Automotive Fuel Cell Market by Vehicle Type (Buses, Trucks, LCVs, Passenger Cars), Component, Fuel Type, Hydrogen Fuel Points, Operating Miles, Power, Capacity, Specialized Vehicle Type and Region - Global Forecast to 2030
[330 Pages Report] The global automotive fuel cell market size is valued at USD 0.2 billion in 2024 and is expected to reach USD 2.1 billion by 2030, at a CAGR of 48.0% during the forecast period. Government support toward green hydrogen technology and improving hydrogen infrastructure is expected to support the market. Furthermore, the fuel cell vehicle (FCEV) market is poised for expansion, driven by increasing demand in automotive and transportation, government initiatives supporting FCEVs and infrastructure, enhanced fuel efficiency, lower greenhouse gas emissions, and strict emission regulations. Companies operating in the market are focusing on new product development.
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Market Dynamics:
Driver: Enhanced Fuel Efficiency and Extended Driving Range
Fuel Cell Electric Vehicles (FCEVs) exhibit superior fuel efficiency compared to internal combustion engine (ICE) vehicles. FCEVs achieve approximately 63 miles per gallon gasoline equivalent (MPGge), outperforming ICE vehicles, which attain 29 MPGge on highways. Hybridization has the potential to enhance the fuel efficiency of FCEVs by up to 3.2%. In urban settings, FCEVs demonstrate a fuel economy of approximately 55 MPGge, contrasting with the 20 MPGge observed in ICE vehicles. Notably, FCEVs and Battery Electric Vehicles (BEVs) display significant differences in driving range. FCEVs can cover nearly 300 miles without refueling, whereas the average BEV range is approximately 110 miles on a fully charged battery. The Honda Clarity stands out with the highest EPA driving rating among zero-emission vehicles in the US, boasting an impressive driving range of up to 366 miles. The combination of enhanced fuel efficiency and extended driving range is anticipated to drive increased demand for FCEVs, consequently influencing the automotive fuel cell market positively. Hydrogen, with a specific energy of 40,000 Wh/kg, surpasses conventional Li-ion batteries, which only have about 250 Wh/kg. Charging times further distinguish FCEVs from conventional BEVs, as FCEVs can refuel in approximately 5 minutes, while BEVs typically require more time for a full charge. The overall calculated efficiency of an FCEV is estimated to be around 60%.
Restraint: High infrastructure costs for H2 refueling station setup
The setup costs of hydrogen fuel stations and other infrastructure are quite high compared to that of petroleum, diesel, and other fuels. This has led to slower growth in hydrogen fueling infrastructure around the world than other alternative fuels. This is due to the expensive equipment required for this fuel, along with necessary precautions and safety measures due to hydrogen being an easily combustible fuel. A hydrogen fuel station can cost around USD 1-2 million overall, while a petrol fuel station costs around USD 200,000, a CNG fuel station costs USD 150,000, and diesel and electric fuel stations cost USD 200,000.
Opportunity: Hydrogen Fuel-Cell Vans to be a emerging market opportunity
As conventional fuel prices surge, the automotive industry is witnessing a shift towards hydrogen-powered vehicles, particularly fuel-cell vans. Companies such as Hyvia, Hyundai, and Bosch are introducing hydrogen-fueled vans, like the Renault Master VanH2 Tech and Hyundai's hydrogen-powered vans and buses. These vehicles boast impressive ranges, addressing concerns about the rising operational costs of traditional internal combustion engine (ICE) vans. Simultaneously, governments globally are taking significant initiatives to promote fuel-cell technology and invest in hydrogen infrastructure. Regions like Europe, China, and North America, along with U.S. states like California and New York, are actively contributing to the development of hydrogen hubs. Moreover, the market is witnessing mobile and community hydrogen fueling systems innovations, making hydrogen more accessible for residential and small-scale use. Companies like Air Liquide, Linde, and Powertech Labs are pioneering the development of cost-effective and mobile refueling solutions to drive the adoption of fuel-cell electric vehicles further in the market.
Challenge: Insufficient hydrogen infrastructure
For hydrogen-powered transportation systems, the required hydrogen infrastructure needs to be developed. Hydrogen infrastructure includes hydrogen production plants, hydrogen fuel stations, hydrogen storage facilities, and roads, which are ideal for FCEVs. However, the availability of hydrogen infrastructure is limited in most countries. There must be hydrogen fueling stations at least every 300 miles to create hydrogen transportation systems, as that is the driving range for FCEVs. Governments and manufacturers require huge investments in building this infrastructure. Many governments in countries such as the US, Japan, Canada, China, the UK, and manufacturers such as Ballard Power Systems and Plug Power are working to achieve this goal. For instance, in 2023, the US Department of Energy (DOE) announced plans to allocate USD 7 billion to create regional clean hydrogen hubs (H2Hubs). This will create a network of hydrogen producers, consumers, and infrastructure to accelerate the use of hydrogen as a clean energy carrier. Countries like the US have around 54 hydrogen stations. Hydrogen storage is another challenge that needs to be addressed for the growth of the automotive fuel cell market. Hydrogen needs to be stored under high pressure or as liquid hydrogen (−252.8?°C) or with the help of chemical compounding. Also, the high density of hydrogen poses a challenge for its storage. Therefore, the concerns over hydrogen infrastructure and storage need to be settled for the market to prosper.
Market Ecosystem
Europe is expected to be the fastest growing hydrogen infrastructure provider in the coming years
Europe is experiencing rapid growth in the hydrogen fuel points market, with Germany and France leading the expansion. Other countries like the UK, Belgium, Denmark, Italy, Norway, Netherlands, Spain, Sweden, and Switzerland are also contributing to the market's growth. The increase in fueling stations is driven by new emission reduction policies. Germany, in particular, has seen significant growth due to collaborations between German OEMs and the government, resulting in an increase in fuel cell electric vehicles (FCEVs). France has worked with Germany to enhance hydrogen fueling points. Shell subsidiaries have approved the construction of Holland Hydrogen L, set to become Europe's largest renewable hydrogen plant in 2025. In 2022, 82 MOBILITY secured 110 million euros to expand large hydrogen refueling stations, with notable investments from Shell, Air Liquide, Daimler Truck, EG Group, and Hyundai.
Passenger Car is estimated to be the largest segment during the forecast period
During the forecast period, the automotive fuel cell market is expected to grow rapidly, with passenger cars leading the way. The passenger car segment is expected to dominate, driven by a high adoption rate, increasing demand for personal mobility, and government initiatives to convert ICE taxi fleets into zero-emission vehicles. The increasing popularity of fuel cell passenger cars is evident through the availability of various models in the market, such as Toyota Mirai, Hyundai Nexo, Honda Clarity, Mercedes-Benz GLC FCEV, Nissan X-Trail FCEV, and Riversimple RASA. Automotive companies like BMW, and Jaguar Land Rover are also actively investing in and planning to launch new fuel cell models in response to the growing potential in this market. For instance, BMW intends to introduce fuel cell technology in its X6 and X7 models, while Jaguar Land Rover is developing a hydrogen fuel cell Defender, aiming for zero tailpipe emissions by 2036 through collaborative efforts with industry partners.
Asia Oceania's to lead the automotive fuel cell market by volume
The Asia Oceania region currently has the highest number of hydrogen fuel stations worldwide, with the governments of Japan, China, South Korea, India, and Australia spearheading the expansion of hydrogen infrastructure. These nations are actively fostering the growth of Fuel Cell Electric Vehicles (FCEVs) with rapidly evolving systems in the market. Leading Original Equipment Manufacturers (OEMs) such as Toyota, Hyundai, and Honda are pivotal in advancing the adoption of fuel cell vehicles across the region. Additionally, some countries have introduced FCEV buses and trucks, with Ballard playing a key role in developing an extensive FCEV bus and truck network in China. Despite ambitious targets aiming for 800,000 cumulative FCEV sales in Japan and establishing 1,000 refueling stations by 2030, the FCEV market encounters notable challenges. Despite substantial government subsidies, the limited development of refueling infrastructure and inadequate vehicle supply hinder the widespread adoption of FCEVs in the country. Noteworthy initiatives in the bus sector include Kansai Airport in Japan and companies like Solaris and the West Midlands deploying hydrogen fuel cell buses. In the truck industry, major players such as Nikola, SINOTRUK, Hyundai, Sym.Pjg, and Daimler Truck are actively engaged in developing and deploying heavy-duty hydrogen fuel cell trucks. As of September 2023, ENEOS manages 43 hydrogen refueling stations across four major metropolitan areas in Japan.
Key Market Players
The automotive fuel cell market is dominated by established players such as Ballard Power Systems (Canada), Hyster-Yale (US), Plug Power(US) ITM Power(UK) and Cummins (US). These companies provide fuel cell technologies and possess robust worldwide distribution networks. They have implemented comprehensive expansion initiatives, engaging in collaborations, partnerships, and mergers and acquisitions to establish a strong market presence.
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Report Metric |
Details |
Market size available for years |
2020–2030 |
Base year considered |
2023 |
Forecast period |
2024-2030 |
Forecast units |
Volume (Thousand Units) and Value (USD Million/Billion) |
Segments covered |
Market by Vehicle Type (Buses, Trucks, LCVs, Passenger Cars), Component, Fuel Type, Hydrogen Fuel Points, Operating Miles, Power, Capacity, Specialized Vehicle Type and Region |
Geographies covered |
Asia Oceania, Europe, North America, and RoW |
Companies Covered |
Ballard Power Systems (Canada), Hyster-Yale (US), Plug Power (US) ITM Power(UK) and Cummins (US) |
This research report categorizes the automotive fuel cell market based on vehicle type, component, specialized vehicle type, operating miles, power output, hydrogen fuel points and fuel cell type, and region.
Based on Vehicle Type:
- Buses
- LCVs
- Passenger Cars
- Trucks
Based on Component:
- Air Compressors
- Fuel Processors
- Fuel Stacks
- Humidifiers
- Power Conditioners
Based on Operating Miles:
- 0-250 Miles
- 251-500 Miles
- Above 500 Miles
Based on Power Output:
- <150 kW
- 150-250 kW
- >250 kW
Based on Specialized Vehicle Type:
- Material handling vehicles
- Refrigerated trucks
Based on Propulsion:
- FCEV
- FCHEV
Based on Hydrogen Fuel Points:
- Asia Oceania
- Europe
- North America
Based on Fuel Type:
- Hydrogen
- Methanol
- Ethanol
Based on Region:
-
Asia Oceania
- Australia
- China
- Japan
- India
- South Korea
-
North America
- US
- Canada
- Mexico
-
Europe
- Belgium
- Denmark
- France
- Germany
- Italy
- Netherlands
- Norway
- Spain
- Sweden
- Switzerland
- UK
Recent Developments
- In December 2023, Plug Power, the company in focus, successfully installed a one-megawatt proton exchange membrane electrolyzer at the Amazon Fulfillment Center, DEN8. This milestone signifies Amazon's inaugural initiative in producing low-carbon hydrogen to fuel more than 225 hydrogen fuel cell-driven forklift trucks operating at the facility.
- In November 2023, Ballard Power Systems entered into a supply contract with Solaris Bus & Coach sp. z o.o. (Poland). Ballard Power Systems has publicly revealed multiple purchase orders, totaling 62 hydrogen fuel cell engines, destined for Solaris Bus & Coach. These advanced fuel cell engines are earmarked for use in buses operating in Germany and Poland, contributing to the expansion of sustainable transportation in the region.
- In October 2023, a 50kW fuel cell module (FC module) was developed by Toyota Motor, representing a compact fuel cell (FC) system. This innovative module, designed for various applications like lift trucks, agricultural machinery, and construction equipment, provides versatile installation possibilities.
- In March 2023, Hyster-Yale-Generator-Fuel Cells officially launched the commercial availability of the G-Series Fuel Cell Power Generators, offered in 360 kW and 470 kW modules. This modular and zero-emission power solution is designed for various applications in the commercial and industrial sectors, such as data centers, electric vehicles, backup power systems, and microgrids.
- In September 2023, Ballard Power Systems and QUANTRON collaborated to unveil their first fuel cell electric vehicles, highlighting the seamless integration of QUANTRON's vehicle engineering expertise with Ballard's state-of-the-art fuel cell technology.
Frequently Asked Questions (FAQ):
What is the current size of the automotive fuel cell market?
The current size of the automotive fuel cell market is estimated at 23 thousand units in 2024.
Who are the winners in the automotive fuel cell market?
The automotive fuel cell market is dominated by market is dominated by established players such as Ballard Power Systems (Canada), Hyster-Yale (US), Plug Power(US) ITM Power(UK) and Cummins (US)., among others. They have worked on providing offerings for the automotive fuel cell ecosystem. They have initiated partnerships to develop their fuel cell technology and offer best-in-class products to their customers.
Which region will have the largest automotive fuel cell market by value?
North America will be the largest automotive fuel cell market by value due to the huge volume of investments in the region and growing demand for zero-emission commercial and passenger transport vehicles.
What are the key technologies affecting the automotive fuel cell market?
The key technologies affecting the automotive fuel cell market are Non-precious metal catalyst (NPMC), compact fuel cell module, and new battery technologies.
Which segment by vehicle type is dominating the automotive fuel cell market?
The largest market share of the automotive fuel cell market, based on vehicle type, is attributed to the passenger car segment. .
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The study involved four major activities in estimating the current size of the automotive fuel cell market. Exhaustive secondary research was done to collect information on the market, the peer market, and the child markets. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation processes were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources such as company annual reports/presentations, press releases, industry association publications [for example, Fuel Cell and Hydrogen Energy Association (FCHEA), International Organization of Motor Vehicle Manufacturers, European Alternative Fuels Observatory (EAFO), International Energy Association (IEA)], articles, directories, technical handbooks, trade websites, technical articles, and databases (for example, Marklines, and Factiva) have been used to identify and collect information useful for an extensive commercial study of the global automotive cell market.
Primary Research
Extensive primary research was conducted after acquiring an understanding of the automotive fuel cell market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand (automotive OEMs) and supply (automotive fuel cell providers) sides across major regions, namely, North America, Europe, and Asia Oceania. Approximately 30% and 70% of primary interviews were conducted from the demand and supply sides, respectively. Primary data was collected through questionnaires, emails, and telephonic interviews.
In the canvassing of primaries, various departments within organizations, such as sales, operations, and marketing, were covered to provide a holistic viewpoint in the report. After interacting with industry experts, brief sessions were also conducted with highly experienced independent consultants to reinforce the findings from primaries. This, along with the in-house subject matter experts’ opinions, led to the findings described in the remainder of this report.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The bottom-up approach has been used to estimate and validate the size of the Automotive fuel cell market by vehicle type. In this approach, the vehicle sales statistics for each vehicle type [Passenger Cars, Light Commercial Vehicles, Buses, and Trucks] have been considered at the country level.
To determine the market size, in terms of volume, a mapping of fuel cell vehicles has been carried out for each country and vehicle type. The number of fuel cell electric models varied from country to country. After this, the types of FCEVs sold were identified, which derived the volume of each segment type. The country-level data was summed up to arrive at the region-level data in terms of volume. The summation of the country-level market size gives the regional market size, and a further summation of the regional market size provides the global market size.
Market Size Validation
The top-down approach has been used to estimate and validate the size of the Automotive fuel cell market at the global level, and by miles covered, power capacity, fuel cell type in terms of volume.
The top-down approach has been used to estimate and validate the size of the market. This approach identifies key fuel cell type, miles covered and power capacity segments of Automotive fuel cells at the regional level. The penetration of each identified segment is multiplied by the volume of each vehicle at the regional level to derive the total segment volume.
For instance,
- The Automotive fuel cell market for operating miles was derived using the top-down approach to estimate the subsegments- <250 miles,251-500 miles, above 500 miles.
- The market size, in terms of volume, was derived at the regional level for each segment using this method. The total volume of the market was multiplied by the adoption rate breakup percentage of these segments in regional level (for miles covered, power capacity) and global level (for fuel cell type), respectively.
Data Triangulation
After arriving at the overall market size of the global market through the above-mentioned methodology, this market was split into several segments and subsegments. The data triangulation and market breakdown procedure were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact market value data for the key segments and subsegments. The extrapolated market data was triangulated by studying various macro indicators and regional trends from both the demand- and supply-side participants.
Market Definition
According to Alternative Fuel Data Center (AFDC) fuel cell produces electricity and heat by electrochemically reacting hydrogen fuel with oxygen. Stringent emission regulations have led to the increased use of fuel cells in the automotive and transportation industry. A fuel cell electric vehicle (FCEV) is a type of electric vehicle that uses a fuel cell. A fuel cell can also be used in combination with a battery or supercapacitor to power the onboard electric motor. In an FCEV, hydrogen is pumped into the car and then fed to the fuel cell stack. The fuel cell stack is the center where hydrogen is electrochemically converted into electricity with no combustion and zero emissions. Fuel cells in vehicles generate electricity to power the motor. As long as hydrogen is available, the fuel cell will continue to produce electricity. Most fuel cell vehicles are classified as zero-emission vehicles that emit only water and heat.
List of Key Stakeholders
- Alternative Fuels Data Center (AFDC)
- Automobile OEMs
- Automotive fuel cell raw material suppliers
- Automotive fuel cell suppliers
- California Fuel Cell Partnership (CaFCP)
- California Hydrogen Business Council (CHBC)
- Canadian Hydrogen Fuel Cell Association (CHFCA)
- Environmental Protection Agency (EPA)
- Fuel Cell and Hydrogen Energy Association (FCHEA)
- Hydrogen gas suppliers
- Hydrogen station service providers
- United States Council for Automotive Research LLC (USCAR)
Report Objectives
-
To segment and forecast the automotive fuel cell market size in terms of volume (thousand units) and Value (USD Million)
- To define, describe, and forecast the market based on vehicle type, component, specialized vehicle type, H2 fuel station, power output, operating miles, fuel cell type, fuel type and region.
- To segment the market and forecast its size, by volume and value, based on region (Asia Oceania, Europe, and North America)
- To segment and forecast the market based on vehicle type (passenger car, light commercial vehicle, bus, truck)
- To segment and forecast the market based on component (fuel processor, fuel stack, humidifier, air compressor, and power conditioner)
- To segment and forecast the market based on H2 Fuel Station (Asia Oceania, Europe, and North America)
- To segment and forecast the market based on power capacity (<150 kW, 150-250 kW, >250 kW)
- To segment and forecast the market based on operating miles (0-250 Miles, 250-500 Miles, Above 500 Miles)
- To segment and forecast the market based on fuel type (hydrogen, methanol, ethanol, others)
- To analyze the technological developments impacting the market
- To analyze opportunities for stakeholders and the competitive landscape for market leaders
- To provide detailed information regarding the major factors influencing the market growth (drivers, challenges, restraints, and opportunities)
- To strategically analyze markets with respect to individual growth trends, future prospects, and contribution to the total market
-
To study the following with respect to the market
- Value Chain Analysis
- Pricing Analysis
- Technological Roadmap
- Ecosystem
- Technology Analysis
- Case Study Analysis
- Patent Analysis
- Regulatory Landscape
- Buying Criteria
- To strategically profile key players and comprehensively analyze their market shares and core competencies.
- To track and analyze competitive developments such as deals (joint ventures, mergers & acquisitions, partnerships, collaborations), new product developments, and other activities carried out by key industry participants.
Available Customizations
With the given market data, MarketsandMarkets offers customizations in line with company-specific needs.
- Automotive Fuel Cell Market, By Propulsion at Country Level
- Automotive Fuel Cell Market, Additional Countries (Up to 3)
- Profiling of additional market players (Up to 3)
Growth opportunities and latent adjacency in Automotive Fuel Cell Market