Hydrogen Fuel Cell Vehicle Market: Global Size, Share, Trends, Growth and Forecast 2022-2032
Hydrogen Fuel Cell Vehicle Market : Overview and Definition
The global hydrogen fuel cell vehicle market is expected to reach a valuation of $78,639 million in 2030. The market reached a valuation of $951.9 million in 2022. It is anticipated to grow at robust 63.91% CAGR during the 2022-2030 period. A hydrogen fuel cell vehicle (FCV) is a type of electric vehicle that uses hydrogen as its primary fuel source to generate electricity. The electricity powers an electric motor, which drives the vehicle's wheels. Unlike traditional gasoline-powered vehicles, FCVs do not produce harmful emissions such as carbon monoxide and nitrogen oxides, and they produce only water as a byproduct.
FCVs offer several advantages over traditional gasoline-powered vehicles, including lower emissions, improved fuel efficiency, and extended driving range. They also have the potential to be more convenient for drivers, as refueling with hydrogen is similar in process and speed to refueling with gasoline.
The growing demand to find clean energy, alternatives to electric vehicles, and infrastructure remains key drivers to market growth. The hydrogen fuel cell vehicle market is an emerging market that is focused on producing vehicles that run on hydrogen fuel cells instead of traditional gasoline-powered engines. Fuel cell vehicles use hydrogen to produce electricity, which powers an electric motor. They offer several benefits over traditional vehicles, including lower emissions, longer driving range, and quicker refueling times.
Hydrogen Fuel Cell Vehicle Market: Key Drivers
The growing demand for clean and sustainable modes of transportation is driving the development of hydrogen fuel cell vehicles, as they produce only water as a byproduct and have lower emissions compared to traditional gasoline-powered vehicles. Technological advancements in the production and storage of hydrogen, as well as in fuel cell technology, are making hydrogen fuel cell vehicles more viable and cost-effective, and driving growth in the market.
According to the International Energy Agency (IEA), demand for hydrogen fuel cell in the EVs grew multifold during 2021-2022. This demand currently remains the most promising application for hydrogen fuel cells. The sales of EVs, laden with hydrogen fuel cells remain the direct sales, which signify a promising path to adoption of both hydrogen cell technology in vehicles, and the infrastructure that is bound to follow.
Furthermore, the demand also expanded in new applications, with demand for steel manufacturing showing significant rise. This is the second part of the equation, which is key to growth of hydrogen fuel cells. The hydrogen fuel cell demand in other applications like steel manufacturing represents the rising supply scale in the hydrogen fuel cell vehicle market. The rising scale of supply is key to reduction in the price of adoption of hydrogen fuel cell for customers, which will be key to adoption of hydrogen fuel cell vehicle technology.
According to the IEA, the fuel costs remains one of the biggest challenges in adoption of hydrogen fuel cell vehicle technology. Currently, fossil fuels are used to manufacture hydrogen fuel. Hence, a shift to renewable technology, and lowered price of hydrogen fuel is sorely needed to drive mass adoption of hydrogen fuel cell vehicle technology. This adoption is promising as major players have adopted technologies like water electrolysis to produce hydrogen globally. This remains key to adoption of hydrogen fuel cell technology in the area of transportation. The aviation, and shipping industry continues to remain key to increase the scale of hydrogen production, and bring the price down of hydrogen production to finally make hydrogen cell technology available to consumers in the hydrogen fuel cell vehicle market. The demand for hydrogen fuel cell also grew in heavy-duty trucks, which is a major positive for future growth.
Germany also witnessed the launch of first train operated using hydrogen fuel cells. Moreover, major shipping countries around the world signed strategic agreements to secure supply of hydrogen for future transportation. Furthermore, conventionally, the supply of hydrogen remained an issue, wherein costs of manufacturing, and capacity remained obstacles to large-scale growth. According to the IEA, the manufacturing capacity doubled in 2021-2022 to 8GW per year. Furthermore, the IEA anticipates that the cheap hydrogen manufacturing capacity will rise to 134-240 GW by 2030 end.
Key players in the automotive industry and policy makers around the world continue to search for alternatives to electric vehicles. On one hand, electric vehicles remain a mile away from being a completely safe solution as cases of fires, and accidents make their way into mainstream media. Furthermore, the development of electric vehicles has also dominated by a few players with a strong advantage in the global market. This remains a challenge for established players in the automotive industry, and policy makers as well. Hydrogen fuel cell vehicles promise a bust of energy which is cheap, easy to transport, easy to refuel vehicles with, and far more efficient than electric energy.
Hydrogen Fuel Cell Vehicle Market: Challenges
While the hydrogen fuel cell vehicle market is growing, there are several challenges that must be overcome in order to realize its full potential:
High Costs: One of the major challenges facing the hydrogen fuel cell vehicle market is high costs. Fuel cell vehicles are currently much more expensive than traditional gasoline-powered vehicles, and this is a significant barrier to widespread adoption.
Lack of Hydrogen Refueling Infrastructure: Another challenge is the lack of hydrogen refueling infrastructure. While there are a growing number of hydrogen refueling stations, they are still relatively scarce compared to gasoline and diesel stations, which makes it difficult for drivers to refuel their vehicles.
Production and Transportation of Hydrogen: There are also concerns about the production and transportation of hydrogen, as well as the environmental impact of hydrogen production. Hydrogen can be produced from various sources, including natural gas, coal, and water, and some production methods have a higher carbon footprint than others.
Technical Challenges: There are also technical challenges that must be overcome, such as improving the efficiency and durability of fuel cell systems, and reducing the cost and complexity of hydrogen storage systems.
Consumer Acceptance: Another challenge is consumer acceptance. While there is growing awareness and interest in hydrogen fuel cell vehicles, some consumers are still skeptical about the technology, and may be hesitant to adopt it.
|
Hydrogen Fuel Cell Vehicle Market : Report Scope |
|
|
Base Year Market Size |
2021 |
|
Forecast Year Market Size |
2022-2032 |
|
CAGR Value |
63.91% |
|
Segmentation |
|
|
Challenges |
|
|
Growth Drivers |
|
Hydrogen Fuel Cell Vehicle Market: Segmentation
The global hydrogen fuel cell vehicle market report is segmented by technology into proton exchange, phosphporic acid fuel cell, solid oxide fuel cells, among others. the proton exchange technology remains the biggest green and scalable promise for growth.The increase in capacity is key to making hydrogen a cost-effective, and real alternative at gas stations for consumers. These factors are likely to help the segment hold the highest market share during the 2022-2030 period.
The hydrogen fuel cell vehicle market report is also divided into end-use by fuel cell vehicles, cell vehicles, among others. The fuel cell vehicles remains the largest promise for growth as heavy-duty vehicles, especially in China have already picked up adapted the technology to spell promising growth. Furthermore, shipping agreement by major industry players also spells a promising horizon for growth for fuel cell in the industry. The demand for hybrid cell-driven vehicle also opens new opportunities for growth. As electric vehicle remain far behind in mass adoption due to limited range of these vehicles, hybrid vehicles are likely to meet the growing demand for long-range electric vehicles.
Hydrogen Fuel Cell Vehicle Market: Regional Outlook
The hydrogen fuel cell vehicle market report is divided into regions like North America, Europe, Asia Pacific, South America, and Middle East & Africa. Among these, North America region promises to hold the highest share of revenues during the forecast period. The large automotive market in the region, the presence of major EV players like Tesla, Ford, among others, and growing policy support for advancement of hydrogen fuel cell technology remain promising driver of growth.
Europe and Asia Pacific also remain key regions to follow during the forecast period. Europe recently overtook China in its quest to adopt green energy. The region witnessed launch of hydrogen fuel cell driven trains, as well as overtook China in total number of EVs sold globally. The Asia Pacific, especially China and India remain promising countries for growth. India and China continue to bank on cost-effective EV models to surge growth. This has led both the countries to make significant strides. However, the lack of availability of long-range options within range, and limited infrastructure for fast charging remain key obstacles to growth.
Hydrogen Fuel Cell Vehicle Market: Notable Developments
Volkswagen Group announced in 2022 that it has been working on a hydrogen fuel cell vehicle for some time. The company filed a patent in regards to hydrogen fuel cell technology for a future production model in 2021. The vehicle promises to solve key challenges related to long-range of vehicles. It promises range of nearly 2000km, an extraordinary feat by today’s standards. News reports about the patent suggests that Volkswagen Group will be deploying a hydrogen fuel cell based on a ceramic membrane, which remains cheaper than conventional polymer membrane, which is currently being used by other automakers also pursuing hydrogen fuel cell technology.
Scania, a company pioneering the EV technology in Switzerland has made major forays in the hydrogen fuel cell technology. It has delivered hydrogen fuel cell trucks to various companies in Switzerland including Emmi AG, Genossenschaft Migros Zürich, Gysin Tiefbau AG and TRAVECO Transporte AG.
Hydrogen Fuel Cell Vehicle Market: Key Players
-
BMW Group
- Audi AG
- General Motors Company
- Daimler AG,
- MAN SE
- Honda Motor Co. Ltd
- Ballard Power Systems Inc
- Hyundai Motor Group
- Toyota Motor Corporation
- Volvo Group
Market Segmentation
Make This Report Your Own
Take Advantage of Intelligence Tailored to your Business Objective
Get a Customized Version
- Publication date: 19th September 2023
- Base year: 2022
- Forecast year: 2023-2033
- Format: PDF, PPT,Word,Excel
- Quick Contact -
- ISO Certified Logo -
Frequently Asked Questions(FAQ)
Hydrogen Fuel Cell Vehicle Market
-: Our Clients :-
