PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1464669
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1464669
Future of Hydrogen in Automotive Market size was valued at USD 2,991.34 Million in 2023, expanding at a CAGR of 28.71% from 2024 to 2032.
The future of hydrogen in automotive transportation signifies a shift towards zero-emission vehicles powered by hydrogen fuel cells. Hydrogen fuel cell electric vehicles (FCEVs) offer long ranges, rapid refueling, and emit only water vapor, making them a promising solution to address environmental concerns and achieve sustainability goals in the automotive sector.
Future of Hydrogen in Automotive Market- Market Dynamics
Extended driving range of FCEVs and increasing consumer interest to propel market demand
Factors such as the extended driving range of FCEVs and increasing consumer interest indicate hydrogen's potential as an alternative for zero-emission mobility. Furthermore, increased investor participation, technological developments by OEMs, and government measures to promote zero-emission transportation are projected to drive market expansion. This trend towards hydrogen-powered mobility is already gaining worldwide momentum, particularly in heavy-duty transportation, where FCEVs are gaining popularity. According to the US Energy Information Administration (EIA), 100.99 million barrels of petroleum were used per day in 2023. The limited petroleum reserves and rising fuel prices have prompted automakers to consider alternative fuel sources for their vehicles. Hydrogen can be generated from renewable sources such as water, agricultural waste, and biogas, as well as from natural gas and coal. Currently, 76% of the hydrogen generated comes from natural gas, 22% from oil, 18% from coal, and 2% from water electrolysis. However, efforts have been made to boost the generation of hydrogen from water electrolysis. For example, in September 2022, Advent Technologies Holdings (US) signed a three-year arrangement with the German state of Brandenburg. Under this arrangement, Advent will provide the German state of Brandenburg with methanol-powered fuel cell devices. These fuel cell systems will be installed in select critical communication sites in the region. Due to the developments in extracting hydrogen from natural resources other than oil, dependency on oil for hydrogen-related products would be reduced. This can drive the overall demand for hydrogen in automotive.
Future of Hydrogen in Automotive Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 28.71% over the forecast period (2024-2032)
Based on Vehicle segmentation, buses segment was predicted to show maximum market share in the year 2023
Based on Propulsion segmentation, FCEV was the leading type in 2023
On the basis of region, North America was the leading revenue generator in 2023
The Global Future of Hydrogen in Automotive Market is segmented on the basis of Vehicle, Propulsion, and Region.
The market is divided into four categories based on Vehicle: Buses, LCVS, Passenger Cars and Trucks. The buses segment is projected to demonstrate a notable share anticipated during the forecast period. China leads the global hydrogen-powered bus segment, demonstrating over 95% of sales worldwide, primarily due to government support aimed at enhancing interstate logistics. Similarly, the UK has announced plans to deploy 4,000 fuel cell buses by the year 2025. Technological advancements by prominent OEMs such as Hyundai Motor Company (South Korea), Wrightbus (Ireland), and others, alongside government support, are expected to boost the future of hydrogen within the automotive market.
The market is divided into three categories based on Propulsion: FCEV, FCHEV and H2-ICE. Based on propulsion, the future of hydrogen in automotive transportation is primarily dominated by FCEVs (Fuel Cell Electric Vehicles). FCEVs utilize hydrogen fuel cells to generate electricity, which powers an electric motor to propel the vehicle. This technology offers several advantages, including long driving ranges, rapid refueling times, and zero emissions except for water vapor, making it an attractive solution for addressing environmental concerns and achieving sustainability goals in the automotive sector.
Future of Hydrogen in Automotive Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
In the automotive landscape, strategies aimed at integrating hydrogen technology necessitate collaborative efforts among stakeholders. Such partnerships are crucial for the development of a robust infrastructure, advancement of technological capabilities, cost reduction initiatives, and advocacy for supportive policies. Establishing alliances within the industry facilitates knowledge exchange, resource pooling, and collective problem-solving, thereby accelerating progress towards widespread adoption and unlocking the full potential of hydrogen in automotive transportation. Furthermore, substantial investments in research, development, and innovation are fundamental for propelling the evolution of hydrogen technology. By allocating resources towards R&D initiatives, stakeholders can drive technological breakthroughs, overcome existing challenges, and optimize the efficiency and performance of hydrogen-powered vehicles.
In January 2024, when Bosch announced its plans for the commercial launch of its hydrogen internal combustion engine, specifically designed for application in heavy commercial vehicles (HCVs). This strategic move underscores Bosch's commitment to advancing hydrogen technology and underscores the industry's momentum towards embracing alternative fuel solutions in the automotive sector.
GLOBAL FUTURE OF HYDROGEN IN AUTOMOTIVE MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHT
Toyota Motor Corporation
Hyundai Motor Company
Honda Motors
BMW Group
Stellantis
Others