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Executive Analysis of the European and North American LPG and CNG Original Equipment Market Product Image

Executive Analysis of the European and North American LPG and CNG Original Equipment Market

  • Published: January 2012
  • Region: Europe, North America
  • 100 Pages
  • Frost & Sullivan

This study presents a strategic analysis of the European and North American, LPG and CNG passenger cars market. In addition to an overview of the LPG and CNG OEM market size and vital model line-ups, this study also presents the global market drivers, restraints and industry challenges. Furthermore, it draws a top level comparison of alternate fuel technology with other competing powertrains. It presents an alternate fuel vehicle demand analysis in Europe and North America along with the impact of the changing trends of legislation, powertrain technology and infrastructure on the alternate fuel segment. It concludes with OEM and supplier market opportunities, recommendations and strategies for this segment.

1. Research Objective, Methodology, Background and Scope

2. Executive Summary

3. External Challenges: Drivers and Restraints—LPG and CNG Passenger Car Market

4. Market Overview

5. Forecast and Trends—LPG and CNG Passenger Car Market

6. Market Share and Competitive Analysis—LPG and CNG Passenger Car Market

7. OEM Profiles: Key Market Participants for Europe and North America

8. Key OEM Profiles—Europe

9. Key OEM Profiles—North America

10. The Last Word

11. Appendix

This Frost & Sullivan research service titled Executive Analysis of the European and North American LPG and CNG Original Equipment Market offers a comprehensive overview of liquefied petroleum gas (LPG) and compressed natural gas (CNG) markets worldwide. It discusses drivers, restraints and opportunities affecting market prospects, forecasts market growth rates and examines key technology and competitive trends. It also offers strategic conclusions and future outlook. In this research, Frost & Sullivan's expert analysts thoroughly examine the following: North American and European LPG and CNG passenger vehicle and light commercial vehicle (LCV) market.

Market Overview

Potential for Economies of Cost and Lowered Emissions to Accelerate Uptake of Alternate Fuel Vehicles

The low cost of conversion and prospect of significant emission reduction will increase the penetration of alternate fuels in Europe and North America. However, the key to sustained growth in the alternate fuel vehicle market will be legislation and the development of enhanced refuelling infrastructure. “The demand for low-cost emission reduction technologies has given a significant boost to the alternate fuel market,” notes the analyst of this research. “A noticeable trend among upcoming OEMs models is that of chassis architectures and engines being designed to ensure alternate fuel compatibility. This will support easy transition, even as alternate fuel infrastructure improves across Europe and North America.”

In North America, initially at least, conversion will suit fleet owners since running costs are a major factor and fleet owners stand to benefit from up to 50 per cent in savings, along with an improvement of over 25 per cent in terms of emission. However, legislative supports remains to be extended, even as related infrastructure lags behind. The European market has already witnessed a boom in the alternate fuel vehicle industry with Italy and France trading over 300,000 vehicles, annually. Alternate fuels also offer an opportunity for OEMs struggling to meet ACEA targets. Liquefied petroleum gas (LPG) is still expected to lead for the next four to five years, while the compressed natural gas (CNG) network straggles behind in Europe and North America.

Legislative Support and Wider Product Range to Promote Market Growth

The overall market will be driven by OEMs seeking to reduce their fleet emissions and running costs, which are close to half of gasoline prices. However, engine development and the increased cost of conversion will have a direct impact on OEM and customer preference. “Insufficient infrastructure, high cost of development and ease of adoption of alternate fuel vehicles represent the main obstacles to market development,” explains the analyst. “Competitive pressure from other alternate powertrain technologies also poses a major threat to the alternate fuel industry.”

Promoted as a medium to save costs and reduce emissions, CNG and LPG are linked with certain safety issues in the minds of potential users, making it imperative to increase consumer awareness about safety-related issues. Convincing governments to offer a standardised incentive scheme to ease competitive pressure on alternate fuels, irrespective of the technology, for at least five to ten years, will also support market advancement. In North America, the alternate fuel market is at a nascent stage. For alternate fuel technology to become popular, OEM interest and product lines will have to increase. The government has to realise the demand for emission reduction and offer long-term incentives. At present, only one product is available in the passenger vehicle segment, once other OEMs decide to introduce their products in this field, consumers may have a wider perspective of the technology.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

- Liquefied petroleum gas (LPG)
- Compressed natural gas (CNG)

By Geographic Region

- North America
- Europe

Format Properties
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Enterprisewide The report will be emailed to you. The report is sent in PDF format. This is an enterprise license, allowing all employees within your organisation access to the product.
Enterprisewide A copy of the report will be emailed to you and a printed copy will be shipped to you. The Electronic copy is sent in PDF format. This is an enterprise license, allowing all employees within your organisation access to the product.
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