Automotive Alternative Fuel Vehicle Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Global Automotive Alternative Fuel Vehicle Market is segmented into Fuel Type (Compressed Natural Gas, Methanol, Electric, and Others), Vehicle Type (Passenger Cars, Light Commercial Vehicles, and Medium & Heavy-duty Commercial Vehicles), and Geography.(North America, Europe, Asia-Pacific and the Rest of the World). The report offers the market size in value (USD Billion) and forecasts for all above segments.

Automotive Alternative Fuel Vehicle Market Size

Automotive Alternative Fuels Market-Summary.pptx

Automotive Alternative Fuel Vehicle Market Analysis

The Automotive Alternative Fuel Vehicle Market is expected to register a CAGR of greater than 15% during the forecast period.

The Automotive Alternative Fuel Vehicle Market was severely impacted by the manufacturing shutdowns, lockdowns, and trade restrictions during the COVID-19 pandemic. Furthermore, the fall in automotive production, the steep decline in automobile sales due to work-from-home policies and travel restrictions, and lack of labor significantly impacted the market. Since automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.

Over the long term, increasing investments in R&D and production capacity by major industry players and a rise in sales of electric and hybrid vehicles as well as rising demand for electric commercial vehicles from the E-commerce sector for last mile delivery operations are creating demand in the automotive and transportation industry with a surge in sales of alternative fuel vehicles.

Key players in the market are expanding their production capacity and launching new products to cater to the increased demand for alternative fuel vehicles. For instance, In May 2022 Hyundai Motor Group announced to invest USD 5.54 billion to set a dedicated electric vehicle and battery manufacturing plant at Bryan County, Georgia, United States.In March 2022 Vietnamese EV manufacturer VinFast announced to invest USD 6.5 billion to set a manufacturing plant in North Carolina, United States with an annual capacity of 150000 units by 2024.

Asia-Pacific is the largest region for alternative fuel vehicles due to the adoption of strict automotive emissions norms and stringent fuel efficiency standards, higher taxation on fossil fuels and government incentives to promote elctric vehicles. Europe and North America are expected to play key role in the development of the market owing to rising amount of supervisory guidelines and implementation of cleaner fuels and supportive strategies adopted by key players in the market.

Automotive Alternative Fuel Vehicle Industry Overview

The automotive alternative fuel market is highly fragmented. The market is characterized by the presence of considerably large global players as well as regional, and national players. Many startups are also entering particularly in the electric and hydrogen vehicle industry. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions.

Some of the major players dominating the global market are Tesla Inc., Toyota Motor Corp., BYD, General Motors, and VW Group. Key players are launching new products to secure their market position and stay ahead of the market curve. For instance,

  • In September 2022, BYD introduced its new eBus range, eBus Blade battery platform, and two new battery electric trucks for the European market at IAA Transportation in Germany.
  • In February 2021, Ford Motors Company announced that its European division would soon phase out of internal combustion engines (ICE) vehicle production, and by 2026 Ford will only offer plug-in hybrid and electric models. Furthermore, automakers such as Volkswagen, Lincoln, Jaguar Land Rover, and others have also committed to turn their vehicle volume emission-free in years to come.

Automotive Alternative Fuel Vehicle Market Leaders

  1. Tesla Inc.

  2. Toyota Motor Corp.

  3. BYD

  4. General Motors

  5. Volkswagen AG

  6. *Disclaimer: Major Players sorted in no particular order
Automotive Alternative Fuel Vehicles Market-Market Concentration.jpg
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Automotive Alternative Fuel Vehicle Market News

  • In September 2022, IVECO and Petit Forestier, a European refrigerated vehicle rental and leasing company signed an MoU to procure 2000 units of eDaily electric delivery vans.As early as 2023, Petit Forestier's customers operating in the European Union territory, Great Britain and Switzerland will be offered priority access to rent the eDAILY. The available fleet, initially comprised of 200 vehicles, will reach a total of 2,000 by 2026.
  • In September 2022, Mercedes-Benz Vans, a full-range provider of electric private & commercial vans has signed a Memorandum of Understanding (MoU) with electric vehicle manufacturer Rivian to initiate a strategic partnership. The partnership will enable the companies to cooperate on the production of electric vans.
  • In May 2022, Mahindra and Mahindra Ltd. and Volkswagen AG signed an agreement to share VW MEB electric platform and components between the two brands.Mahindra intends to equip its 'Born Electric Platform' with MEB electric components such as electric motors, battery system components and battery cells. The Partnering Agreement evaluates the scope of collaboration - it indicates binding rules for the evaluation phase as well as the non-binding scope of supply. The binding supply agreement will be negotiated in a continued constructive and legally compliant way to conclude by the end of 2022.
  • In April 2022, Tesla Inc. started operations at Giga Berlin in Germany, its first gigafactory in Europe with an annual capacity of 500000 electric vehicles and 50Gwh of battery output.The plant, located just outside Berlin, will eventually produce 500,000 electric vehicles annually as well as batteries for the cars.

Automotive Alternative Fuel Vehicle Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Drivers
  • 4.2 Market Restraints
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Threat of New Entrants
    • 4.3.2 Bargaining Power of Buyers/Consumers
    • 4.3.3 Bargaining Power of Suppliers
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION (Market Size Value in USD billion)

  • 5.1 Fuel Type
    • 5.1.1 Compressed Natural Gas (CNG)
    • 5.1.2 Methanol
    • 5.1.3 Electric
    • 5.1.4 Others
  • 5.2 Vehicle Type
    • 5.2.1 Passenger Vehicles
    • 5.2.2 Light Commercial Vehicles
    • 5.2.3 Medium & Heavy-duty Commercial Vehicles
  • 5.3 Geography
    • 5.3.1 North America
    • 5.3.1.1 United States
    • 5.3.1.2 Canada
    • 5.3.1.3 Rest of North America
    • 5.3.2 Europe
    • 5.3.2.1 Germany
    • 5.3.2.2 United Kingdom
    • 5.3.2.3 France
    • 5.3.2.4 Italy
    • 5.3.2.5 Rest of Europe
    • 5.3.3 Asia-Pacific
    • 5.3.3.1 India
    • 5.3.3.2 China
    • 5.3.3.3 Japan
    • 5.3.3.4 South Korea
    • 5.3.3.5 Rest of Asia-Pacific
    • 5.3.4 Rest of the World
    • 5.3.4.1 Brazil
    • 5.3.4.2 Mexico
    • 5.3.4.3 United Arab Emirates
    • 5.3.4.4 Other Countries

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles
    • 6.2.1 Tesla Inc.
    • 6.2.2 BMW AG
    • 6.2.3 BYD Auto Co. Ltd
    • 6.2.4 Audi AG
    • 6.2.5 Ford Motor Corporation
    • 6.2.6 Mercedes Benz Group
    • 6.2.7 Rev Group
    • 6.2.8 JLR Group
    • 6.2.9 Hyundai Motor Company
    • 6.2.10 Toyota Motor Corporation
    • 6.2.11 General Motors Corporation
    • 6.2.12 Volkswagen AG
    • 6.2.13 Maruti Suzuki Ltd.
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Automotive Alternative Fuel Vehicle Industry Segmentation

An alternative fuel vehicle is a vehicle that runs on any fuel except fossil fuels. Alternative fuel vehicles include electric vehicles, hydrogen vehicles, CNG, and LNG vehicles.

The automotive alternative fuel market has been segmented by fuel type, vehicle type, and geography. By Fuel type, the market is segmented into Compressed Natural Gas, Methanol, Electric, and Others. By Vehicle type, the market is segmented into Passenger Cars, Light Commercial Vehicles, and Medium & Heavy-duty Commercial Vehicles.

By Geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. For each segment, maket sizing and forecast have been done on basis of value (USD billion).

Fuel Type Compressed Natural Gas (CNG)
Methanol
Electric
Others
Vehicle Type Passenger Vehicles
Light Commercial Vehicles
Medium & Heavy-duty Commercial Vehicles
Geography North America United States
Canada
Rest of North America
Europe Germany
United Kingdom
France
Italy
Rest of Europe
Asia-Pacific India
China
Japan
South Korea
Rest of Asia-Pacific
Rest of the World Brazil
Mexico
United Arab Emirates
Other Countries
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Automotive Alternative Fuel Vehicle Market Research FAQs

What is the current Automotive Alternative Fuel Vehicle Market size?

The Automotive Alternative Fuel Vehicle Market is projected to register a CAGR of greater than 15% during the forecast period (2025-2030)

Who are the key players in Automotive Alternative Fuel Vehicle Market?

Tesla Inc., Toyota Motor Corp., BYD, General Motors and Volkswagen AG are the major companies operating in the Automotive Alternative Fuel Vehicle Market.

Which is the fastest growing region in Automotive Alternative Fuel Vehicle Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Automotive Alternative Fuel Vehicle Market?

In 2025, the Asia Pacific accounts for the largest market share in Automotive Alternative Fuel Vehicle Market.

What years does this Automotive Alternative Fuel Vehicle Market cover?

The report covers the Automotive Alternative Fuel Vehicle Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Automotive Alternative Fuel Vehicle Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Automotive Alternative Fuel Vehicle Industry Report

Statistics for the 2025 Automotive Alternative Fuel Vehicle market share, size and revenue growth rate, created by Mordor Intelligenceā„¢ Industry Reports. Automotive Alternative Fuel Vehicle analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Automotive Alternative Fuel Vehicle Market Report Snapshots

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Automotive Alternative Fuel Vehicle Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)