Market Size of Automotive Alternative Fuel Vehicle Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 15.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Automotive Alternative Fuel Vehicle Market Analysis
The Automotive Alternative Fuel Vehicle Market was valued at USD 330 Billion in 2021 and is expected to reach USD 784.45 Billion by 2027, registering a CAGR of 15.5% during the forecast period, 2022-2027.
The Automotive Alternative Fuel Vehicle Market was severely impacted by the manufacturing shutdowns, lockdowns, and trade restrictions during the COVID-19 pandemic. Furthermore, the fall in automotive production, the steep decline in automobile sales due to work-from-home policies and travel restrictions, and lack of labor significantly impacted the market. Since automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.
Over the long term, increasing investments in R&D and production capacity by major industry players and a rise in sales of electric and hybrid vehicles as well as rising demand for electric commercial vehicles from the E-commerce sector for last mile delivery operations are creating demand in the automotive and transportation industry with a surge in sales of alternative fuel vehicles.
Key players in the market are expanding their production capacity and launching new products to cater to the increased demand for alternative fuel vehicles. For instance, In May 2022 Hyundai Motor Group announced to invest USD 5.54 billion to set a dedicated electric vehicle and battery manufacturing plant at Bryan County, Georgia, United States.In March 2022 Vietnamese EV manufacturer VinFast announced to invest USD 6.5 billion to set a manufacturing plant in North Carolina, United States with an annual capacity of 150000 units by 2024.
Asia-Pacific is the largest region for alternative fuel vehicles due to the adoption of strict automotive emissions norms and stringent fuel efficiency standards, higher taxation on fossil fuels and government incentives to promote elctric vehicles. Europe and North America are expected to play key role in the development of the market owing to rising amount of supervisory guidelines and implementation of cleaner fuels and supportive strategies adopted by key players in the market.
Automotive Alternative Fuel Vehicle Industry Segmentation
An alternative fuel vehicle is a vehicle that runs on any fuel except fossil fuels. Alternative fuel vehicles include electric vehicles, hydrogen vehicles, CNG, and LNG vehicles.
The automotive alternative fuel market has been segmented by fuel type, vehicle type, and geography. By Fuel type, the market is segmented into Compressed Natural Gas, Methanol, Electric, and Others. By Vehicle type, the market is segmented into Passenger Cars, Light Commercial Vehicles, and Medium & Heavy-duty Commercial Vehicles.
By Geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. For each segment, maket sizing and forecast have been done on basis of value (USD billion).
| Fuel Type | |
| Compressed Natural Gas (CNG) | |
| Methanol | |
| Electric | |
| Others |
| Vehicle Type | |
| Passenger Vehicles | |
| Light Commercial Vehicles | |
| Medium & Heavy-duty Commercial Vehicles |
| Geography | |||||||
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Automotive Alternative Fuel Vehicle Market Size Summary
The automotive alternative fuel vehicle market is poised for significant growth, driven by increasing investments in research and development, and the rising demand for electric and hybrid vehicles. The market, which faced challenges during the COVID-19 pandemic due to manufacturing shutdowns and decreased vehicle sales, is recovering as manufacturers resume operations and implement strategies to ensure business continuity. Key industry players are expanding production capacities and launching new products to meet the growing demand, particularly in the electric vehicle segment. The Asia-Pacific region leads the market, supported by stringent emissions norms and government incentives, while Europe and North America are also contributing to market development through supportive policies and cleaner fuel strategies.
The market is characterized by a high level of fragmentation, with numerous global, regional, and national players, including startups in the electric and hydrogen vehicle sectors. Major companies like Tesla, Toyota, BYD, General Motors, and Volkswagen are actively launching new products and forming strategic partnerships to strengthen their market positions. Government incentives and infrastructure developments, such as the European Commission's Alternative Fuels Infrastructure Facility, are expected to further boost the adoption of alternative fuel vehicles. As countries strive for net-zero emissions, the market for electric and plug-in hybrid vehicles is anticipated to expand, with significant contributions from Asia-Pacific, Europe, and North America.
Automotive Alternative Fuel Vehicle Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size Value in USD billion)
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2.1 Fuel Type
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2.1.1 Compressed Natural Gas (CNG)
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2.1.2 Methanol
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2.1.3 Electric
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2.1.4 Others
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2.2 Vehicle Type
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2.2.1 Passenger Vehicles
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2.2.2 Light Commercial Vehicles
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2.2.3 Medium & Heavy-duty Commercial Vehicles
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Italy
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2.3.2.5 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 India
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2.3.3.2 China
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2.3.3.3 Japan
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2.3.3.4 South Korea
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 Rest of the World
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2.3.4.1 Brazil
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2.3.4.2 Mexico
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2.3.4.3 United Arab Emirates
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2.3.4.4 Other Countries
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Automotive Alternative Fuel Vehicle Market Size FAQs
What is the current Automotive Alternative Fuel Vehicle Market size?
The Automotive Alternative Fuel Vehicle Market is projected to register a CAGR of greater than 15% during the forecast period (2024-2029)
Who are the key players in Automotive Alternative Fuel Vehicle Market?
Tesla Inc. , Toyota Motor Corp. , BYD, General Motors and Volkswagen AG are the major companies operating in the Automotive Alternative Fuel Vehicle Market.
