Global Light and Heavy duty Natural Gas Vehicle Market 2017-2021
About Light and Heavy Duty Natural Gas Vehicle
Natural gas vehicles (NGV) are alternative fuel vehicles that use natural gas in place of diesel or gasoline as fuel for combustion. Natural gas is used in two forms in automobiles: compressed natural gas (CNG) and liquefied natural gas (LNG). LNG is stored as a supercooled liquid and is used for combustion. A temperature range between -184 degrees Fahrenheit and -274 degrees Fahrenheit is maintained for the storage of LNG. The advantage of using LNG is that it has a high calorific value that is comparable to that of gasoline. However, it needs high investment in infrastructure to maintain the temperature of the cryogenic liquid. CNG is stored in a gaseous form and an odorant is added to it to detect leakage. Normally, it is stored in high-pressure tanks with a pressure range of 20 to 25 MPa.
Technavio’s analysts forecast the global light and heavy duty natural gas vehicle market to grow at a CAGR of 5.65% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global light and heavy duty natural gas vehicle market for 2017-2021. To calculate the market size, the report presents a comprehensive, reliable, and the result of extensive research, both primary and secondary.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Light and Heavy Duty Natural Gas Vehicle Market 2017-2021
Technavio recognizes the following companies as the key players in the global light and heavy duty natural gas vehicle market: CNH Industrial, Daimler Trucks, General Motors, MAN Truck & Bus, and Volvo Trucks.
Other Prominent Vendors in the market are: Beiqi Foton Motor, BRC Gas Equipment, Cummins Westport, Dongfeng Motor, Fiat Chrysler Automobiles, Ford Motor, GAZ, Honda, IMPCO Technologies, ISUZU MOTORS, KAMAZ, Landi Renzo, Navistar, Renault, and Volkswagen.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is development of near-zero emission NGV. Many NGV manufacturers have been focusing on developing near-zero emission natural gas-powered engines to increase the popularity of NGVs and to ensure compliance with the emission norms set by regulatory bodies. Cummins Westport, one of the leading manufacturers of alternate fuel engines, has already started the production of the near-zero variant (NZ), an 8.9-liter engine that will be commercially available in FY2017-FY2018. The company claims that the NZ variant of the engine will have emissions 90% lower than the regulations set by the US Environmental Protection Agency (EPA) and California Air Resources Board (CARB). The engine will have nitrox emissions as low as 0.02 grams/bhp/Km.”
According to the report, one driver in market is stricter emission standards. Many countries are working to implement strict emission norms in response to environmental and health concerns. Reducing automotive emissions and fuel consumption are the main objectives behind setting tougher emission norms. Such legislations will lead to the increased adoption of NGVs especially in the LCV and HCV segment as the emissions from diesel-powered light-duty and heavy-duty trucks are much more than that of natural gas-powered engines. Nitrogen oxide emissions are also higher in diesel engines, thus mandating the installation of urea filters to reduce nitrox emissions. The resultant increase in the prices of diesel engines will further boost NGV adoption rates.
Further, the report states that one challenge in market is higher differential cost of NGV for heavy-duty vehicles. The majority of the engines manufactured today are compatible with either gasoline or diesel. Alternative fuels like LPG, CNG, and LNG require the installation of a kit to make the engine compatible with the fuel type. Gasoline engines are the cheapest to manufacture. In the passenger vehicle segment, the sum of gasoline engine cost and the differential cost for the installation of kits for CNG and LNG fuel types are lower compared to the cost of diesel engines owing to lower engine displacement and size. However, the differential cost rises as the engine displacement increases. For heavy-duty vehicles, the cost of the kit may be more than that of the diesel engine itself.
CNH Industrial, Daimler Trucks, General Motors, MAN Truck & Bus, Volvo Trucks, Beiqi Foton Motor, BRC Gas Equipment, Cummins Westport, Dongfeng Motor, Fiat Chrysler Automobiles, Ford Motor, GAZ, Honda, IMPCO Technologies, ISUZU MOTORS, KAMAZ, Landi Renzo, Navistar, Renault, Volkswagen.