THE UK is set to lead a rapid pan-European expansion in the growth of the liquefied petroleum gas vehicle parc, which is likely to top 500,000 units in this country in a decade, according to new research by Datamonitor.

The report, entitled 'The European Automotive LPG markets', says UK Government pressure to reduce emission levels, combined with financial incentives, will drive forward the introduction of LPG-powered vehicles and refuelling site development.

In terms of the number of LPG-powered vehicles in use, the UK will rank third, after Italy and Poland by 2009, with half a million LPG vehicles, but UK growth rates are forecast to be the highest in Europe.

'The UK has the highest concentration of vehicles in Europe per mile and a large portion is expected to switch to LPG,' the report says.

'In addition, a large number of car manufacturers are expected to make LPG vehicles available and combined with strong incentives from the Government, this market shows strong potential.'

Datamonitor believes the Government's incentives, which include subsidising up to 75% of the conversion cost through the Powershift grant scheme and the lower tax level of the fuel, are the 'major drivers' for growth.

Other findings in the report are that the amount of LPG sold in Europe and the number of service stations selling it will increase by 5.3% per annum to 2009 and that the LPG vehicle parc will expand by 6.5% per annum within the next decade - with the UK again outpacing the rest of Europe.

The report states: 'Growth rates will vary significantly across the continent with the largest growth experienced in the UK, showing a growth rate of 39.2% to 2009.'

However, even experiencing the largest growth, the UK will remain one of the smallest markets, with LPG consumption just 0.4% of total European volumes.

Datamonitor points out the expansion in supply can only increase if the supply infrastructure is sufficiently developed. The total number of refuelling sites in Europe is expected to increase to 14,848 in 2009 from 9,145 with Italy taking first position from the Netherlands.