Low-carbon Propulsion Market Worth 11,640 Thousand Units by 2027 - Exclusive Report by MarketsandMarkets - Seite 2

Alternative fuels are an excellent choice for pickup trucks, vans, and SUVs because they provide the power, performance, and range that fleets require. Currently, Fiat Chrysler is the only light-duty OEM with a factory-built natural gas vehicle available in the US market—RAM 2500 CNG.

Passenger, in the rail application segment, is estimated to be the largest market during the forecast period

Alternative fuel trains offer the benefit of cost-effective and efficient transportation of passengers as well as freight. Several cities are implementing new rail infrastructure projects to reduce road congestion and provide an affordable means of transportation at an intercity as well as an intra-city level. Increasing urbanization and growing demand for increased connectivity, comfort, reliability, and safety will boost the passenger segment.

Since all modes of public transports are suffering heavy losses due to limited operations during COVID-19, passenger rails and freight are also hard hit by the outbreak. Although transport is ongoing in a controlled way, the scenario for full-scale operations will face a downfall for at least a year. Hence, the market for low-carbon propulsions in passenger rails and freight will be hampered for a while.

Asia Pacific region is expected to have the largest share in the Low-Carbon Propulsion Market from 2020 through 2027.

The growth of Asia can be attributed due to the prices for CNG/LNG in transport that is comparatively lesser than gasoline and diesel as a fuel. Also, the adoption of electric and hydrogen driven transports in the region, mainly due to China's approach towards cleaner technologies, is the major contributor to this market. For instance, CRRC Tangshan Railway Company has introduced a prototype low-floor LRV, FCveloCity, powered by Ballard Power Systems' hydrogen fuel cell technology, which is being tested on a new 14 km light rail line in China. In addition to this, the fact that China has resumed industrial operations progressively from mid-February—Volkswagen, Nissan, Hyundai, and Honda re-openings production plants—would help drive the market recover quickly in China