South Korea Hydrogen Fuel Cell Vehicle Market Opportunities in 2025 and Coming Years
South Korea hydrogen fuel cell vehicle (FCV) market is expanding, spurred by robust government support and environmental policies aimed at reducing carbon emissions. The country's focus on renewable energy aligns with its push for hydrogen adoption in the transportation sector. Automakers, including BMW and Daimler, are investing in hydrogen technology to diversify clean mobility solutions. With a growing network of hydrogen refueling stations and collaborations with leading fuel cell companies, South Korea is positioned as a key player in the FCV market. The technology is expected to play a significant role in public transit and logistics.
The hydrogen fuel cell vehicle market is predicted to develop at an 68.52% CAGR between 2024- 2032 reveals the Market Research Future (MRFR) report. Hydrogen fuel cell vehicles produce electricity themselves. It gets its power from an in-built battery which can be charged from external power sources. Some of its advantages include longer range, quick charging time, a lively start, no engine noise, and will not deteriorate in cold weather.
Several factors are adding to the global hydrogen fuel cell vehicle market growth. Some of these factors, according to the MRFR report, include the growing environmental concerns, a rise in government initiatives to develop hydrogen fuel cell infrastructure, growing demand for low-emission, high-performance, and fuel-efficient cars, rising concerns over alarming pollution levels, shift to eco-friendly cars from conventional fuel vehicles, and growing consumer awareness associated with healthy air quality.
On the flip side, high initial investments and high costs of fuel cell electric cars may impede the global hydrogen fuel cell vehicle market growth over the forecast period.
The COVID-19 pandemic has significantly affected the hydrogen fuel cell vehicle market. The government imposed lockdowns have led to a global economic crisis that has pushed the auto industry to an almost collapse condition, emptying showrooms and shutting down factories. In fact, the automotive industry has been badly hit by the outbreak.
Companies have faced huge revenue losses and a
slowdown in commercial and passenger car production for the scarcity of
workers. Supply chain disruptions followed by a halt in the distribution,
release and final assembly of such cars have hindered market growth
drastically. The pause from China’s raw material supply has led to a
demand-supply gap. Also, delays in the deployment of electrolyzer capacity for
delayed or canceled low-carbon production projects have resulted in revenue
losses for electrolyzer manufacturers that are also impacting the market
growth.
Following the gradual lifting of lockdowns, there
has been a resumption of manufacturing operations though at small capacities,
that is likely to boost the market growth. Also, the growing e-commerce sector
due to the increase in online shopping during the pandemic that has led to the
demand for commercial trucks to offer online purchase deliveries is also likely
to have a positive impact on the hydrogen fuel cell vehicle market
growth.
Market Segmentation
The MRFR report highlights an inclusive segmental
analysis of the global hydrogen fuel cell vehicle market based on vehicle type
and technology.
By technology, the hydrogen fuel cell vehicle
market is segmented into solid oxide fuel cell, alkaline fuel cell, and proton
exchange membrane fuel cell (PEMFC). Of these, PEMFC segment will lead the
market over the forecast period.
By vehicle type, the hydrogen fuel cell vehicle
market is segmented into passenger cars and commercial cars. Among these,
passenger cars are likely to dominate the market in the forecast period.
Regional Segmentation
Geographically, the hydrogen fuel cell vehicle
market covers the recent trends and growth opportunities across Europe, North
America, the Asia Pacific (APAC), and the Rest of the World (RoW). Of these,
North America will spearhead the market over the forecast period. Substantial
investments US department of energy in fuel cell production to promote the
adoption of FCVs, and the introduction of discount schemes that offer rewards
for FCEVs in Nebraska, Connecticut, California, and New York is adding to the
global hydrogen fuel cell vehicle market growth in the region.
In Europe, the hydrogen fuel cell vehicle market is
predicted to have the second-largest share over the forecast period for the
heavy investment by the European Commission to add fuel cell vehicles as well
as hydrogen filling stations in the European network are adding to the hydrogen
fuel cell vehicle market growth in the region.
In the APAC region, the hydrogen fuel cell vehicle
market is predicted to have healthy growth over the forecast period for the
aggressive promotion and increasing adoption of fuel cell vehicles in Japan.
Besides, massive investments in South Korea and China to set up this industry
are also adding market growth in the region.
Key Players
The prominent players profiled in the global hydrogen
fuel cell vehicle market report
include Tata Motors Limited (India), Kia Motor Corporation (South Korea),
Hydrogenics (South Korea), Mazda Motor Corporation (Japan), Groupe Renault (South
Korea), General Motors Company (U.S.), BMW (Germany), Daimler AG (Mercedes-Benz)
(Germany), The Hyundai Motor Company (South Korea), and Toyota Motor Sales,
USA, Inc. (Japan).
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