Global Alternative Fuel Vehicles Market Size Worth USD 1,681.80 Billion by 2028 | Growing At CAGR of 26.2%

Alternative Fuel Vehicles Market to Reach USD 1,681.80 Billion by 2028; Strengthening Business Prospect: Fortune Business Insights™

Pune, India, March 06, 2023 (GLOBE NEWSWIRE) — The global alternative fuel vehicles market size was USD 293.45 billion in 2020. The market is projected to grow from USD 330.45 billion in 2021 to USD 1,681.80 billion by 2028, exhibiting a Compound Annual Growth Rate (CAGR) of 26.2% during the forecast period. This information is published by Fortune Business Insights™, in its report, titled, “Alternative Fuel Vehicles Market, 2021-2028.”

As per our expert analysts, technological developments in alternative fuels pooled with rigorous government norms to exterminate reliance on fossil fuels are encouraging the alternative fuel vehicles market growth. Furthermore, features such as raised oil prices, prospective for peak oil, as well as ecological worries are reassuring automobile producers to finance intensely in R&D activities of clean alternative fuel vehicles.


May 2021: Shell New Energies NL B.V. entered into a strategic agreement with Daimler Truck AG in order to collectively steer the implementation of hydrogen fuel-cell trucks in the European region.

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Report Highlights:

Report Coverage Details
Forecast Period 2021-2028
Forecast Period 2021 to 2028 CAGR 26.2%
2028 Value Projection USD 1,681.80 Billion
Base Year 2020
Market Size in 2020 USD 293.45 Billion
Historical Data for 2017-2019
No. of Pages 260
Segments covered Alternative Fuel Vehicles Market Size, Share & COVID-19 Impact Analysis, By Fuel Type (BEV, HEV, PHEV, FCV, CNG, Biofuels, Other Gaseous Fuels)
Growth Drivers Stringent Regulation by Government for Automotive Emission Control to Drive Market Growth
Based on the vehicle type, this market is segmented into passenger cars and commercial vehicles. The passenger cars segment accounts for the major market share in 2020 and is projected to dominate the market over the forecast period.

Market Drivers & Restraints:

Increasing pollution heights, global warming, and deteriorating air superiority in urban zones have become a global matter of worry. Therefore, governments across the world are presenting several rigorous set of guidelines in order to decline carbon releases from automobiles.

Similarly, government organizations have stated numerous emission criteria for the producers to limit the release of pollutants from vehicle exhaust. Along with protocols, government initiatives to finance in electric and hybrid fleet for the public transport system is estimated to drive the alternative fuel vehicles market growth over the mentioned timeframe.

COVID-19 Impact:

Ceased Production Procedure of Automobiles to Barricade Market Growth

The COVID-19 pandemic has had a rapid and acute influence on the globally joint automotive industry. The disturbance in spare-parts export from the leading supplier China, large scale industrial manufacturing commotion across Europe, and the terminating of assembly plants in the U.S. are among the primary affected zones amid the pandemic.

Owing to drastic factory shutdowns in the whole of European region, the manufacturing problems are projected to be worth roughly about 2,446,344 motor vehicles till date. Manufacturing harms are definitely set to surge if lockdowns are continued or production plants are shut down even further.

To get to know more about the short-term and long-term impact of COVID-19 on this market, please visit:

Report Coverage:

The report presents a holistic study of the market along with current trends and future anticipations to establish proximate investment gains. An in-depth analysis of any upcoming opportunities, threats, competitions or driving factors is also mentioned in the report. Step by step, thorough regional analysis is offered. The COVID-19 impacts have been added to the report to help investors and business owners understand the threats better. The top players in the market are identified, and their strategies to bolster the market growth are shared in the report


  • In terms of fuel type, the market is segregated into Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV), Fuel Cell Vehicle (FCV), CNG, biofuels, and other gaseous fuels.
  • On the basis of vehicle type, this market is classified into passenger cars and commercial vehicles. The passenger cars segment accounts for the major market share in 2020 and is also projected to dominate the market over the forecast period.
  • Geographically, this market is categorized into EMEA, Asia Pacific, and Americas.

Regional Insights:

  • Asia Pacific is estimated to hold the maximum alternative fuel vehicles market share. This region involves India, South Korea, Japan, and China, among other nations. Moreover, the rising amount of supervisory guidelines and implementation of cleaner fuels are primarily navigating the regional growth over the forecast period.
  • On the contrary, EMEA is projected to be the fastest-growing region between the years 2020 to 2028. This is owing to the surging and affirmative government initiatives in technological developments, such as capitalization in electric buses for public transportation.
  • Additionally, American regions are among the most enticing markets for AFVs. The plentiful protocols by organizations such as Alternative Fuels Data Center (AFDC) along with the U.S. government in order to regulate automotive emissions, and import of fuels has authenticated benefits for alternative fuels.

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Competitive Landscape-

Key Market Players Focus on Partnership tactics to Attain Competitive Advantage

Prominent players are incessantly searching for proficient strategies to execute in order to bolster their global position. Among many such approaches, one such strategy is to initiate collaborative contracts and partnerships.

Additionally, escalating competition in the industry to suffice the emission-free vehicle condition and increasing emphasis of the automaker on financing in AFVs such as electric or natural gas vehicles is directing the market. Furthermore, the amount of automakers pledging to attain zero-emission are promptly rising.

List of Key Players Covered in the Alternative Fuel Vehicles Market Report:

  • Honda Motor Co., Ltd. (Tokyo, Japan)
  • Toyota Motor Corporation (Aichi, Japan)
  • Nissan Motor Corporation (Yokohama, Kanagawa, Japan)
  • Daimler AG (Stuttgart, Germany)
  • Tesla (California, U.S.)
  • BYD Company Ltd. (Shenzhen, China)
  • Ford Motor Company (Michigan, U.S.)
  • SHELL International B.V. (Hague, Netherlands)

Alternative Fuel Vehicles Market Segmentation:

By Fuel Type

  • BEV
  • HEV
  • PHEV
  • FCV
  • CNG
  • Biofuels
  • Other Gaseous Fuels

By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles

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Table of Content:

1. Introduction

1.1. Research Scope

1.2. Market Segmentation

1.3. Research Methodology

1.4. Definitions and Assumptions

2. Executive Summary

3. Market Dynamics

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

4.  Key Insights

4.1. Mergers, Acquisition and Partnerships

4.2. Porter’s Five Forces Analysis

4.3. SWOT Analysis

4.4. Technological Developments

4.5. Pricing Analysis

4.6. Impact of COVID-19 on Usage-Based Auto Insurance

5. Global Alternative Fuel Vehicles Market Analysis, Insights and Forecast, 2017-2028

5.1. Key Findings / Summary

5.2. Market Analysis, Insights and Forecast – By Fuel Type

5.2.1. BEV

5.2.2. HEV

5.2.3. PHEV

5.2.4. FCV

5.2.5. CNG

5.2.6. Other Gaseous Fuels (LPG & LNG)

5.2.7. Biofuels (Ethanol, Biodiesel & Methanol)

5.4. Market Analysis, Insights and Forecast – By Vehicle Type

5.4.1. Passenger Cars

5.4.2. Commercial Vehicles

5.5. Market Analysis, Insights and Forecast – By Region

5.5.1. Americas

5.5.2. EMEA

5.5.3. Asia Pacific


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