Datamonitor Sees Lpg’s
Potential
New research from independent market analyst,
Datamonitor, shows that Europe has significant potential for
increased utilisation of autogas. Existing levels of lpg penetration
and availability of supply are sufficient to prevent any major
barriers to wider-spread use, though stronger governmental fiscal
incentives of the type seen in other markets are required to
help accelerate the process, it says.
The world’s seven
largest autogas markets account for a disproportionately high
level of demand, given their sizes. Collectively,
Australia, Italy, Japan, Mexico, Poland, South Korea and Turkey
account for more than 68% of global autogas demand, yet just
15% of the world’s car fleet, 7.4% of population and 22%
of global GDP. One of the key reasons for the high level of autogas
use in these markets is the elevated degree of governmental support
in the form of favourable tax incentives aimed at encouraging
autogas use.
Although the potential for increased autogas
use theoretically exists in all European markets, some countries
have greater potential
in the short term than others, given their existing use of lpg
and indigenous production levels, says Andrew Hill, energy analyst
at Datamonitor. "
Countries such as the UK, Germany and Denmark have by far the
greatest potential, given their high levels of lpg use outside
of the automotive sector and, more importantly, their minimal
import requirements. Conversely, markets, such as the Netherlands,
Ireland, Portugal and Spain, have slightly less, though still
significant, potential as a result of their extensive use of
lpg in other sectors, though supply availability may constrain
autogas development in the short term."
Datamonitor’s
research found that markets, such as Finland and Sweden, where
use of lpg is minimal, will be the most difficult
to develop autogas use in, though by no means impossible given
the right governmental and industry support.
The key theme common
to the world’s seven largest autogas
markets is that governmental incentives are the single biggest
factor driving autogas use, though self sufficiency and use in
other sectors also have significant impact on its potential.
However, even markets with minimal levels of lpg use and self
sufficiency can reap the benefits of wide spread autogas use,
Hill says.
"Greater use of autogas is very much in the interests of Europe
in a number of ways. It provides an established and viable alternative
fuel source at a relatively advanced stage of technological development
and, as such, its use should be encourage and fostered until
newer, more efficient alternative technologies, such as hydrogen,
have established their economic and technological viability in
the mainstream."
Contact Datamonitor on 0207 675 7000
www.datamonitor.com
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