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Incentives and Federal Grants to Propel the Adoption of Hybrid Commercial Vehicles in North America and Europe Finds Frost & Sullivan - The hybrid commercial vehicles market in North America and Europe is fuelled by the benefits hybrids offer over conventional vehicles
Incentives and Federal Grants to Propel the Adoption of Hybrid Commercial Vehicles in North America and Europe Finds Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2010/08/02 - The hybrid commercial vehicles market in North America and Europe is fuelled by the benefits hybrids offer over conventional vehicles.

   
 
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Better fuel efficiency, lower emissions and fewer maintenance costs are all highly desirable features, especially in sprawling mega cities and increasingly congested urban clusters. In the short-term, incentives and federal grants are expected to propel the adoption of hybrids.

New analysis from Frost & Sullivan (automotive.frost.com), Strategic Analysis of North American and European Hybrid Truck, Bus and Van Market, finds that the hybrid truck, bus and van market is expected to grow from 4.1 thousand units in 2009 to 222 thousand units by 2016. The products covered in this research service are: light commercial vehicles, medium commercial vehicles, heavy commercial vehicles and buses.

"Amongst alternative powertrain technologies and fuels, hybrid commercial vehicles exert the least pressure on the existing energy and transportation infrastructure and require only minimal modification to the current fuelling infrastructure." says Frost & Sullivan Global Programme Manager, Sandeep Kar. "This aspect of hybrid commercial vehicles is acting as one of the strongest market drivers in North America and Europe, attracting governments, commercial vehicle manufacturers, and potential consumers alike towards supporting and accepting hybrid commercial vehicles."

In the commercial vehicle industry, the return-on-investment (ROI) potential is a key determinant for adoption of new technologies. Fuel price volatility, government incentives and low lifecycle costs associated with hybrid trucks are all in favour of hybrid commercial vehicles.

However, hybrid trucks feature energy storage systems, control and power electronics and rotating machines, which are expensive technologies creating considerable cost barriers to potential adopters. Furthermore, storage systems such as batteries must be replaced every four to five years based on the vocational application.

"Currently, the high upfront cost associated with hybrids is countered with federal grants, incentives, and tax rebates," explains Kar. "Although such incentives offer relief in the short term, for hybrids to be commercially viable in the long term, the upfront cost difference should reduce considerably."

Private fleets in North America and Europe have emerged as early adopters of hybrid commercial vehicles. However, robust volume growth can be attained through the penetration of for-hire fleets.

"Standardization of key enabling technologies will not only reduce R&D expenses and complexity but also create a foundation for launching aggressive price reduction strategies that are necessary for stoking market growth," concludes Kar.

If you are interested in more information on this study, please email Monika Kwiecinska, Corporate Communications, at monika.kwiecinska[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Strategic Analysis of North American and European Hybrid Truck, Bus and Van Market is part of the Automotive & Transportation Growth Partnership Services programme, which also includes research in the following markets: Strategic Analysis of North American and European Electric Truck and Bus and Van Market and Comparative Analysis of Global Emission and Safety Regulations for Commercial Vehicles. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Strategic Analysis of North American and European Hybrid Truck, Bus and Van Market / M4F2

 
 
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Incentives and Federal Grants to Propel the Adoption of Hybrid Commercial Vehicles in North America and Europe Finds Frost & Sullivan

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+48 22 390 4127 monika.kwiecinska[.]frost.com
 
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