Fuel is required for any engine to function, as engines run in fuel. Fuel is also used to generate electricity, which can then be used for other purposes such as lighting and heating. Alternative fuels are the replacement fuel for traditional fuels such as petrol and diesel. Alternative fuels include natural gas, methanol, and others. These fuels are known as nonconventional fuels. Usage of alternative fuels in place of traditional fuels helps in conserving energy and curb carbon emissions.
COVID-19 impact:
- The global market for alternative fuels is severely impacted by the outbreak of the COVID-19 pandemic.
- The COVID-19 pandemic saw a decline in the economic growth in almost all the major countries, thus affecting consumer spending patterns.
- Owing to the lockdown implemented across various countries, national and international transport have been hampered, which has significantly impacted the supply chain of numerous industries across the globe, thereby increasing the supply–demand gap.
- Thus, insufficiency in raw material supply is expected to hamper the production rate of alternative fuels, which negatively impact the market growth.
- However, this situation is expected to improve as government has started relaxing norms around the world for resuming business activities.
Market dynamics:
Rise in the consumption of energy worldwide is one of the major factors boosting the demand for alternative fuels market. These alternative fuels are not heavy on the environment and does not have a negative impact on the environment. Alternative fuels also have a lower carbon footprint, hence they emit less carbon than traditional fuels. Rapidly increasing prices of crude oil has significantly contributed to the demand for alternative fuels over the years. Stringent government regulations regarding carbon emissions have boosted the demand for alternative fuels in the market. There is a heavy dependence of the traditional fuels for powering motor vehicles. Also, the traditional fuels are fossil fuels which are stored in reserves. As the population is increasing rapidly and an increasing consumption of these fuels can be seen, the fuel reserves are depleting rapidly. This has significantly boosted the demand for alternative fuels.
Majority of the countries are dependent on fuels which are to be exported from different countries. To reduce this dependency, several countries are taking initiatives to raise awareness regarding the alternative option of alternative fuels. They are also focusing on the sourcing of the alternative fuels domestically in order to reduce the dependency on other countries for the supply of traditional fuels. This step is anticipated to promote the growth of the alternative fuels market.
On the contrary, there is a high cost associated with the appliances or devices which function on alternative fuels. This high cost is expected to restrain the market growth of the alternative fuels. Additionally, there also a high maintenance cost associated with alternative fuels. This factor may hinder the growth of the alternative fuels market. Another factor restraining the growth of the alternative fuels is the limited availability of these fuels due to lack of awareness regarding them. These factors are projected to hampers the growth of the alternative fuels market.
Regional analysis:
North America is the market leader. U.S. is the largest consumer of alternative fuels owning to the high capital investments in the alternative fuels sector to develop new technologies and make alternative fuels a preferred source of energy. Additionally, financial aid from the government in the form of tax rebates and concessions is expected to raise the growth of the alternative fuels market in the region. In the Asia- Pacific region, high demand for energy can be seen due to rapidly increasing population in countries like India, China and Japan among others. These countries are the major consumers of energy. This is anticipated to increase the demand for alternative fuels in the region.
Key benefits of the report:
- This study presents the analytical depiction of the global alternative fuel market industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global alternative fuel market share.
- The current market is quantitatively analyzed to highlight the global alternative fuel market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed global alternative fuel market analysis depending on competitive intensity and how the competition will take shape in coming years.
Alternative Fuel Market Report Highlights
| Aspects | Details |
 By Fuel type |
|
 By Vehicle Type |
|
 By Application |
|
 By Region |
|
 Key Market Players | BP plc, Gushan Environmental Energy, Sasol Ltd., ExxonMobil Corporation., INEOS Enterprises, Neste, General Electric Company, Archer Daniel Midland, EI DuPont, Cosan |
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