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Alternative Fuel Vehicles (AFV) Market Size

  • Report ID: GMI7360
  • Published Date: Nov 2023
  • Report Format: PDF

Alternative Fuel Vehicles Market Size

Alternative Fuel Vehicles Market size was valued at USD 634.5 billion in 2022 and is projected to grow at a CAGR of 10% between 2023 and 2032. Rising government investments in electric battery technology significantly propel the market growth. Government initiatives including subsidies, incentives & research funding for battery advancements drive innovation and affordability, fostering consumer confidence and ultimately accelerating market growth & adoption.


Alternative Fuel Vehicles Market

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For instance, in September 2023, French President Emmanuel Macron revealed a pioneering USD 100/month Electric Vehicle (EV) leasing initiative, exclusively for EU-made cars. By making EVs more affordable and encouraging their usage, this measure will bolster market size, boosting consumer adoption and supporting the shift toward eco-friendly transportation.


Technological advancements in EV batteries are propelling the alternative fuel vehicles market by improving battery performance, enhancing range, and reducing charging times. For instance, in June 2023, Toyota introduced an advanced EV battery technology, emphasizing a hybrid approach with Battery Electric Vehicles (BEVs), Plug-in Hybrid Vehicles (PHEVs), Hybrid Electric Vehicles (HEVs), and Fuel Cell Electric Vehicles (FCEVs).

Alternative fuel vehicles, particularly electric vehicles, often have higher purchase prices than traditional internal combustion engine vehicles. This cost disparity inhibits mass adoption as consumers face initial investment barriers despite potential long-term savings. Lowering upfront costs through incentives, subsidies, or technological advancements remains crucial in driving widespread AFV adoption.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of alternative fuel vehicles (AFV) reached USD 634.5 billion in revenue in 2022 and is set to expand at over 10% CAGR from 2023 to 2032, owing to the increasing government investments in electric battery technology worldwide.

The passenger cars segment generated more than USD 400 billion in revenue in 2022, driven by the rising consumer interest in eco-friendly transportation coupled with the advancements in electric and hybrid vehicle technology.

Asia Pacific market accounted for more than 60% of the revenue share in 2022, attributed to the rising environmental concerns and government support.

Some of the top alternative fuel vehicle companies are BYD Company Limited, Hyundai Motor Company, Ford Motor Company, General Motors Company, Honda Motor Co., Ltd., Tesla, Inc., Kia Corporation, Nissan Motor Corporation, Toyota, and Volkswagen Group.

Alternative Fuel Vehicles Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 242
  • Countries covered: 19
  • Pages: 246
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