Alternative Fuels Market by Application and Geography - Forecast and Analysis 2022-2026

The alternative fuels market share is expected to increase to USD 66.89 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 5.97%.

This market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers alternative fuels market segmentation by:

• Application - Automotive and aviation
• Geography -  APAC, North America, Europe, South America, and Middle East and Africa

The alternative fuels market vendors are - Ballard Power Systems Inc., Blossman Propane Gas and Appliance Inc., BP Plc, Chevron Corp., China Petrochemical Corp., CNOOC Ltd., ENGIE SA, Equinor ASA, Exxon Mobil Corp., Gevo Inc., Hindustan Petroleum Corp. Ltd., Honeywell International Inc., LanzaTech Inc., Neste Corp., Nuvera Fuel Cells LLC, OMV Aktiengesellschaft, Petroleo Brasileiro SA, PJSC Gazprom Neft, PJSC LUKOIL, Plug Power Inc., Polski Koncern Naftowy ORLEN SA, Red Rock Biofuels LLC, Shell plc, and UGI Corp. among others.

What will the Alternative Fuels Market Size be During the Forecast Period?

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Alternative Fuels Market: Key Drivers, Trends, and Challenges

The increasing emissions of GHGs is notably driving the alternative fuels market growth, although factors such as fluctuations in global crude oil prices may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the alternative fuels industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Alternative Fuels Market Driver

One of the key factors driving growth in the alternative fuels market is the increasing emissions of GHGs. Awareness of environmental issues that are caused by the combustion of fossil fuels is increasing globally. The main sources of GHG emissions are transportation, electricity generation, and industrial activities. GHG emissions lead to drastic climate changes, a rise in global temperature, and an increase in sea levels. The Renewable Energy Directive established by the European Commission has made it necessary for EU member countries to have a national plan for renewable energy adoption with respect to heating and cooling, transportation, and electricity generation and has set individual targets for its member states by the year 2020. The benefits of using alternative fuels include lower pollution levels, a positive impact on the environment, and improvement in vehicle performance. Governments worldwide provide tax incentives to encourage the use of alternative fuels. These benefits are predicted to drive the growth of the alternative fuels market during the forecast period.

Key Alternative Fuels Market Trend

The increasing use of natural gas in the transportation sector is a key alternative fuels market trend that is expected to have a positive impact in the coming years. The transportation sector is one of the major sources of air pollution across the globe. As per the IEA, 30% of the GHG emissions recorded worldwide were contributed by the transportation sector. The combustion of fossil fuels releases emissions such as carbon dioxide, which is a major contributor to GHG emissions. These emissions have led to climate change and a decline in air quality. GHGs also have a negative effect on the ecosystem, and therefore, to curb the effects of GHG emissions, a decision to decarbonize the transportation sector was made by governments across the world. The transition to non-polluting energy sources has led to the emergence of alternative fuel sources. The need to reduce the carbon footprint in the transportation sector, which is one of the largest sectors responsible for GHG emissions, has led to the use of natural gas as an alternative fuel to run automobiles.

Key Alternative Fuels Market Challenge

The fluctuations in global crude oil prices will be a major challenge for the alternative fuels market during the forecast period. Over the years, global crude oil pricing has witnessed several fluctuations that do not follow any set pattern. Crude oil prices have an impact on the prices of products like gasoline and lubricants, which are derived from crude oil. The aviation industry is one of the prime users that has switched to alternative fuels to reduce the amount of carbon emissions. This industry uses various alternative jet fuels for its operations; however, during the period of the drop in global crude oil prices, the prices of conventional jet fuels were found to be lower than that of alternative fuels. This variation in prices, thus, discouraged many airline companies from opting for alternative fuels in their aircraft. The uncertainty in global oil and gas prices poses a challenge for the alternative fuels industry as these fluctuations in the oil and gas industry also leads to disparities in the demand for and supply of conventional fossil fuels, thereby affecting the demand for alternative fuels.

This alternative fuels market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global alternative fuels market as a part of the global coal and consumable fuels market within the global coal market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the alternative fuels market during the forecast period.

Who are the Major Alternative Fuels Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Ballard Power Systems Inc.
• Blossman Propane Gas and Appliance Inc.
• BP Plc
• Chevron Corp.
• China Petrochemical Corp.
• CNOOC Ltd.
• ENGIE SA
• Equinor ASA
• Exxon Mobil Corp.
• Gevo Inc.
• Hindustan Petroleum Corp. Ltd.
• Honeywell International Inc.
• LanzaTech Inc.
• Neste Corp.
• Nuvera Fuel Cells LLC
• OMV Aktiengesellschaft
• Petroleo Brasileiro SA
• PJSC Gazprom Neft
• PJSC LUKOIL
• Plug Power Inc.
• Polski Koncern Naftowy ORLEN SA
• Red Rock Biofuels LLC
• Shell plc
• UGI Corp.

This statistical study of the alternative fuels market encompasses successful business strategies deployed by the key vendors. The alternative fuels market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• ballard.com - The company offers alternative fuels products such as Fcgen H2PM, Fcgen HPS, and Fcgen LCS.

• ballard.com - Through the fuel cell products and services segment, the company provides sale and service of PEM fuel cell products for the power product markets of heavy duty motive consisting of bus, truck, rail and marine applications, material handling and backup power as well as the delivery of technology solutions.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The alternative fuels market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Alternative Fuels Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the alternative fuels market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Alternative Fuels Market?

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45% of the market's growth will originate from APAC during the forecast period. China, South Korea, and Japan are the key markets for alternative fuels in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The initiatives being taken to reduce carbon emissions will facilitate the alternative fuels market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The market in the region is witnessing certain challenges due to the outbreak of COVID-19. The outbreak has affected several countries in the region, such as China, India, South Korea, and Japan. It has also affected the supply chain of end-user industries, such as mobility and oil and gas, thereby affecting the region's economy. However, lockdowns have been lifted in most of the countries in the region, and the governments of China, Japan, and South Korea have resumed their delivery of alternative fuels. This will, in turn, drive market growth during the forecast period.

What are the Revenue-generating Application Segments in the Alternative Fuels Market?

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The alternative fuels market share growth by the automotive segment will be significant during the forecast period. The automotive market is currently highly dependent on fossil fuels for operation, and an increase in automotive sales is likely to lead to a similar rise in the demand for fuel. However, challenges like the fluctuations in global crude oil prices and increased adoption of EVs in the transportation sector to reduce global GHG emissions are aiding the adoption of alternative fuels in this sector. 

This report provides an accurate prediction of the contribution of all the segments to the growth of the alternative fuels market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Alternative Fuels Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive alternative fuels market growth during the next five years
• Precise estimation of the alternative fuels market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the alternative fuels industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of alternative fuels market vendors

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