The global low-carbon propulsion market size is projected to grow at a CAGR of 21 per cent during the forecast period [2020-2026]. The factors propelling the growth of the global low carbon propulsion market include: technological advancements to improve the emission standards by conventional conversions of vehicles and proposed range extensions with fuel efficiency by alternative fuels in commercial vehicles.
On the basis of automotive segment, the electric passenger car segment is likely to occupy the largest market share in, by electric vehicle type segment, during the forecast period. This is because emerging countries, such as China, have a lower waiting period for electric vehicles as compared to internal combustion engine (ICE) vehicles. China dominates the market for electric passenger cars, followed by the US. With growing stringency of emission norms, major European countries are planning to have 1 million electric vehicles on the road by the end of 2020.
Secondly, the hydrogen segment is estimated to be the fastest-growing market in the global low-carbon propulsion market, by fuel type, between 2020 and 2026. Hydrogen is an emission-free alternative fuel that can be obtained from various sources, such as, fossil fuels, natural gas, and water, among others. Different techniques such as the thermochemical process, electrolytic process, direct solar water splitting process, and biological processes are used to produce hydrogen. Hydrogen is produced with the help of heat and chemical reactions in a thermochemical process. Resources, such as, natural gas, coal, or biomass are used for hydrogen production in the thermochemical process. Light energy is used in the direct solar process to split hydrogen and oxygen atoms in water. Although the process is currently in a developing stage, it offers long-term benefits to reduce environmental impact.
In region-wise analysis, North America is expected to lead the global low carbon propulsion market since the United States is prone to high air pollution levels. Given the consumption of gasoline is maximum in this region, the emission of nitrogen oxides (NOx), hydrocarbons (HC), and particulate matter (PM) is very common. As known, hydrogen-powered fuel cell vehicles emit no harmful substances since they release only water and warm air. The growing environmental and health precautions required in the US are expected to drive hydrogen production to achieve low or zero-emission goals.
Europe is likely to account for the fastest growing market during the forecast period. Europe has been at the forefront of coming up with the safety and fuel efficiency standards of commercial vehicles, for which the EU institutions have announced their plans to replace gasoline and diesel stations with CNG, LNG, electric, and other biofuels. Although electric vehicles present a clearer path to decarbonization in transport, biomethane continues to remain as a favoured fuel option for heavy-duty vehicles. Thus, compressed natural gas (CNG) and liquified natural gas (LNG) depict a major source of renewable fuels for low-carbon propulsion in Europe.
The major players in the global low carbon propulsion market include Tesla (US), BYD (China), Nissan Motor (Japan), Yutong (China), and Proterra (US). BYD is a key player in the global low carbon propulsion market. The company designs and assembles a wide range of electric buses.
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