The firm’s “360 Degree Analysis of Fuel Cell Electric Vehicle (FCEV) Market in Japan and South Korea” finds that sales of fuel cell electric vehicles in Japan and South Korea are expected to increase to 58,100 units in 2020 from 600 units in 2011.

In particular, cities in Japan such as Tokyo, Osaka, Nagoya, and Fukuoka, Seoul and Ulsan in South Korea are being targeted by OEMs for commercialisation of fuel cell vehicles.

Honda is expected to be the market leader in the fuel cell electric vehicle market in Japan and South Korea in 2020 with a 41.8% market share. Hyundai and Toyota are expected to command market shares of 17.4%  and 17.2%, respectively.

Frost & Sullivan says that the Japanese and South Korean Governments are playing a key supporting role in the commercialisation of FCEVs. The Japanese government offers support for research and development and subsidises hydrogen station infrastructure, while the South Korean government offers funds and subsidies for R&D and is setting up a hydrogen infrastructure along with oil companies.

In addition, Japanese and South Korean auto OEMs are working in close co-ordination with tier 1 and tier 2 suppliers such as Nuvera or Ballast in Japan and LG Chem in South Korea to develop a robust and reliable supply chain.

In 2011, 22 hydrogen refuelling stations were operational in Japan and South Korea with 11 in each country.

Both the Japanese and South Korean governments are working towards the development of a hydrogen refuelling infrastructure that is expected to grow to 1,452 stations in 2020.

Several fleet operators in Japan are leasing FCEV concept cars to test their levels of efficiency and suitability. Frost & Sullivan added that OEMs need to work on the consumer’s awareness regarding the benefits of fuel cell electric vehicles through promotional programs and educating consumers, before full-scale commercialisation.