Automotive Alternative Propulsion Market

Rajesh Uppal February 24, 2023 Army, Energy & Propulsion Comments Off on Automotive Alternative Propulsion Market 227 Views

Currently, most vehicles rely on internal combustion engines for locomotion; however, a significant shift toward partial and complete electrification is likely to emerge as an alternative propulsion system for vehicles. An internal combustion engine system is highly cost-effective and hence, its usage is higher than other propulsion systems. Being a finite source of energy, the availability of gasoline is decreasing and the price of the petroleum are deliberately being propelled year on year in the global market.

Automotive alternative propulsion consists of the available possible alternative sources that can be incorporated as the source of energy in the propulsion systems of the vehicles. The objective of employing the alternative resources of gasoline is to reduce or diminish the hazardous gases that emit from the traditional gasoline-powered vehicles.

In this regard, the alternative energy propulsion system and the alternative sources of energy are high demand in the developing nations as well as in the emerging regions also. Stringent emission norms, growth of electric vehicle infrastructure, and improved cost competitiveness against internal combustion engine are likely to drive the Automotive Alternative Propulsion System

The global automotive alternative propulsion market is forecast to reach USD 644.42 Billion by 2028, according to a new report by Reports and Data. Automotive alternative propulsion consists of the available possible alternative sources that can be incorporated as the source of energy in the propulsion systems of the vehicles. The objective of employing the alternative resources of gasoline is to reduce or diminish the hazardous gases that emit from the traditional gasoline-powered vehicles.

The global automotive alternative propulsion market is growing at a substantial pace due to the growing demand for alternative sources of energy for the vehicle propulsion system. Being a finite source of energy, the availability of gasoline is decreasing and the price of the petroleum are deliberately being propelled year on year in the global market. In this regard, the alternative energy propulsion system and the alternative sources of energy are high demand in the developing nations as well as in the emerging regions also.

Market Segments

The global automotive alternative propulsion system market can be segmented based on propulsion system type, vehicle type, and region. Based on propulsion system type, the market can be classified into hybrid propulsion, electric propulsion, and hydrogen fuel cell. An electric propulsion system consists of battery and electric motor with its controller. The different structures of electric drive trains are possible which includes hybrid, as a combination of the ICE and electric motor, or fully electric one, propulsion system using fuel cells.

Currently, major OEMs provide hybrid and electric propulsion owing to their advantages such as high efficiency and reliability. The fully electric sub-segment is likely to expand at a significant growth rate owing to an increase in stringent emission norms and rise in demand for fuel-efficient vehicles. This, in turn, is expected to drive the Automotive Alternative Propulsion System Market during the forecast period.

Fuel cell electric vehicles (FCEV) are powered by hydrogen fuel cells and are a more efficient form of automotive propulsion system compared to the conventional internal combustion engine vehicles. These kind of vehicles produce zero tailpipe emissions and only emit water vapor with warm air. The revenue of this sub-segment is expected to reach USD 11.37 Billion by 2027.

A hybrid electric vehicle (HEV) incorporates a hybrid propulsion system with a combination of traditional gasoline-powered internal combustion engine system and electric propulsion motorized system. Few of the HEVs make use of the gasoline in order to produce the potential energy for the electric motor, which then converts into the kinetic energy. The HEV sub-segment is growing with a CAGR of 21.2% during the forecast period. Toyota Prius is the most sold model of hybrid electric vehicle as of now.

The power generation system is the principal component of an automotive alternative propulsion system, which helps generate the power using alternative source of energy. Air Compression, Thermal Loop, Hydrogen Recirculation Blower, Motor are the power generation components for the FCEVs, while Power Electronics & Motor are for the HEVs.

Based on vehicle type, the automotive alternative propulsion system market can be segmented into passenger vehicle, commercial vehicle, and electric vehicle. The passenger vehicle segment is anticipated to drive the Automotive Alternative Propulsion System Market during the forecast period owing to the rise in production of passenger vehicles across the globe. Electric vehicle is an expanding segment of the Automotive Alternative Propulsion System Market owing to rapid increase in adoption of electric vehicles across the globe.

Based on region, the automotive alternative propulsion system market can be segmented into North America, Europe, Asia Pacific, and Middle East & Africa. North America, with its superiority in both the hybrid electric & electric vehicles market share and extensive demand for the alternatives of the gasoline-based vehicle, is accounted to retain its leading position in the market with a market share of about 35.3% by 2027, and the CAGR is calculated to be 24.4% during the forecast period.

The market in Asia Pacific is expanding at a rapid pace owing to a significantly large customer base and a prominent automotive industry in the region. Expansion of the automotive industry, especially in China, India, and South Korea is anticipated to fuel the market in the region during the forecast period. Booming economy in China and considerable increase in car ownership are likely to boost the electric vehicle market in the country, which in turn is estimated to propel the Automotive Alternative Propulsion System Market in the near future. Europe and North America are likely to hold a major share of the global market owing to rapid rise in production of electric vehicles in these regions. Presence of major OEMs in Europe and North America is projected to drive the Automotive Alternative Propulsion System Market in these regions during the forecast period.

Asia Pacific market is forecasted to generate a revenue of USD 164.08 Billion in the year 2026, owing to its extensive demand for hybrid electric vehicle (HEV) and electric vehicle (EV) and elevated growth in the overall automotive industries in China, Japan, and India. The United States possesses the highest market worldwide while Germany and Japan hold some of the most prominent players in the market.

Key participants include General Motors Company, Robert Bosch GmbH, Toyota Motor Corporation, Mitsubishi Motors Corporation, Continental AG, Tesla, Inc., Volkswagen Group, Tata Motors Limited, Hyundai Motor Company, and Aisin Seiki Co., Ltd.