The Hydrogen Fuel Cell Vehicle Market is estimated to be valued at US$ 1.46 billion in 2022 and is expected to exhibit a CAGR of 54.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
The Hydrogen Fuel Cell Vehicle market involves vehicles that use hydrogen as fuel to power electric motors. Fuel cells convert chemical energy from hydrogen into electricity through an electrochemical reaction with oxygen. Key benefits of hydrogen fuel cell vehicles include zero tailpipe emissions, quick refueling on par with gas vehicles, and long driving ranges. Major automakers like Toyota, Hyundai and Honda have launched several hydrogen fuel cell models for commercial use over the past few years. The increasing focus on clean transportation coupled with improving hydrogen infrastructure is expected to drive the demand for such vehicles in the coming years.
One of the major drivers for the Hydrogen Fuel Cell Vehicle market is the rising environmental concerns related to greenhouse gas emissions from gasoline and diesel vehicles. Hydrogen fuel cell vehicles emit only water and heat and can help reduce dependence on fossil fuels. Various government initiatives focused on promoting clean mobility solutions through incentives and regulations on conventional vehicles are also fueling the adoption of hydrogen fuel cell vehicles. Additionally, numerous companies are investing heavily in building out hydrogen refueling infrastructure which is essential for the widespread acceptance of these vehicles. However, high costs associated with fuel cells and lack of widespread refueling stations currently remain major challenges for the hydrogen fuel cell vehicle market.
The hydrogen fuel cell vehicle market is segmented into passenger vehicles and commercial vehicles. The passenger vehicle segment dominates the market and accounts for around 80% share owing to high demand for hydrogen fuel cell passenger cars from consumers seeking electric vehicles with longer driving range. Commercial vehicles segment is expected to witness higher growth during the forecast period due to initiatives by governments worldwide to adopt hydrogen fuel cell technology for public transport buses and trucks.
Political: Regulations promoting adoption of zero-emission vehicles and heavy investments by governments worldwide in building hydrogen refueling infrastructure are positively impacting the market.
Economic: Fall in fuel cell system cost and advancements in hydrogen storage technologies are making the technology economically viable for commercial transportation.
Social: Increasing consumer preference for electric vehicles along with concerns over environmental pollution is driving demand for clean fuel vehicles.
Technological: Significant improvements in durability, power density and efficiency of fuel cells along with development of low-cost hydrogen production methods from renewable resources are boosting the market.
The global Hydrogen Fuel Cell Vehicle Market is expected to witness high growth, exhibiting CAGR of 54.3% over the forecast period, due to increasing investments by automakers and governments worldwide in development and deployment of the technology. China and Japan are the fastest growing markets in Asia Pacific due to strong government support programmes for hydrogen infrastructure and fuel cell vehicles in countries. The hydrogen fuel cell vehicle market in Europe is also expanding rapidly driven by EU emission regulations and rising adoption of fuel cell electric vehicles (FCEVs) in Germany. Key players operating in the hydrogen fuel cell vehicle market include Audi AG, Ballard Power Systems Inc., BMW Group, Daimler AG, General Motors Company, Honda Motor Co., Ltd., and Hyundai Motor Group. Hyundai introduced the NEXO SUV in 2018 and has sold over 1000 units, emerging as a dominant leader in passenger FCEVs.
Asia Pacific market dominates with more than 60% share of the global market led by huge investments by Chinese and Japanese governments. South Korea and Japan have deployed significant numbers of FCEVs and hydrogen refueling stations. China has also unveiled ambitious targets for fuel cell vehicle production and construction of hydrogen stations making East Asia the dominant and fastest growing regional market.
Key players operating in the hydrogen fuel cell vehicle market are: Audi AG, Ballard Power Systems Inc., BMW Group, Daimler AG, General Motors Company, Honda Motor Co., Ltd., and Hyundai Motor Group.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it