July 15, 2024
Hydrogen Fuel Cell Vehicle Market

Growing Demand for Zero Emission Vehicles to Boost Growth of the Global Hydrogen Fuel Cell Vehicle Market

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 cell vehicles use hydrogen as fuel and fuel cells to generate electricity through an electrochemical reaction with oxygen from the air to power an electric motor. Hydrogen fuel cells offer greater efficiency and zero tailpipe emissions as the only byproducts are water and heat. Fuel cell electric vehicles help reduce emissions from the transportation sector and address growing concerns around air pollution in major cities. With advances in fuel cell and hydrogen storage technologies, the driving range and refueling speed of these vehicles is improving to match conventional vehicles powered by internal combustion engines. Major auto manufacturers are launching new models of hydrogen fuel cell electric cars, buses and trucks to meet the increasing demand for clean energy vehicles across both passenger and commercial segments.

Market key trends:

One of the key trends driving the growth of the global Hydrogen Fuel Cell Vehicle Market Size is the support from various governments worldwide in the form of funding, subsidies and policies to develop hydrogen infrastructure and promote the adoption of these vehicles. Major economies like the US, Germany, Japan and South Korea have aggressive targets and funding plans to expand their hydrogen stations network over the next decade. At the same time, auto OEMs are collaborating with energy companies on demonstration projects involving fleet vehicles to validate commercial feasibility. There is also a major focus on bringing down the costs of fuel cell systems and hydrogen storage tanks through innovations in materials and manufacturing technologies. Advances in hydrogen production from renewable energy will further strengthen the business case for these zero-emission vehicles. Their ability to provide backup power and grid stability services also enhances the economic outlook for fuel cell electric vehicles globally.

Porter’s Analysis:

Threat of new entrants: Low capital requirement for manufacturing fuel cells act as a barrier for new entrants in the market. However, presence of prominent established players make market entry difficult.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternative fuel technologies like battery electric vehicles. However, increasing environmental concerns are shifting consumer preference towards zero-emission vehicles.

Bargaining power of suppliers: Few technology developers control the fuel cell manufacturing process, giving them strong power over automobile manufacturers. Higher switching costs restrict bargaining power of buyers.

Threat of new substitutes: Emergence of highly-efficient lithium-ion batteries pose major threat; however fuel cells offer greater driving range and faster refueling. Natural gas and gasoline also act as substitutes but are not environment-friendly.

Competitive rivalry: Intense competition exist among major automakers to gain early mover advantage in fuel cell market. Companies spend heavily on R&D to develop innovative fuel cell systems.

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 concerns about environmental pollution and stringent government regulations toward carbon emissions.

Regional analysis: Asia Pacific dominates the global market and is expected to maintain its lead position during the forecast period, owing to presence of major automobile manufacturers and supportive government policies in countries like China, Japan, and South Korea. Countries in North America and Europe are also emerging as high potential markets.

Key players: Key players operating in the Hydrogen Fuel Cell Vehicle market include Audi AG, Ballard Power Systems Inc., BMW Group, Daimler AG, General Motors Company, Honda Motor Co., Ltd., and Hyundai Motor Group. Notable manufacturing activities are undertaken by these companies to commercialize their hydrogen-powered cars and expand geographic footprint.