Hydrogen Fuel Cell Vehicles (HFCVs) Market by Components (Fuel Cell Stack, Thermal System (Cooling), Transmission, Power Electronic Controller, Fuel Tank (Hydrogen), and Others), by Type (Passenger Vehicles and Commercial Vehicles), by Technology (Proton Exchange Membrane Fuel Cell, Alkaline Fuel cell, Solid Oxide Fuel Cell, and Others), by Application (Personal Transportation, Public Transportation, and Commercial Applications), and by Range (Up to 250 Miles, 251-500 Miles, above 500 Miles)–Global Opportunity Analysis and Industry Forecast 2024-2030

Hydrogen Fuel Cell Vehicles (HFCVs) Market Overview

The global Hydrogen Fuel Cell Vehicles Market size was valued at USD 1.7 billion in 2023 and is predicted to reach USD 25.5 billion by 2030 with a CAGR of 45.7% from 2024-2030. Hydrogen fuel cell vehicles (HFCVs) are automobiles powered by electric motors that use hydrogen as a fuel source. Unlike conventional internal combustion engines, which burn fossil fuels to generate power, FCVs utilize hydrogen gas to produce electricity through a chemical reaction in the fuel cell stack.

This process involves combining hydrogen from an onboard storage tank with oxygen from the air, resulting in the creation of electricity, water vapor, and heat as byproducts. The electricity generated powers the vehicle's electric motor, propelling it forward. FCVs offer several advantages, including zero tailpipe emissions, fast refuelling times, and longer driving ranges compared to battery electric vehicles.

Market Dynamics and Trends

The growing concerns related to climate change, and increasing environmental deterioration, driven by the increasing release of greenhouse gases propels the hydrogen fuel cell vehicles market demand. These vehicles offer zero-emission transportation, contributing to the reducing air pollution and dependence on fossil fuels.

According to International Energy Association, in March 2023, the global emission of carbon-di-oxide surges by 0.9% in the year 2022 compare to the pre-covid period. This increasing emission of greenhouse gases surges the demand for sustainable mode of transportation, thus fuelling the growth of the HFCV market.

Moreover, rising government initiatives, policies, and funding to encourage the adoption of HFCVs around the world is further propelling the growth of the market. These measures encompass subsidies for vehicle purchases, investments in hydrogen infrastructure, research grants, and tax incentives. Their aim is to create market demand and advances the commercialization of HFCVs, therefore propelling the growth of the market.

However, inadequate availability of hydrogen fuel coupled with lack of proper infrastructures such as hydrogen plants poised as a major restrain for the growth of the market. On the other hand, production of hydrogen production through biological and photoelectrochemical methods is expected to create future opportunities for the hydrogen fuel cell vehicles market. Biological processes such as microbial conversion of biomass consume which consumes biomass and release hydrogen is attributed to generate large volume of hydrogen which can be used as a fuel in HFCVs.

Market Segmentations and Scope of the Study

The HFCVs market share is segmented on the basis of components, type, technology, application, range, and region. On the basis of components, the market is divided into fuel cell stack, thermal system (cooling), transmission, power electronic controller, fuel tank (hydrogen), and others. On the basis of type, the market is divided into passenger vehicles and commercial vehicles. On the basis of technology, the market is bifurcated into proton exchange membrane fuel cell, alkaline fuel cell, solid oxide fuel cell, and others. On the basis of application, the market is further divided into personal transportation, public transportation, and commercial applications. On the basis of range, the market is further divided into up to 250 miles, 251-500 miles, above 500 miles. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominant share of the HFCVs market at present and is expected to continue its dominance during the forecast period. This is due to the growing adoption of hybrid vehicles within the region, significantly boosting the demand for HFCVs, fuelled by the increasing awareness of environmental impact. 

According to the U.S. Energy Information Administration (EIA), the USA experienced a notable surge in hybrid vehicle adoption, with the percentage of hybrid vehicles on the road increasing from 12.9% in 2022 to 16.3% in 2023. This growing adoption highlights the global trend towards sustainable transportation, thereby propelling the growth of the hydrogen fuel cell vehicles market.

Moreover, rising government initiatives in climate action program to mitigate greenhouse gases is further expected to drive the market within the region. According to World Recourses Institute, in January 2024, the US government invested a large amount under the Inflation Reduction Act, to reduce the carbon emission in the region. 

Also, the government focus on developing detailed guidelines for accessing tax credits related to clean energy projects and initiatives. This introduction of funds and regulations aiming to reduce the carbon emission is expected to divert people’s attention towards HFCVs, thereby fuelling the growth of the market. Asia Pacific is showing a steady rise in the hydrogen fuel cell vehicles market due to the rise in initiatives to boost hydrogen development in countries such as China, Japan, and South Korea.

According to a report published by ICLEI East Asia, in May 2023, major Asian countries began their hydrogen development policies such as Beijing Hydrogen Industrial Development Plan (2021-2025), and Hydrogen Economy Policy Direction (2022), aims at increasing the induction of fuel cell vehicles and develop hydrogen charging stations.

Thus, with the rising emphasis on hydrogen production, the demand for HFCVs is significantly rising, thereby propelling the HFCVs market growth. Moreover, presence of major companies such as Honda Motor Co., Ltd., Toyota, and Toshiba Energy Systems & Solutions Corporation within the Asia Pacific region is further propelling the growth of the market. These companies play a crucial role in driving advancements, innovation, and market expansion within the hydrogen fuel cell vehicles industry.

For instance, in January 2023, Toyota Kirloskar Motor (TKM) supplied a hydrogen fuel cell module to Ashok Leyland, an Indian automotive manufacturer, for the development of a fuel cell commercial vehicle in India. The initiative is part of Toyota's efforts to promote the use of fuel cell modules in India and develop zero carbon emission vehicles. This increase in collaboration between companies and commitment to uphold zero carbon emission is expected to drive the HFCV market within the region.

Competitive Landscape

The hydrogen fuel cell vehicles market trends comprising of key players such as General Motors, RIVERSIMPLE, Jaguar Land Rover, Bayerische Motoren Werke (BMW) AG, Hyundai Motor Company, Honda Motor Co., Ltd., AB Volvo, Toyota, Daimler Truck AG, Toshiba Energy Systems & Solutions Corporation. These market players are adopting various strategies including product launches across various regions to maintain their dominance in the market.

For instance, in September 2023, Toyota launched a prototype, hydrogen fuel-cell electric pickup truck. The hydrogen fuel cell powertrain used in the prototype was made with "core elements" from the Toyota Mirai, and the pickup was fitted with three high-pressure hydrogen fuel tanks, giving it an expected driving range of more than 365 mile.

Also, in September 2023, Nikola launched hydrogen fuel cell electric truck, marking as a significant step towards sustainable and efficient transportation. This launch highlights the technological advancements in hydrogen fuel cell technology also indicate a growing industry momentum towards decarbonizing the transportation sector.

Key Benefits

• The report provides quantitative analysis and estimations of the hydrogen fuel cell vehicles (HFCVs) market from 2024 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the current and future hydrogen fuel cell vehicles market trends to depict prevalent investment pockets in the market.

• Information related to the key drivers, restraints, and opportunities and their impact on the hydrogen fuel cell vehicles market is provided in the report. 

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and a Porter’s Five Forces model is elaborated on in the study.

• Value chain analysis in the market study provides a clear picture of the role of each stakeholder.

Hydrogen Fuel Cell Vehicles Market Key Segments

By Components

• Fuel Cell Stack

• Thermal System (Cooling)

• Transmission

• Power Electronic Controller

• Fuel Tank (Hydrogen) 

• Others

By Type

• Passenger Vehicles 

• Commercial Vehicles

By Technology

• Proton Exchange Membrane Fuel Cell

• Alkaline Fuel Cell 

• Solid Oxide Fuel Cell

• Others

By Application 

• Personal Transportation

• Public Transportation 

• Commercial Applications

By Range

• Up to 250 Miles

• 251-500 Miles

• Above 500 Miles

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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