Hydrogen vehicles is an emerging technology that utilizes hydrogen as a fuel for electric vehicles. It is zero-emission vehicle that only emits water vapor and heat. Hydrogen vehicles are advantageous over other electric vehicles as it offers faster refueling and longer driving range on a single charge equivalent to gasoline vehicles. The growing environmental concerns and stringent emission norms are fueling the demand for clean fuel vehicles. Various governments across regions are supporting the adoption of hydrogen vehicles through investment in hydrogen refueling infrastructure and providing purchase incentives.
The global hydrogen vehicle market is estimated to be valued at US$ 3.58 billion in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
The growing demand for zero-emission vehicles from commercial transportation sectors such as buses, trucks poses significant market opportunity for hydrogen vehicles. Many commercial fleet operators are looking to replace aging diesel fleet with hydrogen vehicles to meet clean air targets. They are willing to adopt hydrogen vehicles if upfront costs come down with technology maturation and scale of production. Development of bulk hydrogen production and distribution infrastructure for commercial fleets can help accelerate the adoption of hydrogen vehicles for commercial transportation. This presents an opportunity for hydrogen vehicle manufacturers and energy companies to collaborate and establish hydrogen ecosystems catering to commercial sectors.
Porter's Analysis
Threat of new entrants: The high capital requirements and large economies of scale needed for full production limits the threat of new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes but preferences towards green vehicles is increasing buyer power.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiation in fuel cells and other hydrogen technologies.
Threat of new substitutes: Electric vehicles are the major threat being more efficient however, hydrogen vehicles are useful for commercial applications requiring higher range.
Competitive rivalry: Intense as key players are investing heavily in developing advanced hydrogen technologies.
SWOT Analysis
Strength: Hydrogen vehicles emit only water and have a higher driving range than electric vehicles. They can be refueled rapidly similar to petrol/diesel vehicles.
Weakness: High production costs of fuel cells. Lack of hydrogen refueling infrastructure limits widespread adoption.
Opportunity: Increasing government support through subsidies and incentives is promoting the adoption of clean technologies. Growth in the mobility as a service industry presents new application areas.
Threats: Prospect of advanced battery technologies increasing the driving range of electric vehicles poses a challenge. Public perception around safety of hydrogen may hinder commercialization.
Key Takeaways
The Global Hydrogen Vehicle Market Growth is expected to witness high over the forecast period of 2023 to 2030. The global hydrogen vehicle market is estimated to be valued at US$ 3.58 billion in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023-2030.
Asia Pacific dominates the global market currently due to the presence of major automakers and government initiatives in countries like Japan, South Korea, and China towards developing hydrogen infrastructure and fuel cell technologies. Countries like Japan, South Korea and China are leading the way with pilot projects and incentives to develop the hydrogen economy.
Key players: Key players operating in the hydrogen vehicle market include Toyota, Honda, Hyundai, Daimler, Volkswagen, BMW, Volvo, General Motors, Ford, and Renault. Toyota is a foremost leader with its Fuel Cell Sedan - Mirai while Hyundai offers the Nexo fuel cell SUV. Both companies are ramping up production to drive costs down through economies of scale.
Explore more information on this topic, Please visit-
Comments
0 comment