softness in international oil prices; and policy led provision of incentives such as tax reductions/rebates for NGVs, and price subsidies; and development of refueling infrastructure. Also in developing markets the threat posed by electric vehicles (EVs) is less aggressive than in developed markets since these countries lack of energy self-sufficiency, inadequate energy infrastructure, virtually non-existent recharging infrastructure, which in turn make natural gas the only cost-effective and economically feasible alternative that provides a bridge towards a cleaner and more sustainable environment.  

Major players in the market include AB Volvo, Alexander Dennis Limited, Autocar, LLC, Daimler AG, Ford Motor Company, General Motors Company, GILLIG, LLC, Isuzu Motors Ltd., Iveco Bus, MAN SE, Maruti Suzuki India Limited, Volkswagen AG, Agility Fuel Systems, Altech-Eco Corp., Clean Air Power Limited, Cummins, Inc., Quantum Fuel Systems LLC, Venchurs Vehicle Systems, Westport Fuel Systems Inc., Westport Innovations and Worthington Industries among others. 

The research report titled “Natural Gas Vehicles (NGVs): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the USA, Canada, Japan, Europe (France, Germany, Italy, Russia, Armenia, Bulgaria, Sweden and Rest of Europe), Asia-Pacific (Bangladesh, China, India, Malaysia, Myanmar, Pakistan, South Korea, Thailand, Uzbekistan and Rest of Asia-Pacific), Middle East & Africa (Egypt, Iran and Rest of Middle East & Africa) and Latin America (Argentina, Bolivia, Brazil, Chile, Colombia, Mexico, Peru and Venezuela). The report also provides market estimates and projections for product segments such as Light Duty Vehicles, Medium Duty & Heavy Duty Trucks and Medium Duty & Heavy Duty Buses.

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