Hydrogen Automotive TIC Market

The hydrogen automotive TIC market is projected to grow from USD 18.3 million in 2024 to USD 35.8 million by 2030 at a CAGR of 11.8%. This growth can be attributed to the increasing adoption of hydrogen fuel cell vehicles (FCVs) and rising regulatory emphasis on safety and emissions standards. In addition, advancements in hydrogen vehicle technologies and the requirement for high-quality, reliable, and certified components have also led to increased demand for specialized TIC services.

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Global Hydrogen Automotive TIC Market Dynamics

DRIVER: Growing need to ensure the safety and reliability of hydrogen vehicles

Hydrogen is an extremely flammable gas that carries a high degree of risk in transport, making its handling and storage as an energy carrier problematic. The probability of leakage, explosion, and other hydrogen-related mishaps makes it necessary to inspect and monitor it diligently for safety and regulatory reasons. TIC service providers perform a critical role in reviewing the performance, durability, and safety of various hydrogen vehicle components and help vehicle and component manufacturers abide by various regulatory standards. These safety concerns, therefore, drive the demand for TIC services in the hydrogen sector very strongly.

RESTRAINT: Lack of uniformity in global TIC standards

Testing, Inspections, & Certification (TIC) companies provide conformity assessment services against various regulations related to hydrogen vehicles. Lack of Uniformity in these standards or regulations acts as a hindrance to the growth of the TIC market. Regulatory standards against which testing is done vary from region to region. Variations in safety, emission, and fuel efficiency standards require automotive and component manufacturers to meet different regulations, thus making TIC services complex and requiring specific internal standards. Moreover, the disparity in regional regulatory standards becomes a problem for international acceptance of products, leading to additional costs and conflicts between local and international standards.

For example, UN Regulation No. 134 does not include Liquid Hydrogen, whereas regulations like EU 2021/535 and UN GTR No. 13 consider liquid hydrogen. Also, ANSI provides standards related to Hydrogen vehicles in North America, whereas the EU provides standards for the European region.

Opportunity: Growing demand for low-carbon fuel transportation

Most motorized road transportation depends on conventional fuels such as gasoline and diesel. Burning these fuels emits carbon dioxide, a greenhouse gas, into the atmosphere, which results in significant environmental issues. According to the United Nations Environment Programme (UNEP), the transportation sector contributes about one-quarter of all greenhouse gas (GHG) emissions related to energy. Various governments and countries worldwide are trying to reduce their greenhouse gas emissions, which necessitates shifting towards low or zero-carbon fuels such as biofuels and hydrogen. This shift towards low or zero-carbon fuel transportation contributes to the growth of hydrogen vehicles. For example, Toyota experienced a growth of 3.9% in 2023 compared to 2022. In addition, the sales of hydrogen vehicles in the US grew by almost 11% in 2023 compared to that of the previous year, as recorded by Hydrogen Insights. This increase in the number of hydrogen vehicles creates an opportunity for hydrogen automotive TIC services.

Challenge: Limited Hydrogen Infrastructure

One major challenge hindering the adoption of hydrogen vehicles is limited infrastructure. According to H2Stations.org, 921 hydrogen refueling stations were in operation globally as of the end of 2023. The scarcity of refueling stations hinders the widespread adoption of hydrogen fuel cell vehicles (FCVs). The limited hydrogen infrastructure reduces opportunities for the growth of hydrogen vehicles and establishing and implementing standardized testing protocols and certification schemes, which are essential for the growth of the TIC market.

Global Hydrogen Automotive TIC Market Ecosystem Analysis

Some major players stand out with established financial positions within hydrogen automotive TIC. These companies have existed for decades, possess a vast product portfolio, and robustly selling networks worldwide. So, they become reliable partners to clients that can depend on these companies for their hydrogen automotive TIC services. These companies have been able to respond to market trends and continue delivering high-quality services that place them at the top in fulfilling the needs of the energy and power sector. The major players in the market are TUV SUD (Germany), DEKRA (Germany), UL LLC (US)

By services, testing is expected to be the largest segment during the forecast period.

Hydrogen fuel cell electric vehicles (HFCEVs) involve advanced technologies like high-pressure hydrogen storage and fuel cells, which require extensive testing to ensure safety, performance, and durability under various conditions. Testing is an ongoing process throughout the vehicle’s lifecycle, from prototyping to mass production, to validate innovations and ensure systems meet safety and performance standards.

By vehicle type, passenger cars are expected to be the largest market during the forecast period.

Vehicle type is segmented into four segments: passenger cars, buses, light commercial vehicles, medium-duty vehicles, heavy-duty vehicles, and ICE Hydrogen vehicles. Passenger Cars dominate the vehicle type segment. Hydrogen refueling infrastructure is still in its infancy, with a limited number of stations worldwide. Passenger cars are more suitable for initial infrastructure rollouts because they weigh less and require less extensive hydrogen storage tanks, unlike heavy-duty vehicles requiring heavier infrastructure.

The Asia Pacific region will be the largest hydrogen automotive TIC market during the forecast period.

The largest market for the Hydrogen Automotive TIC is Asia Pacific. Countries such as Japan, South Korea, and China have implemented ambitious strategies to promote hydrogen as a key solution for clean energy and carbon reduction, driving the growth of hydrogen fuel cell vehicles (FCVs). The region also houses leading hydrogen vehicle developers, including Toyota, Hyundai, and Honda.

1. TÜV SÜD (Germany)
2. TÜV Rheinland (China)
3. UL LLC (US)
4. CSA Group Testing & Certification Inc (Canada)
5. Kiwa (Netherlands)
6. Intertek Group plc (UK)
7. DEKRA (Germany)
8. Element Materials Technology (UK)
9. Applus+ (Spain)
10. Powertech Labs Inc. (Canada)
11. SGS Société Générale De Surveillance SA (Switzerland)
12. FORCE TECHNOLOGY (Denmark)
13. Apave (France)
14. Southwest Research Institute  (US)
15. Bureau Veritas (France)

Recent Developments of Hydrogen Automotive TIC Market

• In July 2024, UL LLC, a global leader in applied safety science, acquired TesTneT Engineering GmbH, a Germany-based leader in hydrogen component and system testing, deepening their expertise in alternative fuels and enhancing their ability to impact global decarbonization efforts.
• In September 2023, TUV Rheinland and Daimler Truck AG partnered to test the Mercedes-Benz GenH2 Truck. Mercedes-Benz GenH2 Truck made by Daimler Truck cracks the 1,000-kilometer mark with one fill of liquid hydrogen. The record drive with sealed tanks and controlled mileage was independently confirmed by an inspection document from TÜV Rheinland.
• In December 2022, Intelligent Energy (IEL) and Applus+ IDIADA signed an agreement to collaborate on Hydrogen Fuel Cell development projects for automotive applications. IEL will use these models to support future fuel cell system development and optimization based on digital twin simulation. Applus+ IDIADA will also use the system model generated in complete vehicle simulation platforms to provide accurate fuel cell modeling, reducing FCEV development time and optimizing vehicle performance.

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