SANTA CLARA, Calif., March 1, 2017 /PRNewswire/ -- Abundant natural gas from the shale gas revolution, as well as stricter emission and fuel efficiency standards are steering fleets in North America toward lucrative alternative powertrain. This trend is augmented by increased government incentives across major US states and the rise of fueling infrastructure. However, high upfront costs, low oil prices and the launch of hybrid electric powertrains present hurdles to fleet adoption rates.
Frost & Sullivan's latest analysis on North American Medium Heavy-Duty Natural Gas Truck and Bus Market, Forecast to 2025, finds market penetration of natural gas (NG) MD and HD trucks is expected to reach 12.7 percent and 7.2 percent respectively by 2025. Furthermore, the study examines key market trends influencing the North American natural gas commercial vehicle market.
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"As the market experiences increased propane penetration rates, OEMs need to expand their engine portfolio with gasoline engines or forge partnerships with technology experts," noted Frost & Sullivan Mobility Research Analyst Saideep Sudhakar. "The entry of Nikola and Tesla in the hybrid and electric truck market and Provost and Temsa in the alternative fuel buses market, will prompt major OEMs to launch similar offerings."
Cummins and Westport HD will be key Tier 1 engine suppliers shaping the market across North America with extensive natural gas engine portfolios covering a wide variety of duty cycle applications. Ford Motor Company is likely to remain the market leader in the Class 4-5 segment, while facing competition from the General Motor-Navistar partnership.
"By 2025, 9.8 percent of all North American medium-heavy duty trucks will be powered by natural gas engines, while 18.9 percent of all North American school bus, transit bus and coaches will be powered by natural gas," stated Sudhakar. "In a saturated market that depends on already-launched models, OEMs must develop gasoline engines capable of running on propane for Class 6-7 trucks and school buses for sustained growth."
North American Medium Heavy-Duty Natural Gas Truck and Bus Market, Forecast to 2025, is part of Frost & Sullivan's Mobility: Automotive & Transportation Growth Partnership Service program.
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North American Medium Heavy-Duty Natural Gas Truck and Bus Market, Forecast to 2025
Corporate Communications – North America
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