Hydrogen fuel cell vehicles are zero-emission vehicles that convert chemical energy from hydrogen into electricity to power their electric motors. They are more efficient and produce no hazardous emissions compared to traditional gasoline vehicles. The primary advantages of fuel cell vehicles include long driving range on a single fill of hydrogen gas, quick refueling comparable to gasoline vehicles, and powerful acceleration and performance characteristics.
The global Hydrogen Vehicle Market is estimated to be valued at US$ 5.89 Billion in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The adoption of fuel cell vehicles is witnessing strong growth driven by supportive government policies and initiatives aimed at promoting clean transportation. Several countries and states have introduced financial incentives and policies to boost the sales and adoption of hydrogen fuel cell vehicles. For instance, California has set a voluntary target of deploying at least 200 hydrogen fueling stations and having over 100,000 fuel-cell vehicles on the roads in California by 2025. Such initiatives are helping to expand the fueling infrastructure and address concerns regarding ease of refueling, thereby accelerating the adoption of hydrogen vehicles. Automakers are also actively working to commercialize fuel-cell vehicles to meet tightening emission norms which is expected to further propel the demand over the coming years.
Segment Analysis
The global hydrogen vehicle market is dominated by passenger cars segment. Passenger cars currently account for over 70% of the market share as most auto manufacturers are focusing their hydrogen technology developments for passenger vehicles. This is because passenger cars offer a larger volume opportunity compared to other vehicle types. Moreover, issues related to hydrogen storage and high production costs currently make light commercial vehicles and buses less viable for hydrogen applications compared to passenger cars. However, with expected cost reductions over the coming years driven by technological advancements and economies of scale, the demand for hydrogen buses and trucks is anticipated to rise significantly.
Key Takeaways
The global hydrogen vehicle market is expected to witness high growth over the forecast period of 2024 to 2031. Hydrogen vehicles provide a zero-emission solution and can help countries meet their climate goals. Several governments around the world have announced targets to phase-out petrol and diesel vehicles over the next decade, creating a favorable regulatory environment for the adoption of hydrogen vehicles. The global Hydrogen Vehicle Market is estimated to be valued at US$ 5.89 Billion in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031.
Regional analysis: Asia Pacific currently leads the global hydrogen vehicle market and the region is expected to continue dominating during the forecast period as well. Countries like Japan, South Korea and China are aggressively pushing hydrogen fuel cell vehicles and focusing on building required hydrogen refueling infrastructure. Several automakers in these countries have partnered to mass produce hydrogen vehicles.
Key players: 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 made biggest investments and made progress in developing hydrogen fuel cell technology and launching vehicle models. Other players are also ramping up their efforts to develop and commercialize hydrogen vehicles.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
