NEW YORK, NY -- (Marketwire) -- 10/16/12 -- Large fuel savings and investment in Liquid Natural Gas (LNG) refueling stations are the principal developments driving the market for natural gas vehicle components, specifically those for semis and other trucks, in the U.S. and China. According to "Global Markets for Natural Gas Vehicle Components," a new report from energy research publisher SBI Energy, the market for NGV engines will reach $1.6 billion in the U.S. and $2.2 billion in China through the next ten years.
In the United States, Clean Energy Fuel's Natural Gas Highway Plan calls for 150 LNG stations in 33 U.S. states along key highways where no stations currently exist; roughly 300 LNG stations would be sufficient to serve 85% of the U.S.-Canadian long haul trucking market. China has approximately 350 LNG stations, with one fuel retailer alone planning to expand its network to over 1,500 LNG stations by 2015.
"There's a lot of momentum already in place for trucking populations to rise consistently in the U.S. and Chinese markets in the coming years," noted Emil Salazar, SBI analyst and author of the report. "Further down the road, other Asian nations and potentially countries in Europe will represent expansion markets with the necessary investment in LNG road infrastructure."
For U.S. trucks, fuel prices for compressed natural gas (CNG) recently averaged only $2.08 a gallon, compared to diesel prices of $3.68; since 2005, these margins have remained at least 25% and have reached 40%. Substantial price margins are expected to remain between natural gas fuels and diesel fuel through at least the next ten years.
"The fuel savings here are long-term, so investment for NGV components will likely continue long after 2022," added Salazar. "Globally, the market for these components is growing at nearly 20% annually for the next ten years."
"Global Markets for Natural Gas Vehicle Components" focuses on the core NGV components, including onboard natural gas fuel storage cylinders and tanks, fuel delivery systems, and dedicated natural gas engines, revealing global, regional and country market data through 2022. The report further details which vehicle segments are seeing growth, including light, medium and heavy duty vehicles, such as cars, trucks, buses, vans, semi-trailers and utility vehicles. It takes a comprehensive approach, examining external factors and trends affecting this market, including topics such as the global transportation fuel pricing and supply on an individual country basis.
About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services. To learn more, visit www.sbireports.com.
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