Light and Heavy Duty Natural Gas Vehicle Market Size, Share 2020 - Global Industry Trends, Growth Insight, Competitive Analysis, Statistics, Regional, and Global Forecast to 2024
LONDON--The new light and heavy duty natural gas vehicle market research from Technavio indicates Negative growth in the short term as the business impact of COVID-19 spreads.
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"One of the primary growth drivers for this market is the higher fuel efficiency of natural gas trucks,” says a senior analyst for Industrials at Technavio.
The higher fuel efficiency of natural gas trucks is one of the primary growth factors for this market. It has been observed that fuel prices account for almost 30% of the total acquisition cost of commercial vehicles. Although this induces fleet owners to prefer commercial vehicles with a reasonable engine horsepower and better fuel efficiency, fluctuating fuel prices make it difficult for fleet owners to forecast operational costs. This will result in the increased adoption of natural gas vehicles since the low cost of natural gas reduces the cost per mile of NGVs.
As the markets recover Technavio expects the light and heavy duty natural gas vehicle market size to grow by 251.43 K units during the period 2020-2024.
Light and Heavy duty Natural Gas Vehicle Market Segment Highlights for 2020
- The light and heavy duty natural gas vehicle market is expected to post a year-over-year growth rate of 0.21%.
- The coming years will witness a significant rise in the demand for light commercial vehicles (LCV) that play a significant role in the delivery of time-critical goods, high-value goods, and support services.
- The focus of LCV fleet operators to reduce their maintenance, repair, and operational expenses will propel the growth of this segment in the light and heavy duty natural gas vehicles market due to the low fuel costs of NGVs.
- However, the market growth in the light duty NGV segment will be slower than the growth of the market in the heavy-duty NGV segment.
- 59% of the growth will originate from the APAC region.
- The rise in living standards and increasing disposable income in countries such as India, China, and South Korea, the growing need for logistics services, and the increasing demand for fuel-efficient vehicles from fleet operators to reduce operating costs will significantly drive light and heavy duty natural gas vehicle market growth in this region over the forecast period.
- China and India are the key markets for light and heavy duty natural gas vehicles in APAC. Market growth in this region will be slower than the growth of the market in South America.
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- The light and heavy duty natural gas vehicle market size is expected to accelerate at a CAGR of over 2% during the forecast period.
- The light and heavy duty natural gas vehicle market is segmented by Application (Light-duty NGV and Heavy-duty NGV) and Geography (APAC, North America, Europe, South America, and MEA).
- The market is fragmented due to the presence of many established vendors holding significant market share.
- The research report offers information on several market vendors, including AB Volvo, CNH Industrial NV, Cummins Inc., Daimler AG, General Motors Co., MAN SE, Navistar International Corp., PACCAR Inc., Renault SA, and Volkswagen AG.
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