Future of Hydrogen i

Future of Hydrogen in Automotive by Propulsion (FCEV, FCHEV, H2-ICEV) Vehicle Type (Passenger Car, Light Commercial Vehicle, Bus, Truck) and Region ( North America, Asia Pacific, Europe) - Global Forecast 2035

Report Code: EP 8877 Dec, 2023, by marketsandmarkets.com

[45 Pages Report] The Future of Hydrogen in Automotive study analyses the demand for hydrogen fuel cell vehicles, developments in automotive ecosystem and major developments by the OEMs and Tier Is. The global hydrogen fuel cell vehicle demand is projected to grow from 20 thousand units in 2022 to 1,280 thousand units by 2035, at a CAGR of 37.6%.

Factors such as rising demand for low-emission commuting and government subsidies and tax breaks for zero-emission vehicles, abundant fuel availability, ease of refueling and lower environmental degradation will create new opportunities for hydrogen fuelled vehicles. They are expected to be an alternative for EVs in the coming years. Leading OEMs have already started providing/developing hydrogen powered vehicles such as FCEVs, H2-ICEVs and FCHEVs across different vehicle categories. OEMs such as Hyundai, Toyota and Riversimple have also started developing new business models around hydrogen fuelled vehicles. Riversimple, for instance has its own pay per mile business model, where cars are not sold to users, but leased out. Similarly, Toyota provides direct sales, as well as innovative business models such as subscription based services as well as fuel card plans. Further, Hyundai has also developed on direct sales and fleet based business models. Such developments are expected to drive the demand for hydrogen market for automotive in the coming decade.

Future of Hydrogen in Automotive

To know about the assumptions considered for the study download the pdf brochure

Future of Hydrogen in Automotive

To know about the assumptions considered for the study, download the pdf brochure

Market Dynamics:

Driver: Lower emissions

The use of hydrogen fuel presents a significant reduction in emissions compared to Diesel or Gasoline fuelled ICE vehicles. Hydrogen combustion in fuel cells primarily produces water vapor, minimizing carbon dioxide emissions. In contrast, traditional ICE vehicles emit substantial amounts of CO2 during the combustion of fossil fuels. Additionally, hydrogen combustion generates negligible carbon monoxide and virtually eliminates NOX emissions, pollutants commonly associated with internal combustion engines. This cleaner combustion profile positions hydrogen fuel as a promising alternative for mitigating environmental impact and addressing climate change concerns.

Restraint: Highly Flammable

Hydrogen is highly flammable. It has a wide flammability range and low ignition energy requirements, making it more susceptible to ignition compared to conventional fuels. This heightened flammability necessitates stringent safety measures in the design and handling of hydrogen fuel systems in vehicles. Safety concerns surrounding hydrogen combustion can hinder consumer acceptance and erode trust in the technology. This flammability factor not only influences consumer perception but also invites increased regulatory scrutiny, potentially resulting in stricter safety standards. To counter these challenges, industry players must invest in advanced safety technologies, conduct public awareness campaigns to educate consumers, collaborate with stakeholders to shape industry standards, and consider diversifying hydrogen applications beyond the automotive sector.

Opportunity: Lower environmental degradation

In the pursuit of sustainable transportation, hydrogen fuelled vehicles present a compelling advantage over electric vehicles in mitigating environmental degradation during development. Unlike EVs, which rely on resource-intensive processes such as lithium mining for batteries, hydrogen FCVs donot require large batteries, significantly reducing the ecological impact of production. Additionally, FCVs bypass the need for rare earth elements, minimizing habitat disruption associated with their extraction. As the market navigates through the evolving landscape of sustainable transportation, the environmental edge of hydrogen fuelled vehicles in will become pivotal alternative to electric vehicles.

Challenge: Poor Infrastructure

The limited availability of hydrogen refueling stations poses a critical hurdle to the widespread adoption of hydrogen fuelled vehicles, hindering market demand. As of 2022, there were only around 91 H2 refueling stations in the US, most of which were in California. Similarly, in Europe, only Germany and France had 105 and 44 hydrogen refueling stations, while rest countries had less than 20 hydrogen refueling stations. In Asia Pacific, China, Japan and South Korea had 138, 165 and 149 hydrogen refueling stations with support from OEMs and government. The sparse refueling infrastructure limits the convenience and accessibility of hydrogen refueling, discouraging potential buyers and fostering consumer reluctance due to concerns about range anxiety and the inconvenience of finding a nearby station. This is one of the major reasons, for hydrogen fuelled vehicles having a limited demand around the world in the current scenerio. Further, in the commercial sector, the dearth of refueling options disrupts the integration of hydrogen FCVs into fleets, impeding the transition to cleaner transportation solutions. This can be seen from the low presence of H2 powered commercial vehicles in most countries outside China.

Market Ecosystem

Future of Hydrogen in Automotive

The passenger car segment to be the largest segment during the forecast period

The passenger car segment accounts for the largest market share of the hydrogen fuel cell vehicles. Some leading passenger car FCEV models available in the market include Toyota Mirai, Honda Clarity, Mercedes-Benz GLC FCEV, Nissan X-Trail FCEV, and Riversimple RASA. Other OEMs are also planning to launch new hydrogen fuelled models in the coming years, realizing the significant potential. For instance, BMW has announced plans to introduce the fuel-cell technology developed with Toyota in the BMW X5, X6 and X7 models by 2025. Further, Hyundai also announced plans to launch its new generation of NEXO FCEV in 2024. Similarly, Honda has also announced plans to launch its upcoming CR-V FCEV in 2024. Kia also plans to launch its Carnival FCEV in 2026.  

Asia Pacific to be the prominent market for hydrogen fuel cell vehicles during the forecast period.

Asia Pacific has been leading the market with growing demand for hydrogen fuelled vehicles. Countries such as South Korea, China and Japan are leading the demand for hydrogen fuelled vehicles in the region. China is currently the largest market for Hydrogen Trucks and Buses around the world, while South Korea and Japan are amongst the largest passenger car FCEV markets. In 2022, more than 10,000 fuel cell passenger cars sold in South Korea, making it the country with largest FCEV sales. It held around 60% of market share in Asia Pacific, and more than 45% of global market share.  China on the other hand, had around 4,400 FCEVs sold, most of which were trucks and buses. Simialrly, Japan also sold 1,040 FCEVs, majority of them being passenger cars. Regulations for hydrogen refueling station across countries in the Asia Pacific region, are expected to increase demand for hydrogen fuelled vehicles in the region. India, for instance, plans to produce 5 Million tons of green hydrogen per annum by 2030; with H2 to be the main alternative for electric transport. Similarly, China announced plans for over 50,000 H2 fuel-cell vehicles sold by 2025 and planned multifold increase in green hydrogen production. Further, Japan announced plans to set up 320 H2 refueling stations by 2025 and have 800,000 FCEVs on road by 2030. Similarly, South Korea announced plans for 6.2 Mn FCEVs and 1,200 H2 refueling stations by 2040

Future of Hydrogen in Automotive Size, and Share

Key Market Players

The hydrogen fuel cell vehicles space is dominated by established players such as Toyota Motor Corporation (Japan), Hyundai Motor Company (South Korea), Honda Motors (Japan), BMW Group (Germany), Stellantis (Netherlands) among others. These companies develop new technologies in the hydrogen fuelled vehicles domain. They have invested ijn R&D for related technologies and offer best-in-class products to their customers.

Get online access to the report on the World's First Market Intelligence Cloud

  • Easy to Download Historical Data & Forecast Numbers
  • Company Analysis Dashboard for high growth potential opportunities
  • Research Analyst Access for customization & queries
  • Competitor Analysis with Interactive dashboard
  • Latest News, Updates & Trend analysis
Request Sample

Scope of the Report

Report Metric

Details

Market size available for years

2018–2035

Base year considered

2021

Forecast period

2022-2035

Forecast units

Volume (Thousand Units)

Segments Covered

Vehicle Type, Propulsion, and Region

Geographies covered

Asia Pacific, Europe, and North America

Companies Covered

Toyota Motor Corporation (Japan), Hyundai Motor Company (South Korea), Honda Motors (Japan), BMW Group (Germany), and Stellantis (Netherlands)

This research report categorizes the future of hydrogen in automotive based on vehicle Type, Propulsion Type, and Region.

Based on Vehicle Type:
  • Passenger Car
  • Light Commercial Vehicle
  • Bus
  • Truck
Based on Propulsion Type:
  • FCEV
  • FCHEV
  • H2-ICEV
Based on the region:
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • North America
    • Canada
    • US
  • Europe
    • Austria
    • France
    • Germany
    • The Netherlands
    • Norway
    • Sweden
    • Italy
    • Spain
    • UK

Recent Developments

  • In February 2023, GM and Honda announced the joint development of FCEV powertrains for their upcoming models
  • In September 2022, Hyundai and IVECO Group showcased their new eDaily FCEV
  • In August 2022, Toyota and BMW Group announced a partnership to develop FCEVs
  • In July 2022, Toyota launched H2 Trucks developed in partnership with Isuzu and Hino Motors
  • In July 2021, Volvo and Daimler Trucks announced plans to develop H2 fuel cell for long-haul heavy trucks

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

TABLE OF CONTENTS
 
1 INTRODUCTION 
    1.1 OBJECTIVES OF THE STUDY 
    1.2 MARKET DEFINITION  
           1.2.1 INCLUSIONS & EXCLUSIONS
    1.3 MARKET SCOPE  
           1.3.1 YEARS CONSIDERED FOR THE STUDY
    1.4 CURRENCY & PRICING 
    1.5 STAKEHOLDERS 
    1.6 RECESSION IMPACT 
 
2 RESEARCH METHODOLOGY 
    2.1 RESEARCH DATA 
           2.1.1 SECONDARY DATA
                    2.1.1.1 Key secondary sources
                    2.1.1.2 Key data from secondary sources
           2.1.2 PRIMARY DATA
                    2.1.2.1 List of primary participants
    2.2 MARKET SIZE ESTIMATION 
           2.2.1 BOTTOM-UP APPROACH
           2.2.2 TOP-DOWN APPROACH
    2.3 DATA TRAINGULATION 
    2.4 FACTOR ANALYSIS 
    2.5 RESEARCH ASSUMPTIONS 
    2.6 IMPACT OF RECESSION  
    2.7 RESEARCH LIMITATIONS 
 
3 EXECUTIVE SUMMARY 
 
4 PREMIUM INSIGHTS 
 
5 MARKET OVERVIEW 
    5.1 INTRODUCTION 
    5.2 MARKET DYNAMICS 
           5.2.1 DRIVERS
           5.2.2 RESTRAINTS
           5.2.3 OPPORTUNITIES
           5.2.4 CHALLENGES
    5.3 ECOSYSTEM ANALYSIS 
    5.4 VALUE CHAIN ANALYSIS 
    5.5 TECHNOLOGY ANALYSIS 
    5.6 TECHNOLOGY ROADMAP 
    5.7 PROMISING BUSINESS MODELS 
    5.8 TCO ANALYSIS 
    5.9 MNM INSIGHTS ON COMPARISON OF H2 VS OTHER FUEL TYPES FOR AUTOMOTIVE 
    5.10 MNM INSIGHTS ON USE CASES FOR HYDROGEN IN AUTOMOTIVE 
    5.11 MNM INSIGHTS ON UPCOMING LAUNCH PLANS FOR FCEVS 
 
6 MNM INSIGHTS ON H2 FUEL STATION SETUP 
    6.1 INTRODUCTION 
    6.2 ASIA PACIFIC 
    6.3 EUROPE 
    6.4 NORTH AMERICA 
 
7 FUTURE OF HYDROGEN IN AUTOMOTIVE, VEHICLE TYPE OUTLOOK 
    7.1 INTRODUCTION 
    7.2 PASSENGER CAR 
    7.3 LIGHT COMMERCIAL VEHICLE 
    7.4 BUS 
    7.5 TRUCK  
 
8 FUTURE OF HYDROGEN IN AUTOMOTIVE, PROPULSION OUTLOOK 
    8.1 INTRODUCTION 
    8.2 H2-ICEV 
    8.3 FCEV 
    8.4 FCHEV 
 
9 FUTURE OF HYDROGEN IN AUTOMOTIVE, REGIONAL OUTLOOK 
    9.1 INTRODUCTION 
    9.2 ASIA PACIFIC 
           9.2.1 CHINA
           9.2.2 JAPAN
           9.2.3 SOUTH KOREA
           9.2.4 INDIA
    9.3 EUROPE 
           9.3.1 GERMANY
           9.3.2 FRANCE
           9.3.3 UK
           9.3.4 SPAIN
           9.3.5 AUSTRIA
           9.3.6 THE NETHERLANDS
           9.3.7 SWEDEN
           9.3.8 NORWAY
           9.3.9 ITALY
    9.4 NORTH AMERICA 
           9.4.1 US
           9.4.2 CANADA
 
10 COMPETITIVE LANDSCAPE 
     10.1 OVERVIEW 
     10.2 KEY PLAYER STRATEGIES/ RIGHT TO WIN 
     10.3 COLLABORATIONS AND GROWTH PLANS OF LEADING FCEV PROVIDERS 
     10.4 FORWARD/BACKWARD INTEGRATION STRATAGIES OF COMPANIES IN ECOSYSTEM 
     10.5 COMPETITIVE BENCHMARKING  
 
11 RECOMMENDATIONS BY MARKETSANDMARKETS 
 
12 APPENDIX 

The study involved four major activities in estimating the market size of the hydrogen fuel cell vehicles in the ‘Future of Hydrogen in Automotive’ study. Exhaustive secondary research was done to collect information on the market, the peer market, and the child markets. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation processes were used to estimate the market size of segments and subsegments.

Secondary Research

In the secondary research process, various secondary sources were used to identify and collect information for this study. The secondary sources include annual reports, press releases, and investor presentations of companies; whitepapers, certified publications; articles from recognized authors, directories, and databases; and articles from recognized associations and government publishing sources. Secondary research has been used to obtain key information about the industry’s value chain, the overall pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from the market- and technology-oriented perspectives.

Primary Research

Extensive primary research has been conducted after acquiring an understanding of this market scenario through secondary research. Several primary interviews have been conducted with market experts from the demand- and supply-side OEMs (in terms of component supply, country-level government associations, and trade associations) and component manufacturers across four major regions, namely, Asia Pacific, Europe and North America. Approximately 23% and 77% of primary interviews have been conducted from the demand and supply side, respectively. Primary data has been collected through questionnaires, emails, LinkedIn, and telephonic interviews. In the canvassing of primaries, we have strived to cover various departments within organizations, such as sales, operations, and administration, to provide a holistic viewpoint in our report.

After interacting with industry experts, we conducted brief sessions with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report. Following is the breakdown of primary respondents.

Future of Hydrogen in Automotive Size, and Share

To know about the assumptions considered for the study, download the pdf brochure

Market Size Estimation

The bottom-up approach was used to estimate and validate the total market size. This method was also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:

The key players in the industry and markets have been identified through extensive secondary research

The industry’s supply chain and market size, in terms of value, have been determined through primary and secondary research processes

All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources

Future of Hydrogen in Automotive: Bottom-Up Approach for Global Hydrogen Fuel Cell Vehicles Market Size

Future of Hydrogen in Automotive Size, and Share

To know about the assumptions considered for the study, Request for Free Sample Report

Data Triangulation

After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides.

Market Definition

Future of Hydrogen in Automotive includes key trends, insights on ecosystem and market size for automobiles that run on hydrogen fuel cells, and are considered as low emission vehicles. According to Alternative Fuel Data Center (AFDC), fuel cells produce electricity and heat by electrochemically reacting hydrogen fuel with oxygen. Stringent emission regulations have led to the increased use of fuel cells in the automotive and transportation industry.

A fuel cell electric vehicle (FCEV) is a type of electric vehicle that uses a fuel cell. A fuel cell can also be used in combination with a battery or supercapacitor to power the onboard electric motor. In an FCEV, hydrogen is pumped into the car and then fed to the fuel cell stack. The fuel-cell stack is the center where hydrogen is electrochemically converted into electricity with no combustion and zero emissions. Fuel cells in vehicles generate electricity to power the motor. As long as hydrogen is available, the fuel cell will continue to produce electricity. Most fuel-cell vehicles are classified as zero-emission vehicles that emit only water and heat.

List of Key Stakeholders

  • Alternative Fuels Data Center (AFDC)
  • Automobile OEMs
  • Automotive Fuel Cell Raw Material Suppliers
  • Automotive Fuel Cell Suppliers
  • California Fuel Cell Partnership (CAFCP)
  • California Hydrogen Business Council (CHBC)
  • Canadian Hydrogen Fuel Cell Association (CHDCA)
  • Environmental Protection Agency (EPA)
  • European Alternative Fuels Observatory (EAFO)
  • European Automobile Manufacturers Association (ACEA)
  • Fuel Cell and Hydrogen Energy Association (FCHEA)
  • Hydrogen Gas Suppliers
  • Hydrogen Station Service Providers
  • United States Council for Automotive Research LLC (USCAR)

Report Objectives

  • To define, describe, and forecast the size of the hydrogen fuel cell vehicles in terms of volume (thousand units).
  • To define, describe, and forecast the size of the hydrogen fuel cell vehicles based on propulsion type (FCEV, FCHEV, H2-ICEV)
  • To segment and forecast the market size by vehicle type (Passenger Car, Light Commercial Vehicle, Bus, Truck)
  • To segment and forecast the market size, by region (Asia Pacific, Europe, and North America)
  • To understand the market dynamics (drivers, restraints, opportunities, and challenges) of the future of hydrogen in automotive
  • To understand the dynamics of competitors in market, and distinguish them into visionary leaders, innovators, emerging companies, and dynamic differentiators according to their product portfolio strength and business strategies
  • To analyze opportunities for stakeholders and the competitive landscape for market leaders
  • To strategically profile key players and comprehensively analyze their market share and core competencies
  • To analyze the opportunities offered by various segments of the market to its stakeholders
  • To analyze and forecast the trends and orientation for the hydrogen market for automotive in the global industry

Available Customizations

With the given market data, MarketsandMarkets offers customizations in accordance with company-specific needs.

  • Future of Hydrogen in Automotive, By vehicle type, at the country level (For countries covered in the report)
  • Future of Hydrogen in Automotive, By Component, at the regional level
  • Profiling of Additional Market Players (Up to 5)
Custom Market Research Services

We will customize the research for you, in case the report listed above does not meet with your exact requirements. Our custom research will comprehensively cover the business information you require to help you arrive at strategic and profitable business decisions.

Request Customization
Report Code
EP 8877
Published ON
Dec, 2023
Choose License Type
BUY NOW
  • SHARE
X
Request Customization
Speak to Analyst
Speak to Analyst
OR FACE-TO-FACE MEETING
PERSONALIZE THIS RESEARCH
  • Triangulate with your Own Data
  • Get Data as per your Format and Definition
  • Gain a Deeper Dive on a Specific Application, Geography, Customer or Competitor
  • Any level of Personalization
REQUEST A FREE CUSTOMIZATION
LET US HELP YOU!
  • What are the Known and Unknown Adjacencies Impacting the Future of Hydrogen i
  • What will your New Revenue Sources be?
  • Who will be your Top Customer; what will make them switch?
  • Defend your Market Share or Win Competitors
  • Get a Scorecard for Target Partners
CUSTOMIZED WORKSHOP REQUEST
+1-888-600-6441
  • Call Us
  • +1-888-600-6441 (Corporate office hours)
  • +1-888-600-6441 (US/Can toll free)
  • +44-800-368-9399 (UK office hours)
CONNECT WITH US
ABOUT TRUST ONLINE
©2024 MarketsandMarkets Research Private Ltd. All rights reserved
DMCA.com Protection Status Website Feedback