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European LPG vehicle market is the regions most widely used alternative fuel

Industry Sector

Automotive and Parts


12 November 2012


Alex De Angelis

Type of News


The European liquefied petroleum gas (LPG) vehicle market has been forecast to increase at a compound annual growth rate (CAGR) of 10.67% through to 2015, with the industry set to be driven by increasing gasoline and diesel prices, along side technological advancements in OEM and conversion LPG vehicles.

However, a major challenge for the European LPG market is insufficient service stations and a poor refuelling station network. Fuel companies will be the key participants in the LPG market value chain and their response to reducing GHG emissions will be important.

LPG is an immediately available low carbon alternative. Indeed, it emits 35% less CO2 than coal and 12% less than oil. It also emits almost no black carbon, arguably the second biggest contributor to global warming.

LPG offers significant environmental advantages, particularly in terms of indoors and outdoor air quality. It is characterised by low particle emissions, low NOx (nitrogen oxide) emissions and low sulphur content.

Automotive LPG is Europe's most widely used alternative fuel. With over 7,000,000 vehicles already running on LPG, serviced by a filling station network of more than 26,000 sites, LPG offers Europe's drivers an alternative to conventional fuels.

LPG currently powers 2% of Europe's passenger car fleet, and there is significant room for further uptake as a means of assisting Europe in meeting its road transport challenges.

International government bodies, original equipment manufacturers (OEMs), suppliers in the market and fuel companies should work together to develop refuelling infrastructure, facilitating LPG vehicle sales.

Many manufacturers, including Renault, Citroen and Vauxhall offer LP gas cars direct from the dealership as part of the range. Other manufacturers such as Ford, Range Rover and Chrysler may not have an LPG vehicle as part of the range but will allow conversions to be carried out after manufacture.

Worldwide millions of people have been benefiting from converting their car to run on LPG and now many car companies including Mitsubishi, Volkswagen and Smart are offering duel fuel models, which has proved very popular with fleet buyers looking to save on running costs. The UK is currently converting cars direct from the factory for Ford for the BP fleet.

Key players currently dominating the European LPG vehicle market include Fiat S.p.A., Ford Motor Co., General Motors Co., and Peugeot Citroen S.A.

For more information on the European LPG vehicle market, see the latest research: European LPG Vehicle Market

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