As goes with most technology, it started off as a niche until a big name caught wind of it.
It’s a common trend. Think about areas like the internet of things, artificial intelligence, and automation. It wasn’t long ago that the only people who knew about these things were people who worked with them. Now they are quickly becoming household names — everyday consumer products and we all use at least one of them.
If a few big companies have their way, a new technology will bring this trend to the auto industry. Combustion and diesel engines will become things of the past. The batteries that power electric vehicles that have emerged over the last few years will, too, be replaced. Or, at the very least, batteries will have to learn to live alongside this new technology.
But who is behind the trend and why? What does it mean for consumers? More importantly, how can investors benefit from it?
What Change Looks Like
It’s no secret that automakers have been pursuing ways to cut emissions as countries around the world crack down on pollution and climate change. The wider adoption of battery technology to power consumer vehicles has been a big step in that direction. Hydrogen fuel cell technology takes that a step further.
This is a technology that mixes hydrogen and oxygen to create electricity and propel a vehicle forward. The only thing it emits is water vapor. That makes it the cleanest alternative fuel source in the automotive market.
The technology has been around for years but struggled to gain a foothold in the consumer vehicle market for a number of reasons. Vehicle cost was a big one as is often the case with a new technology. The bigger issue, however, was having enough fueling stations for vehicle owners. Without places to reliably refuel, it’s easy to see just why people didn’t jump at the chance to dive into a new technology. It didn’t matter what benefits it provided.
Hydrogen fuel cell vehicles for the consumer market are still a ways off. The trucking industry, however, is starting to take notice and adopt it.
The trucking industry has a projected revenue of $27.5 billion in 2020, with more than 25,000 workers and $1.7 billion in wages. It’s essentially the backbone of the American economy. At the same time, trucking companies are always looking for ways to save money. Battery-powered electric trucks never took off, largely because the weight of batteries required to power big rigs offset any gains in efficiency. That leaves an opening for hydrogen fuel cell manufacturers to supply trucking companies looking to cut back on costs.
There’s still the issue of having enough refueling stations, but fuel cell companies can build refueling networks across the country. Trucking companies will then be able to plan their routes accordingly. It’s a much easier solution than predicting where everyday consumers might travel with their hydrogen vehicles.
And as trucking companies express interest in adopting the technology, household-name car companies are taking notice. Companies like Toyota, Hyundai, and Daimler have either been rolling out new vehicles or have announced plans to do so in the very near future.
If these take off, you can be sure other companies will follow.
This may very well be the next big trend in the automotive industry, and it could mean a big payoff for the companies and investors that get in early enough.
Getting Into the Trend Early
It isn’t just big companies getting in on this new technology. Startups are coming in with offerings, too.
There’s one company, in particular, coming out with a technology that’s set to put it ahead of many of its rivals. Hardly anyone has heard about it, but as Jimmy Mengel recently learned, that’s all about to change in the very near future.
You can learn all the details here. Get in before the masses do and this technology really starts to take off.
