This ICF International white paper examines and analyzes trends in the alternative fuel and advanced vehicle industries, including:
- Increased demand in the medium- and heavy-duty sectors for gaseous fuels
- Strong growth in plug-in electric vehicles (PEV) supported by state and utility incentives
- Innovations and growth in biofuels resulting from compliance markets
- Increased awareness and adoption of third-party leasing and ownership models for alternative fueling infrastructure
- New approaches for fleet management
Major U.S. federal tax credits and direct funding streams supporting alternative fuel and advanced vehicle industries have expired during the past two years. As a result, stakeholders and analysts have expressed apprehension about the future prospects of the industry. In many ways, alternative fuels have depended on these funding streams to gain market traction and compete with traditional petroleum fuels. However, a review of recent trends suggests that contrary to many expectations, optimism exists.