A recent report by Navigant Research - the research wing of
Navigant Consulting Inc. ( NCI ) - suggests that
the number of natural gas vehicles (NGVs) on roads worldwide will
reach 34.9 million by 2020, up from 18.2 million in 2013. The
report states that low price of natural gas and persistently rising
costs of gasoline and diesel will be the primary forces behind the
increased popularity of NGVs.
NGVs are a cheaper and cleaner alternative to conventional
gasoline-driven vehicles and customers are increasingly using
either compressed natural gas (CNG) or liquefied natural gas (LNG)
in passenger car segment as well as in commercial vehicles. LNG
utilizes around 30% less space as compared to CNG. However, LNG is
suitable for medium and heavy-duty trucks as its tanks are larger,
heavier, and relatively more expensive.
According to the report, positive industry development such as
the increased availability of NGVs and a greater willingness of
motorists and fleet operators to buy alternative fuel vehicles will
be the key factors for the phenomenal growth.
In order to capitalize on this growing business potential, some
natural gas producers such as Chesapeake Energy
Corporation ( CHK ) have collaborated
with automobile manufacturers like General Motors
Company ( GM
) and Whirlpool Corp. ( WHR ) to develop
appliances that can provide refueling options to natural gas
powered cars at the car owner's home.
Others like Honda Motor Co., Ltd . ( HMC ) and
Toyota Motor Corporation ( TM ) are also likely to
join the bandwagon and augment the production of NGVs.
Navigant is a global management consulting company serving
energy-based and other regulated industries. The company helps
clients to succeed in a business environment of changing
regulations, stiff competition and evolving technology by providing
effective management consulting services in areas such as business
strategy development, marketing and sales, operations management,
information technology and customer care.CHESAPEAKE ENGY (CHK): Free Stock Analysis
ReportGENERAL MOTORS (GM): Free Stock Analysis ReportHONDA MOTOR (HMC): Free Stock Analysis ReportNAVIGANT CONSLT (NCI): Free Stock Analysis
ReportTOYOTA MOTOR CP (TM): Free Stock Analysis
ReportWHIRLPOOL CORP (WHR): Free Stock Analysis
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