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Auto Gas Market

Auto Gas Market: Global Opportunity Analysis and Industry Forecast, 2023-2030 Market

Report Code: A07342
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Jul 2023 | 1485 Views
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Auto Gas Market Analysis :

Liquid petroleum gas (LPG) or commonly called as auto gas is used as a fuel in engines as well as in stationary applications such as cylinders or generators. Various benefits associated with auto gas such as its low price, clean, convenient, and nontoxic attributes make it preferable over the other fuels. Many taxi and public transportation companies have shifted their preference toward auto gas, as it serves as an inexpensive and eco-friendly fuel. 

Increase in government initiatives in the developing countries such as India, Indonesia, and China to encourage auto gas applications for cooking and other domestic purposes boost the global market growth. Auto gas has been used as a primary fuel in residential and commercial sectors for heating applications by replacing the traditional coal and wood fuels. It offers considerable environment advantages, including low greenhouse gases and low carbon emission as compared to conventional fuels.  Innovations in the existing auto gas system and government policies to educate the rural population regarding the benefits of auto gas are expected to significantly contribute toward the growth of the global market.

COVID-19 impact analysis

  • The price of the fuel has declined drastically post the outbreak of the COVID-19 pandemic, which, in turn, has negatively impacted the crude oil demand drastically.
  • The storage and production of fuel have stopped, and distribution and transportation channels have been disrupted.
  • In India, all forms of public transport have been suspended except for LPG.
  • It is expected that oil demand may reduce by 20 million barrels due to the lockdown. 
  • Falling crude oil prices have already created enough distress among the investors. There has been a 30% capital expenditure due to cost cutting at client end.

Market scenario analysis

The residential and commercial sectors play major role in increasing the global demand for auto gas. Moreover, government initiatives and subsidies to encourage the use of auto gas as the primary fuel has created an upsurge in the demand for the product. The market is further expected to witness exponential growth in the upcoming years due to increase in demand for alternative fuel and surge in demand from the transportation sector to minimize carbon emission. In addition, it serves as an economic and clean fuel, making it suitable over diesel and petrol in the global transportation sector. Auto gas is being considered as a suitable option for commercial properties with the benefits of renewable and low carbon technologies to integrate a reliable power supply by saving carbon. 

Market trends

The transportation sector is a significant source to rise in air pollution. This has enforced government to impose stringent norms regarding the alarming increase in pollution levels. Thus, many transportation companies are shifting their preference toward auto gas to reduce the rising levels of carbon in the atmosphere. This is attributed to the fact that auto gas serves as an ideal replacement of hydro fluorocarbons and chlorofluorocarbons, which contribute to the depletion of ozone level. Thus, all these factors collectively contribute toward the growth of the global auto gas market during the forecast period.

Market challenges

Low crude oil and LNG prices over the past few years had a serious implication. Domestic unavailability of fuels has remained the key challenge to the industry. There are many regions where transportation of LPG is high and is difficult to manage the supply. It requires specialized tanks to store and transport the LPG, thus increasing the cost of storage and transportation. Adequate awareness is required for the rural population to shift to LPG, who have been using conventional fuels for years. Another major challenge is the competitive advantage. Earlier, LPG had strong competitive advantage over petrol and diesel, however, over the years through research, the quality of petrol and diesel has improved. 

Key benefits of the report

  • This report presents the analytical depiction of the global auto gas industry along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, challenges, and opportunities along with detailed analysis of the global market share.
  • The current market is quantitatively analyzed to highlight the global market growth scenario.
  • The report provides a detailed analysis depending on competitive intensity and how the competition will take shape in coming years. 

Questions answered in the global auto gas market research report:

  • Which are the leading market players active in the global auto gas market?
  • What are the current trends that will influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities of the market?
  • What are the projections for the future that would help in taking further strategic steps?

Auto Gas Market: Global Opportunity Analysis and Industry Forecast, 2020–2027 Report Highlights

Aspects Details
By Application
  • LDV
  • HDV
By Geographies
  • North America
    • US
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
  • Asia-Pacific
    • India
    • Japan
    • China
  • South America
    • Australia
    • Mexico
    • Brazil
  • Middle East
    • Saudi Arabia
    • South Africa
Key Market Players Royal Dutch Shell, Chevron, Auto Gas Energy India, BP, Westfalen, GAZPROM, Flogas UK, Exxon Mobil

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