The global Hydrogen Fuel Cell Vehicle Market is estimated to be valued at US$ 1.46 billion in 2022 and is expected to exhibit a CAGR of 54.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Hydrogen fuel cell vehicles uses hydrogen as a fuel and convert it into electricity through an electrochemical reaction with oxygen from the air. Fuel cells have advantage of producing zero direct emissions and provide longer driving ranges than battery electric vehicles. Fuel cell vehicles overcome limitations of fossil fuel vehicles by emitting only water and heat as by-products. Fuel cells find major application in transportation sector due to their efficiency in powering automobiles. Various automakers are investing in developing hydrogen fuel cell vehicles to provide emission free transportation solution to customers.
Market key trends:
One of the major trends in the market is tightening emission regulations. Stringent regulations imposed by various governments and regulatory bodies towards reducing vehicular emissions are compelling automakers to invest in hydrogen fuel cell technologies. Various countries have also announced timeline for phasing out combustion engine vehicles which is fueling development of alternative fuel vehicles. Another key trend is the declining prices of fuel cell systems. Continuous technological advancements and increasing production volumes are helping bring down the cost of fuel cell systems. Automakers are able to offer fuel cell vehicles at competitive prices against battery electric vehicles. Growing hydrogen refueling infrastructure is another important trend as availability of refueling stations is critical for market adoption of these vehicles. Governments across regions are supporting building hydrogen stations to address refueling challenges.
Threat of new entrants: The threat of new entrants is low as it requires high R&D spending and capital investment in technology development and manufacturing infrastructure which are difficult barriers for new companies to overcome.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are few established manufacturers in the market currently. However, as adoption increases there will be more choice for buyers.
Bargaining power of suppliers: The bargaining power of suppliers is high as key raw materials and components such as fuel cells, batteries and hydrogen tanks require specialized engineering expertise from few specialized suppliers.
Threat of new substitutes: The threat of new substitutes is moderate as electric vehicles are emerging as a competing technology but hydrogen fuel cells provide longer range which is attractive for commercial vehicles.
Competitive rivalry: Intense as major automakers are heavily investing in the technology to gain early mover advantage.
The global Hydrogen Fuel Cell Vehicle Market is expected to witness high growth, exhibiting CAGR of 54.3% over the forecast period, due to increasing adoption across commercial vehicles segments like trucks and buses. Governments across regions are offering incentives and investing in hydrogen refueling infrastructure to drive the commercial deployment of the technology.
The Asia Pacific region is expected to dominate the hydrogen fuel cell vehicle market during the forecast period. Countries like China, Japan and South Korea are aggressively pushing the commercialization of the technology. China has the largest fuel cell vehicle stock globally with over 8,000 vehicles, mainly buses and forks.
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. Hyundai introduced the Nexo SUV with a fuel cell powertrain in 2018 and delivered over 1,000 units by 2020 making it the leading manufacturer currently.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it