By December 30, 2015 Read More →

Sales of natural gas vehicles expected to exceed 35 Million from 2015 to 2025

The majority of natural gas vehicles will run on compressed natural gas, report finds


Natural Gas Semi Truck

Compressed natural gas vehicles are stuck in the classic chicken and egg dilemma: Transportation companies won’t buy CNG trucks without more refueling stations, but a much higher population of CNG trucks is required to justify investing in the refueling stations.

Despite this impediment to wider adoption of CNG for medium and heavy-duty vehicles, CNG infrastructure and vehicle sales are slowly expanding. For instance, American Energy News reported in March about Texas enjoying a 25 per cent annual increase in the number of natural gas refueling stations.

A recent report from Navigant Research analyzes the market for natural gas refueling infrastructure and the factors expected to influence its deployment, including global market forecasts segmented by fuel type, station type, and region, through 2025.

Natural gas is an attractive alternative to diesel for medium and heavy duty vehicle sales in meeting regulatory standards and an appealing option for reducing operating costs and carbon emissions in many automotive applications.

However, natural gas can only be used where refueling infrastructure is widely available, and the current density of refueling options are tied mostly to government incentive programs.

“For NG to reach its full potential as a transport fuel, easy access to refueling stations and a large population of NGVs are required,” said Sam Abuelsamid, senior research analyst with Navigant Research.


Sam Abuelsamid, senior research analyst with Navigant Research

The majority of natural gas vehicles use compressed NG (CNG) as opposed to the liquid form of the fuel, according to the report.

Despite its lower energy density compared to liquid natural gas (LNG), CNG is generally considered the superior option for NGVs that are operating within a limited range where extended driving range is not required; LNG also requires extra processing procedures, driving up the overall price of the fuel.

“Without a critical mass of vehicles in need of NG fuel, station operators are unwilling to invest in equipment—and without easy access to stations, retail customers won’t commit to purchasing NGVs,” said Abuelsamid.

The report, Natural Gas Refueling Infrastructure, examines the key factors expected to influence the deployment of NGV refueling infrastructure, including economic growth, fuel prices, NGV sales, equipment costs, and regulations.

The study provides an analysis of how all of these sales factors are projected to affect station operators, equipment suppliers, and gas suppliers. Global market forecasts, segmented by fuel (CNG and LNG), type of station (public vs. private), and region, extend through 2025.

The report also examines the significant technical issues related to NGV refueling infrastructure, as well as the competitive landscape.

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