Transportation:

Propulsion Systems

The overall 2012 Propulsion Systems market is expected to grow 18% in revenues, resulting in an estimated combined sales total of more than 12 million vehicles.

Advanced Propulsion Systems are the engines and fuel supply systems that allow cars, trucks, trains, ships, and aircraft to use fuel more efficiently, thereby lowering emissions. They also allow these vehicles to make use of advanced fuels. Data in this section refers primarily to sales of road transport vehicles, not to the propulsion system components alone. 2011 revenue from global sales of all product categories including Clean Diesel Vehicles, Plug-in Electric Vehicles (PEVs), Hybrid Electric Vehicles (HEVs), Natural Gas Vehicles (NGVs), and lease sales to consumers for Fuel Cell Vehicles (FCVs) totaled nearly $325.9 billion. In the U.S., they represented a $11.7 billion market, added $7.8 billion to U.S. GDP from domestic content, and generated $1.2 billion in federal, state, and local tax revenue.

In 2011, 7.3 million clean diesel vehicles were sold worldwide, accounting for 71% of advanced energy vehicle sales and $262.2 billion in revenue. Clean diesel vehicles represent approximately 50% of new vehicle sales in Europe, compared with less than 2% in the United States. This is largely due to the high price of gasoline in Europe, which drives demand for fuel-efficient cars, but is also due to the fact that diesel fuel is typically less expensive than gasoline. By contrast, diesel is typically more expensive than gasoline in the United States, reducing the benefit of the lower fuel consumption that diesel technology offers. By unit sales, NGVs represented 18% of the global market, followed by HEVs at 10%, and combined sales of PEVs and FCVs at less than 1%. The overall 2012 Propulsion Systems market is expected to grow 18% in revenues with a fairly similar distribution to 2011, resulting in an estimated combined sales total of more than 12 million vehicles.

The United States only captured 4% of the global market of vehicles with advanced propulsion systems in 2011, representing $11.7 billion in revenues; revenues are expected to rise to $18.7 billion in 2012. The U.S. market is led by HEV sales, which totaled 269,000 units in 2011, and is expected to have a compound annual growth rate (CAGR) of 5% between 2012 and 2020. Sales of clean diesel vehicles, FCVs, and PEVs are each expected to more than double in 2012, compared to 2011, while the U.S. NGV market is expected to grow 33%. NGVs in the United States are sold almost exclusively to the fleet market and accounted for only 5% of 2011 U.S. advanced propulsion market revenue. In 2011, the Toyota Prius accounted for 51% of total U.S. HEV sales.

Economic Impact

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