The global Hydrogen Fuel Cell Vehicle Market is estimated to be valued at US$ 2.25 Bn in 2023 and is expected to exhibit a CAGR of 54% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights
Market Overview:
Hydrogen fuel cells power vehicles by creating an electrochemical reaction between hydrogen and oxygen to produce electricity, with water and heat as byproducts. Fuel cell vehicles offer comparable refueling times to gasoline vehicles and longer driving ranges than battery electric vehicles.
Market key trends:
One of the major trends in the hydrogen fuel cell vehicle market is declining costs of fuel cells. Early hydrogen fuel cells were extremely expensive, costing over $1000/kW. However, with mass production and improvements in fuel cell manufacturing processes, costs have declined significantly. Automakers believe that fuel cell costs will decline to around $50/kW by 2030, the threshold for commercial viability. Lower costs will make hydrogen fuel cell vehicles more affordable and accessible to mainstream consumers.
Market key trends:
The hydrogen fuel cell vehicle market is witnessing high growth owing to the increasing demand for zero-emission vehicles. Hydrogen Fuel Cell Vehicle Market Size emit only water and heat and have a longer driving range compared to battery electric vehicles. Many governments across the globe are providing subsidies and tax benefits for the adoption of hydrogen fuel cell vehicles to reduce dependency on fossil fuels. Moreover, major automakers such as Toyota, Hyundai, and Honda have introduced several hydrogen fuel cell models which is positively impacting the market growth.
SWOT Analysis
Strength: Hydrogen fuel cells provide higher mileage on a single charge compared to electric battery vehicles. They can be refueled rapidly similar to gasoline vehicles.
Weakness: Lack of hydrogen refueling infrastructure is a major challenge. Similarly, production of hydrogen also requires a significant amount of energy.
Opportunity: Favorable government policies promoting green vehicles provide lucrative opportunities. Growing consumer awareness regarding environmental protection is another opportunity.
Threats: High manufacturing cost of fuel cell components poses serious threats. Uncertainties in hydrogen storage technology can impede the market growth.
Key Takeaways
The global hydrogen fuel cell vehicle market is expected to witness high growth, exhibiting CAGR of 54.% over the forecast period, due to increasing government subsidies and growing focus on developing hydrogen refueling infrastructure.
Regionally, Asia Pacific dominates the global market and is estimated to maintain its pole position throughout the forecast period. This is attributed to robust government backing in countries like China, Japan, and South Korea for adoption of clean fuel technologies.
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. In 2021, Hyundai launched the industry-first dedicated hydrogen fuel cell heavy-duty truck, the Xcient Fuel Cell.
