DUBLIN – The use of compressed natural gas (CNG) vehicles is expected to grow to 19.8 million units within the next four years, according to Research and Markets’ "Global Compressed Natural Gas Vehicle Market 2011-2015" report.
One of the key factors contributing to this market growth is the cost benefits of using CNG, according to the research firm. The Global Compressed Natural Gas Vehicle market has also been witnessing increasing number of bi-fuel vehicles. However, insufficient CNG fueling stations poses the biggest challenge in the market.
The firm cited key vendors dominating this market space, including Fiat S.p.A., Ford Motor Co., Suzuki Motor Corp., and Volkswagen AG. Other vendors mentioned in the report are Honda Motor Co. Ltd., Toyota Motor Corp., Bayerische Motoren Werke AG, and General Motors Co.
According to the report, cost benefits associated with the use of CNG are one of the major drivers of the Global CNG Vehicle market. Moreover, various countries in the European Union (EU) are offering tax benefits for CNG vehicles. Tax incentives for the buyers of CNG vehicles may help to compensate for their higher prices.
Further, the report also discusses that the lack of a widespread network of fuelling stations is one of the reasons why many consumers do not buy CNG vehicles.
For more information, visit www.researchandmarkets.com/research/trcqq3/global_compressed.