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The global hydrogen vehicle market is poised to become a frontrunner in sustainable transportation as countries worldwide ramp up efforts to reduce emissions and curb climate change. Hydrogen vehicles utilize hydrogen as fuel through fuel cells to generate electricity needed to power their electric motors, emitting only water in the process. Regulatory push for clean energy adoption along with falling production costs are expected to drive hydrogen vehicles mainstream in the coming years.
The Hydrogen Vehicle Market consists of fuel cell electric vehicles that utilize hydrogen as fuel stored either in high-pressure tanks or metal hydrides to generate electricity through an electrochemical reaction with oxygen from the air. Fuel cell vehicles offer fast refueling and a driving range comparable to gasoline/diesel vehicles while being more energy efficient and eco-friendly than conventional vehicles. Governments across Europe, North America, China, Japan, and South Korea are aggressively supporting the development and deployment of hydrogen infrastructure and vehicles to switch to zero-emission mobility. Industry leaders like Toyota, Hyundai, Honda have launched several fuel cell models to gain first-mover advantage in this budding market.
The Global hydrogen vehicle market is estimated to be valued at US$ 5.89 Bn in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the hydrogen vehicle market are Toyota Motor Corporation, Hyundai Motor Company, Honda Motor Co. Ltd., Daimler AG., Audi, BMW, General Motors, MAN, Ford Motor Company, and VOLVO. Toyota and Hyundai have emerged as leaders with their established fuel cell models in key markets.
Governments worldwide are focusing on building hydrogen refueling infrastructure, offering purchase subsidies and tax incentives on fuel cell vehicles to drive mass adoption over the next decade. Establishment of hydrogen highway networks in regions will help allay range anxiety issues and boost consumer confidence.
Major automakers are expanding fuel cell vehicle production globally with intent to launch several new models by 2030. Partnerships across value chain for joint hydrogen technology development and manufacturing hydrogen components will be crucial for economies of scale.
Market drivers
Growing environmental concerns and stringent emission regulations worldwide are key drivers for the hydrogen vehicle market. Transitioning to zero-emission fuel cell technology helps address sustainability goals of automakers and nations.
Continuous technology innovations have led to significant cost reductions in manufacturing fuel cells and hydrogen storage systems. OEMs are investing heavily in R&D to bridge the price gap with conventional vehicles.
Market restraints
High manufacturing and deployment costs of fueling infrastructure remain a major hurdle. Establishing a network of retail hydrogen refueling stations entails huge initial capital investments.
Limited driving range of early fuel cell models and lack of universal hydrogen fueling standards have slowed mass uptake. Standardization will be critical for the industry to scale up globally.
Segment Analysis
The Hydrogen Vehicle Market can be segmented by vehicle type into passenger vehicles and commercial vehicles. The passenger vehicle segment is expected to dominate the market during the forecast period owing to the rising focus of leading automobile manufacturers to introduce hydrogen powered cars for personal usage. Within passenger vehicles, the cars sub-segment currently hold the largest market share and is anticipated to grow at a significant rate between 2024 to 2031 due to the increasing sales of models like Toyota Mirai, Hyundai Nexo.
Global Analysis
Based on regional analysis, Asia Pacific region is projected to witness the highest growth in the global hydrogen vehicle market during the forecast period. This is mainly due to the rising initiatives by countries like Japan, South Korea and China to develop infrastructure for production and distribution of hydrogen. For instance, Japan and South Korea are focusing on expanding their hydrogen refueling stations network which is favoring the market growth. North America hydrogen vehicle market is also expected to grow at a considerable pace owing to supportive government policies regarding deployment of low and zero emission vehicles across nations like United States.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
