Hydrogen in Automotive Market to Reach USD 24,069.9 Million by 2031: Hydrogen Mobility Integration to Drive Expansion
Jun 2024
Automotive and Transportation
As per the report published by Kings Research, the global Hydrogen in Automotive Market was valued at USD 2,564.9 million in 2023. The market is projected to reach USD 24,069.9 million by 2031, growing at a CAGR of 32.52% from 2024 to 2031.
The hydrogen in automotive market is emerging as a significant force in the global automotive industry, offering a promising alternative to traditional internal combustion engines and electric vehicles. Hydrogen-powered vehicles present several advantages, including fast refueling times and long driving ranges, which address the range anxiety often associated with battery electric vehicles (BEVs). The growth of the market is fueled by increasing environmental concerns and the need to reduce greenhouse gas emissions from the transportation sector.
Additionally, hydrogen fuel cell technology is becoming more cost-competitive, with declining production costs and improving efficiency. Market players are forming strategic partnerships and alliances to accelerate infrastructure development and enhance consumer acceptance of FCVs. However, challenges persist, including high initial costs, limited hydrogen refueling infrastructure, and concerns regarding hydrogen production sustainability. Despite these challenges, the hydrogen in automotive market holds immense potential to revolutionize the automotive industry and drive sustainable mobility solutions globally.
Key Insights
- Based on the vehicle type, the residential segment held the largest market share of 64.92% in 2023
- Based on technology, the photon exchange membrane (PEM) segment generated the highest revenue of USD 1084.82 million in 2023
- Based on vehicle class, mid-range vehicle classification is anticipated to generate a value of USD 10,008.03 million by 2031
- On the basis of region, Asia-Pacific accounted for the largest market share of 36.66% in 2023
Marelli Aims to Focus on Product Innovation Through the Launch of Patented Design
December 2023: Marelli unveiled its inaugural hydrogen fuel system, showcasing proprietary injectors with a patented design alongside an advanced Engine Control Unit.
Integration of Hydrogen Mobility Solutions to Offer Expansion Opportunities
The integration of hydrogen mobility solutions, encompassing fuel cell electric vehicles (FCEVs) and hydrogen-powered buses and trucks, stands at the forefront of the automotive industry's transition toward sustainable transportation alternatives. With mounting concerns over air quality and greenhouse gas emissions, particularly in urban areas, hydrogen emerges as a compelling option for various sectors aiming to decarbonize their fleets.
Public transportation agencies worldwide are increasingly turning to hydrogen as a clean energy solution to power buses and other mass transit vehicles. By leveraging hydrogen fuel cells, these entities aim to reduce emissions and improve air quality while maintaining efficient transportation services for commuters. Furthermore, logistics companies are recognizing the potential of hydrogen-powered trucks to meet sustainability goals and comply with tightening emissions regulations. The versatility and long-range capabilities of hydrogen fuel cells make them particularly suitable for heavy-duty applications, including freight transportation over extended distances.
Technological Advancements in Hydrogen Fuel Cell Technology to Augment Hydrogen in Automotive Market Growth
Technological advancements in hydrogen fuel cell technology play a crucial role in fueling the expansion of the global market. The steadfast commitment to advancing fuel cell efficiency, durability, and cost-effectiveness is driving significant progress in the sector. For instance, companies such as Toyota, Hyundai, and Honda have made substantial strides in enhancing the performance and reliability of fuel cells in their vehicles. Toyota's Mirai, Hyundai's Nexo, and Honda's Clarity Fuel Cell are among innovative automotives resulting from these advancements.
Moreover, research and development efforts are not confined solely to automotive manufacturers. Collaborations between automakers, academic institutions, and technology firms are yielding groundbreaking discoveries and breakthroughs in hydrogen storage, distribution, and fuel cell performance. Investments in novel materials, manufacturing techniques, and system integration solutions are paving opportunities in hydrogen fuel cell technology. As a result, hydrogen-powered vehicles are becoming increasingly competitive with traditional internal combustion engine vehicles and battery electric vehicles, thereby driving market growth.
Europe to Experience a Significant CAGR of 31.75% Over 2024-2031 Due to Stringent Regulatory Commitments
Based on region, the global hydrogen in automotive market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.
Europe is at the forefront of the global transition to hydrogen-powered transportation, propelled by stringent emissions regulations and ambitious climate targets. Europe accounted for 22.85% of the revenue share in 2023. Countries such as Germany, the UK, and France are investing heavily in hydrogen infrastructure, with plans to establish a network of refueling stations across the continent. The European Commission's Hydrogen Strategy outlines a comprehensive roadmap for hydrogen deployment, focusing on sectors, including transportation, to achieve carbon neutrality by 2050.
Automakers such as BMW, Mercedes-Benz, and Audi are ramping up production of FCVs, supported by government subsidies and incentives. Collaborative efforts between public and private stakeholders are driving innovation and infrastructure development, with hydrogen emerging as a key pillar of the European Green Deal. However, challenges persist, including the high cost associated with hydrogen production and distribution, as well as regulatory barriers that hinder market growth. Despite these challenges, Europe's hydrogen in automotive market is poised to experience rapid expansion, with strong government backing and a growing ecosystem of industry players driving the transition toward sustainable mobility.
Market Leaders Concentrate on Collaborations and Acquisitions to Sustain Growth
The global hydrogen in automotive market is fragmented with key players such as Ballard Power Systems Inc., Plug Power Inc., Cummins Inc., Symbio, H2 Energy AG, Loop Energy Inc., Hyster-Yale Materials Handling, Inc., Toyota, BMW AG, Hyundai Motor Company and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.