Asia-Pacific leads hydrogen vehicle growth amidst infrastructure challenges
The region’s ambitious targets face infrastructure and cost hurdles.
The hydrogen fuel cell vehicle (HFCV) market is experiencing rapid growth, with Asia-Pacific emerging as a key driver despite significant challenges. According to YCP, the HFCV market in the region is projected to leap from 23,000 units in 2024 to approximately 353,000 units by 2034.
Pavan Madamsetty, Partner at YCP Auctus, said that this surge represents an impressive compound annual growth rate (CAGR) of 28%, highlighting Asia-Pacific's pivotal role in advancing hydrogen technology.
“The hydrogen fuel cell vehicles market is growing rapidly in Asia-Pacific, but for these vehicles to achieve their potential, significant infrastructure development is needed,” Madamsetty explained. The required infrastructure includes production facilities, storage solutions, pipelines, and refuelling stations.
Technological advancements are also essential. “The fuel cell stack technology that optimises fuel efficiency needs further improvement,” Madamsetty added. This enhancement is vital for hydrogen vehicles to compete with existing battery electric vehicles. Furthermore, substantial investment from both public and private sectors is necessary to build the infrastructure and lower costs associated with hydrogen technology.
Governments in Asia-Pacific are actively addressing these challenges. Japan, South Korea, and China are leading the way with robust support for hydrogen vehicles. “The Japanese government offers significant subsidies for buying hydrogen cars and installing refuelling stations,” said Leon Cheng, Partner at YCP Solidiance.
He added that South Korea has set ambitious goals, aiming to deploy 2.75 million hydrogen vehicles and establish 1,200 refilling stations by 2040. China is also focusing heavily on hydrogen technology, particularly in commercial vehicles, demonstrating the region’s commitment to green technology.
OEMs in Asia-Pacific reflect a strong but varied stance on hydrogen vehicles. Major manufacturers such as Toyota, Honda, and Hyundai are heavily investing in hydrogen technology, indicating strong industry support.
However, Cheng said that some companies, like Volkswagen and StenLentis, remain cautious about the immediate potential of hydrogen technology, reflecting a mix of enthusiasm and scepticism.
