“Global market size of autogas will increase by 7.78 MT in 2020-2030”, says Visiongain

27 September 2019
Energy

The global market size of autogas will increase by 7.78 MT in 2020-2030. Visiongain study offers a comprehensive application-based (LDV and HDV) and geographic assessment of the industry.  Autogas is the popular term for liquefied oil gas (LPG) when used as a fuel in vehicle inner diesel motors and mobile apps such as turbines. It's a propane and butane mixture.

Cost efficiency, fuel efficiency and stringent emission standards are key drivers for the autogas market. However, considerations such as gasoline supply, gasoline cars owing to small option gas facilities can restrict business development. The forklift manufacturing industry relies on demand from the construction, manufacturing, and freight-handling industries. Consequently, the past few years have been a roller coaster for the industrial truck industry due to recession and currency fluctuations

Factors Affecting The Global Autogas Market

LPG is either acquired from crude oil refining or from the manufacturing of natural gas or oil. Currently, more than 60% of global supply of LPG comes from natural gas processing plants, but the share varies significantly between regions and countries. LPG must be separated from the oil-product or natural-gas streams with both processes. Generally, LPG is refrigerated as a liquid for large volume processing and seaborne transport, but it is transferred and processed locally in pressurized pipes or cans (cylinders). Compared to most other oil products, LPG has a high energy content per ton and burns easily in the presence of air. These characteristics have made LPG a popular fuel for domestic heating and cooking, for commercial use, for agricultural and industrial processes, including as a feedstock in the petrochemical industry, and increasingly as an alternative automotive fuel.

 

Autogas Is The Most Widely Used Non-Blended Alternative To The Conventional Oil-Based Transport Fuels, Gasoline And Diesel

Autogas, in terms of the size of its fleet, is the most widely used unmixed alternative to conventional oil-based transport fuels, petrol and diesel. A variety of nations have Autogas economies that are well developed. Over the past few years, global Autogas consumption has steadily increased to a peak of 32.1 million tons in 2019. Demand levelling is partially due to changes in the fuel economy, although the Autogas carrier has begun to compete in some significant industries, particularly Korea, the biggest single market. Demand remains highly concentrated in a small number of markets: the five largest countries – Korea, Turkey, Russia, Poland and Italy accounted for 44% of world consumption in 2019 and the top ten for 72%.

The biggest increases in demand in absolute terms over the ten years to 2020 occurred in selected countries

In Russia, Ukraine, and Turkey, the biggest absolute increase in demand over the ten years to 2020 occurred, while the biggest falls occurred in Korea, Japan, and Australia. At present, Autogas accounts for 1.2 percent of the total consumption of road-transport-fuel worldwide. Worldwide, there are more than 27.1 million Autogas vehicles in use and nearly 78,300 refueling sites. In 2019, Autogas accounted for 12% of global LPG consumption, although this share varies significantly across countries. Among the analyzed countries, the share is the highest in Ukraine, where it is 90%, and the lowest in India is only 1.7%.

Cost factors in the market

Autogas supply and infrastructure costs are generally lower than other alternative fuels that are not mixed. The price of wholesale LPG supplied to service stations is generally smaller on an energy-content grounds than that of gasoline. Due to the abundance of supplies, rising demand for Autogas is not expected to significantly increase the cost of LPG on the international spot market relative to gasoline.

 

Autogas Used For Transport Is The Most Common Unblended Alternative Car Fuel In Use In The World

The most prevalent unblended substitute car fuel used in the globe today is Autogas LPG used for transportation. Over the past few years, global Autogas consumption has steadily increased to a peak of 32.1 million tons in 2019. Demand levelling is partly due to fuel economy improvements, although the Autogas fleet has begun contracting in some major markets, notably the largest single market in Korea. Demand stays extremely focused in a tiny amount of industries: in 2019, the five biggest nations–Korea, Turkey, Russia, Poland and Italy accounted for 44% of globe production and 72% of the bottom forty.

Autogas ' proportion of complete consumption of automotive fuel differs extensively among these nations, varying from a pure 0.1 third in the United States to about one-fifth in Ukraine. In four other countries, Autogas accounts for more than 10% of the automotive fuel market: Bulgaria, Korea, Poland and Turkey. The enormous disparity in Autogas ' success in competing against conventional car, gasoline and diesel fuels is mainly explained by differences in government incentive policies

Governments advertising environmental benefits of switching to Autogas from conventional automotive fuels

The main reason why governments are actively encouraging the use of Autogas and other alternative fuels in many countries is the environment. In most research evaluating economic efficiency undertaken around the globe, Autogas outperforms petrol and, in particular, petrol, as well as some other option materials. With regard to noxious pollutants, autogas emissions are particularly low. With respect to greenhouse gas emissions, Autogas works faster than gasoline and outperforms diesel, according to some research, when emissions are assessed on a complete fuel cycle basis and when the LPG comes primarily from natural gas processing plants. However, in practice, the strength of actual policies and measures deployed does not always fully reflect the true environmental benefits of switching top Autogas from conventional automotive fuels.

Government Incentive Policies to boost demand for Autogas 

Autogas ' most efficient promotion strategies are those that assist create the gas more sustainable against gasoline and diesel and provide a powerful economic motivation for an end-user to move to Autogas. In practice, Autogas ' financial attractiveness over other fuels depends primarily on two factors: the net cost of converting an existing petrol vehicle (or the extra cost of buying a factory-built Autogas vehicle compared to an equivalent petrol or diesel vehicle) and Autogas ' pump price relative to diesel and petrol. In short, it is necessary to compensate the vehicle owner for the additional upfront cost through lower running costs, the most important of which is fuel. The time it takes to offset the capital cost for the savings in running costs depends on the vehicle's use, i.e. the average distance traveled on a monthly or annual basis. In order to encourage commercial vehicle owners to switch, the payback period usually has to be less than two to three years; private individuals often demand a faster return on their investment.

Government In Giving An Initial Strong Impetus To Kick-Start The Simultaneous Development Of Demand And Supply Infrastructure Is Vital

In nations where Autogas stays low, the government's function in providing an original powerful incentive to kick-start concurrent demand and supply infrastructure growth is essential. Even where there are powerful economic rewards, the use of Autogas will not normally start until critical business mass is reached. The market needs to be large enough to demonstrate that the fuel is safe, reliable, easy to use and a cost-effective alternative to conventional fuels to potential Autogas users and fuel providers. Autogas must be widespread. And the market needs to be large enough to support a viable network or properly trained mechanics for converting and maintaining Autogas vehicles and ensuring that spare parts and equipment are available. Achieving critical mass requires a concerted effort by all stakeholders–vehicle manufacturers and converters, Autogas suppliers and government–to foster market development.

National circumstances affect the best approach to designing and implementing Autogas incentive policies

National circumstances affect the best way to design and implement incentive policies for Autogas. These include budgetary factors that could restrict the funding accessible for subsidies, the seriousness of local pollution problems, fuel supply and price issues, the phase of growth of the Autogas industry and the prevalent obstacles to gas conversion, including rigid legislation and local vehicle conversion costs. However, whatever the circumstances, experience in the countries studied in this study has shown clearly that the most important single measure and a necessary condition for making Autogas an attractive fuel for vehicle owners is a favorable treatment of fuel tax compared to conventional fuels.

The make-up of the Autogas vehicle fleet by vehicle-type differs by country

Autogas car service make-up by car type varies by nation, representing primarily public policy distinctions. Taxis and other light-duty fleet vehicles account for a large share of Autogas consumption in the two largest Asian markets. In both nations, as a consequence of a mixture of rewards and public regulations demanding the use of alternate vehicles, the overwhelming bulk of buses operate on Autogas. Private vehicles are the primary industry in Europe. While most gasoline vehicles can be converted to run on Autogas as well as gasoline, models that are already prepared for Autogas operation are becoming increasingly popular as the incremental cost for the Autogas version is lower than for a conversion aftermarket. For many years now, nearly all cars in Korea and Japan have been Original Equipment Manufactured (OEM) cars.

 

Various Technologies Available For The Use Of Autogas As Engine Fuel

Different techniques for the use of autogas as engine gasoline are accessible. It can be used in mono-fuel motors as a single fuel, in bi-fuel motors that can change between gasoline and LPG, or in dual-fuel motors as a mixture with diesel. It can also be used in different types of hybrid powertrain techniques. The choice depends on application, technology availability for the particular application, regulatory framework, costs and other regional factors

On engine technology, the systems are driven toward near zero emissions and alternative fuel configurations by increasing efficiency, reducing consumption and emissions. Moreover, the concentrate of decision-makers is progressively on renewable fuels. Spark ignition engine downsizing has been a phenomenon so far, but not confident it will proceed. Future powertrain technologies for increased combustion efficiency, hybridization and electrification will be focused on sustainable and new engine systems. These are the main engines for the business growth of LPG HDE as well.

Spark ignition engine technology is fully LPG compatible, and LPGs used in light or even medium-duty engines are likely to follow the latest trends, including the partial adoption of Liquid LPG Direct Injection (DI) as a way to improve engine efficiency. The above-mentioned technologies are most likely to evolve further for the period up to 2020 and will feature advanced, adaptive control of these flexible sub-systems using new sensor technologies. However, it is not known whether the above technologies will be used in HD engines and to what extent. Dual fuel diesel-LPG technologies will follow the trends of the diesel engine, where/when this technology i.e. proven advantageous, with greater emphasis on emission control but a stronger market desire for efficiency in order to reduce operating cost. The development of the regulations on dual fuel engines may allow growth of this relatively new LPG application sector.

 

Recent Developments

30 July Power Solutions International Inc. (PSI) presented its Navistar IC Bus products in Reno, Nevada, including the new 8.8-liter PSI engine with both gasoline and LPG configurations.

Italy: Emilia-Romagna Reopens Incentives for Alternative Fuel Vehicles The Emilia Romagna Region Government chose to reopen the Ecobonus, an incentive plan for the acquisition of a fresh low-carbon vehicle, until 30 September.

Positive Forecasts For Autogas Station Network In Jamaica GB Energy Jamaica, operator of the Texaco station network in the Caribbean country, has completed a seven-month pilot and is now ready to continue the construction of its Autogas stations.

Spain: Canary Islands Exempt Autogas Vehicles From Local Tax Autogas cars purchased by experts and intended for public transport in the Canary Islands may already profit from the Canary General Indirect Tax (IGIC) allowance.

U.S. Aviation Event Chooses Autogas Vehicles To Transport Attendees A flotilla of Autogas classroom busses was implemented at the AirVenture Experimental Aircraft Association to carry thousands of tourists for the festival that took place in Wiscon on 22-28 July.

Turkey leads the consumption of autogas in Europe, while in the world it ranks second. The semi-annual balance sheet published by the German Federal Automotive Transport Authority (KBA) again showed a significant increase in new registrations for LPG-powered vehicles

 

Leading Players

Total

Gazprom

Royal Dutch Shell

Autogas Nord
 SK Gas

Lange Gas

Westfalen

StatOil

 BP
LUKOIL
Aygaz

 

The comprehensive report offers market estimation and forecast for the period ranging 2020-2030 for leading national markets and rest of the world. Moreover, the report contains dedicated leading companies covering 10 leading producers in the field of autogas.

The autogas Market Report 2020-2030 report will be of value to anyone who wants to better understand the autogas market and its various segments. It will be useful for businesses who wish to better comprehend the part of the market they are already involved in, or those wishing to enter or expand into a different regional or technical part of the autogas industry.

Visiongain is a trading partner with the US Federal Government
CCR Ref number: KD4R6

Do you have any custom requirements we can help you with? Any need for specific country, geo region, market segment or specific company information? Contact us today, we can discuss your needs and see how we can help: sara.peerun@visiongain.com

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