Natural Gas Vehicles sales to reach 3.9mn annually by 2024

Natural gas vehicle

Natural Gas Vehicles (NGVs) market is expected to reach nearly 3.9 million annually by 2024, says a new research from Navigant Research.

In 2014, the market produced 2.3 million.

The market for NGVs is likely to be dominated by fleet and commercial operators, the report said.

The rise in gas production in North America and other regions, and additional pipeline for distribution in Asia Pacific and Europe, is reducing prices for natural gas, the research said.

NGVs are useful especially for high-mileage fleet operators and consumers in regions with high retail prices for liquid fuels. They help them reduce operating costs and CO2 emissions.

The market is driven by the increasingly stringent fuel economy and tailpipe emissions standards in major automotive markets.

According to 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.

The report also predicts substantial growth in North America over the next decade mainly due to a large land mass and comparatively low filling station density.

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 said.

In related reports, TechNavio announced global gasification market is expected to grow at a CAGR of 13.1 percent from 2014-2019. Meanwhile global biomass pellets Market is expected to grow at a CAGR of 11 percent from 2014-2019.

“Use of renewable energy resources will inevitably increase the use of energy from the biomass industry, which is expected to drive the market over the next four years,” TechNavio said. Biomass helps reduce greenhouse gas emissions significantly, which is contributing to the growth of the market.

Rajani Baburajan

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