Global Hydrogen Vehicles Market Size  (2023-2030)

The global hydrogen vehicles market is anticipated to be USD 710.71 million in 2022 and USD 2061.76 million in 2030 and expand at a CAGR of 14.24% from 2023 to 2030.

Market Overview:

Hydrogen is one of the most widely used fuels in the world right now along with electric cars. Hydrogen Vehicles hold a high potential to reduce GHGs and carbon emissions related to the transport sector. The Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration have together created the US GHG emissions and fuel efficiency standards for both heavy and medium-duty vehicles in North America (NHTSA). The Energy Independence and Security Act (EISA) authorized NHTSA to establish fuel consumption guidelines to regulate the leaks of hydrofluorocarbons from air conditioning systems and carbon dioxide, N2O, and CH4 emissions standards. With government authorities taking such initiatives and implementing these strategies to keep the GHGs in check the demand for hydrogen vehicles is estimated to rise in the upcoming years augmenting its global market size.

COVID-19 Impact on the Hydrogen Vehicles Market:

The COVID-19 outbreak has severely affected economies and industries in various countries due to lockdowns and business shutdowns including the global automotive industry, due to disruptions in the demand-supply chain and reduced demand and cash flow among people, regional players, and traders. However, several government initiatives and strategies align with the hydrogen production industry’s motives and have issued proposals to take advantage of the reduced carbon emission footprint levels brought about by the slowdown of the manufacturing and transportation industries, driving demand for clean fuel alternatives. This has improved the outlook of the hydrogen vehicles market during the COVID-19 outbreak.

Market Drivers:

Increasing attention towards clean energy sources is driving the market growth:

Hydrogen production is an emerging market and offers boundless opportunities for development and growth. The rising carbon footprint remarkably drives hydrogen production in recent as well as upcoming years. Also, to achieve net zero targets, the world is shifting toward sustainable and renewable sources of energy. As a result, clean hydrogen vehicles are adopted and are likely to fuel the market growth for in the upcoming years.

Government regulations for regulating greenhouse gas emissions and checking air pollution is boosting the market:

Growing concern for increasing levels of GHGS and air pollution has forced governments of several regions to issue stringent gas emission regulations for passenger vehicles, light & heavy commercial vehicles, and other vehicles, as transportation is one of the major causes of air pollution globally. Therefore, industries are looking out for ways to minimize the carbon emission process augmenting the demand for hydrogen vehicles in the market. These all factors are estimated to drive market growth in the forecasted years.

Market Restraints:

High capital cost of its production is hampering the market size growth:

Hydrogen production is a costly process therefore, these technologies cost higher compared to other energy production means such as natural gas or coal. Apart from this, storage is the key technical barrier to its development and widespread application. Compression and cooling systems are essential for its transportation and storage which escalates the cost involved with the technology. This further escalates the cost of hydrogen vehicles and is anticipated to hamper the market growth in the forecasted years.

The highly reactive and flammable nature of the hydrogen gas is limiting the growth of market size:

Fuel cells generate electricity using Hydrogen and Oxygen. Oxygen helps to burn at lower temperatures and hydrogen is a highly flammable gas. Therefore, fuel can easily catch fire if not handled properly and can explode. It can catch fire if an electrical spark comes in contact with it. Huge R&D investments are being made by major key players to reduce the likelihood of a vehicle catching fire. Still, the risk remains significantly high constraining the sale of FCEVs.

HYDROGEN VEHICLE MARKET REPORT COVERAGE:

This research report on the Hydrogen Vehicles Market has been segmented and sub-segmented based on the Vehicle Type, Technology, Region, and Companies.

Hydrogen Vehicle Market – Vehicle Type.

• Passenger Vehicle
• Commercial Vehicle

Based on vehicle type, the Hydrogen Vehicle is segmented into 2 categories – Passenger Vehicles and Commercial Vehicles.

Four-wheeled Road vehicles which are used to transport products are known as Commercial Vehicles. They are used for transporting products, passengers, cargo, or both. They are essential for every economy as they are used in the movement of both people and goods. Buses, trucks, and vans fall under this category.  

A passenger vehicle comprises of car, truck, or van designed to carry people instead of goods. The manufacturers target the country’s middle-class population with reasonable prices, quality features, and tiny sizes.

Hydrogen Vehicle Market – Technology.

• Proton Exchange Membrane Fuel Cell
• Phosphoric Acid Fuel Cell
• Others

Based on technology, the Hydrogen Vehicles market has been segmented into 3 segments – Proton Exchange Membrane Fuel Cell, Phosphoric Acid Fuel Cell, and Others.

Proton Exchange Membrane Fuel Cell technology contributed a majority of revenue share in 2022 and is anticipated to continue its dominance in the forecasted years, 2023-2028. Polymer electrolytes can be used in PEMFC to conduct protons. Perfluorosulfonic acid (PFSA) polymer is a typical PEMFC electrolyte and has excellent proton conductivity, good chemical stability, high mechanical strength, and great flexibility.

Liquid Phosphoric Acid Cells are used as the electrolyte while platinum catalyst-enhanced carbon electrodes can be carried out as the electrode. They don’t require expensive catalysts as they can operate at high temperatures.

Hydrogen Vehicle Market – Region.

• North America
• Europe
• Asia-Pacific
• South America
• Middle-East and Africa

Based on region, the Hydrogen Vehicles market is segmented into 5 major regions – North America, Europe, Asia-Pacific, South America, Middle-East, and Africa.

Asia-Pacific is anticipated to hold the largest share of revenue in the Hydrogen Vehicle market in the forecasted years, followed by Europe and North America. The market here is primarily driven by the fuelling demand for clean fuel cell vehicles for both public and private transportation in the overall vehicle manufacturing sector. Also, it is projected is witness the highest CAGR in the forecasted years. Japan, China, and South Korea are the leading nations augmenting the demand for these vehicles in the region. Various businesses are making significant investments in R&D to increase their production capacity and propel the market demand for hydrogen vehicles.

Expanding vehicle production and the collaborations between automotive sectors and manufacturers are augmenting the North American Expanding Hydrogen Vehicles market. This may be because the demand for premium and luxury cars is growing globally, which is compelling the automotive industry to fix more sustainable and efficient components and augment the North American market.

Hydrogen Vehicle Market – Companies.

1. Ballard Power Systems
2. Borgwarner
3. Ceres Power
4. Cummins
5. Doosan Group
6. Hyster-Yale
7. Hyundai Group
8. ITM Power
9. Nedstack
10. Plug Power
11. Powercell AB
12. Proton Motor Power Systems
13. Toshiba
14. Toyota Motor Corp

The Hydrogen Vehicles market is extremely competitive with key players involved in R&D and constant technological innovation done by the vendors. They are continually working together towards developing and adopting new technologies drawing the Hydrogen Vehicles market globally.

Key Recent Developments in the Industry:

• In August 2022, Proton Motor Power Systems, Plc., a hydrogen fuel cells, and electric hybrid system manufacturer introduced a 90-kWh power generating pack.
• In August 2022, Korea South-East Power (KOEN) and SK E&S collaborated and signed a memorandum of understanding (MOU), to produce hydrogen vehicles with electricity using green hydrogen and ammonia.
• In June 2022, Toshiba Energy Systems and Solutions Corp (Toshiba EES) announced its collaboration with Echandia to produce pure hydrogen fuel cell systems for ships. These newly formed pure hydrogen fuel cells might be applied to continuous maritime operations.
• In December 2021, Groupe Renault and Plug Power Inc. signed a Memorandum of Understanding (MOU), to establish a joint venture with France. In the forthcoming years, this strategic joint venture will put them in a position to dominate Europe's research and development (R&D), transformation, and production of fuel cell-powered cars and hydrogen turnkey solutions. This joint venture platform will serve the market expanding its scope worldwide.
• In October 2021, the HYVIA hydrogen "Renault Master Van H2-TECH prototype" was launched at the Plug Power Symposium by Plug Power Inc. This was the first time the new hydrogen fuel cell-powered van was exhibited in North America.
• In February 2019, OneH2, a hydrogen fuel corporation based in the United States, acquired Nuvera Fuel Cells, LLC, a subsidiary of Hyster-Yale Materials Handling.