The global Hydrogen Fuel Cell Vehicle Market is estimated to be valued at US$ 2.25 Bn in 2023 and is expected to exhibit a CAGR of 54 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Hydrogen fuel cell vehicles are zero-emission vehicles that produce electricity to power their electric motor through an electrochemical reaction of hydrogen and oxygen in the air. Hydrogen fuel cell vehicles have advantages over battery electric vehicles as they provide longer range and faster refueling times. The growing concerns regarding environmental pollution have accelerated demand for clean fuel vehicles.
Market key trends:
Ongoing technology advancement to reduce cost: Fuel cell system and hydrogen storage system costs still need to decrease to achieve cost competitiveness with conventional vehicles. Major automobile manufacturers are investing heavily in ongoing R&D to reduce platinum loading and improve durability to reduce the costs associated with materials and production. Governments providing subsidies and establishing hydrogen refueling infrastructure: Many governments worldwide are providing purchase incentives and subsidies for hydrogen fuel cell vehicles. They are also supporting establishment of hydrogen refueling stations to develop necessary infrastructure to promote the adoption of such vehicles. This is a major trend fueling the growth of the global hydrogen fuel cell vehicle market.
The Hydrogen Fuel Cell Vehicle Market Size is segmented by vehicle type into passenger vehicles and commercial vehicles. The passenger vehicle segment dominates the market and is expected to continue its dominance over the forecast period. Factors such as the growing demand for zero-emission vehicles and supportive government policies and initiatives to increase the use of fuel cell vehicles for personal transportation are driving the growth of the passenger vehicle segment.
The global hydrogen fuel cell vehicle market is expected to witness high growth, exhibiting a CAGR of 54% over the forecast period, due to increasing demand for low-emission vehicles and supportive government policies and initiatives towards the development of hydrogen infrastructure.
Regionally, Asia Pacific is expected to dominate the hydrogen fuel cell vehicle market over the forecast period. Countries such as China, Japan, and South Korea are actively working towards the development of hydrogen infrastructure and have announced heavy investments for fuel cell vehicle adoption.
Key players operating in the hydrogen fuel cell vehicle market are Audi AG, Ballard Power Systems Inc., BMW Group, Daimler AG, General Motors Company, Honda Motor Co., Ltd., and Hyundai Motor Group.
The global hydrogen fuel cell vehicle market size is expected to reach US$ 2.25 Billion in 2023 and is projected to reach over US$ 35 Billion by 2030, exhibiting a CAGR of 54% during the forecast period.Factors such as stringent emission norms, rising demand for zero-emission vehicles and increasing investment by governments and leading automakers to promote hydrogen-based technologies are expected to drive the demand for fuel cell vehicles.