Frost: EPA 2010 Compliance Boosts Emission, Idling Reduction Technologies
March 26, 2008 // Published as a news service by IHS
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North American heavy duty truck manufacturers seek to position themselves as global leaders in green technology, according to Frost & Sullivan.
As a result, market participants have made concerted efforts to develop innovative emission-reduction technologies and solutions.
Analysts said market participants face imminent industry regulations that address issues ranging from diesel engine emissions to idling.
The implementation of these regulations will offer market participants an opportunity to leverage their technological innovations by introducing products and solutions that ensure compliance, as well as demonstrate a return on investment (ROI).
Recent analysis from Frost & Sullivan of the emission and idling reduction technologies for the Environmental Protection Agency's (EPA) 2010 and Idling Regulations Compliance found that as global emission regulations tighten in an effort to reduce global warming and fossil fuel reliance, the market for emission and idling reduction technologies will experience considerable growth.
"Stricter environmental regulations, growing generic competition and spiraling R&D costs have caused the North American heavy duty truck industry to pay closer attention to the impending emission and idling reduction regulations," said Frost & Sullivan program manager Sandeep Kar.
The implementation of these regulations will incite market participants to offer the most feasible and pertinent emission reduction solutions at attractive price points. Analysts said escalating fuel efficiency concerns, foreign oil dependency, air quality deterioration, global warming and noise pollution concerns will continue to spur regulations, as well as demand for emission reduction technologies.
Regulators and public interest groups scrutinize heavy trucks due to their immense weight, large dimensions, power requirements, emissions and the valuable goods they haul.
Analysts said the current regulatory environment related to emission reduction offers market participants an opportunity to create new revenue streams by developing innovative solutions. These regulations offer opportunities for market participants to develop hardware systems that reduce emissions, as well as services and applications that enable regulation compliance monitoring.
However, analysts said the high up-front and life cycle costs of most emission reduction solutions represent major marketing challenges for developers. Several fleet operators have opted to wait until core and enabling technologies mature before making decisions regarding emission reduction technologies.
"Market participants have to identify and invest in the most pertinent technologies among a vast array of emerging technologies that can facilitate the development of solutions offering sustainable revenue growth opportunities," said Kar. "The challenge is to not only develop and introduce such technologies and solutions, but also to do so at the lowest incremental cost."
The current situation demands concerted efforts by all stakeholders to develop standardized technology platforms that can spawn innovative and cost-effective emission reduction solutions. Analysts said the development and introduction of harmonized engines, after-treatment systems and idling reduction solutions will likely benefit end-users by providing an attractive ROI for regulatory compliance technologies.
Industry participants and consumers must act collaboratively to ensure collective action aimed at increasing adoption of emission reduction technologies, analysts said. Vertical integration activities, such as original equipment manufacturer (OEM) partnerships for the development and introduction of advanced emission reduction technologies, will also increase adoption.
Source: Frost & Sullivan.