Hydrogen Fuel Cell Vehicle Market

Hydrogen Vehicle Market - 2032

The global hydrogen fuel cell vehicle market size was valued at $1.5 billion in 2022, and is projected to reach $57.9 billion by 2032, growing at a CAGR of 43% from 2023 to 2032.

Report Key Highlights:

• The report covers a detailed analysis on the hydrogen fuel cell vehicle used in automotive industry.
• The hydrogen fuel cell vehicle market growth has been analyzed from the year 2022 till the year 2032.
• Latest developments have been mentioned in the research study.
• Top companies operating in the industry has been profiled in the research study.
• The research study includes different segments & regions across which the market has been analyzed.

Hydrogen fuel cell vehicles are specially designed vehicles that are powered through hydrogen acting as a fuel and are used to supply power to the electric motors installed within them, thus ensuring emission free vehicle transmission. Vehicle powered with hydrogen fuel cells includes a reverse electrolysis process wherein hydrogen reacts with oxygen, thus producing electricity to power electric motors along with heat and water. The heat & water generated during this process exits through the exhaust as water vapor, thereby leading to zero or no emission.

Hydrogen fuel cell vehicles utilize a hydrogen fuel cell to power their on-board electric motor. Hydrogen is used to operate a hydrogen fuel cell to generate electricity through electrolysis. Hydrogen fuel cell vehicles possess high potential to reduce emissions related to the transportation sector. This vehicle does not generate any greenhouse gas (GHG) emissions during vehicle operation unlike diesel-powered and gasoline vehicles.

The key factors that drive the growth of the global hydrogen fuel cell vehicle market are increase in environmental concern, government initiatives for development of hydrogen fuel cell infrastructure and rise in investments for R&D activities. Moreover, factors such as high initial investment in infrastructure and lack of refueling infrastructure for HFCV are the factors that hinder the growth of the market. However, the factors such as technological advancement & future potential in market and rise in adoption of HFCV in development economies are the factors that creates lucrative opportunities for the growth of the global market during the forecast period.

The hydrogen fuel cell vehicle industry is segmented on the basis of vehicle type, technology, range and region. By vehicle type, it is categorized into sedan, SUV, and others. According to fuel cell technology type, the market is classified into proton exchange membrane fuel cells and phosphoric acid fuel cells. By range, the market has been classified into 0-250 miles, 251-500 miles and above 500 miles. Based on region, the hydrogen fuel cell vehicle market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the hydrogen fuel cell vehicle market share include General Motors Company, HONDA MOTOR Co., Ltd, AUDI AG, Ballard Power Systems, Inc., BMW Group, Daimler AG, Hyundai Motor Group, MAN SE, Toyota Motor Corp., and Volvo Group which have been operating in the industry & are developing strategies & products for the growth of the market.

Government initiatives for development of hydrogen fuel cell infrastructure

Several policies have been deployed by the different governments to cater to environmental conditions. For instance, the state of California in the U.S. committed funds for the development of 100 hydrogen refueling stations to meet its target of 1.5 million zero-emission vehicles by 2025, which is driving the growth of the market. Moreover, the sales of hydrogen electric vehicles in the U.S. will be boosted by the Inflation Reduction Act (IRA) 2022. The law will grant hydrogen fuel cell vehicles a $7,500 tax credit. The IRA will also provide a tax credit of $3 per KG for the generation of clean hydrogen. Similarly, each $60k Nexo was sold with a $30k subsidy in 2021 as a result of national and state incentives in South Korea. Thus, these types of subsidies and incentives are expected to drive the production and sales of HFCV vehicles during the forecast timeframe.

Increase in environmental concern

Numerous technologies are being launched in the market that support the eco-friendly concept to sustain the environment owing to rise in concerns of environment degradation and depletion of natural resources. Moreover, increase in awareness toward the consequences of air pollution and rise in levels of traffic & greenhouse gas emission drive the adoption of hydrogen fuel cell vehicle, as it is eco-friendly than other conventional vehicles. In addition, developments have been carried out by governments across the globe along with the key players operating in the industry to offer zero emission vehicles, which has created a positive trend toward the growth of the market across the globe. For instance, in December 2022, Toyota announced its plans to develop a hydrogen fuel cell version of its best-selling Hilux pickup. In addition, Toyota announced plans to produce hydrogen fuel-cell modules to replace heavy-duty diesel engines in Class 8 semi-trucks in 2023. Such developments create ample opportunities for the growth of the market across the globe.

Lack of refueling infrastructure for HFCV

The lack of refueling infrastructure for HFCV in most of the countries is due to the limited number of hydrogen refueling stations. For instance, in 2020, globally the hydrogen refueling stations are less than 800, which hampers the growth of HFCV vehicle sales. Furthermore, in many developing countries such as Brazil, African countries, and other countries limited presence of hydrogen vehicles and high cost for development which are also impact the growth of HFCV market. The development of HFCV in underdeveloped countries is slower than in developed countries.

Rise in adoption of HFCV in development economies

Increase in adoption of clean mobility solutions is observed globally due to climatic changes. Continuous usage of fossil fuels in automobiles is a major factor resulting in climate change. Vehicles that run on alternative fuels, such as natural gas, electricity, biofuel, biodiesel, fuel cell, liquid nitrogen, and dimethyl ether result in lesser carbon emissions. Increasing environmental concerns among consumers, introduction of stringent emission regulations, and launch of advanced vehicles supporting alternative fuels are expected to increase the adoption of alternative fuel and hybrid vehicle market during the forecast period.

Key Developments in Hydrogen Fuel Cell Vehicle Industry

• In September 2023, Toyota Motor Corporation launched a prototype hydrogen fuel cell electric Hilux. This technology helps to accelerate the development of hydrogen fuel cell solutions to deliver carbon neutrality across the region. It uses core elements from the Toyota Mirai hydrogen fuel cell electric sedan – technology that has proved its quality in almost 10 years of commercial production.
• In July 2023, Ballard Power Systems, Inc. signed an agreement with Ford Trucks to supply a fuel cell system as part of the development of a hydrogen fuel cell-powered vehicle prototype. This strategy includes an initial purchase order for 2 FCmoveTM.-XD 120 kW fuel cell engines that are planned to be delivered by Ballard to Ford Trucks in 2023. Furthermore, Ford Trucks plans to develop a Fuel Cell Electric Vehicle (FCEV) F-MAX as part of the project.
• In July 2023, Ballard Power Systems, Inc. received orders for a total of 96 hydrogen fuel cell engines from long-standing customer Solaris Bus & Coach sp. z o.o. The purchase orders include 52 fuel cell engines that will power Solaris Urbino hydrogen buses for deployment by public transport in Germany and 44 fuel cell engines that will power Solaris buses in European cities.
• In January 2022, General Motors (GM) planned to broaden electrification, by expanding fuel cells beyond vehicles. It also continues to accelerate its growth as a platform innovator and has announced new commercial applications of its HYDROTEC fuel cell technology. HYDROTEC projects, which are currently in development, from heavy-duty trucks to aerospace and locomotives, are being planned for use beyond vehicles for power generation.

The COVID-19 pandemic not only affected operations of the automotive industry, but the economic crisis also led to reduction in expenditure on next-generation technologies, for instance, hydrogen-powered vehicles, thereby affected the hydrogen fueling station market. In Europe, economies such as Germany, France, Spain and, Italy, are following stringent measures such as attaining social distance and limiting movements to prevent the spread of coronavirus. In addition, slight decline in the sales of fuel cell electric vehicles (FCEVs) has moderately impacted the demand for market globally. However, the positive outlook by governments to embark upon the utilization of low carbon technologies and boost decarbonization initiatives is anticipated to stabilize the hydrogen fueling station industry in the post COVID-19 stage.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the hydrogen fuel cell vehicle market analysis from 2022 to 2032 to identify the prevailing hydrogen fuel cell vehicle market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the hydrogen fuel cell vehicle market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global hydrogen fuel cell vehicle market trends, key players, market segments, application areas, and market growth strategies.

 Hydrogen Fuel Cell Vehicle Market Report Highlights