Published Date : 14 Jun 2023
The global hydrogen fuel cell vehicle market size surpassed USD 1.04 billion in 2022 and is projected to touch USD 43.19 billion by 2030, poised to grow at a strong CAGR of 59.4 percent during the projection period from 2022 to 2030.
A hydrogen fuel cell is used to produce electricity with low carbon emissions. The rising concern about environmental protection and minimizing global warming is due to the increasing carbon emission from normal fuel vehicles. A hydrogen fuel cell is the major alternative to the generally accepted engine automobiles. The fuel utilizes air and hydrogen to drive the hydrogen fuel cell vehicle from an environment-friendly perspective. It only leaves water vapor and heat in the environment.
Hydrogen is a flexible energy carrier and can be made with a low carbon footprint. Hydrogen energy can be used for the various energy transmitters. It can be used for enabling the renewable energy system, decarbonizing transportation, and decarbonization of industrial energy uses. Due to the various industrial uses, the demand for the hydrogen energy market has grown significantly. Hydrogen can also be used to produce hydrogen fuel cells to generate electricity.
Asia Pacific dominated the hydrogen fuel cell vehicle market with the largest market revenue in 2022, the region is expected to maintain its position during the forecast period. The growth of the market is attributed to the rising environmental concern of the people. Increasing investment in the fuel cell vehicle market will also expand the growth of the hydrogen fuel cell vehicle market. Emerging countries like India, China, Japan, and South Korea are majorly investing in hydrogen refueling stations to propel the demand of the market in the forecast period. The rising government initiatives for the manufacturing of hydrogen fuel-based vehicles in the region result in a higher demand for the hydrogen fuel cell vehicle market.
For Instance: In May 2023, India’s top leading automobile manufacturers, Tata Motors and Ashok Leylands launch their heavy-duty trucks with H2ICE (Hydrogen Internal Combustion Energy) at Auto Expo in 2023.
North America has shown significant growth in the market with an increase in its market share in 2022. The growth of the market is attributed to the increase in the manufacturing units for hydrogen fuel cell vehicles across the region. Support for government regulations and increase in the initiatives for the rising use of hydrogen fuel cell vehicles on the road to minimize the carbon emission on the environment. Increasing investment in research and development programs by manufacturers also boosts the demand for the hydrogen fuel cell vehicle market.
Report Scope of the Hydrogen Fuel Cell Vehicle Market
|Market Revenue in 2023||USD 1.65 Billion|
|Projected Forecast Revenue in 2030||USD 43.19 Billion|
|Growth Rate from 2022 to 2030||CAGR of 59.4%|
|Largest Market||Asia Pacific|
|Forecast Period||2022 To 2030|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa|
Decarbonizing transportation boosts the demand of the market
Hydrogen fuel cell vehicles use hydrogen fuel instead of other conventional energy. Hydrogen fuel cell vehicles had many benefits rather to conventional vehicles. Hydrogen energy is also can be considered the greenest form of energy. Though hydrogen is obtained from the electrolysis of water it can be fully renewable in nature. Thus, it does not do carbon emission into the environment thus the use of hydrogen fuel cell vehicles instead of conventional energy vehicles is more beneficial for the environment and rising global warming. Hydrogen fuel cell vehicles promote decarbonized transportation which is one of the major factors that drive the growth of the hydrogen fuel cell vehicle market.
Higher depreciation rate and lack of charging stations hamper the market growth
There are many benefits to the use of hydrogen fuel cell vehicles but there are some market restraining factors are also there such as the hydrogen fuel cell vehicles being higher in price as compared to the other conventional energy vehicles. Also, the depreciation rate is higher than other conventional vehicles. The lack of charging stations is also one of the market-hampering factors. Since the hydrogen fuel cell is newer in the market thus there are not many of the manufacturers had hands-on the market, though there are a very limited number of charging stations for refueling the hydrogen fuel cell vehicle market.
Increasing government initiatives and technological advancements
The rising governmental initiatives and efforts for addressing environmental concerns along with decarbonizing transportation are observed to open a plethora of opportunities for the market’s growth. Increasing investments in the research and development programs by several governments leads to product development and innovation. Moreover, the government initiatives and programs aim to promote the entry of manufacturers as well as support small-scale market players.
Considering the rising environmental concerns, governments along with manufacturers are focused on the development of efficient and sustainable technologies in the market, this promotes the technological advancements in the market which will further offer lucrative opportunities for the market’s growth.
Lack of infrastructure related to hydrogen fuel cell vehicles
Since hydrogen fuel cell vehicles are a new technology in the automobile market, thus is has lack of information or knowledge related to the maintenance of hydrogen fuel cell vehicles as the repairers are does not aware of the technology and not familiar with it. Though the technology is not that mature yet due to the issues that are more prevalent in hydrogen fuel cell vehicles as compared to other conventional energy vehicles. These factors are the major challenge to overcome in the hydrogen fuel cell vehicles market.
Major Key Players:
By Vehicle Type
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