March 20, 2022. Global Industry Analysts Inc., (GIA), the premier market research company, released its report titled “Natural Gas Vehicles (NGVs) – Global Market Trajectory & Analytics”. The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
According to GIA, continuing climate change and associated complications are prompting various countries to make serious efforts toward decarbonization that entails carbon emission reductions for halting climate change. One of the key strategies linked with ongoing decarbonization efforts is to reduce dependence on fossil fuel-powered vehicles by transition toward more eco-friendly, green options like electric and natural gas vehicles. Tightening emissions regulations, particularly for diesel engines and stable natural gas prices continue to push fleets further toward natural gas conversions. To meet corporate carbon footprint and save on fuel costs, fleet operators are placing hefty truck orders and making large commitments to invest in fueling infrastructure. In the U.S., Germany, Australia, Argentina and India, natural gas-powered buses have widespread use in their public transportation fleets.
Amid the COVID-19 crisis, the global market for NGVs estimated at 25.2 million units in the year 2022, is projected to reach a revised size of 32.5 million units by 2026, growing at a CAGR of 5.9% over the analysis period. Light Duty Vehicles, one of the segments analyzed in the report, is projected to record a 6.1% CAGR and reach 31.9 million units by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Medium & Heavy Duty Trucks segment is readjusted to a revised 5.3% CAGR for the next 7-year period.
The U.S. market is estimated at 172.2 thousand units in 2022, while China is forecast to reach 7.4 thousand units by 2026 trailing a CAGR of 6.6% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.3% and 4.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.1% CAGR.
In the global Medium & Heavy Duty Buses segment, USA, Canada, Japan, China and Europe will drive the 4.3% CAGR estimated for this segment. These regional markets accounting for a combined market size of 337.4 thousand units will reach a projected size of 452.9 thousand units by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach 400.3 thousand units by the year 2026, while Latin America will expand at a 4.4% CAGR through the analysis period.
