Global CNG vehicles market is expected to show growth over the forecast period owing to increase in demand for Bi-fuel. They offer similar performance as compared to gasoline powered automobiles, and comparatively low cost of CNG to gasoline is expected to drive market growth. Increasing concern for environment may drive the demand of compressed natural gas vehicles over the next seven years as they provide comparatively less harmful gas emissions as compared to gasoline or diesel powered automobile.
Government initiatives toward reduction of air pollution and encouraging adoption of eco-friendly technologies are expected to favor industry growth. Easy availability of gas powered automobiles and easy financing scheme may be major factor driving industry demand over the forecast period. Increasing compressed natural gas station may also enable switching to these environment friendly automobiles.
Technological advancement leading to better performance, fuel efficient and low cost may be major factor driving revenue growth. These automobiles offer safety benefit such as fuel storage cylinders of CNG automobiles is much stronger than gasoline or diesel tanks. In case of any accident compressed natural gas dissipate into atmosphere while gasoline or diesel pool on the ground. Tax incentives given by government such as state and federal government of the U.S. may also favor industry growth over the next seven years.
Growth of new eco-friendly fuel may hinder the CNG vehicles market over the forecast period. They are costly than petrol or diesel powered automobiles, which may affect revenue growth, but the lower fuel cost is anticipated to offset the difference. Low engine capacity and power of these vehicles may restrict industry demand.
The market can be segmented as light commercial, and passenger cars. Passenger cars are anticipated to be key segment over the forecast period owing to expanding gas infrastructure, dual fuel option and cost effectiveness. Light commercial vehicles may see an increase in adoption CNG powered engines over the next seven years.
Asia Pacific is expected to be key regional segment followed by North America and Europe. India, China and Iran are anticipated to be major regional segment in Asia Pacific. Presence of price conscious end user and higher price of crude oil may boost Asia Pacific demand over the forecast period. Europe is anticipated to witness growth owing to strict emission standard by European Union (EU).
Key industry participants include Fiat S.P.A., Ford Motor, General Motors, Hyundai Motor Group, Suzuki Motor Corporation, Opel, Volkswagen, Honda Motor Co. Ltd., Landi Renzo, Impco, Skoda Auto, Venchurs, Westport, and Tomasetoo Achile . Vollkswagen offers a wide range of compressed natural gas powered vehicles such as Volkswagen up! EcoFuel, Voltswagen Passat 1.4 Variant EcoFuel, Voltswagen Touran 1.4 EcoFuel, Volkswagen Caddy Maxi 2.0 EcoFuel.
These automobiles can also run on petrol however they are designed primary for CNG and petrol option is integrated as back up. According to Volkswagen EcoFuel produces around 80% less carbon monoxide and 80% less nitrous oxides as compared to petrol engines. Honda Motor launched its new variant of CNG compatible Honda Amaze.
In May 2015, Chevrolet announced that it will expand its compressed natural gas lineup to include bi-fuel Silverado 3500HD chassis cab to operate vehicles on compressed natural gas. In May 2015, Ford Motor announced that it will offer 2016 F-150 with available gasoline prep package that will enable 5.0-liter V8-powered models to run on compressed natural gas or propane and this may make it only manufacture of CNG/Propane half ton pickup.
In May 2015, SEAT, Volkswagen-Audi Spain, and EDP announced the signing of Memorandum of Understanding (MoU) to promote development of compressed natural gas automobiles and the infrastructures. In November 2013, SEAT and GAS NATURAL FENOSA joined and Volkswagen Group signed strategic agreement to promoted alternate fuel solution in Spain.
In December 2013, SEAT handed over alternated fuel power automobile to port of Barcelona to promote this technology. This hand over was result of strategic agreement signed between them to promote eco-friendly technology.
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