Incentives to Spark Boom in N. American Commercial Hybrid Vehicle Market - Study
By Scott Doggett August 2, 2010
A new analysis finds that the hybrid truck, bus and van market is expected to grow from 4.1 thousand vehicles in 2009 to 222 thousand vehicles by 2016, the British research firm Frost & Sullivan reported today.
In the commercial vehicle industry, the return-on-investment potential is a key determinant for adoption of new technologies. Government incentives, fuel price volatility and low lifecycle costs associated with hybrid trucks are all in favor of hybrid commercial vehicles, the study found.
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," said Frost & Sullivan Global Program Manager Sandeep 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."
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 fueling infrastructure, Kar said.
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, he said.
LEAVE A COMMENT