Alternative Fuel Vehicles (AFV) Market Analysis

Alternative Fuel Vehicles Market Analysis

To get key market trends

  Download Free Sample

Based on fuel type, the electric segment is poised to expand at 9% CAGR during the forecast period, due to increasing environmental consciousness and technological advancements. With rising concerns over emissions, improved battery technology, expanded charging infrastructure & government incentives, EVs are gaining momentum. Consumers are shifting toward electric options, prompting automakers to invest in EV production, thereby enhancing their presence in the market.
 

Based on vehicle type, the alternative fuel vehicles market size from passenger cars segment dominated around USD 400 billion in 2022, owing to increased consumer interest in eco-friendly transportation. Advancements in electric and hybrid vehicle technology are particularly contributing to this growth. With expanding charging infrastructure, government support, and a shift in consumer preferences toward cleaner energy, passenger cars, especially electric & hybrid models, are expected to gain prominence, thereby contributing significantly to market expansion.
 

Asia Pacific alternative fuel vehicles market accounted for 60% of revenue share in 2022, attributed to heightened environmental concerns and government support. According to the Invest India report, India has 8,738 operational public EV charging stations and 847,439 electric vehicles registered until August 2023. Rapid urbanization, increasing disposable incomes, and a focus on reducing emissions are fueling consumer interest in AFVs. With extensive investments in charging infrastructure and EV manufacturing, along with supportive policies, the region is set to witness robust growth, fostering a substantial increase in AFV adoption.