The Global Alternative Fuel and Hybrid Vehicle Market was valued at US$ 331.5 billion in 2021 and is predictable to reach US$ 2,317.9 billion by 2030 which is projected to attain a CAGR of 24.1 % during the forecast period from 2021- 2030.
Alternative fuel and hybrid vehicles (AFHVs) are vehicles that use fuels other than gasoline and diesel. The rapid depletion of oil reserves has pushed the global deployment of AFHVs.
The key drivers driving the expansion of the alternative fuel vehicle industry include rising pollution levels throughout the world and severe government regulations to lower them, rising demand for vehicles, and people's increased purchasing power as a result of rising income levels.
Increased demand for vehicles is driven by factors such as rising global income levels and population growth. Depletion of fossil fuels is also a reason that an alternative is being sought so that by the time fossil fuels are depleted or become too expensive, there will be a strong alternative available.
The market for alternative fuel and hybrid vehicles is dominated by passenger cars.
The market for alternative fuel vehicles is dominated by electric vehicles. The ecologically benign nature of the fuel, which emits no pollutants into the atmosphere, and the huge subsidies granted by governments throughout the world are the main growth drivers for electric car sales.
Due to increased demand for fuel-efficient vehicles, stringent government laws and regulations on vehicle emissions, and more public charging infrastructure, the global alternative fuel, and hybrid vehicle industry has seen healthy growth in recent years. The alternative fuel and hybrid vehicle industry is growing due to technological breakthroughs in alternative fuel cars and proactive government measures such as investments in electric and hybrid buses for public transportation. The growth of the alternative fuel and hybrid car markets is hampered by high fuel costs and hefty initial infrastructure expenses.
The Alternative Fuel and Hybrid Vehicle Market in Asia-Pacific is the most lucrative owing to the growing number of regulatory policies and widespread adoption of alternative cleaner fuels which is anticipated to boost the regional market expansion during the forecast period.
Segmentation and Scope of the Global Alternative Fuel and Hybrid Vehicle Market
By Vehicle Type
By Alternative Fuel Type
Rest of World
Middle East & Africa
Prominent players in the Global Alternative Fuel and Hybrid Vehicle Market among other includes