Despite being the largest markets in terms of vehicle population, China and the US accounted for a mere 6.6% and 0.8% share of NGV population, respectively, in 2011, reflecting the existence of major untapped vehicle population. The number of NGVs per refueling stations in both the countries is comparatively less than other major NGV markets in the world, displaying the infancy of NGV infrastructural investments in the region. Besides these factors, the need to minimize the dependency on foreign oil also triggered Government initiatives in both the regions.
The US Government proposed initiatives to provide tax incentives for converting truck and bus fleets to NGVs, and to fuel NGV infrastructural investments. Meanwhile, in China, the Beijing Municipal Government entered into an agreement with CNPC to start LNG powered bus route. Moreover, China and the US’ advantage of being the leading countries with largest quantity of shale gas reserves is expected to reinforce Governments in both the regions to initiate new regulations to boost NGV uptake.
As stated by the new market research report on natural gas vehicles, NGV population is projected to witness high growth even in oil rich regions such as Iran, owing to constraints in refined fuel supply in the region. The Middle East region is forecast to witness the fastest growth in NGV population, followed by Asia-Pacific, and Europe. Asia-Pacific accounts for the largest population of NGVs worldwide.
Source: Global Industry Analysts, Inc.