DUBLIN--(BUSINESS WIRE)--The "Low-Carbon Propulsion Market by Fuel Type (CNG, LNG, Ethanol, Electric and Hydrogen), Mode (Rail and Road), Vehicle Type (Heavy-Duty and Light-Duty), Rail Application (Passenger and Freight), Electric Vehicle, and Region - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The low-carbon propulsion market is estimated to be 2,980 thousand units in 2020. It is projected to grow at a CAGR of 21.5% to reach 11,640 thousand units by 2027.
The expected growth of the market can be attributed due to increasing demand for emission-free vehicles and energy-efficient transport, government regulations regarding fluctuations in fuel prices, and vehicle conversions.
Rail is expected to have the fastest market during the forecast period, by mode.
The rising income levels of the general population have raised the demand for personal mobility, which has led to an increase in road traffic, and road network infrastructure in major cities across the globe is proving to be insufficient. The increase in traffic has resulted in road congestion and extended commute time in urban areas. Urban planners and local governments are merging rapid transit networks and tramways with the existing infrastructure of cities to reduce traffic congestion.
Additionally, commuters demand transit options that are ecofriendly, reliable and cost-effective alternatives to personal transportation. Thus, Asia Pacific occupies the largest share of rail transport mode due to the growing population and increasing air pollution. Developed nations such as Germany, France, and the UK are actively promoting the use of rapid transit systems to reduce traffic congestion as well.
Freight segment is expected to be the fastest in the market during the forecast period, by rail application.
Freight is an essential pillar in any country's economy as it is a major transporting medium. It is cheaper and safer than any other mode of transport. A strong railway network is an indicator of the strong economic condition of a country. The US is leading the freight train market in the world with around 2.6 trillion tonne-kilometres yearly, followed by China with 2.5 trillion tonne-kilometres annually. While all other modes of international freight transport have been adversely affected by COVID-19, the increase in freight carried by railways will boost in the coming years as it uses less manpower over long distances. Each freight train can carry between 40 to 70 times equivalents of lorry loads of goods in a safer and more secure environment, thereby offering an advantage in these current circumstances where less human interaction is the norm
Europe is projected to be the fastest in the market of low-carbon propulsion during the forecast period, by region.
Europe has been at the forefront of improving the safety and fuel efficiency of commercial vehicles, for which the EU institutions have announced their plans to replace gasoline and diesel stations with CNG, LNG, electric, and other biofuels. Though electric vehicles present a clearer path to decarbonization in transport, biomethane as a fuel remains a favored option for heavy-duty vehicles. Thus, CNG and LNG represent a major source of renewable fuels for low-carbon propulsion in Europe.
Europe's targets for 2021 are the most stringent in the world. The 2021 targets for the European fleet are far tougher to achieve than those in the US, China, or Japan (US: 121g, Japan: 117g, China: 119g). Thus, auto manufacturers, distributors, and fuel providers are taking measures to fulfil the targets. For instance, French hauler Jacky Perrenot has 550 Iveco Stralis NP trucks and plans to increase to 1,000 by 2020. Jost Group from Belgium intends to have 35% of its fleet running on LNG by 2020. In 2018, DHL announced switching its long-haul fleet to LNG powered Stralis tractors with a range of 1,500 km. As a result of companies in the region, the low-carbon propulsion market is expected to fuel in the coming years.
- Increasing Demand for Emission-Free Vehicles and Energy Efficient Transport
- Vehicle Conversions and Fluctuations in Fuel Prices
- High Cost Involved with Technologies and Components
- Availability of Alternative Fuel Engine Solutions for Commercial Vehicles
- Government Support for Zero Emission Technologies
- Infrastructure for Alternative Fuel Vehicles
- Tesla, Inc.
- Man SE
- General Electric (Ge)
- Nfi Group
- Cummins Inc.
- Nikola Motor Company
- Zenith Motors
- AB Volvo
- VDL Groep
- Daimler Ag
- Hyundai Rotem
- King Long
- Tata Motors
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