Global Hydrogen Fuel Cell Vehicle Market Size, Share & Trends Analysis Report, by Vehicle Type, by Technology, by Range, By Region Forecasts, 2024 – 2032

Global Hydrogen Fuel Cell Vehicle Market Size, Share & Trends Analysis Report, by Vehicle Type, by Technology, by Range, By Region Forecasts, 2024 – 2032

Hydrogen Fuel Cell Vehicle Market size is projected to grow from US $ 1.5 billion in 2023 to US $ 57.9 billion by 2032, growing at a CAGR of 43% during the forecast period 2024-2032.

The market expanded correspondingly as environmental concerns, scientific advancements, and government-initiated infrastructure development for hydrogen fuel cells gained popularity. Thus, the economies of early industrialization, such as Japan. China and South Korea play a significant role in the production of car parts and hydrogen fuel cell automobiles. This should significantly raise the likelihood that HFCVs will soon find a promising market in this area. However, sales of hydrogen fuel cell vehicles are closely linked to the worldwide automotive production and retail sectors. That is the devastation that COVID-19 has caused. Numerous supply chains have experienced disruptions, and the situation has not improved.

The usage of hydrogen fuel cell vehicles is expanding, and large commercial carriers are looking to boost efficiency. For instance, Hyzon Motors Inc., a sizable multinational corporation focused on hydrogen fuel cell-powered commercial vehicles with zero emissions, recently revealed that they have been able to reduce costs and even downsize their business as a result of their development of a new method for storing and transporting liquid or gaseous hydrogen. Unattributed, the new technique is expected to reduce overall system weight by 43%, manufacturing component utilisation by 75%, and system storage expenses by 52%. This idea is based on a single rack system that has the capacity to manage five hydrogen canisters at once; the system's metal print is composed of lightweight composite material. Consequently, in recent years, the worldwide hydrogen fuel cell vehicle market's compound annual growth rate (CAGR) has increased due to these factors.

Also, climate change has increased people's fascination with sustainable mobility on a global scale. The burning of fossil fuels by cars contributes significantly to global warming. Reduced carbon emissions are the result of propulsion systems that use electricity, natural gas, biofuel, and biodiesel in addition to dimethyl ether. Liquid nitrogen and fuel cells both reduce the amount of greenhouse gases released into the atmosphere. This change is anticipated to be brought about throughout the projection period by increased consumer awareness of environmental issues, tighter emission standards, and sophisticated automobiles that can run on alternative fuels.

“Proton Exchange Membrane Fuel Cell segment, by technology, to be dominating market from 2023 to 2030.”

In terms of technology, 91.4% of hydrogen fuel cell vehicles as of 2023 were powered by proton exchange membrane fuel cells. It dominated the market and is expected to expand at a compound annual growth rate (CAGR) of 43.4 percent in the forecast years.

“251-500 Miles segment, by Range, to be dominating market from 2023 to 2030.”

The 251–500-mile segment's market share eclipsed all other segments combined in 2023. However, during the course of the forecast period, 0-250 Miles is anticipated to have the fastest growth rate. The CAGR is predicted to be 44.8 percent.

“SUV segment, by Vehicle Type, to be dominating market from 2023 to 2030.”

SUV sales accounted for more than half of the revenue generated by hydrogen fuel cell car sales globally in 2023. This segment experienced the most decline in market share based on the type of vehicle. Throughout the forecast period, this supremacy will persist. In the forecast period, this market sector is predicted to have the greatest CAGR.

“Asia Pacific to be largest region in Hydrogen Fuel Cell Vehicle market.”

In terms of revenue over the projected period, Asia-Pacific is anticipated to have the largest market for Hydrogen Fuel Cell Vehicle, followed by North America and Europe. Factors pushing them include the exceptionally high percentage of passenger vans produced in total vehicle production at the moment, as well as Europe's significant need for fuel cell cars to support both private and public transit. Furthermore, the largest fuel cell market at the moment is in Asia-Pacific. Other significant green technology markets in this region are Japan, South Korea and China. Many firms are investing large sums of money with the goal of building up their sales channels and raising their high-level strategic objectives to increase fuel cell vehicle production capacities. Consider Hyundai, which plans to invest USD 6.7 billion over the course of 10 years (2032) to double its manufacturing capacity and increase fuel cell production.

Hydrogen Fuel Cell Vehicle Competitive Landscape

The competitive landscape of the Hydrogen Fuel Cell Vehicle market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Hydrogen Fuel Cell Vehicle technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Hydrogen Fuel Cell Vehicle market is highly competitive, with numerous companies vying for market share. Prominent companies in the Hydrogen Fuel Cell Vehicle Market include:

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

Recent Developments:

Toyota Motor Corporation unveiled a hydrogen fuel cell electric Hilux prototype in September 2023. With the use of this technology, we will be able to expedite the development of a hydrogen fuel cell solution, enabling the region to attain high-quality carbon neutrality. However, its fundamental parts are merely lifted from the Toyota Mirai hydrogen fuel cell electric automobile, a technological marvel that has been in operation for nearly ten years.

In July 2023, Ford Trucks and Ballard Power Systems, Inc. sign a contract for the provision of a fuel cell system and the development of prototypes for trucks powered by hydrogen fuel cells. Ballard anticipates that Ford Trucks will be equipped with two FCmoveTM.-XD 120 kW fuel cell engines as part of this initial procurement order by the following year. Furthermore, Ford Trucks intends to create the F-MAX, a fuel cell electric vehicle, as part of the whole project.

Coach & Bus Solaris, sp. Orders for 96 hydrogen fuel cell engines were placed with Ballard Power Systems Inc. in July 2023 by z o.o., a significant customer since 2018. Fifty-two purchase orders have been signed for fuel cell engines to be used in Solaris Urbino hydrogen buses intended for use in German cities' public transportation systems. An additional forty-four purchase orders have been signed for regular Solaris city and intercity bus service, as well as schoolbusing.

General Motors (GM) aimed to expand the use of fuel cells in January 2022 in order to extend electrification beyond automobiles. This company has unveiled more commercial applications for their HYDROTEC fuel cell technology, in addition to quickening the growth of its platform innovator position. These projects, which are now in different phases of development, cover a wide range of applications, from heavy-duty trucks and locomotives to aerospace and beyond, provided that the range can be increased.