A TRILLION DOLLAR OPPORTUNITY

According to the Verified Market Research, the Alternative Fuel Vehicles (AFV) Market size is expected to reach US$ 1076.47 billion by 2028 from US$ 405.64 billion in 2020 globally. The opportunity is huge, especially for new players who want to enter the segment and take a lead ahead of the legacy player. So, what’s the progress? And, where do we stand today? Let’s find out By Utkarsh Agarwal

THE AUTOMOTIVE industry is undergoing major disruptive trends. First is electrification – this space is witnessing major advancements from many OEMs; another is autonomous driving, which is expected to boom in future; and lastly, immersive environments related trends will pick up pace in the coming years.

At the recent 62nd ACMA Annual Session, Nitin Gadkari, Union Minister of Road, Transport and Highways, emphasised on research and innovation, he prodded the industry leaders to invest more in new technology, encourage and collaborate with startups, and adopt successful practices. Further emphasising upon the importance of EVs, Flex fuel vehicles and future mobility solutions, he asked the industry to work towards inclusive, greener and cleaner manufacturing practices.

He added, “LNG and green hydrogen are fuels of the future and the auto sector can take a leap into the next stage of transformation with new technologies like electric vehicles and alternative fuels such as LNG and ethanol. My idea is to transport hydrogen using vehicles powered by LNG and ethanol and we want to bring down the cost of hydrogen to US$1 per kg.”

 

Clearly, he was focusing much on the alternative fuel market and for the right reasons. Over the last decade, the automotive industry has transformed the fastest and the alternative fuel vehicles market has huge opportunities. According to the Verified Market Research, the Alternative Fuel Vehicles (AFV) market size is expected to reach US$ 1076.47 billion by 2028 from US$ 405.64 billion in 2020 globally, growing at a CAGR of 12.98 per cent from 2021 to 2028. Alternative fuels include fuels other than fuels used in IC engine vehicles (petrol and diesel).