Market Trends of Europe Fuel Cell Electric Vehicle Industry
This section covers the major market trends shaping the Europe Fuel Cell Electric Vehicle Market according to our research experts:
Passenger Car Segment Likely to Hold Significant Share in the Market
The passenger cars segment of the market is expected to hold a significant share in the fuel cell electric vehicle market over the forecast period owing to rising vehicle production and adoption across key countries Germany, the United Kingdom, etc.
The major OEMs like Toyota, Ford, Honda, GM, Hyundai, Volkswagen, Daimler, and BMW have invested a lot of money in making the technology better. Fuel cells have been developed extensively for passenger cars, and several key players are actively investing and testing these technologies on road to meet growing consumer expectations. For instance, In June 2021, The BMW Group announced that it has started to test vehicles that use a hydrogen fuel cell drivetrain, i.e. prototypes of the BMW I Hydrogen Next would be tested on a range of metrics including reliability, safety, and efficiency. Toyota supplied the individual cells for the vehicles, while BMW designs the fuel cell stack and complete drive system, the company further stated that in three to four minutes, the hydrogen tank of the BMW I Hydrogen Next can be filled.
Further, among European automakers, Jaguar Land Rover Automotive and Ineos Automotive are launching SUVs, both of which are in the testing stage. Opel, which is responsible for fuel cell development within the PSA group, is testing its Zafira family vans equipped with fuel cells. BMW is poised to improve its offerings with its X5 small-series hydrogen fuel cell vehicle by late 2022. Other European automakers rolling out fuel cell vehicles include H2O e-mobile GmbH (Germany), Hopium (France), Microcab Industries, (U.K.), Pininfarina S.p.A. (Italy), Riversimple Movement (U.K.), and Viritech (U.K.). Besides these, some of the active launches of the key companies include,
Owing to the larger market potential, key OEMs are pushing investments in the country to gain significant market share. For instance, In March 2022, Volkswagen announced that it is investing EUR 35 billion to build a new EV plant in Wolfsburg, Germany. The new plant will focus on mass-market "Trinity" vehicles, which are the centerpiece of Volkswagen's new all-electric fleet. Such developments and trends in the market are expected to contribute to the overall growth of the market during the forecast period.
Germany is Expected to Dominate the Market During the Forecast Period
After China, Germany is the world's second-largest single market for electric vehicles, and fuel cell electric vehicles are also expected to hold a significant share in the market during the forecast period. The rise in fuel cell electric vehicles across the country and favorable government initiatives coupled with the active presence of key players enhance the overall performance of the market during the forecast period. For instance, Among European countries, Germany has the most ambitious hydrogen production target - 5 GW by 2030, with an additional 5 GW to be built between 2035-2040. It is one of the leading markets for exports and a leader in green hydrogen technology.
Key German automotive manufacturers like Audi and BMW which are preparing to abandon fossil fuels by developing prototypes of hydrogen fuel-cell passenger vehicles alongside their battery-powered fleets have been actively designing growth strategies. BMW is hydrogen's biggest proponent among Germany's carmakers, charting a path to a mass-market model around 2030. The company also has one eye on shifting hydrogen policies in Europe with a major focus on Germany owing to its advantageous position established market and wide range of consumers. The BMW Munich-based premium player has developed a hydrogen prototype car based on its X5 SUV, in a project already partly funded by the German government.
Besides these developments, the German market is also witnessing significant contributions from commercial vehicle manufacturers and their active contributions in form of product development, expansion, etc. For instance, In August 2022, Hyundai Motor Company announced its plans of exporting 27 of its XCIENT Fuel Cell trucks to Germany, with the heavy-duty vehicles set to be used by firms operating in retail, logistics, and manufacturing. The trucks that will be deployed in Germany have a 180-kilowatt hydrogen fuel cell system and use seven hydrogen tanks. The extra power comes from three batteries. The hydrogen-electric trucks sent to Germany will bolster the XCIENT Fuel Cell's presence in Europe.
Further, future strategies of the company involving faster adoption of electric vehicles by reducing their dependency on other fuel types are also expected to poise positive outlook for the market during the forecast period. In September 2021, the Hyundai Motor Group said it planned to develop hydrogen fuel cell versions of all its commercial vehicle models by the year 2028 and look to introduce a 'next generation fuel-cell system' in 2023. Therefore, in midst of such developments the overall german market to see positive trends of development over the forecast period.
