U.S. Department of Defense Spending on Alternative Drive Vehicles Will Surpass $900 Million by 2020

July 9, 2013

The United States military is the largest consumer of energy and fossil fuels on the planet, and consumes more oil than all but 35 entire countries.  The security, logistical, and economic challenges that are inherent in acquiring fossil fuels from regions typically unstable and inimical to U.S. interests, and delivering that fuel to forces deployed in hostile and remote territories, are extraordinary, and as a result, the American military is investing heavily in alternative fuels development and alternative drive vehicles (ADVs).  According to a new report from Navigant Research, U.S. Department of Defense (DOD) spending on ADVs will surpass $900 million by 2020, more than doubling from $436 million in 2013.

“The Department of Defense has become one of the largest supporters of alternative drive vehicles, and plans to acquire only ADVs for its light duty non-tactical vehicle fleet from the end of 2015 onward,” says Scott Shepard, research analyst at Navigant Research.  “By 2020, the Pentagon will have acquired more than 155,000 ADVs, with expected savings of more than $92 million in annual fuel costs.”

Although 55 percent of the DOD’s vehicle fleet can already run on alternative fuels, the General Services Administration reports that gasoline still accounts for almost 70 percent of the non-tactical fleet’s fuel consumption.  The military’s approach to reducing fossil fuel consumption from non-tactical operations includes acquiring increasing numbers of biodiesel- and ethanol- capable vehicles, as well as hybrid electric and plug-in vehicles.  Additionally, the study finds, the military is fast tracking infrastructure development for refueling and recharging ADVs.

The report, “Alternative Drive Vehicles for Military Applications”, examines the market for alternative drive vehicles for both tactical and non-tactical military fleets.  Market drivers and barriers are analyzed in detail, and key industry players are profiled.  Market forecasts for vehicles and fuel consumption, along with fuel cost savings, extend through 2020.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Alternative Drive Vehicles for Military Applications,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

Register to Receive Updates

Sign up or login to receive free newsletters, research updates, access to webinars, and other analyst content from Navigant Research.

Research News

Rss
Worldwide Capacity of Next-Generation Advanced Batteries Is Expected to Increase Nearly 1,000-Fold by 2023
September 22, 2014New chemistries offer higher energy densities and lower price points, report finds • A recent report from Navigant Research analyzes the global market for next-generation advanced batteries,…
Read More »
Energy Storage for the Grid is Expected to Reach $15.6 Billion in Annual Revenue by 2024
September 18, 2014Technology vendors are moving down the supply chain to supply deployment solutions, report concludes • A new report from Navigant Research analyzes the global market for utility-scale energy storage…
Read More »
Demand Response Capacity is Expected to Increase More than Six-Fold by 2023
September 17, 2014Market rules changes could place more risk on DR resources, report concludes • A new report from Navigant Research examines the global DR market with a focus…
Read More »
Homeowners Are Expected to Invest More Than $625 Billion in Residential Generation and Storage from 2014 to 2023
September 16, 2014The residential generation market is likely to expand as DER technologies mature, report concludes • Innovations in renewable distributed power generation, along with attractive new financing mechanisms, are providing…
Read More »
View All News

{"userID":"","pageName":"U.S. Department of Defense Spending on Alternative Drive Vehicles Will Surpass $900 Million by 2020","path":"\/newsroom\/u-s-department-of-defense-spending-on-alternative-drive-vehicles-will-surpass-900-million-by-2020","date":"9\/22\/2014"}