The heavy truck market and alternative fuels
The heavy truck market is currently valued at about $200 billion, noted Canada‘s Westport Fuel Systems.
This market experienced a significant decline due to the Covid-19 pandemic and related disruptions in global logistics and supply chain systems.
Original equipment manufacturer (OEM) production is back on track and facing an environment of increased regulation on vehicle emissions.
The alternative fuel truck market has gained traction in Europe, growing from 1% natural gas vehicles in 2017 to nearly 4% today.
Globally, there are more than 23 million natural gas-powered vehicles on the road, representing nearly 2% of the global on-highway fleet.
According to Westport, this transition to natural gas is expected to accelerate as tighter carbon regulations drive the conversion to lower emission options, including alternative fuels such as LNG, biomethane and hydrogen.
Westport is a leading global engineering, manufacturing and supply organization for alternative fuel systems and components for transportation applications.
The company believes that gaseous fuels, such as liquefied petroleum gas (LPG), natural gas, biomethane and hydrogen, are the best alternative to common liquid fossil fuels, such as gasoline and diesel, in many applications, and offer compelling environmental, economic and energy security advantages.
Thus, Westport’s major customer, which uses Westport’s high-pressure direct injection (HPDI) technology, continues to increase its share of the natural gas transportation market in Europe.
As the world grows, the amount of goods that need to be transported also increases.
The transport industry aims to get more goods to more people in a cleaner, more efficient and more affordable way.
So far, some 1.5 billion vehicles are on the road, and the global transportation industry currently produces almost 90 million new vehicles a year.
In addition, Westport’s products enable the conversion of passenger vehicles in the aftermarket through a network of distributors and installers.
The worldwide market for LPG/CNG conversion kits is estimated at between 1.0 and 1.3 million units per year.
Westport is the industry leader, with a market share of approximately 25% worldwide.
The company expects market share to increase with its agreement to supply Euro 6 and Euro 7 LPG fuel systems to a global OEM.