Hydrogen Fuel Cell Vehicle Market Will Expand at 59.4% Growth by 2030

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05 Oct 2024

Table of Content

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.

Market Overview:

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.

Regional Snapshot:

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

Report Highlights:

• By Vehicle Type, the passenger vehicle is expected to grow at a significant rate due to the improving passenger transportation industry across the globe.
• By fuel cell Technology, the fuel cell technology is further divided into the proton exchange membrane fuel cell, phosphoric acid fuel cell, and others. In that proton exchange membrane fuel cells are expected to have the highest market share in the forecast period.
• By Region, Asia Pacific dominated the market with the largest market size in 2022. The growth is attributed to the increasing concern for the environment and the high adaptability of the hydrogen fuel cell vehicles market.

Market Dynamics:

Drivers:

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.

Restraints:

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.

Opportunities:

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.

Challenges:

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.

Recent Developments:

• In May 2023, Toyota announced to expand its crown lineup to comprise its plug-in hybrid powertrain version and hydrogen fuel cell cars. The hydrogen fuel cell car models will replace the Avalon Hybrid Sedan in the automaker’s lineups. 
• In May 2023, Japanese automobiles manufacturer Isuzu Motors announced that it has entered in the collaboration with Honda Motors to launch heavy duty truck with the fuel cell technology in 2027. 
• In May 2023, MG Motors India announced that the company is working on the clean hydrogen technology and cell manufacturing.  MG Motors to launch 5 new cars to invest in hydrogen-cell tech by 2028. 

Major Key Players:

• Ballard Power System
• ITM Power
• Plug Power
• Delphi Technologies
• Doosan Corporation
• Hydrogenics
• Proton Power System PLC
• Intelligent Energy Holdings plc
• Panasonic Corporation
• Pearl Hydrogen
• Horizon Fuel Cell Technologies

Market Segmentation:

By Vehicle Type

• Commercial Vehicle  
• Passenger Vehicles

By Technology 

• Proton Exchange Membrane Fuel Cell
• Phosphoric Acid Fuel Cells
• Alkaline Fuel Cell
• Solid Oxide Fuel Cell
• Others

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