Medium and heavy duty trucks and buses typically use large amounts of fuel due to the combination of low fuel economy, heavy gross vehicle weight, and, in some cases, long distances traveled. The high fuel consumption of these vehicles is motivating fleet managers to find strategies to reduce both the fuel costs and the environmental impact of their fleets. Owing to substantial and rising supplies of low-cost natural gas (NG), and the substantially lower greenhouse gas (GHG) emissions of natural gas vehicles, natural gas has become an increasingly attractive choice for a transportation fuel.

Pike Research expects the global market for NG trucks to grow at a compound annual growth rate (CAGR) of 14% between 2012 and 2019, while NG buses are expected to grow at a CAGR of 19% during the same period. This growth is being fueled by economic growth following the global slowdown of the last few years, increased vehicle availability, environmental benefits, and the desire for increased energy security. Thanks to heavy government investment and existing infrastructure, Asia Pacific is the strongest region for natural gas trucks and buses. About three-quarters of the total NG trucks and buses are being sold in this region, a level that is not anticipated to change over the next several years. Europe and North America are also anticipated to see strong growth due to the high costs of diesel fuel and increasingly strict government emissions restrictions.

This Pike Research report analyzes the global market opportunity for natural gas vehicles in the medium and heavy duty truck and bus markets. The report provides a comprehensive assessment of the current market, fuel availability, demand drivers, policy factors, and technology issues associated with the growth of these vehicles. Key industry players are profiled in depth, and worldwide NGV sales, vehicle segment sales, and cumulative refueling station availability are forecasted through 2019.

Key Questions Addressed:

• Where are the largest markets for medium and heavy duty trucks and buses fueled by natural gas?
• Which markets are growing the fastest and which markets are likely to see slowdowns?
• What are the key drivers of growth in the CNG truck and bus markets?
• How prevalent are LNG trucks and buses and where are these most likely to be sold?
• What is the difference between dual fuel and bi-fuel NGVs?
• What are the key natural gas storage tank and engine technologies used in trucks and buses?
• How does diesel emissions technology impact the natural gas truck market?
• What are other alternative fuels that compete with natural gas?
• What are the government incentives to purchase NGVs?
• What are the emissions and fuel economy requirements that will encourage natural gas truck adoption?
• Who are the key industry players in the natural gas truck and bus markets?

Who needs this report?

• Vehicle manufacturers and suppliers
• NGV conversion/upfitter companies
• Storage tank manufacturers
• Natural gas companies
• Government agencies
• Industry associations
• Investor community

Table of Contents

1. Executive Summary

1.1   Key Market Issues for Natural Gas Trucks and Buses

1.2   Demand Drivers and Barriers for Natural Gas Trucks and Buses

1.3   Market Forecasts for Natural Gas Trucks and Buses

2.     Market Issues

2.1   History of Natural Gas Trucks and Buses

2.2   Medium and Heavy Duty Trucks

2.2.1     Truck Class Definitions

2.3   Medium and Heavy Duty Buses

2.4   Light Duty Vehicles

2.5   Natural Gas Supply

2.5.1     Gas Mining

2.5.2     Hydraulic Fracturing

2.6   Transporting Fuel

2.7   Natural Gas Imports and Exports

2.7.1     Europe Natural Gas Imports and Exports

2.7.1.1     European Pipelines

2.7.2     Asia Pacific Natural Gas Imports and Exports

2.8   Refilling Infrastructure Availability

2.8.1     LNG Refueling Infrastructure Availability

2.9   Regional Markets Natural Gas Imports and Exports

2.10 Current Market Opportunities and Barriers

2.10.1   Construction Industry

2.10.2   Pick-up and Delivery

2.10.3   Refuse Vehicles

2.10.4   Port/Rail Yard Operations

2.10.5   Transit Buses

2.10.6   The Manufacturing Process for NGVs

2.10.7   Fuel Costs

2.10.7.1   Performance versus Diesel/Gasoline Engines

2.10.7.2   Maintenance on NGVs versus Diesel/Gasoline Engines

2.11 Competing Technologies

2.11.1   Ethanol

2.11.2   Liquid Petroleum Gas/Autogas

2.11.3   Hybrid and Electric Vehicle Technologies

2.11.4   Hydrogen

2.11.5   Hydrogen Fuel Cell Advancements

2.12 CNG/LNG Handling Training Issues

3.     Technology Issues

3.1   Chemical Characteristics of Natural Gas

3.1.1     Compressed Natural Gas

3.1.2     Liquefied Natural Gas

3.1.3     Biogas

3.1.4     Propane (Liquefied Petroleum Gas)

3.1.5     LPG Infrastructure

3.2   NGV Engines

3.2.1     Dedicated Mono-fuel Engines

3.2.2     Bi-fuel Engines

3.2.3     Dual-fuel Engines

3.2.4     Medium and Heavy Duty Engines

3.3   Refueling Technology

3.3.1     CNG Refueling

3.3.2     LNG Refueling

3.3.3     Liquefied CNG Refueling

3.4   On-vehicle Storage Tanks

4.     Demand Drivers

4.1   Market-based Demand

4.1.1     Economics

4.1.1.1     Cost Recovery Analysis

4.1.1.2     Relationship between Alternative Fuel Demand and Gas/Diesel Prices

4.1.2     Energy Security Issues

4.1.3     Environmental Benefits

4.1.4     Vehicle Availability

4.2   Government Emissions Regulations

4.2.1     United States

4.2.1.1     California Air Resources Board Certification

4.2.2     Canada

4.2.3     Europe

4.2.4     China

4.2.5     India

4.2.6     Japan

4.2.7     Latin America

4.3   Government Incentives

4.3.1     United States

4.3.1.1     T. Boone Pickens’ Impact on the U.S. Market

4.3.1.2     Alternative Fuel Incentives

4.3.2     Canada

4.3.3     Europe

4.3.4     Japan

4.3.5     China

4.3.6     Regional Regulatory Incentives

5.     Key Industry Players

5.1   Natural Gas Truck and Bus Vehicle and Equipment Manufacturers

5.1.1     Autocar, LLC

5.1.2     Capacity of Texas, Inc.

5.1.3     Cummins Westport Inc.

5.1.4     Emission Solutions, Inc.

5.1.5     Beiqi Foton Auv Bus Company

5.1.6     Freightliner Trucks

5.1.7     Gillig LLC

5.1.8     Hyundai Motor Company

5.1.9     Isuzu Motors

5.1.10   Iveco SpA

5.1.11   OJSC KAMAZ

5.1.12   Mack Trucks

5.1.13   Mercedes-Benz

5.1.14   Mitsubishi Fuso Truck and Bus Corporation

5.1.15   Navistar International Corporation

5.1.16   New Flyer

5.1.17   Renault

5.1.18   Shaanxi Heavy duty Automobile Co., Ltd.

5.1.19   Volvo Group Global

5.1.20   Westport Innovations, Inc.

5.1.21   Weichai Power Co., Ltd.

5.2   Key Suppliers of NGV Converters and Equipment

5.2.1     Advanced Fuels Technologies, Pty Ltd.

5.2.2     Agility Fuel Systems

5.2.3     Altech-Eco Corporation

5.2.4     BAF Technologies

5.2.5     The Bosch Group

5.2.6     Chesapeake Energy Corporation

5.2.7     Clean Energy Fuels Corporation

5.2.8     Cummins Westport Inc.

5.2.9     Faber Industrie, SpA

5.2.10   Fuel Systems Solutions, Inc.

5.2.11   General Electric

5.2.12   GNC Galileo

5.2.13   IMPCO Automotive

5.2.14   Kraus Global

5.2.15   Landi Renzo SpA

5.2.16   Leggett & Platt Commercial Vehicle Products

5.2.17   Hexagon Composites Group

5.2.17.1   Lincoln Composites, Inc.

5.2.17.2   Raufoss Fuel Systems AS

5.2.18   Magneti Marelli

5.2.19   OMB Saleri SpA

5.2.20   OMVL SpA

5.2.21   Natural Drive

5.2.22   Productive Concepts International LLC

5.2.23   Prins Autogassystemen BV

5.2.24   Swagelok Company

6.     Key Market Forecasts

6.1   Global Natural Gas Vehicle Forecast

6.2   Market Forecasts for North America

6.3   Forecasts for Latin America

6.4   European Sales Forecast

6.5   Asia Pacific Market Forecasts

6.6   Middle East/Africa Market Forecast

6.7   LNG Truck Market Forecast

6.8   Natural Gas Vehicle Refueling Stations

6.9   Summary and Conclusions

7. Company Directory
8. Acronym and Abbreviation List
9. Table of Contents
10. Table of Charts and Figures
11. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

• Percentage of MD/HD Vehicles Sales by Segment, World Markets: 2012
• Annual Sales of NG Trucks and Buses by Segment, World Markets: 2012-2019
• Cumulative Natural Gas Refueling Stations by Region, World Markets: 2012-2019
• LNG Refueling Stations, World Markets: 2012
• Total Construction Spending, United States: 2002-2011
• Refuse Truck Sales by Drivetrain, United States: 2012
• Cost Components of Transporting CNG Fuel, United States: 2012
• Annual NGV Sales, World Markets: 2012-2019
• Percentage of Annual NGV Sales, World Markets: 2012-2019
• Annual NG Truck Sales, North America: 2012-2019
• Annual NG Bus Sales, North America: 2012-2019
• Annual NG Truck and Bus Sales, Latin America: 2012-2019
• Annual NG Truck Sales, Europe: 2012-2019
• Annual Heavy Duty Truck Sales, Top European Markets: 2012-2019
• Annual NG Bus Sales, Europe: 2012-2019
• Annual NG Truck and Bus Sales, Asia Pacific 2012-2019
• Annual Heavy Duty LNG Truck Sales by Region, World Markets: 2012-2019
• Cumulative Natural Gas Refueling Stations by Region, World Markets: 2012-2019
• U.S. Petroleum Use by Sector and Truck Type: 2007
• United States Truck Classes
• Cutaway-Cab and Stripped-Chassis Vehicles
• Natural Gas Production in Trillion Cubic Feet by Source: 1990-2035
• Hydraulic Fracturing Diagram
• Natural Gas Pipeline Additions, United States: 2000-2009
• Russian and European Natural Gas Pipelines
• Projected Routes of Nord Stream, Nabucco, and South Stream Pipelines
• Average Daily Long-Haul Truck Traffic on the U.S. National Highway System: 2007
• Proposed Natural Gas Highway, United States
• Construction Industry Output, 2010
• Costs of CNG versus Gasoline in Different Scenarios of Transportation & Distribution Grid Development
• Westport LNG 15L Engine and Fuel Components
• Diagram of Liquefied CNG Refueling Station
• Well-to-Wheel Greenhouse Gas Emissions for Various Fuels
• Fuel Systems Solutions Company Diagram

List of Tables

• European Vehicle Classes
• NGV Refueling Stations by State, United States: 2012
• NGV Refueling Stations by Province, Canada: 2010 and 2011
• Cost of Natural Gas Compared to Other Fuels, United States: January 2012
• LNG Refueling Stations by Country, World Markets: March 2012
• Properties of Natural Gas Compared to Other Fuels
• Engine Components Typically Upgraded by OEMs
• Incremental Cost Recovery, United States: 2012
• United States Truck Fuel Economy and Emissions Regulations
• Summary of EPA Age-based Vehicle NG Conversion Program
• Brazil Emission Standards for HD Diesel Engines
• Natural Gas Vehicle Incentives by Country, Europe: 2012
• Comparison of NATGAS Act Bills
• Alternative Fuel Vehicle Incentives by State, United States: 2012
• Cost Components of Transportation CNG GGE Fuel, United States: 2012
• Countries with the Highest Mix of MD/HD NGV Sales: 2019
• Annual Growth Rate of NGVs by Region, World Markets: 2012-2019
• Annual NGV Sales by Region, World Markets: 2012-2019
• Annual Growth Rate of NGVs by Region, World Markets: 2012-2019
• Growth Rate of Natural Gas Trucks by Region, World Markets: 2012-2019
• Annual Natural Gas Medium and Heavy Duty Truck Sales by Region, World Markets: 2012-2019
• Annual NG Truck Sales by Segment and Region, World Markets: 2012-2019
• Annual Natural Gas Heavy Duty Trucks (Classes 7-8) Sales by Region, World Markets: 2012-2019
• Annual Natural Gas Medium Duty Trucks (Class 2b-6) Sales by Region, World Markets: 2012-2019
• Growth Rate of Natural Gas Buses by Region, World Markets: 2012-2019
• Annual Natural Gas Medium and Heavy Duty Bus Sales by Region, World Markets: 2012-2019
• Annual NG Bus/Shuttle Bus Sales by Segment and Region, World Markets: 2012-2019
• Annual Natural Gas Heavy Duty Buses (Class 7 and 8 ) Sales by Region, World Markets: 2012-2019
• Annual Natural Gas Medium Duty Buses (Class 2b-6) Sales by Region, World Markets: 2012-2019
• Growth Rate of Natural Gas Refueling Stations by Region, World Markets: 2012-2019
• Cumulative Natural Gas Refueling Stations by Region, World Markets: 2012-2019
• Percentage of MD/HD Vehicles Sales by Segment, World Markets: 2012
• Annual LNG Heavy Duty Truck (Class 7 and 8 ) Sales by Region, World Markets: 2012-2019