BOULDER, Colo.- The current high costs of gasoline and diesel fuel, along with the substantial and growing supplies of low-cost natural gas in many countries, are leading to renewed interest from both consumers and fleets in natural gas vehicles (NGVs). What’s more, NGVs produce lower greenhouse gas (GHG) emissions, particulate matter, and nitrogen oxide than gasoline or diesel-powered vehicles, giving governments looking to reduce GHGs a tool to meet those objectives. According to a new report from Pike Research, a part of Navigant’s Energy Practice, the worldwide market for light duty NGVs will grow steadily over the next 7 years, reaching 3.2 million vehicles sold in 2019. This will result in a cumulative total of 25.4 million light duty NGVs on the road by 2019, the market intelligence practice forecasts.
“While the sparse variety of available vehicle models and the slow spread of NGV refueling infrastructure remain key concerns in many countries, it’s clear that the low cost of natural gas, combined with geopolitical forces, will expand the market for these vehicles,” says senior research analyst Dave Hurst. “Many governments have promoted the growth of NGVs, either by offering reduced taxes on the vehicles or by increasing investment in refueling infrastructure.”
Light duty natural gas trucks, such as small commercial vehicles, will outsell passenger cars in most regions, because consumer demand for NGVs continues to lag. However, Latin America and the Middle East are the exceptions, where strong consumer markets and taxi usage in Argentina, Brazil, Iran, and Egypt are accelerating passenger car sales. The largest regional market for NGVs by the end of this decade will be Asia Pacific, thanks largely to Pakistan, which had 2.7 million NGVs on the road at the end of 2012, as well as strong growth in countries like Thailand, India, and China. Sales of NGVs will also grow at a healthy pace in North America, with a compound annual growth rate of 10.2% from 2012 to 2019.
Source: Buisness Newswire / Pike Research