Incentives and Federal Grants to Propel the Adoption of Hybrid Commercial Vehicles in North America and Europe, Finds Frost & Sullivan
LONDON, Aug. 2 /PRNewswire/ -- The hybrid commercial vehicles market in North America and Europe is fuelled by the benefits hybrids offer over conventional vehicles. Better fuel efficiency, lower emissions and fewer maintenance costs are all highly desirable features, especially in sprawling mega cities and increasingly congested urban clusters. In the short-term, incentives and federal grants are expected to propel the adoption of hybrids.
New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of North American and European Hybrid Truck, Bus and Van Market, finds that the hybrid truck, bus and van market is expected to grow from 4.1 thousand units in 2009 to 222 thousand units by 2016. The products covered in this research service are: light commercial vehicles, medium commercial vehicles, heavy commercial vehicles and buses.
"Amongst alternative powertrain technologies and fuels, hybrid commercial vehicles exert the least pressure on the existing energy and transportation infrastructure and require only minimal modification to the current fuelling infrastructure," says Frost & Sullivan Global Programme Manager, Sandeep Kar. "This aspect of hybrid commercial vehicles is acting as one of the strongest market drivers in North America and Europe, attracting governments, commercial vehicle manufacturers, and potential consumers alike towards supporting and accepting hybrid commercial vehicles."
In the commercial vehicle industry, the return-on-investment (ROI) potential is a key determinant for adoption of new technologies. Fuel price volatility, government incentives and low lifecycle costs associated with hybrid trucks are all in favour of hybrid commercial vehicles.
However, hybrid trucks feature energy storage systems, control and power electronics and rotating machines, which are expensive technologies creating considerable cost barriers to potential adopters. Furthermore, storage systems such as batteries must be replaced every four to five years based on the vocational application.
"Currently, the high upfront cost associated with hybrids is countered with federal grants, incentives, and tax rebates," explains Kar. "Although such incentives offer relief in the short term, for hybrids to be commercially viable in the long term, the upfront cost difference should reduce considerably."
Private fleets in North America and Europe have emerged as early adopters of hybrid commercial vehicles. However, robust volume growth can be attained through the penetration of for-hire fleets.
"Standardization of key enabling technologies will not only reduce R&D expenses and complexity but also create a foundation for launching aggressive price reduction strategies that are necessary for stoking market growth," concludes Kar.
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Strategic Analysis of North American and European Hybrid Truck, Bus and Van Market is part of the Automotive & Transportation Growth Partnership Services programme, which also includes research in the following markets: Strategic Analysis of North American and European Electric Truck and Bus and Van Market and Comparative Analysis of Global Emission and Safety Regulations for Commercial Vehicles. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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