The global Alternative Fuel Vehicles Market is estimated to surpass $892.57 billion mark by 2026 growing at an estimated CAGR of more than 12.9% during the forecast period 2021 to 2026. Alternative fuel vehicle market is witnessing fast growth due to various driving factors including the increasing stringent regulations issued by various regulatory bodies to control emissions. Alternative fuel vehicle refers to the vehicles that use substances other than traditional gas and diesel as their source of energy. These alternative sources include solar, biodiesel, compressed air, liquid natural gas and others. The alternative fuel vehicles facilitate convenience, enhanced energy security, improved performance an above all reduced fuel costs, thereby boosting its demand among various industries.
- shift towards clean transportation and the increased rate of depletion of oil and petroleum reserves globally will drive market adoption
- Increasing usage and growth of alternative fuels in transportation is driven by the concern over the level of emissions from the use of fossil fuels.
- Increasing oil prices, increasing dependence on foreign countries for oil as well the environmental benefits of alternative fuels have prompted the growth of alternative fuels.