Hydrogen Vehicle Market Size - By Vehicle Type (Passenger Cars, Commercial Vehicle), By Powertrain Configuration (Fuel Cell Electric Vehicle (FCEV), Hybrid Vehicle), By Vehicle Class (Luxury Vehicle, Mid-range Vehicle, Economy Vehicle), Forecast 2023 - 2032

Hydrogen Vehicle Market Size

Hydrogen Vehicle Market size was valued at USD 2.8 billion in 2022 and is expected to register at a CAGR of over 28% between 2023 and 2032. Government support & policies play a major role in propelling the growing adoption of hydrogen vehicles. Governments provide financial incentives & subsidies to promote the purchase and use of hydrogen vehicles. These include tax credits, grants, rebates, or direct subsidies that reduce the upfront costs or operating expenses associated with hydrogen vehicles. Financial incentives make hydrogen vehicles more affordable & attractive to consumers, increasing market demand.
 

Public awareness and environmental consciousness are vital factors driving the adoption of sustainable transportation solutions including hydrogen vehicles. There is a rising awareness among the public regarding the urgent need to address climate change. As the impacts of global warming become more evident, individuals are becoming more conscious of their carbon footprints and are seeking ways to reduce their environmental impacts. Hydrogen vehicles, with their potential to reduce greenhouse gas emissions, offer solutions for sustainable transportation. The public recognition of air pollution & its detrimental effects on health is also rising.
 

One of the major market restraints is the high initial cost of hydrogen vehicles. Currently, the technology needed in fuel cells, hydrogen storage systems, and infrastructure development is quite expensive. Fuel cells, which form the major component in hydrogen vehicles, require sophisticated engineering methodologies & materials. The production of fuel cell stacks requires intricate manufacturing processes as well as the use of expensive catalysts, membranes, and other components. These factors contribute to the high cost of fuel cell systems, making them a major component of the overall vehicle cost. The high component costs, the limited economies of scale, and the nascent state of the market push to the higher price tag of hydrogen vehicles compared to conventional vehicles.
 

COVID-19 Impact

The hydrogen vehicle market was impacted by the spread of COVID-19. The pandemic disrupted supply chains, manufacturing operations, and consumer demand. Lockdowns & restrictions limited production and delayed vehicle launches. Reduced economic activities and financial uncertainties affected investments in hydrogen infrastructure. Moreover, decreased consumer spending and travel restrictions resulted in lower vehicle sales.
 

Hydrogen Vehicle Business Trends

The hydrogen vehicle industry is witnessing significant investments from automakers, technology companies, and governments. Such rising investments are fueling research & development activities, influencing infrastructure expansion and scaling up hydrogen production & distribution networks.
 

The rising efforts of automakers, industry associations & government agencies to raise consumer awareness; educate the public about the benefits of hydrogen vehicles through campaigns that highlight the advantages of these vehicles; and address & build consumer confidence are contributing to market growth.
 

Hydrogen Vehicle Market Analysis

Based on powertrain configuration, the hydrogen vehicle market is divided into fuel cell electric vehicles (FCEV) and hybrid vehicles. The FCEV segment held approximately 100% of the market share in 2022 and is slated to grow at a 26% CAGR up to 2032. This growth can be attributed to the rising awareness of the deteriorating air quality and the excessive noise emerging from public & private vehicles. The considerably rapid shift from conventional fuel vehicles toward eco-friendly alternatives in recent years is boosting the demand for FCEVs. Strict environmental regulations, government incentives & subsidies promoting the use of clean fuel, and an increase in harmful gas emissions from combustion engine vehicles are some of the other factors that are estimated to propel market growth.
 

Based on vehicle, the hydrogen vehicle market is categorized into passenger cars and commercial vehicle. The passenger cars segment accounted for a market share of 66.6% in 2022. The growing adoption of hydrogen-powered passenger cars can be credited to environmental concerns, infrastructure development, technological advancements, automaker commitment, government support, pilot programs, demonstrations, and collaborations among industry stakeholders. Hydrogen-powered passenger cars offer consumers a sustainable & efficient mode of transportation, fueling market growth. Governments around the world are also implementing policies, incentives, and subsidies to promote the adoption of hydrogen-powered vehicles including passenger cars. These measures aim to accelerate market growth, reduce emissions, and promote a sustainable transportation ecosystem.
 

North America led the global hydrogen vehicle market, accounting for a share of over 8% in 2022. Countries in the region are expected to engage in international collaborations and knowledge exchange to complement market growth. The sharing of best practices, research findings, and technological advancements can benefit all the countries involved. In North America, the encouragement of partnerships & collaborations between government entities, industry stakeholders, and research institutions to stimulate the development & adoption of hydrogen commercial vehicles will also augment market growth. These collaborations aim to leverage expertise, share resources, and drive innovations in the sector.
 

Hydrogen Vehicle Market Share

Major players operating in the hydrogen vehicle market are:

• Toyota Motor Corporation
• Hyundai Motor Company
• Honda Motor Corporation ,Ltd
• Cummins Inc.
• SAIC Motor Company
•  Ashok Leyland.

These players are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative products and garner the maximum market revenue.

Hydrogen Vehicle Industry News

• In November 2022, Ballard Power Systems established a new office in Oslo to expand its presence in Norway. Ballard Norge AS, as part of the company’s expanding activities in Europe, is focused on supporting the company's growing client base & zero-emissions projects in the country.
   

This market research report on hydrogen vehicle includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and Shipments (Units) from 2018 to 2032, for the following segments:

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By Vehicle Type

• Passenger cars
• Commercial vehicle
  • Buses
  • Trucks

By Powertrain Configuration

• Fuel Cell Electric Vehicles (FCEV)
• Hybrid vehicles

By Vehicle Class

• Luxury vehicles
• Mid-range vehicles
• Economy vehicles

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Sweden
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea 
• Latin America
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • UAE
  • South Africa