HYDROGEN FUEL CELL VEHICLE MARKET ANALYSIS

The global hydrogen fuel cell vehicle market size was valued at US$ 1.46 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 54.3% from 2023 to 2030.  Various drivers such as surge in environmental concerns, increase in government initiatives for development of hydrogen fuel cell infrastructure, rising petroleum prices, stringent government regulation about environmental conservation and technological advancement and future potential are some of the key factors that are anticipated to drive the growth of global market in the forecast period.

Global Hydrogen Fuel Cell Vehicle Market: Regional Insights

North America is anticipated to exhibit promising growth in the global hydrogen fuel cell vehicle market over the forecast period. The region is witnessing high rate of investments on advanced technology in order to obtain better transportation. Moreover, the concerns regarding impact of emission of harmful air pollutants on environment are also on rise in the region. This factor along with presence of major market players is expected to support growth of the global hydrogen fuel cell vehicle market over the forecast period.

Moreover, Asia Pacific is also projected to dominate the global hydrogen fuel cell vehicle market over the forecast period. As the region is witnessing rise in number of government initiatives to enhance hydrogen fuel cell infrastructure, the market is likely to show strong growth in the region. Along with this, robust presence of major market players of HFCV OEMs in the region is also anticipated to support growth of this market in Asia Pacific region.

Figure 1: Global Hydrogen Fuel Cell Vehicle Market Share (%), By Region, 2022

To learn more about this report, request a free sample copy

Global Hydrogen Fuel Cell Vehicle Market Drivers:

Rise in concerns regarding environment is a major driver for the market growth

The concerns about degradation of environment and depleting natural resources are growing all over the world. The rate of greenhouse emissions through diesel-powered vehicles continues to increase in several industries. However, market players are introducing different technologies in the market that are based on environmentally-friendly concepts for sustaining the environment.  Along with this, the awareness regarding impacts of air pollutions is increasing worldwide. These factors are in turn driving the demand for fuel cell vehicles, which is expected to drive growth of the global hydrogen fuel cell vehicle market over the forecast period.

Growing initiatives from governments to fuel the market growth

Governments of countries across the world are focusing initiatives toward development of hydrogen fuel cell infrastructure in order to cater environment conditions. For instance, according to California Energy Commission, the state government announced that it will be supporting development of 100 hydrogen refueling stations to achieve the 1.5 million zero-emission vehicles target by 2025. Thus, this factor is projected to aid in growth of the global hydrogen fuel cell vehicle market over the forecast period.

Global Hydrogen Fuel Cell Vehicle Market Opportunities:

Increasing technological developments to bring multiple business opportunities in the global hydrogen fuel cell vehicle market over the forecast period. The rise in research and development activities associated with hydrogen fuel cell technology is leading to partnerships and joint developments for adoption of hydrogen fuel cell vehicle. Thus, the market is likely to see several growth opportunities in the coming future.

Growing popularity of fuel-cell vans are anticipated to generate growth opportunities in the global hydrogen fuel cell vehicle market over the forecast period. With rise in cost of traditional non-renewable fuels such as diesel, petrol, and gas, the operation cost of ICE vans is increasing. Whereas fuel-cell vans are capable of transporting passengers and carry goods without harming the environment. For instance, subsidiaries of Stellantis introduced three hydrogen-fueled van models in the end of 2021. Thus, this factor is likely to create lucrative growth opportunities in the market over the forecast future.

Global Hydrogen Fuel Cell Vehicle Market Trends:

Passenger Car segment is gaining traction in the market

The sales of passenger vehicles is increasing in countries such as South Korea and Japan. Moreover, the governments of some countries all over the world are deploying use of fuel cell buses. Thus, the demand for passenger cars running on hydrogen fuel cell is increasing all over the world to control the emissions of carbon dioxide caused by use of conventional vehicles. Thus, the growth of this segment is likely to aid in growth of the global hydrogen fuel cell vehicle market over the forecast period.

Global Hydrogen Fuel Cell Vehicle Market Restraints:

High investment required for the infrastructure to limit the market growth

The use of hydrogen fuel cell technology has various advantages such as no emission of tailpipe GHG and other hazardous pollutants. Due to this feature, the popularity of this technology is increasing among vendors. However, the high cost required for raw materials such as platinum and carbon fiber for the development of hydrogen infrastructure is expected to hinder growth of the global hydrogen fuel cell vehicle market over the forecast period.

High reactivity and flammability of hydrogen gas to impede the market growth

Fuel cells produce electricity through a chemical process with the use of oxygen and hydrogen. As oxygen helps other compounds to burn event at lower temperature, and hydrogen naturally being a highly flammable gas, the risk of explosion is a concerning factor. When fuel is handled improperly, it can catch fire. This factor in turn impedes adoption of this technology. However, with technological advancements, novel hydrogen fuel cell technologies with more safety are being introduced in the market. This in turn is expected to support the market growth.

Figure 2: Global Hydrogen Fuel Cell Vehicles Market Share (%), By Technology, 2022

To learn more about this report, request a free sample copy

Global Hydrogen Fuel Cell Vehicle Market Segmentation:

The global hydrogen fuel cell vehicle market report is segmented into Vehicle Type, and Technology.

Based on Vehicle Type, the market is segmented into Passenger Vehicle, Commercial Vehicle. Out of which, Passenger Vehicle is expected to dominate the global market over the forecast period and this is attributed to the growing importance of passenger vehicles in transportation sector for reducing emissions of greenhouse gas. Hydrogen fuel cell vehicles do not produce any greenhouse emissions when the vehicles operate, while gasoline or diesel-powered vehicles cause a lot of emissions. Thus, the demand for this segment is increasing rapidly, which in turn is driving growth of this market.

Commercial Vehicle segment is also expected to witness significant growth in the near future and this is owing to the rise in ecological concerns as well as growing support from governments to develop hydrogen fuel cell infrastructure. Due to this, adoption of commercial vehicles is increasing, which in turn is supporting growth of this segment. For instance, as per Coherent Market Insights, by 2025 government of Shanghai is planning to operate 10,000 hydrogen fuel cell commercial vehicles.

Based on Technology, the market is segmented into Proton Exchange Membrane Fuel Cell, Phosphoric Acid Fuel Cell, and Others. Out of which, Proton Exchange Membrane Fuel Cell is expected to dominate the global market over the forecast period and this is attributed to the increasing technological developments in fuel cell technology as well as growing generation of energy from resources such as coke, coal, tar, biomass, and organic waste. With the innovation in electrolytes, anode, and the fuel, vehicles can exhibit higher maximum power densities while operating at lower temperatures that direct carbon fuel cell. Thus, this factor in turn is expected to drive the demand for proton exchange membrane fuel cell, which is likely to support growth of this segment.

Phosphoric Acid Fuel Cell segment is also expected to witness significant growth in the near future and this is owing to the advantages of using phosphoric acid fuel cells compared to proton exchange membrane fuel cells. Phosphoric acid fuel cell make use of 100% phosphoric acid electrolyte that can be retained in silicon carbide matrix due to which, these cells can operate at 150-220ËšC. Such advantages of these cells are driving their demand and this is further expected to fuel the market growth.

Global Hydrogen Fuel Cell Vehicle Market: Key Developments

In August 2022, Proton Motor Power Systems PLC, one of the leading hydrogen fuel cells manufacturer announced the launch of a 90-killowatt power generating pack.

In August 2022, Korea South-East Power (KOEN) announced to have signed a memorandum with SK E&S, for collaborating on the electricity production with the use of ammonia and green hydrogen.

In June 2021, Renault Group and Plug Power Inc. revealed the plans to launch HYVIA, a joint venture under the memorandum of understanding (MOU) contract between the two companies.

In June 2022, Toshiba Energy Systems and Solutions Corp. and Echandia announced the plans to collaborate for creating pure hydrogen fuel cell systems for ships.

Global Hydrogen Fuel Cell Vehicle Market: Key Companies Insights

The global hydrogen fuel cell vehicle market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global 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

*Definition:  Hydrogen Fuel Cell Vehicle is a car that uses hydrogen to power an electric motor. This provides all the benefits of an electric car while delivering the range of a gasoline-powered vehicle.