Global Natural Gas Vehicle Population to Reach 28.7 Million Units by 2015, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Natural Gas Vehicles (NGV) market. Although current growth remains moderated by the recent world economic recession, global market for natural gas vehicles (NGV) is nevertheless expected to recover poise and register 28.7 million units in vehicle population by the year 2015. Primary factors fingered to drive this growth include economic and promotional support extended by governments, volatility in oil prices, technology innovations that further the practicality of NGVs as an alternative fuel vehicle technology and focus of the automotive industry on cleaner vehicle concepts. Sturdy demand patterns in developing markets, particularly Asia-Pacific, also augurs well for the market.

Natural Gas Vehicles: A Global Strategic Business Report

The automobile industry is among the worst hit industries by the recession. Demand for cars witnessed hurting declines exacerbating the already existing woes of excess production capacities. The soft business climate, which characterized the industry even before the recession, worsened even further with the recession inducing punishing falls in auto sales, dragging the industry’s major giants into the red. Slowdown in business operations, including global trade, act as impediments to growth brought about by the economic recession. Current market distortions are manifested in the form of restricted access to credit, decline in purchasing power, reduction in household wealth and the resulting postponement of new car purchases, decline in per capita automobile travel and volatile fuel prices, which although currently jumpy are skewed more sharply for future upward corrections. The bailout packages offered as succor to the bleeding companies Chrysler, Ford and GM, stand testimony to the deterioration of the automotive sector. Although the overall deceleration in market activity is undeniable, developing countries have recorded diverse trends in automobile demand. As against the stagnant demand in developed countries, developing countries like China and India have posted increase in sales after a temporary knee-jerk loss in growth momentum.

Against the background of an automotive industry that is currently in a state of flux triggered by the recession, social, demographic, and environmental trends, the natural gas vehicles (NGVs) market not surprisingly faces a mixed bag of challenges and opportunities. The trickle down impact of the depressing business climate in the automotive industry on the NGV market is reflected in the growth rates, which have largely failed to meet the optimistic expectations of the pre-recession era. Sales of NGVs recorded disproportionate declines in the year 2009, with North America reporting the worst erosion in sales, as a result of the general tendency of consumers to either postpone or even cancel purchase of expensive automobiles during difficult economic conditions. With the financial crunch resulting in deep cutbacks on capital expenditures, as automobile manufacturers turn defensive against uncertain economic prospects, investments in R&D and commercialization of alternative technology vehicles have taken a hit. This in turn has displaced timely development of NGVs. Over the last two years, lower oil prices have corrupted the economic incentive for buying NGVs. Preoccupation of both the auto manufacturers and consumers in dealing with the current crisis weakens the emphasis on cleaner vehicle technologies in the immediate short-term.

However, as the year 2010 limps out on a broken economy and paralyzed credit markets begin to revive, market prospects are expected to look up. Additionally, the stimulus and rescue packages offered to automotive industries by governments in Japan and Korea, among others, are being designed to support environmentally friendly vehicles, which in turn augurs well for the NGV market. In the post recession period, sales of eco-friendly automobiles, which qualify as next-generation alternative-energy powered vehicles critical to meet carbon reduction goals, will remain important for the automotive industry’s long-term growth. Natural Gas Vehicles (NGVs) especially represent a bridge that connects to the lower carbon future envisaged by most governments worldwide.

Key factors expected to drive future growth in the market include growing levels of acknowledgment, among governments, consumers and fleet managers alike, over the environmental benefits of lower emissions from NGVs, and the instrumental role played by NGVs in achieving national self-sufficiency in meeting energy needs. Technology developments that help result in incremental improvements in basic NGV engineering design, such as, durability of components like natural gas regulators and on-board LNG tanks, enhancement in engine performance, will also aid in turbocharging the market’s growth in the medium to long-term period. R&D revolving around storage infrastructure/technologies for compressed natural gas (CNG) and liquefied natural gas (LNG), is also deemed as critical to the market’s future growth.

As stated by the new market research report on natural gas vehicles, Asia-Pacific is the largest and the fastest growing regional market for NGVs, by vehicle population. The region continues to remain a key growth area for the total market, displaying a robust CAGR of more than 25% over the analysis period. Economic growth, increased spending power, and rise in demand for automobiles, particularly in regional powerhouses such as China and India, have been driving NGV sales in Asia-Pacific over the recent years, thereby adding to the NGV population. Additionally the incentives, and mandates for aggressively converting vehicles to NGVs are driving increased adoption of NGVs in the region.

Major market participants include AB Volvo, Alternative Fuel Systems (2004) Inc., Bayerische Motoren Werke AG, Chrysler Group LLC, Caterpillar Inc., Cummins Inc., Daimler AG, Fiat S.p.A., Ford Motor Company, General Motors Corporation, Honda Motor Co. Ltd., Hyundai Motor Company, Isuzu Motors Ltd., Landi Renzo S.p.A., Mazda Motor Corporation, Mitsubishi Motors Corporation, Nissan Motor Co., Ltd., PSA Peugeot Citroën S.A., Renault SA, Suzuki Motor Corporation, GFI Control Systems, Toyota Motor Corporation, Volkswagen AG, among others.

The research report titled “Natural Gas Vehicles: A Global Strategic Business Report”, announced by Global Industry Analysts, Inc., provides a comprehensive review of trends, product developments, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for the United States, Canada, Japan, Europe (France, Germany, UK, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (Pakistan, China, India, Australia, Bangladesh, New Zealand, Malaysia, Indonesia, and Rest of Asia-Pacific), Latin America (Argentina, Brazil, Colombia, Venezuela, Chile, Mexico, and Rest of Latin America) and Rest of World.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Natural_Gas_Vehicles_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone 408-528-9966
Fax 408-528-9977
Email press(at)StrategyR(dot)com
Web Site http://www.StrategyR.com/

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