Proliferation of Natural Gas Fuel Augments Sustainable Growth for Medium-Heavy Duty Truck and Bus Markets in North America
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 U.S. 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, North American Medium Heavy-Duty Natural Gas Truck and Bus Market, Forecast to 2025, finds market penetration of natural gas medium-duty (MD) and heavy-duty (HD) trucks is expected to reach 12.7% and 7.2%, respectively, by 2025. Furthermore, the study examines key market trends influencing the North American natural gas commercial vehicle market.
“As the market experiences increased propane penetration rates, original equipment manufacturers (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% of all North American medium-heavy duty trucks will be powered by natural gas engines, while 18.9% of all North American school buses, transit buses 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.