Analysis of the Current Situation and Development Trends of China's Natural Gas Vehicle Market in 2020

China Business Intelligence Network News: Natural gas is one of the clean energy sources, and its pollution to the environment is much smaller than that of oil and coal. It is an excellent automotive fuel. Due to its clean nature, natural gas for vehicles has always received policy support in its development process. Compared to compressed natural gas, liquefied natural gas has better cleanliness and higher storage efficiency. In recent years, its use in automobiles has become increasingly widespread, and its production growth rate is relatively fast. According to data from the National Bureau of Statistics, the production of liquefied natural gas in China increased from 1.277 million tons to 11.65 million tons from 2012 to 2019, with a compound annual growth rate of 37.14%.

Data source: Compiled by the National Bureau of Statistics and the China Commerce Industry Research Institute

In recent years, China's natural gas commercial vehicle market has developed rapidly, with significant growth in the production and sales of natural gas commercial vehicles. From 2015 to 2019, the production of natural gas commercial vehicles in China increased from 22105 to 89783, with an average annual compound growth rate of 41.96%.

Data source: Compiled by China Automotive Industry Information Network and China Business Industry Research Institute

The rapid development of natural gas vehicles

At present, the number of fuel vehicles in the automotive industry is still in an absolute advantage, but in recent years, their proportion in the total number of vehicles will gradually decrease, while natural gas vehicles are in a state of rapid development. Among them, CNG, as a natural gas fuel stored in high-pressure gas cylinders for vehicles, has a short range and is more suitable for vehicles in areas with a large number of urban taxis, buses, and gas stations; LNG, as a natural gas vehicle fuel stored in low-temperature liquefied gas storage tanks, has the most prominent advantages of high storage density and long range, making it very suitable for intercity and long-distance passenger and freight transportation. Therefore, it is mainly used in commercial vehicles such as heavy-duty trucks, long-distance buses, and engineering vehicles.

Liquefied natural gas has better economic efficiency

Due to its long transportation distance, large load capacity, and high endurance requirements, commercial vehicles mainly use gasoline, diesel, and natural gas as fuels. Liquefied natural gas, due to its high storage density and long endurance, is also the main part of natural gas fuel for commercial vehicles. On the one hand, natural gas commercial vehicles can extend their service life and reduce repair costs; On the other hand, compared to gasoline and diesel of the same weight, natural gas can provide higher thermal energy, and its unit price is significantly lower than that of gasoline and diesel, so the fuel cost of natural gas vehicles is lower.

Development Trends of Natural Gas Vehicles

1. Positive national policies

According to the "Guiding Catalogue for Industrial Structure Adjustment (2019 Edition)" issued by the National Development and Reform Commission, this industry belongs to the encouraged industries, including "liquefied natural gas technology and equipment development and application" in "7. Petroleum and natural gas", "automotive powertrain, engineering machinery, and large-scale agricultural machinery chains" in "14. Machinery", and "intelligent vehicles, new energy vehicles, and key automotive components research and development capacity building" in "16. Automotive".

2. Green environmental policies promote the development of clean energy vehicles

In recent years, driven by factors such as environmental protection and coal to gas conversion, the country has vigorously promoted the construction of natural gas pipelines, natural gas receiving facilities, and the use and development of clean energy vehicles such as natural gas, which has driven the continuous growth of the industry. In addition, the active technological innovation of enterprises in the industry has formed a virtuous cycle of technological progress, product innovation, and the continuous development of the breadth and depth of application fields, and the industry has shown a prosperous development trend.

For more information, please refer to the "Research Report on Market Prospects and Investment Opportunities of China's Natural Gas Vehicle Industry" released by the China Business Industry Research Institute. At the same time, the China Business Industry Research Institute also provides services such as industry big data, industry intelligence, industry research reports, industry planning, park planning, 14th Five Year Plan, and industry investment promotion.