INDUSTRY REPORT
use in urban areas . They are also being used for cold chain transportation applications , such as refrigerated light electric trucks and vans . This is due to their ability to operate at low temperatures and their long range ,” added the report .
As governments continue to support zero-emission vehicles and the e-commerce and urban logistics sectors continue to grow , FCEVs are expected to play an increasingly important role in the electric light commercial vehicle market . The analyst expects North America to be the fastest growing market for electric light commercial vehicles during the forecast period .
Automotive trends in 2024
Some of the other key trends , listed in the " Global Automotive Industry Outlook 2024 " report , that the automotive industry is likely to witness in 2024 are :
■ China continues to dominate EV market : China ' s colossal domestic EV market , robust supply chain , innovations by OEMs as well as battery manufacturers and expansion into international markets ( especially Europe ) solidifies its role as a pivotal global EV player . China would continue to have a dominant share ( over 50 %) of the global EV market .
■ ‘ Amazonification ’ of vehicle sales : Evolving consumer demographics are driving a shift in the automotive industry , prompting OEMs to adopt new approaches and particularly emphasizing online sales . The Asia Pacific region , as the youngest , is poised for substantial volume growth . In key regions , the penetration of online sales could reach 10-20 % in 2024 .
■ Gigacasting and smart manufacturing drive innovation : Smart manufacturing approaches will permeate the entire automotive value chain , enhancing overall efficiency and providing a seamless experience . More OEMs would operationalize Gigacasting in 2024 . Digital tool integration will boost profitability and sustainability , transforming the manufacturing landscape significantly .
■ Level 3 autonomous vehicles : Level 3 vehicle segment to gain share in the market owing to the approvals received by Mercedes- Benz in the U . S . and Germany for L3 autonomy .
The role of hydrogen
According to its new research report " Future of Hydrogen in Automotive by Propulsion and Region - Global Forecast 2035 ", analyst Markets and Markets expects the role of hydrogen in the automotive sector to grow at a CAGR of 37.6 % by 2035 .
The BMW iX5 Hydrogen model .
China currently leads the global market for hydrogen-fuelled buses and trucks with its set-up of CV-only hydrogen refuelling stations across key cities
While battery-electric vehicles ( BEVs ) have gained rapid traction in recent years , hydrogen offers several advantages . Hydrogen fuel cell vehicles ( FCEVs ) are particularly suitable for large-sized vehicles , such as trucks and buses , where battery capacity limitations inhibit performance . Additionally , development in hydrogen infrastructure is rapidly progressing , addressing concerns about fuel availability .
The analyst expects the hydrogen-fuelled bus segment to see significant demand during the forecast period especially in European countries plus Japan and China . These countries plan to convert their public transport bus fleets to zero-emission vehicles . This offers a significant opportunity to grow the automotive fuel-cell bus market .
The FCEV segment is expected to lead the market during the forecast period . Most hydrogen-fuelled vehicles that are being launched over the years are FCEVs . This includes FCEV passenger cars such as Toyota Mirai and Hyundai NEXO . Similarly , in the Van segment , most H2-fuelled vehicles ( such as Citroen e-Jumpy , Peugeot-e Hydrogen and Opel Vivaro-e Hydrogen ) are FCEVs . Amongst buses and trucks , hydrogenfuelled vehicles ( such as Hyundai Elec City FCEB and Wrightbus Hydroliner FCEV ) are also FCEVs .
“ Market for FCHEVs and H2-ICE Vehicles are currently very niche , and demand is expected to grow moderately during the forecast period ,” said the analyst . It anticipates substantial growth in hydrogen fuel cell vehicles in the Asia-Pacific region , driven by proactive policies from key nations . This includes plans for developing green hydrogen and the setup of hydrogen refuelling stations across the region .
“ China currently leads the global market for hydrogen-fuelled buses and trucks with its set-up of CV-only hydrogen refuelling stations across key cities . Similarly , India has also announced plans for increasing green hydrogen capacity to provide for future demand . Ashok Leyland and Tata Motors have announced plans for making H2-ICE vehicles in the future . Japan plans to have around 800,000 FCEVs on roads by 2030 . Similarly , South Korea has also announced plans for 6.2 million FCEVs on the road by 2040 . Such factors are expected to lead to the continued dominance of hydrogen-fuelled vehicles in the Asia-Pacific region ,” concluded the analyst . n
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28 | ismr . net | ISMR February 2024