Hydrogen Fuel Cell Vehicle Market Assessment, By Technology [PEMFC (Proton Exchange Membrane Fuel Cell Systems), Direct Methanol Fuel Cell, Alkaline Fuel Cell, Phosphoric Acid Fuel Cell, Others], By Powertrain Configuration [Fuel Cell Electric Vehicle (FC

Hydrogen Fuel Cell Vehicle Market Assessment, By Technology [PEMFC (Proton Exchange Membrane Fuel Cell Systems), Direct Methanol Fuel Cell, Alkaline Fuel Cell, Phosphoric Acid Fuel Cell, Others], By Powertrain Configuration [Fuel Cell Electric Vehicle (FCEV), Hybrid Vehicle], By Vehicle Type [Passenger Vehicles, Commercial Vehicles, Others] By Range [0-250 Miles, 251-500 Miles, Above 500 Miles], By Region, Opportunities and Forecast, 2017-2031F

Global hydrogen fuel cell vehicle market is projected to witness a CAGR of 31.14% during the forecast period 2024-2031, growing from USD 870.37 million in 2023 to USD 7613.52 million in 2031.

The increased demand for vehicles that run on alternative fuel is increasing. Apart from the electrification, the hybridization procedure is also gradually integrating with passenger and commercial vehicles. There is a rising awareness among end-users along with the government incentivizing the overall EV and fuel-cell hybrid vehicle market. Automakers are expanding their manufacturing and research facilities to serve the increasing demand for hydrogen fuel cell vehicles globally. Advanced hybrid vehicles with longer range, efficiency, and lower emission also adopt hydrogen fuel cell propulsion for reliable and sustainable energy.

A hydrogen fuel cell vehicle uses a hydrogen cell to drive an electric motor. Hydrogen gas is utilized as a primary fuel source to power a hydrogen cell to generate electricity by electrolysis within a fuel cell. In the fuel cell, hydrogen reacts with oxygen from the air to produce electricity, which is then utilized to power an electric motor that drives the vehicle. Unlike regular gasoline-powered vehicles, FCVs do not release tailpipe emissions, with the only result being water vapor. This technology provides a clean and sustainable alternative in the automotive industry, helping to reduce air pollution and reliance on fossil fuels. The hydrogen fuel cell vehicle can reduce CO2 emissions in the transportation sector.

Hydrogen FCVs frequently offer a larger driving range than various battery-electric vehicles, for long-distance travel. Furthermore, the exploration of new hydrogen reserves and focus on efficient fuel cell technology is likely to create opportunities for market growth. Additionally, companies are adding new features along with hydrogen fuel cell propulsion in their older models and relaunching.

For instance, in November 2023, Dongfeng Nissan launched its first hydrogen-powered car. The fuel-cell variant of the V-Online, also known as the ""Big V"" SUV, is part of the brand's Venucia lineup under the Dongfeng Nissan brand. The company plans to demonstrate the fuel cell electric vehicle (FCEV) for the first time commercially in the Huadu District of Guangzhou.

Rising Awareness Towards Environment, Energy Security, and Decarbonize Transportation

As the world becomes more aware of environmental issues, including air pollution and the effects of climate change, the demand for clean and sustainable transport solutions increases. Government regulations and policies that promote zero-emission vehicle adoption play an important role in the adoption of hydrogen fuel cell vehicles. Governments and industry are investing in hydrogen technology to enhance energy security and reduce dependence on fossil fuels. As the world moves towards decarbonization of transportation, hydrogen FCV adoption is a major driver. Nations are trying to phase out internal combustion engine (ICE) vehicles and moving towards zero-emission options, including hydrogen-powered vehicles.

In February 2024, Honda Motor Co. Ltd. revealed a plug-in hydrogen fuel cell electric vehicle named CR-V e-FCEV that would be launched in 2025. The compact CUV has a 270-mile EPA driving range and fast hydrogen refuelling for longer trips. The next-generation Honda Fuel Cell Module, co-developed with General Motors, reduces costs by two-thirds compared to the Honda Clarity Fuel Cell. Moreover, the system’s durability has been doubled by the application of corrosion-resistant materials.

Renewable Hydrogen Production and Technological Upgrades

The rapid shift from ICE propulsion to fuel cell systems has led automakers to adopt additional systems. Apart from these additions, the availability of hydrogen globally is also under exploration phase. New sites are being discovered lately with new exploration methods while authorities also provide funding to develop these sites.

For instance, in October 2023, two researchers in France discovered the world's largest hydrogen deposit, potentially holding 6 million to 250 million tons at a depth of 1,250 meters, revolutionizing clean energy production.

Other than production, the major hydrogen car manufacturers focus on building technology that holds the potential to replace ICE and BEV completely. The focus is on building vehicles that are highly efficient, sustainable, and scalable for functions. Hydrogen fuel cell vehicles are in high demand due to fast charging, durability, and reliability.

Supportive Government Policies and Expanding Hydrogen Fueling Infrastructure to Fuel Growth

No new technology can be fully implemented without the support of government authorities and properly functional infrastructure. The governments develop new fuelling stations along with the subsidies they provide to the automakers. The government’s focus on limiting vehicular emissions leads to providing incentives, grants, and loans to the automakers indulged in hydrogen fuel cell vehicle manufacturing.

For instance, in September 2023, the Dutch government provided USD 135.95 million to promote hydrogen-powered transport. From 2024 to 2028, the scheme is expected to see 40 new hydrogen refueling stations built and several thousand hydrogen vehicles purchased. The grant scheme aims to address the two-part issue of hydrogen refuelling infrastructure and vehicles. Businesses applying for a grant are going to be able to build a hydrogen filling station and purchase enough heavy-duty vehicles or light-duty vehicles to make the station profitable from day one.

Apart from the fuelling infrastructure, the government policies and funding to develop hydrogen-based mobility solutions for public, personal, and commercial vehicles are also adding value to the market growth. For instance, in February 2024, the Government of India initiated green hydrogen pilot programs with a budget of nearly USD 60 million. The Ministry of New & Renewable Energy’s hydrogen for transportation project aims to promote green hydrogen technologies and infrastructure development in the transportation sector.

Higher Efficiency, Fast and Cold Start-up Capabilities, and Durability to Fuel the Segmental Growth

Based on technology, the fuel cell market is divided into the proton exchange membrane fuel cell (PEMFC), direct methanol fuel cell, alkaline fuel cell, phosphoric acid fuel cell, and others. PEMFC holds the largest market share due to its efficiency, low start-up time, low operating temperatures, lower emissions, and durability. PEM fuel cells are highly efficient, quick to respond to power demand, and operate at moderately lower temperatures, making them ideal for automotive applications. Their compact and lightweight design makes them ideal for integrating fuel cell systems into passenger vehicles, ensuring optimal performance. Furthermore, this segment is largely accepted due to its faster refueling time, higher safety, and enhanced efficiency.

For instance, in September 2023, Tata Motors delivered first-of-its-kind hydrogen fuel cell-powered buses to Indian Oil Corporation Ltd. The buses use hydrogen-based proton exchange membrane (PEM) fuel cell technology. As per the Memorandum of Understanding (MoU), Tata Motors and the Indian Oil Corporation Ltd. (IOCL) will continue to develop the core technology associated with PEM fuel cells over the coming years.

North America Region Leads in Global Hydrogen Fuel Cell Vehicle Market

North America with its leading technology and higher investments is likely to hold a decent share in the global market. The presence of major automakers with extensive research and development space contributes to the market growth. Programs to promote clean vehicles and reduce GHG emissions have stimulated consumer and industry demand for hydrogen fuel cell vehicles (FCVs). North America has seen considerable investment in the development of hydrogen infrastructure, including production plants and refuelling facilities, which addresses one of the biggest barriers to HFC vehicle adoption. The government collaborates with automakers to build infrastructure that helps them transition from ICE vehicles to FCE vehicles.

For instance, in November 2023, Toyota Motors announced its plan to develop a renewable energy and hydrogen generation plant at California's Port of Long Beach. The project will generate hydrogen fuel, electricity, and water by using bio-waste from California's huge agricultural sector. It will be the first megawatt-scale operation. The ""Tri-Gen"" facility is expected to generate 1.2 tons of hydrogen fuel and over 2 megawatts of electricity, on daily basis.

Future Market Scenario (2024–2031F)

• Higher subsidies, incentives, and production-linked grants are anticipated to gain traction in the global market.

• Newly developed efficient fuel cell technology, hybrid models, and fast-fuelling modules are expected to fuel the market expansion.

• The extensive research and development programs and new hydrogen reserves are likely to flourish in market growth.

• Companies' efforts for affordable hydrogen fuel and higher efficiency are projected to contribute to the increase in the sales of hydrogen fuel cell vehicles.

Key Players Landscape and Outlook

The hydrogen fuel cell vehicle market comprises major automotive players that have experimented with hydrogen as a fuel and are constantly upgrading the technology to increase its adoption rate. Key players in the market also try to build efficient technologies that limit the operational cost of hydrogen fuel cell vehicles. New companies collaborate to strengthen their supply chain. Furthermore, companies partner and collaborate with fuel cell system developers to benefit from their manufacturing expertise.

For instance, in August 2023, Ballard Power Systems and Ford Trucks teamed together to build heavy-duty trucks that run on fuel cells by incorporating the company's technological know-how into their vehicles. With the FCmove-XDs 120kW fuel cell engines, Ford Trucks intends to construct the FCEV F-MAX, which will be mounted in the 44-ton F-MAX long-distance tractor truck.

In February 2024, Hyundai Motor showcased its Nexo hydrogen fuel cell vehicle at Bharat Mobility Global Expo 2024. Powered by a second-generation hydrogen fuel cell system, NEXO emits zero tailpipe emissions. The NEXO has zero tailpipe emissions and enhances air quality through its air filter, which removes micro-particulates and expels unused air, thereby improving the overall driving experience.

In September 2023, Toyota Motor Corporation unveiled the hydrogen fuel cell electric Hilux prototype. With the use of this technology, the development of hydrogen fuel cell solutions to provide carbon neutrality is accelerated. It makes use of fundamental components from the Toyota Mirai hydrogen fuel cell electric automobile, a vehicle whose technology has been proven successful in nearly a decade of widespread usage.