North American and European Hybrid Truck, Bus, and Van Market, finds that the hybrid truck, bus and van market is expected to grow to 222 thousand units by 2016, according to a study by Frost & Sullivan.
The high upfront cost associated with hybrids is countered with federal grants, incentives, and tax rebates. 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 fuelling infrastructure," says Frost & Sullivan Global Programme Manager, Sandeep Kar.
"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."
However, expensive technologies in hybrid trucks including energy storage systems, control and power electronics, and rotating machines, as well has having to replace batteries every four to five years based on the vocational application, are a few qualities that deter potential owners.
The study focused on the key trends driving the demand of hybridization of commercial vehicles and the factors favoring the adoption of hybrid commercial vehicles. The products covered in this research service were: light commercial vehicles, medium commercial vehicles, heavy commercial vehicles, and buses.
"Currently, the high upfront cost associated with hybrids is countered with federal grants, incentives, and tax rebates," explains 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."