Almost 23 Million Autogas Vehicles Will be Operating on Roads Worldwide by 2020, Forecasts Pike Rese
Almost 23 Million Autogas Vehicles Will be Operating on Roads Worldwide by 2020, Forecasts Pike Research
BOULDER, Colo.--(BUSINESS WIRE)-- As a vehicle fuel, liquefied petroleum gas (LPG), commonly known as propane or autogas, has some powerful positive characteristics. It is relatively clean burning, easy to store and transport, has high energy content, and is widely available in many countries. The cost per gallon of autogas is significantly lower than gasoline or diesel in many countries, but increasing interest in natural gas as a vehicle fuel is likely to constrain future growth in the autogas market. Nevertheless, according to a new report from Pike Research, a part of Navigant's Energy Practice, the number of autogas vehicles will rise steadily through the remainder of this decade. By 2020, the study concludes, there will be 22.6 million autogas vehicles on roads worldwide.
"The autogas market is caught in a classic chicken and egg scenario," says senior research analyst David Alexander. "As with any fuel, availability is the key to market growth. Unfortunately, fuel suppliers have taken the view that no need exists to grow the infrastructure if not that many vehicles are equipped to use the fuel. Some form of incentive will be needed to kick-start growth if autogas is going to advance."
Internal combustion engines, both diesel and gasoline, can be readily adapted to use LPG as a dual fuel; converting a gasoline engine to run entirely on LPG is straightforward and not particularly costly. These conversions are usually handled in the aftermarket and not by manufacturers. In some cases, the conversions are done on a vehicle during its final assembly, but often the work is handled by a Tier One supplier at the OEM facility. The conversion cost varies significantly by country; in the United States the conversion cost is estimated to be $3,000.
The report, "Propane Autogas Vehicles", analyzes the opportunities and challenges in the market for autogas vehicle conversions. The report provides an examination of autogas use in vehicles and highlights the countries where such conversions are most popular. The study includes forecasts through 2020 for component sales and installation labor cost by world region, along with a detailed analysis of the benefits, drivers, and market barriers for autogas vehicles. Key market players are also profiled. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of 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 Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYS: NCI) 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 combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, "Propane Autogas Vehicles," is a summary and reflects Pike 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 Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
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