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A04207 | Pages: 291 | Charts: 83 | Tables: 124 |
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:
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.
[VEHICLETYPEGRAPH]
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.
[TECHNOLOGYGRAPH]
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.
[RANGEGRAPH]
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.
[REGIONGRAPH]
Key Market Segments
Key Market Players