Alternative fuel vehicle demands are all-time high. The hybrid vehicle market is consistently rising year on year. As per some estimation, the hybrid vehicle market was $352 billion in 2020. The market is projected to reach the $8,000 billion milestone by 2030. We can observe a CAGR of 34.5% growth which can be seen between the years 2021 to 2030.
Rising fuel prices, a monopoly in the fuel industry, and the development of technology in renewable energy sources are reasons the market is shifting towards alternative fuel sources.
Modern car industries are pushing their manufacturing towards hybrid vehicles. The numbers are significantly changing, and people are more demanding hybrid cars over single energy fuel vehicles.
What are alternative fuel vehicles?
Alternative fuel vehicles consist of various energy sources, including electric vehicles, natural gas, biodiesel, fuel cell, liquid nitrogen, biofuel, and dimethyl.
Using alternative energy sources in the automobile industry helps countries reduce their dependency on the limited supply of ordinary fuel.
The majority of the countries in the world depend on fuel imports. The amount of money the country spends on fuel imports is enormous, which sometimes causes an economic slowdown.
Importing energy could not be a good sign for any country. The Countries entirely depending on the fuel supply could get into trouble if the exporting country increases the fuel price or stop exporting the fuel for some reason.
Duel fuel-powered vehicles are made so the driver can shift from one energy source to another. Car using natural gas can use the bi-fuel in vehicles. Duel fuel cars are becoming more popular because the prices of alternative fuel sources are comparatively lesser than regular fuel.
Also, hybrid cars can be used anywhere in the world. Manufacturers are combining duel fuel vehicles with electric and biofuels, so one of the energy sources is always available around you to charge your cars.
If the prices of one fuel source rise, you can shift to another fuel and manage your expenses. It is economical to ride dual-fuel cars instead of single-source fuel cars.
- Environmental impact
Alternative fuel sources are also in the trend because of their less environmental impact. Where regular fuel produces high amounts of CO2 and harmful gases, biofuel is safer for the environment. The bio-product of the bio-fuel is water which is not lethal to the environment.
The global warming effect on the earth is visible. Ice on both poles is melting at a rapid scale. We are living in fear of rising seawater levels.
The alternative fuel source for vehicles has allowed us to fix our mistakes and move toward a sustainable energy source. We can reduce the rising pollution significantly and support the environment to recover from the damage.
- Growth in Prices of Fossil Fuels
There is a global community of countries that owns natural resources. Gulf countries do the majority of the fossil fuel in the world. The committee controls the demand and supply. Thus, when they find the fuel prices are going down, the committee decides to reduce the fuel pump, which suddenly creates a shortage in the countries for fossil fuel and increases the cost.
Due to the monopoly of the fuel countries in fossil fuels, the entire system is fragile. The resource-full country could affect the other country’s economy by simply increasing or decreasing fuel prices.
In recent years, oil-producing countries have been pumping less fuel to increase the price per gallon. The rising fuel cost has affected major low-income countries because their economy could not afford to import expensive fuel. As a result, these countries are going through economic breakdowns.
Growth in the price of fossil fuels is the biggest concern for developing countries. Hence, governments are looking for an alternative source to fuel their economy and decrease their dependency on fossil fuels.
- Clean solutions
Clean mobility solutions are getting more attention these days. Awareness about the environmental and social impact on the country makes people make the right decisions when buying a vehicle.
People know the outcome of fossil fuel burning, rising prices, and the monopoly of the countries on the fuel supply. This information makes them move toward a long-term sustainable solution that ensures a reliable outcome.
In summary
Every single vehicle causes significant damage to the environment. We will positively impact the earth’s climate if we choose a clean energy source to power our cars. We must secure our children’s future and create an ecosystem that thrives itself. An alternative fuel source is the only way to live a better life.
