Hydrogen Fuel Cell Vehicle Market Size
Hydrogen Fuel Cell Vehicle Market Overview
Hydrogen fuel cell vehicles (FCVs) use electric
motor to power the wheels instead of an internal combustion engine that is used
in electric vehicles (EVs). Also, FCVs generate their electricity onboard
whereas EVs use batteries that require recharging. In a fuel cell, atmospheric
oxygen (O2) combines with hydrogen (H2) gas stored in the vehicle’s fuel tank
to produce electricity. This process also generates water and heat as the only byproducts.
Similar to electric vehicles, hydrogen FCVs are zero-emission
vehicles. They do not produce greenhouse gas or smog-related tailpipe
emissions. Emissions are produces in the course of producing and transporting
hydrogen fuel. Hydrogen is available in the universe abundantly. But in order
to be used as fuel, it needs to be separated from other compounds using energy
intensive processes.
Majority of the hydrogen used in fuel cell
currently, comes from natural gas. Hydrogen fuel can also be generated from
oil, water, plant material, coal and even trash. Hydrogen FCV fueling is
similar to refilling your gas tank.
COVID-19 Impact Analysis on Hydrogen Fuel Cell Vehicle Market
The sales and production of new cars came to a
halt across the world as the entire ecosystem had been disrupted in the
COVID-19 pandemic. OEMs had to wait till the lockdowns were lifted for resuming
production that affected their business. Thus, vehicle manufacturers required
to adjust the production volume. Besides, there was a suspension of component
manufacturing and small Tier III and Tier II manufacturers faced liquidity
issues. The auto industry is highly capital-intensive and rests on frequent
financing for continuing operations. Hence the suspension of production at the
time of initial months of the pandemic and lower demand had an unprecedented
effect on FCEV manufacturers and automotive fuel cell producers.
Hydrogen Fuel Cell Vehicle Market Dynamics
Global hydrogen fuel cell vehicle market is
evolving constantly and is projected to register fast growth in the coming
years. Technological advancements in this field are projected to generate
lucrative growth opportunities. Conventional vehicles that use petrol, diesel etc.
emit huge amounts of toxic pollutants and greenhouse gases that have raised
environmental concerns. The hydrogen fuel cell vehicles are zero-emission
vehicles and thus are gaining popularity across the globe.
Technological advancements in fuel cell
development, growing environmental concerns and government initiatives to
develop of hydrogen fuel cell infrastructure are major factors are expected to
drive the market growth in the coming years.
Hydrogen Fuel Cell Vehicle Market Drivers
- Growing
environmental concerns
- Government
initiatives for development of hydrogen fuel cell infrastructure
- Technological
advancements, reduced noise and improved performance
Hydrogen Fuel Cell Vehicle Market Restraints
- High
initial investment in infrastructure
- Limited
hydrogen fueling infrastructure
Hydrogen Fuel Cell Vehicle Market Opportunities
- Technological advancement and innovations
- Emerging markets and increasing adoption of emission free vehicles
Hydrogen
Fuel Cell Vehicle Market Segmental
Analysis
The global Hydrogen Fuel Cell Vehicle market is
segmented based on Technology, Vehicle Type, and region.
Hydrogen
Fuel Cell Vehicle Market, By Technology
Proton exchange membrane fuel cell technology dominated the global market in 2021
Based on technology, global market is segmented
into phosphoric acid fuel cell, proton exchange membrane fuel cell and others. Proton
exchange membrane fuel cell technology segment dominated the global market in
2021 and is estimated to hold its dominance in the coming years. This large
market share is attributed to increasing adoption over other technologies,
operational efficiency at lower temperature and better durability.
Hydrogen
Fuel Cell Vehicle Market, By Vehicle Type
The passenger vehicle segment acquired maximum share in 2021
Based on vehicle type, global market is segmented
into commercial vehicle and passenger vehicle. In 2021, the passenger vehicle
segment held largest market share of about 73%. This segment is estimated to
register fastest growth during the forecast period.
Hydrogen
Fuel Cell Vehicle Market Regional
Analysis
North America hydrogen fuel cell vehicle held the largest market share in 2021
At regional level, North America held largest
market share of about 42% in 2021 and is projected to lead the market during
the forecast timeframe. Strong presence of major market players, government
focus to develop hydrogen infrastructure, developed hydrogen infrastructure in California,
increasing investments in this sector are expected to be major factors driving
the growth of hydrogen fuel cell vehicle market in North America. Additionally,
growing demand for low-emission vehicles in developed countries like U.S. and
Canada, substantial number of FC buses in U.S. and presence of several hydrogen
fuel cell-based forklifts will also support market growth for hydrogen fuel
cell vehicles in this region.
Europe is another significant regional market
with second largest revenue share in 2021. Growth in Europe hydrogen fuel cell
vehicle market is led by major developed countries like UK, France, Germany
etc. owing to increasing demand for emission free vehicles and increasing
environmental concerns.
Asia Pacific region is estimated to be fastest
growing region. Latin America and Middle East and Africa will showcase
noticeable growth in the coming years.
Hydrogen Fuel Cell Vehicle Market Key Players
The report provides key player analysis along with company revenue shares in order to give a broader overview of the market players in the Hydrogen Fuel Cell Vehicle market.
- Audi AG
- Ballard Power Systems Inc.
- BMW Group
- General Motors Company
- Daimler AG
- Hyundai Motor Group
- Honda Motor Co., Ltd.
- Toyota Motor Corporation
- MAN SE
- Mazda Motor Corporation
- Volvo Group
- Others
Hydrogen Fuel Cell Vehicle Market Scope
| ATTRIBUTE |
DETAILS |
| Market Size in 2021 | USD 1.36 billion |
| Market Size in 2029 | USD 40.20 billion |
| CAGR (%) | 52.7% from 2022 to 2029 |
| Historic Period | 2018 – 2020 |
| Base Year | 2021 |
| Forecast Period | 2022 – 2029 |
| Segments Covered | Technology and Vehicle Type |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
| Key Companies Profiled | Audi AG, Ballard Power Systems Inc., BMW Group, General Motors Company, Daimler AG, Hyundai Motor Group, Honda Motor Co., Ltd., Toyota Motor Corporation, MAN SE, Mazda Motor Corporation, Volvo Group and Others |
Global Hydrogen Fuel Cell Vehicle Market Segmentation
Global Hydrogen Fuel Cell Vehicle Market, By Technology
- Phosphoric Acid Fuel Cell
- Proton Exchange Membrane Fuel Cell
- Others
Global Hydrogen Fuel Cell Vehicle Market, By Vehicle Type
- Commercial Vehicle
- Passenger Vehicle
Global Hydrogen Fuel Cell Vehicle Market, By Region
- North America
- U.S.
- Rest of North America
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- Southeast Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East and Africa
- Saudi Arabia
- South Africa
- UAE
- Rest of Middle East and Africa