Alternative Fuel and Hybrid Vehicle Market Overview:
Global Alternative Fuel and Hybrid Vehicle Market is expected to garner $614 billion by 2022, registering a CAGR of 12.9% during the forecast period 2016-2022. Alternative fuel and hybrid vehicles (AFHVs) run on fuels other than conventional fuels such as gasoline and diesel. The rapid decrease in oil reserves have fueled the adoption of AFHVs across the globe. In addition, such vehicles produce very less carbon related compounds, such as oxides of carbon, nitrogen, and sulfur, which make them an eco-friendly alternative in the automobile industry. Moreover, electric vehicles use electricity as their power source stored in vehicular batteries and are capable of recharging at charging outlets, private or public. However, hybrid vehicles use conventional as well as alternative fuels as sources of power along with electric drives. Moreover, passengers can actually switch between the two powertrains while driving depending on the requirement.
The world AFHV market has witnessed healthy growth in the recent years due to increase in demand for fuel-efficient vehicles, stringent government laws & regulations toward vehicle emission, and increase in public charging infrastructure. Technological advancements in alternative fuel vehicles and proactive government initiatives such as investment in electric and hybrid buses for public transit are propelling the market growth. However, high costs of fuel and high initial cost of infrastructure hamper the market growth.
The market is segmented based on alternative fuel type, vehicle type, and geography. Based on alternative fuel type, the market is segmented into gaseous fuels (LPG, CNG, and LNG), electric, and others (biofuel, biodiesel, fuel cell, liquid nitrogen, and dimethyl ether). Based on vehicle type, the market is divided into electric two wheelers, passenger cars (battery electric vehicle (BEV), hybrid electric vehicle (HEV), alternative fuel passenger cars), and commercial vehicle (battery electric vehicle (BEV), hybrid electric vehicle (HEV), alternative fuel commercial vehicle). The market is analyzed by region such as North America, Europe, Asia-Pacific, and LAMEA. North America comprises the U.S., Canada, and Mexico. Europe includes Germany, France, the Netherlands, Norway, the UK, and rest of Europe. Asia-Pacific includes China, Japan, South Korea, India, and rest of Asia-Pacific. Latin America, Middle East, and Africa are considered in the LAMEA region.
Passenger Cars Lead the AFHV Market
Passenger cars comprise vehicles such as sedans, hatchback, sports utility vehicles (SUV), multi-utility vehicles (MUV), electric cars (battery electric vehicle (BEV), and hybrid electric vehicle (HEV)). The global automotive industry exhibited sales of approximately 66 million passenger cars in 2015. Currently, there are around 358,000 BEV and 242,000 PHEV running across the globe. Passenger cars segment account for the major share of overall vehicle sales. Moreover, the number of electric passenger cars are expected to reach 450 million units by 2040. China is a potential market for AFHVs, as it has the maximum percentage of electric vehicles across the globe. As per the Global EV Outlook 2015, China holds 230 million e-bikes, 83,000 e-cars, and 36,500 e-buses. Toyota Motor Corporation and Tesla Motors are prominent players offering AFHVs across the globes.
Global Passenger Car Sales, 2010 - 2015
Top Winning Strategy: World AFHV Market
Currently, product launch is the most widely adopted strategy in the market, accounting for around 57% share of the total strategies adopted by key players. Leading AFHV manufacturer, such as Toyota Motor Corporation, Tesla Motors, and BMW Group have expanded their business by developing low cost and technologically advanced AFHV.
Stringent government emission laws and regulation propel the Market Growth
Countries such as the U.S., Germany, France, and China have enforced government laws and regulation for vehicular emission, and have mandated the automobile manufacturers to use advance technologies to combat high emission levels in vehicle. The California Air Resources Board (“CARB”) launched California vehicle emissions program, which includes requirements for manufacturers to produce and deliver zero-emission vehicles (“ZEVs”). The current ZEV regulations mandate substantial annual increase in the production and sale of battery-electric, fuel cell, and plug-in hybrid vehicles, particularly for models that are expected to be launched during 2018‐2025. By 2025, approximately 15% of the total sales of manufacturers in California would be through sale of such vehicles. Moreover, European Union (“EU”) directives and related legislation restrict the amount of regulated pollutants that can be emitted by new motor vehicles and engines sold in the EU. Stringent new Stage 6 emission standards were brought into effect for vehicle registrations from September 2014 onwards, with the second phase beginning in September 2017. Consequently, these factors drive the alternative fuel and hybrid vehicles market.
Asia-Pacific: Most Lucrative AFHV Market
The Asia-Pacific region includes China, Japan, India, Australia, and other countries. It offers lucrative opportunities in the AFHV market. The growth of the market in the region is supplemented by stricter vehicle emission norms formulated by European Union and emission control organizations in North America and followed by automobile manufacturers offering their vehicle in the region. For instance, as per the International Council on Clean Transportation, the European Union issued emission regulation of new vehicle with a mandatory target value of 95g of carbon dioxide per kilometer by 2021 for passenger cars.
The leading market players in the AFHV market have focused on expanding their business operations in the fast-growing emerging countries. The companies operating in the market have consistently introduced innovative solutions to enhance their product portfolio. Product development and partnerships are the two prominent growth strategies adopted by key market players. The major players profiled in this report include Toyota Motor Corporation, Tesla Motors, AUDI AG, BMW Group, General Motors, Ford Motor Company, Honda Motor Co., Ltd., BYD Company Limited, Daimler AG, and Zero Motorcycles, Inc.
Other players in value chain include Volkswagen AG, Nissan Motor corporation, Mitsubishi Motors Corporation., Nikola Motor Company, Renault, Tata Motors, Polaris Industries, Inc., and Scania.
Alternative Fuel and Hybrid Vehicle Market Key Benefits:
- The study provides an in-depth analysis of the world AFHV market along with current trends and future estimations to elucidate the imminent investment pockets.
- The report offers a quantitative analysis for the period of 2014‐2022 to enable stakeholders to capitalize on the prevailing market opportunities.
- The report provides historical figures for the years 2014 and 2015, and year-on-year forecasts from 2016 to 2022, considering 2015 as base.
- Competitive intelligence of the industry highlights the business practices followed by leading players across various regions.
Alternative Fuel and Hybrid Vehicle Market Key Segments:
By Alternative Fuel Type
- Gaseous Fuels (LPG, CNG, and LNG)
- Others (Biofuel, Biodiesel, Fuel Cell, Liquid Nitrogen, and Dimethyl Ether)
By Vehicle Type
- Two Wheelers
- Passenger Cars
- Battery Electric Passenger Cars
- Hybrid Electric Passenger Cars
- Alternative Fuel Passenger Cars
- Commercial Vehicles
- Battery Electric Commercial Vehicles
- Hybrid Electric Commercial Vehicles
- Alternative Fuel Commercial Vehicles
- North America
- The Netherlands
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Latin America
- Middle East
MARKET PLAYERS IN VALUE CHAIN
- Toyota Motor Corporation
- Tesla Motors
- AUDI AG
- BMW Group
- General Motors
- Ford Motor Company
- Honda Motor Co., Ltd.
- BYD Company Limited
- Daimler AG
- Zero Motorcycles, Inc.
- Volkswagen AG
- Nissan Motor corporation
- Mitsubishi Motors Corporation.
- Nikola Motor Company
- Tata Motors
- Polaris Industries, Inc.