Increasing demand for Autogas globally due to environmental concerns
The global Autogas market size is expected to reach USD 271.6 billion by 2030 and exhibit a CAGR of 7.95% in the forecast period (2022−2030) according to Skyquest latest research report. With an increasing number of fuel vehicles converting to LPG, the need for clean energy has grown in the past few years.
At a global scale, several countries are adopting clean energy policies to reduce carbon emissions by 2030 mainly due to environment concerns. The steady shift from gasoline and diesel to LPG is highly witnessed in several western countries. Therefore, the market growth is high in these countries owing to the competitiveness compared to diesel and gasoline.
Moreover, local authorities and governments have also started offering tax benefits and other subsidies to LPG vehicle owners.
In terms of application, the passenger car segment is the leading segment for its cost-effective nature. The growing demand for robust transportation options in urban areas has led to developing an overall better infrastructure for distribution. For vehicles, Autogas offers better power and torque, and optimising fuel efficiency. In fact, many commercial fleet owners are now shifting to LPG to meet corporate disclosures on annual basis.
Region-wise, Europe is one of the largest growing markets with a huge emphasis on clean energy and effective distribution of gases. Ukraine and Turkey have been the major regional markets in terms of worldwide production. According to a survey, the overall market for Autogas for transportation is around 10% in Bulgaria and Poland.
Asia-Pacific is one of the second leading markets owing to increase in concerns for air pollution and deteriorating air quality. The adoption of Autogas as an alternative fuel has gained a huge momentum due to public awareness and shift from traditional to alternative fuels. According to the research, the OEM vehicles constitute to two-thirds of LPG vehicles in India, Korea, and Japan. This is mainly due to the prominence of light duty vehicles that come with factory-fitted bi-fuel systems.
Source: SkyQuest Technology Consulting
10 May 2023