Hydrogen Fuel Cell Vehicle Market Size, Share & Analysis

[330 Pages Report] The global hydrogen fuel cell vehicle 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 2024 to 2030. Government subsidies for environmentally friendly hydrogen production, the development of an integrated hydrogen ecosystem, the launch of new generation H2 fuel vehicles, and OEM plans to establish their own H2 refueling ecosystems are all expected to boost the automotive fuel cell business.

The sector is also seeing developments like mobile and community hydrogen fueling systems, which make H2 more accessible for home applications. Air Liquide, Linde, and Powertech Labs are among the companies exploring low-cost, mobile refueling options to help boost acceptance of fuel cell electric vehicles market.

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Hydrogen Fuel Cell Vehicle Market Dynamics:

Driver: Improved Fuel Efficiency and Driving Range

Vehicles powered by hydrogen fuel cells outperform ICE vehicles in terms of fuel efficiency. They can obtain over 63 miles per gallon gasoline equivalent (MPGge), beating most ICE vehicle models, which average 29 MPGge on the highway. Hybridization also has the potential to improve these vehicles' fuel efficiency by 3.2%. In cities, H2 FCEVs have a fuel economy of 55 MPGge, compared to ~20 MPGge in ICE vehicles. Further, FCEVs can have thravel over 300 miles from one refuel. The average EV on the other hand has a range of around 150 miles. Honda Clarity has the highest EPA range of up to 366 miles. This combination of fuel efficiency and extended driving range is expected to drive demand for H2 FCEVs, consequently driving demand of automotive fuel cells.

Restraint: High infrastructure costs for H2 fuel station setup

Hydrogen fuel station setup cost is much higher compared to petroleum, diesel, and other fuels including fast EV chargers. Further, cost of transportation for H2 fuel is also currently much higher than other fuel types. This can be led by cost of setting H2 pipelines as well as recurring cost of transport of cryogenic hydrogen. This has led to slower growth in H2 fueling infrastructure around the world than other alternative fuels. Higher safety system investment is also required due to necessary precautions and safety measures due to hydrogen being an easily combustible fuel. Hydrogen fuel station setup cost ~USD 1-2 million by value.  Meanwhile gasoline fuel station cost ~USD 200,000 and CNG fuel station cost ~USD 150,000, and EV fast charging stations cost less than USD 200,000.

Opportunity: H2 Fuel Cell Vans to be a key emerging hydrogen fuel cell vehicle market opportunity

With surge in conventional fuel prices, and rising concern for automotive emissions, the automotive industry is witnessing a shift towards low emission vehicles, including fuel-cell vans. Companies such as Hyvia, Hyundai, and Bosch have planned to introduce H2 vans. OEMs such as Renault and Stellantis already have such vans operational across Europe. These vans come with higher range and can be refueled faster compared to their electric counterparts. Further, governments initiatives to promote fuel-cell technology and invest in hydrogen infrastructure will drive demand for these vehicles. Countries across Europe, along with China, and American states such as New York and California actively contributing to the development of hydrogen hubs.

Challenge:Insufficient hydrogen infrastructure and storage

Popularization of H2 powered vehicles require setup of sufficient H2 refueling stations and other hydrogen infrastructure. This includes hydrogen production plants, fuel stations, storage facilities, which are ideal for FCEVs. As per ACEA, there must be H2 fuel stations across every 300 miles to support H2 in vehicles, as that is the driving range for FCEVs. However, hydrogen refueling infrastructure setup is currently limited in most countries. H2 storage is another challenge that needs to be addressed for hydrogen fuel cell market growth. Hydrogen storage need to be under high pressure or as liquid H2 (−252.8?°C) with the help of chemical compounding. Further, high density of H2 poses a challenge for its storage. Thus, the concerns over hydrogen infrastructure and storage need to be settled for the market.

Market Ecosystem

Europe expected to be fastest growing H2 infrastructure provider during forecast period

The H2 re-fueling station demand across Europe is expanding, with Germany and France leading demand. Other countries, including UK and Denmark, are also leading the hydrogen fuel cell vehicle market expansion. Emission reduction plans are also driving the expansion in the number of refueling stations. Collaborations between local OEMs and the government have resulted in tremendous. growth, particularly in Germany. France has also collaborated with domestic OEMs to improve hydrogen fueling stations, which has positively impacted FCEV sales. Shell has also approved the development of Holland Hydrogen L, which will become Europe's largest renewable hydrogen plant by 2025. Similarly, in 2022, 82 MOBILITY received USD 135 million to expand H2 refueling stations with investments from firms such as Shell, Air Liquide, and Daimler.

Passenger Car estimated to be the largest segment during forecast period

The hydrogen fuel cell vehicle market is expected to grow, with growing fuel cell demand in passenger cars leading demand during forecast period. The passenger car segment is expected to drive the demand, driven by a larger market share, growing demand for low emission personal-mobility, and government initiatives for zero-emission taxi fleets. Increasing popularity of H2 powered cars is evident through the sales of Toyota Mirai, Hyundai NEXO FCEV and Honda Clarity FCEV. OEMs such as BMW, Jaguar Land Rover are also actively investing in new H2 fuel cell models in response to the growing potential for FCEVs. BMW for instance, intends to introduce fuel cell technology in its X6 and X7 models. Further, Jaguar Land Rover is also developing its hydrogen fuel cell Defender, with zero tailpipe emissions by 2036.

Asia Oceania's to lead the market with strong market demand in China

The Asia Oceania region has the largest H2 refueling station presence, with strong government support for setup across Japan, China and South Korea. This is driving the expansion of hydrogen stations and FCEVs in the region. They are also fostering the growth of FCEVs with an evolving hydrogen ecosystem in the hydrogen automotive fuel cell vehicle market. Leading OEMs such as Toyota and Hyundai are driving the adoption of fuel cell cars across the region. Countries have planned use of fuel cell buses and trucks, with companies such as Ballard playing key roles in developing an extensive FCEV bus & truck ecosystem. Leading factors such as growing deployment of H2 buses such as in Kansai Airport (Japan), mass deployment of H2 buses in China along with companies like Solaris and West Midlands deploying H2 fuel cell buses in Australia. In the H2 truck industry, companies such as SINOTRUK, BAIC, Hyundai, Sym.Pjg, among others are deploying heavy- duty hydrogen fuel cell trucks in the region.

Key Market Players

The hydrogen fuel cell vehicle market is dominated by companies such as Toyota Motor Corporation (Japan), Hyundai Group (South Korea), Honda (Japan), General Motors (US), Stellantis (Netherlands) among others. These OEMs provide best in class H2 vehicles and have strong global distribution networks. They have worked on expansion initiatives, enmgaged in deals, new product developments and other strategies to grow their presence in the market.

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Scope of the Report

This research report categorizes the hydrogen fuel cell vehicle 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 set-up a 1 megawatt PEM electrolyzer at the Amazon Fulfillment Center, DEN8 (US). This initiative will drive more than 200 h2 fuel cell forklift trucks operating in the facility.
• In November 2023, Ballard Power Systems received 62 H2 fuel cell engine supply order from Solaris Bus & Coach sp. z o.o. (Poland). These engines are are developed for buses operating in Germany and Poland, to expand low emission transportation in the region.
• In October 2023, a 50kW FC module was developed by Toyota Motors, representing a compact fuel cell system. This fuel cell module, will be used for delivery trucks, lift trucks, agricultural machinery, and construction equipment, and provides versatile installation possibilities.
• In March 2023, Hyster-Yale officially launched its G-Series Fuel Cell System, offered in 360 kW and 470 kW module. This power solution is designed for applications in the fuel cell commercial vehicle and industrial sectors.
• In September 2023, Ballard Power Systems collaborated with QUANTRON to develop a FCEV, integrating QUANTRON's vehicle engineering expertise with Ballard's fuel cell technology.

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