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Global Focus on Reducing Vehicle Emissions Boosts Market for LPG/CNG Vehicles and Conversion Kits - As concerns over global warming continue to increase, the automotive industry is facing tremendous pressure to reduce vehicle emissions such as nitrous oxide (NOx), carbon dioxide (CO2) and particulate matter (PM)
Global Focus on Reducing Vehicle Emissions Boosts Market for LPG/CNG Vehicles and Conversion Kits

 

PRZOOM - /newswire/ - London, United Kingdom, 2007/04/18 - As concerns over global warming continue to increase, the automotive industry is facing tremendous pressure to reduce vehicle emissions such as nitrous oxide (NOx), carbon dioxide (CO2) and particulate matter (PM).

   
 
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As concerns over global warming continue to increase, the automotive industry is facing tremendous pressure to reduce vehicle emissions such as nitrous oxide (NOx), carbon dioxide (CO2) and particulate matter (PM) because of the harmful effects of these gases on the environment. At the same time, the prices of conventional fuels such as gasoline and diesel are increasing. Collectively, these two factors drive the development of alternative and more environmentally-friendly fuels such as liquefied petroleum gas (LPG) and compressed natural gas (CNG).

New analysis from Frost & Sullivan (automotive.frost.com), Evaluation of Global Market Potential for LPG and CNG Vehicles and Alternative Fuel Conversion Equipment in the OE and Aftermarket, reveals that the number of LPG/CNG kits sold globally was 2.9 million in 2006 and estimates this will reach 8.0 million by 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the latest analysis of Evaluation of Global Market Potential for LPG and CNG Vehicles and Alternative Fuel Conversion Equipment in the OE and Aftermarket, then send an email to Michael Banks, Corporate Communications, at michael.banks[.]frost.com with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by email.

“The global automotive industry is making emission reduction a top priority and this is leading to increased development of LPG/CNG as alternative fuels and associated conversion kits,” according to Frost & Sullivan Research Analysts. “With the provision of appropriate infrastructure and strong support from governments and fuel suppliers, LPG/CNG will gain greater acceptance as alternative fuels across the globe.”

Several initiatives and legislative measures implemented by the governments of various countries reflect their commitment to promoting more eco-friendly fuels. The European Union, for instance, is introducing more stringent next-generation emission standards (EURO 5 by 2009) and plans to apply further restrictions on CO2 emissions for new vehicles.

In Asia, India and Pakistan have enforced mandatory conversion to alternative fuels for all public transport in certain local regions. Both these countries as well as Iran are expected to record the highest growth in LPG/CNG sales. Latin American countries are also moving toward large-scale utilization of CNG vehicles with Argentina and Brazil being the largest consumers of CNG kits in the world.
LPG kits will continue to mainly dominate the market in the EU, Russia and Turkey, and also other markets in the rest of the world. India and Iran accounted for 20 per cent of global sales of CNG kits in 2006, and this is likely to increase to more than 42 per cent by 2012.

While aftermarket sales of LPG/CNG kits currently hold more than 85 per cent of total global kit sales, original equipment manufacturer (OEM) kit sales will steadily increase to reach more than 27 per cent of the total number of units sold by 2012.

Competition from other alternative fuels, such as ethanol and bio fuels that are just as eco-friendly, could challenge the growth of the LPG and CNG markets. The lack of appropriate infrastructure for the distribution and refuelling of these fuels and low levels of customer awareness about the benefits of alternative fuels are other factors hindering market development.

“It will require the combined efforts of car manufacturers, fuel suppliers and local governments to address these challenges,” says Rajagopalan. “Providing the required infrastructure and raising awareness levels by promoting the advantages of alternative fuels will considerably enhance the growth prospects of LPG and CNG vehicles and of associated conversion equipment.”

Evaluation of Global Market Potential for LPG and CNG Vehicles and Alternative Fuel Conversion Equipment in the OE and Aftermarket is part of the Automotive Subscription, which also includes research in the following markets: Strategic Analysis of the European Market for Micro Mild and Full Hybrids; Strategic Analysis of the European Market for Advanced Automotive Gasoline Engine Technologies; A Strategic Assessment of the ACEA Agreement and its Implications on European OEMs and European Market for Next Generation Diesel Engine Technologies. All research included in subscriptions provides detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics and demographics.

 
 
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Global Focus on Reducing Vehicle Emissions Boosts Market for LPG/CNG Vehicles and Conversion Kits

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