Hydrogen Vehicles Market Size Projection (2024-2030)

The market for hydrogen vehicles is forecasted to reach USD 811.92 million by 2023 and is projected to grow to USD 2061.77 million by 2030, with an expected Compound Annual Growth Rate (CAGR) of 14.24% during the period spanning 2024 to 2030.

Hydrogen Vehicles Market Overview:

Hydrogen stands as a prominent fuel alongside electric vehicles in the contemporary global energy landscape. Hydrogen vehicles present a promising avenue for mitigating greenhouse gas (GHG) emissions and reducing carbon footprints associated with the transportation sector. The collaborative efforts of the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) in formulating GHG emissions and fuel efficiency standards for heavy and medium-duty vehicles in North America underscore the regulatory drive towards cleaner transportation solutions. Moreover, initiatives such as the Energy Independence and Security Act (EISA) empower regulatory bodies to set guidelines aimed at curbing emissions, thereby fostering a conducive environment for the adoption of hydrogen vehicles.

Impact of COVID-19 on the Hydrogen Vehicles Market:

The onset of the COVID-19 pandemic has exerted significant disruptions across global economies and industries, including the automotive sector. Lockdowns and business closures have led to supply chain disruptions and reduced consumer demand, impacting various stakeholders within the automotive industry. However, governmental initiatives aligned with the objectives of the hydrogen production industry have sought to leverage the reduced carbon emissions resulting from the slowdown in manufacturing and transportation activities. This concerted effort has positively influenced the outlook of the hydrogen vehicles market amidst the challenges posed by the COVID-19 pandemic.

Market Drivers:

Increasing Emphasis on Clean Energy Sources Driving Market Expansion:

The burgeoning interest in clean energy sources has catalyzed the growth of the hydrogen production market, offering ample opportunities for development and advancement. Heightened awareness regarding carbon emissions has propelled the demand for hydrogen production, with a notable shift towards sustainable and renewable energy sources to achieve net zero targets. Consequently, the adoption of clean hydrogen vehicles is poised to drive market growth in the foreseeable future.

Government Regulations to Curb Greenhouse Gas Emissions Fueling Market Growth:

Growing concerns surrounding escalating levels of GHGs and air pollution have prompted governments worldwide to enact stringent regulations governing gas emissions across various vehicle segments. Recognizing transportation as a significant contributor to air pollution, regulatory bodies have instituted measures to minimize carbon emissions, thereby spurring demand for hydrogen vehicles. These regulatory interventions are anticipated to bolster market growth in the forecast period.

Market Restraints:

High Capital Costs of Production Impeding Market Expansion:

The production of hydrogen entails considerable costs, rendering hydrogen technologies relatively expensive compared to conventional energy production methods such as natural gas or coal. Furthermore, the storage of hydrogen poses a significant technical challenge, necessitating the deployment of compression and cooling systems, which add to the overall cost of the technology. These factors contribute to the higher cost of hydrogen vehicles, thereby impeding market growth prospects.

Limitations Due to Hydrogen's Reactive and Flammable Nature:

Hydrogen, being highly reactive and flammable, presents inherent safety challenges, particularly in the context of fuel cell electric vehicles (FCEVs). Despite substantial research and development investments aimed at mitigating safety risks, concerns persist regarding the potential for vehicle fires and explosions. Consequently, apprehensions surrounding the safety of FCEVs constrain their widespread adoption, posing a limitation to market growth.

Hydrogen Vehicle Market – Vehicle Type.

• Passenger Vehicle
• Commercial Vehicle

Segmented by vehicle type, the Hydrogen Vehicle market comprises two main categories: Passenger Vehicles and Commercial Vehicles.

Commercial Vehicles, as four-wheeled road vehicles, serve the transportation of goods and passengers, playing a vital role in economies worldwide. This category includes buses, trucks, and vans, essential for the movement of both people and goods.

Passenger Vehicles encompass cars, trucks, or vans designed primarily for transporting people rather than goods. Manufacturers typically target the middle-class demographic, offering affordable prices, quality features, and compact sizes.

Hydrogen Vehicle Market – Technology.

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

The Hydrogen Vehicles market is segmented by technology into three segments: Proton Exchange Membrane Fuel Cell, Phosphoric Acid Fuel Cell, and Others.

Proton Exchange Membrane Fuel Cell (PEMFC) technology held the majority of revenue share in 2022 and is expected to maintain its dominance from 2023 to 2028. PEMFC utilizes polymer electrolytes, such as perfluorosulfonic acid (PFSA), known for excellent proton conductivity, chemical stability, mechanical strength, and flexibility.

Phosphoric Acid Fuel Cells employ liquid phosphoric acid as the electrolyte and platinum catalyst-enhanced carbon electrodes. They operate at high temperatures and do not require expensive catalysts.

Hydrogen Vehicle Market – Region.

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

Regionally, the Hydrogen Vehicles market is segmented into five major regions: North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

The Asia-Pacific region is anticipated to dominate the Hydrogen Vehicle market revenue, followed by Europe and North America, driven by the increasing demand for clean fuel cell vehicles in both public and private transportation sectors. Japan, China, and South Korea are leading this demand, with significant investments in R&D to enhance production capacity and market demand.

In North America, expanding vehicle production and collaborations between automotive sectors and manufacturers are driving the growth of the Hydrogen Vehicles market, fueled by the rising demand for premium and luxury cars worldwide.

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 fiercely competitive, with key players engaged in R&D and continuous technological innovation. These companies collaborate to develop and adopt new technologies, driving the global Hydrogen Vehicles market forward.

Key Recent Developments in the Industry:

• In August 2022, Proton Motor Power Systems, Plc., introduced a 90-kWh power generating pack for hydrogen fuel cells and electric hybrid systems.
• In August 2022, Korea South-East Power (KOEN) and SK E&S signed an MOU to produce hydrogen vehicles using green hydrogen and ammonia.
• In June 2022, Toshiba Energy Systems and Solutions Corp (Toshiba EES) collaborated with Echandia to develop pure hydrogen fuel cell systems for ships.
• In December 2021, Groupe Renault and Plug Power Inc. signed an MOU to establish a joint venture focusing on fuel cell-powered cars and hydrogen solutions in Europe.
• In October 2021, Plug Power Inc. unveiled the HYVIA hydrogen "Renault Master Van H2-TECH prototype" at the Plug Power Symposium in North America.
• In February 2019, OneH2 acquired Nuvera Fuel Cells, LLC, a subsidiary of Hyster-Yale Materials Handling, strengthening its position in the hydrogen fuel market.