According to a new report from Pike Research, a part of Navigant’s Energy Practice, the number of propane autogas vehicles sold worldwide each year will surpass 1.4 million by 2020.
With a cost per gallon significantly lower than gasoline or diesel in many countries, and at least an initial existing infrastructure, the vehicle market for liquefied petroleum gas (LPG), otherwise known as propane or autogas, seems poised for growth. However, increasing interest in compressed natural gas as a vehicle fuel, along with hesitation by both biofuel producers and auto manufacturers to make a significant investment in autogas, will most likely limit future growth in this sector to a slow and steady pace, according to Pike.
“Autogas is relatively clean burning, easy to store and transport, has high energy content, and is widely available in many countries,” said Senior Research Analyst David Alexander. “In countries with government incentives, a commitment to limiting fuel taxes, infrastructure to make the fuel easy to obtain, and the availability of vehicles, this market will accelerate. That’s unlikely to happen, though, in countries where autogas is not already established.”
Turkey, where more than 200,000 propane autogas vehicles are sold each year, is by far the largest market in the world for these vehicles, according to the report. Because most applications for LPG have the fuel delivered to on-site storage tanks, the most popular automotive use in many countries is for fleet operations, where vehicles return to a central depot every day.
The report, “Propane Autogas Vehicles,” analyzes the opportunities and challenges in the market for autogas vehicle conversions, examining propane autogas use in vehicles and highlighting the countries where such conversions are most popular. The study includes forecasts through 2020 for component sales and installation labor cost by world region, along with a detailed analysis of the benefits, drivers, and market barriers for autogas vehicles. Key market players are also profiled. An executive summary of the report is available for free download on the Pike Research website.