ACT Research has released the results of its updated research on U.S. natural gas transportation fuel trends in the heavy-duty market. According to the research firm, the natural gas-powered vehicle market is moving from infancy to adolescence. The report details the impact of today’s trucker-favored market, in which focus is placed more on acquiring capacity than on lowest total cost.
The report finds that in 2014 natural gas powered trucks continue to grow in unit sales and production, though at a rate proportional to the outsized growth of the overall heavy truck market. This inline growth falls below earlier expectations of a more rapid adoption. Nevertheless, sales for 2014 are now expected to total 11,000 units, up 27% from 2013, noted ACT.
As part of the ACT study, trucking industry leaders looked to the longer term future of natural gas as a vehicle fuel. With that research, ACT developed a 50-plus page report detailing what has happened and where the industry is headed over the next 20 years.
“Expectations have fallen from our initial analysis. Factors contributing to the shifting ROI results include the price of diesel and meaningful improvements in overall fuel economy. Additionally, the stubbornly high price gap between natural gas and diesel powered vehicles and the still early stage infrastructure build out remain impediments.” said Ken Vieth, ACT Research’s senior partner and general manager.
“There must be a cooperative investment strategy developed between shippers and truckers to overcome some of the natural gas adoption roadblocks. The chicken-and-egg issue of infrastructure is being solved, albeit slowly, but the price of natural gas powered equipment still needs to be addressed, and this won’t be solved overnight. That’s why we call it an evolution and not a revolution,” Vieth added.
ACT’s study is now in the rebuttal phase and participants are being asked to comment on the preliminary findings, with the full report scheduled for release on Sept. 30.