Sales of Natural Gas Vehicles are Expected to Reach Nearly 4 Million Annually by 2024, According to Navigant Research

The North American market for NGVs is likely to be dominated by fleet and commercial operators, report concludes

A new report from Navigant Research examines the global market for natural gas vehicles (NGVs), including global market forecasts for vehicle sales, vehicles on the road, refueling stations, natural gas consumption, and compressed natural gas cylinders through 2024.

Increasingly stringent fuel economy and tailpipe emissions standards in major automotive markets are driving automakers to provide alternatives to traditional gasoline- and diesel-fueled internal combustion engines. For many customers, particularly high-mileage fleet operators and consumers in regions with high retail prices for liquid fuels, NGVs offer an excellent option for reducing both operating costs and CO2 emissions. Click to tweet: According to a new report from Navigant Research, sales of NGVs are expected to grow from 2.3 million annually in 2014 to 3.9 million in 2024.

“Although demand has increased, increased gas production in North America and other regions, along with additional pipelines for distribution in Asia Pacific and Europe, is reducing prices for natural gas,” says Sam Abuelsamid, senior research analyst with Navigant Research. “NGV markets in a number of regions are expected to grow significantly over the next decade, particularly China, which is grappling with serious air pollution issues that are affecting quality of life in major urban areas.”

With a large land mass and comparatively low filling station density, as well as a price differential between gas and liquid fuels, North America’s NGV market is likely to see substantial growth over the next decade, according to the report. However, NGVs are expected to remain a small niche of the region’s total market, with fleet and commercial operators using dedicated private filling stations and making up the primary customer base.

The report, “Natural Gas Vehicles,” examines the global market for NGVs, with a focus on passenger cars, light duty trucks, medium/heavy duty trucks and buses, and commercial vehicles. The study provides an analysis of the key factors expected to influence demand for NGVs, including economic growth, fuel prices, infrastructure availability, acquisition costs, regulations, and technical issues. Global market forecasts for vehicle sales, vehicles on the road, refueling stations, NG consumption, and CNG cylinders, broken down by vehicle segment and region, extend through 2024. The study also analyzes how the market and technology issues will affect automobile and truck manufacturers, suppliers of NG engines, fuel storage, and delivery hardware, and the companies that convert liquid-fueled vehicles to NG. An Executive Summary of the report is available for free download on the Navigant Research website.

About

Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.

About Navigant

Navigant is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals provide services that extend from expert and advisory work through implementation and outsourcing. The firm combines deep technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism to address clients’ needs in highly regulated industries including Construction, Energy, Financial Services and Healthcare. More information about Navigant can be found at navigant.com.

* The information contained in this press release concerning the report, “Natural Gas Vehicles,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.