by The hydrogen vehicle market has been gaining significant traction over the past few years owing to the growing need for clean and sustainable transportation solutions. Hydrogen vehicles produce no direct emissions and only emit water vapor and warm air. They provide a practical zero-emission solution for cars, trucks, buses, and other vehicles. The fuel cell technology also offers longevity and fuel efficiency advantages over electric vehicles powered solely by lithium-ion batteries. With rising environmental concerns and governments pushing for stricter emission reduction targets, many large automotive manufacturers are now investing heavily in the development of commercially viable hydrogen fuel cell vehicles. Several countries are also installing hydrogen refueling infrastructure to support the use of these environmentally-friendly vehicles. The global Hydrogen Vehicle Market is estimated to be valued at US$ 3.58 Mn in 2023 and is expected to exhibit a CAGR of 16.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major market trends is the increasing investments in the development of hydrogen refueling infrastructure around the world. Unlike electric vehicles which require extensive charging networks, hydrogen vehicles need hydrogen refueling stations to be widely available for consumer acceptance and commercialization. Several governments are actively providing subsidies and incentives for private and public companies to set up hydrogen refueling stations. For instance, Japan and South Korea have plans to install hundreds of hydrogen filling stations over the next few years. Similarly, in Europe the FCH JU public-private partnership is supporting the build-out of refueling infrastructure in key markets to accelerate the uptake of fuel cell vehicles. With more investments flowing into critical refueling infrastructure, the demand for commercially viable hydrogen vehicles is anticipated to pick up significantly over the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the hydrogen vehicle market is moderate. Developing hydrogen fuel cell technology requires heavy R&D investment and building fuelling infrastructure which makes it challenging for new companies to enter the market.
Bargaining power of buyers: The bargaining power of buyers in the hydrogen vehicle market is high. Buyers have numerous options available from conventional gasoline/diesel vehicles to electric vehicles. This gives them leverage to negotiate on price and demand other benefits.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While fuel cell and component manufacturers wield some pricing power, established automakers have alternatives and can develop the technology in-house to reduce supplier dependence.
Threat of new substitutes: The threat of new substitutes is high. Electric vehicles are emerging as a strong competitor to fuel cell vehicles. EVs offer comparable performance and an expanding charging network. Advanced battery technologies may make EVs a preferred alternative.
Competitive rivalry: Competition in the hydrogen vehicle market is intense with automakers and fuel cell manufacturers competing to gain an early lead. Companies need to focus on bringing down costs and improving vehicle range and performance to gain customer acceptance.
Key Takeaways
The global hydrogen vehicle market Size is expected to witness high growth over the forecast period supported by initiatives to popularize alternative fuel vehicles and develop hydrogen infrastructure.
Asia Pacific dominates the regional demand for hydrogen vehicles currently led by Japan, South Korea and China. Countries in the region have ambitious targets for fuel cell vehicle deployments and are investing heavily in building hydrogen refueling stations which is driving the regional market.
Key players operating in the hydrogen vehicle market are Cisco Systems, Inc.,Microsoft Corporation,Palo Alto Networks, Inc.,Symantec Corporation,Check Point Software Technologies Ltd.,Akamai Technologies, Inc.,Fortinet, Inc.,Zscaler, Inc.,Okta, Inc.,VMware, Inc.,CrowdStrike Holdings, Inc.,Cyxtera Technologies, Inc.,Proofpoint, Inc.,FireEye, Inc.,Forcepoint LLC . Players are focusing on developing advanced fuel cell systems, reducing costs and improving vehicle performance through continuous technological advancements. Partnerships across the automotive and energy value chain are also shaping the competitive landscape.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
