Frost & Sullivan report
AFV market expected to reach 1,150,000 sales by 2018 in both Europe and N.A.
The low cost of conversion and prospect of significant emission reduction will increase the penetration of alternative fuels. However, the key to sustained growth in the alternate fuel vehicle market will be legislation and the development of enhanced refueling infrastructure. Executive Analysis of the European and North American CNG and LPG Original Equipment Market finds that the AFV market is set for close to 900,000 in unit sales in the European market and nearly 250,000 in unit sales in the North American market in six years.
"The demand for low-cost emission reduction technologies has given a significant boost to the alternate fuel market," notes Frost & Sullivan Research Analyst Priyank Aggarwal. "A noticeable trend among upcoming OEMs models is that of chassis architectures and engines being designed to ensure alternate fuel compatibility. This will support easy transition, even as alternate fuel infrastructure improves across Europe and North America."
In North America, initially at least, conversion will suit fleet owners since running costs are a major factor and fleet owners stand to benefit from up to 50 per cent in savings, along with an improvement of over 25 per cent in terms of emission. However, legislative supports remains to be extended, even as related infrastructure lags behind.
The European market has already witnessed a boom in the alternate fuel vehicle industry with Italy and France trading over 300,000 vehicles, annually. Alternate fuels also offer an opportunity for OEMs struggling to meet ACEA targets.
The overall market will be driven by OEMs seeking to reduce their fleet emissions and running costs, which are close to half of gasoline prices. Convincing governments to offer a standardised incentive scheme to ease competitive pressure on alternate fuels, irrespective of the technology, for at least five to ten years, will also support market advancement.
Source: Frost & Sullivan.