“OEMs need to develop market and application focused on technologies that complement current state of natural gas infrastructure with forward compatibility with upcoming CNG/LNG infrastructure. Focus should also be on supply chains that enable reduction of upfront cost associated with these vehicles, which are currently perceived by many potential customers as being prohibitive,” noted Frost & Sullivan Automotive & Transportation Consulting Analyst Saideep Sudhakar. “However, OEMs and suppliers are working both independently and synergistically, through a combination of vertical and virtual integration, to add growth momentum to this steady, evolving market segment.”
OEMs’ willingness to differentiate products through technology partnerships is leading toward increasing focus on compression ignition and dual fuel technologies. Compression ignition would facilitate the use of NG vehicles for long haul application, which would compensate for the higher upfront cost – provided the fuel infrastructure and diesel NG price differential exists.
Source: Frost & Sullivan.
