The compressed natural gas vehicle (CNGV) market has been forecast to hit 19.8 million units by 2015. Growth within the compressed natural gas vehicle market is set to predominantly be driven by the cost benefits of using compressed natural gas.
Furthermore, additional factors driving the compressed natural gas vehicle market include the environmental benefits, economic benefits, energy security, and the increased availability of both the fuel and the vehicles themselves.
The International Association of Compressed Natural Gas Vehicles estimates that more than 11.2 million CNGVs currently ply the roads globally, with a compound annual growth rate (CAGR) of 28% since 2000.
Compressed natural gas vehicles are believed to offer lower particulate matter, nitrogen oxides and greenhouse gas when compared to both petrol and diesel vehicles.
The compressed natural gas vehicle market has also been witnessing an increase in the number of bi-fuel vehicles. However, insufficient compressed natural gas fuelling stations pose the biggest challenge to the compressed natural gas vehicle market.
The cost benefits associated with the use of compressed natural gas vehicles is one of the major drivers of the compressed natural gas vehicle market. Moreover, various countries in the European Union are offering tax benefits for CNG vehicles. Tax incentives for the buyers of these vehicles may help to compensate for their higher prices.
For more information on the compressed natural gas vehicle market, see the latest research: Compressed Natural Gas Vehicle Market Report
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