April 20, 2024

Hydrogen Vehicle Market Estimated to Witness High Growth due to Increasing Global Warming Concerns

Hydrogen vehicles utilize hydrogen as a chemical energy carrier to power fuel cells or internal combustion engines. Hydrogen can be produced from various domestic sources such as natural gas or biomass and utilized in fuel cells to efficiently power electric motors without emitting carbon dioxide. Additionally, hydrogen vehicles have a longer driving range on a single fill compared to battery electric vehicles and refueling time is much faster compared to electric vehicle charging.

The global Hydrogen Vehicle Market is estimated to be valued at US$ 5.89 Bn in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the hydrogen vehicle market include Toyota Motor Corporation, Hyundai Motor Company, Honda Motor Co. Ltd., Daimler AG., Audi, BMW, General Motors, MAN, Ford Motor Company, and VOLVO. These companies are investing heavily in research & development of hydrogen fuel cell and hydrogen combustion engine technologies.

The global hydrogen vehicle market is expected to witness significant opportunities due to the increasing focus on reducing pollution levels from transportation sector and transitioning to more sustainable fuel sources. Several countries are developing hydrogen refueling infrastructure and offering incentives for the adoption of hydrogen vehicles.

With the support of government initiatives and investments, leading automakers are planning to introduce more hydrogen models and ramp up production capacities in different parts of the world. Partnerships between fuel cell developers and automakers will help accelerate the global expansion of the hydrogen vehicles industry over the coming years.

Market Drivers

Growing concerns regarding pollution from vehicles powered by conventional fuels and global effort to curb greenhouse gas emissions are driving the adoption of zero-emission mobility solutions like hydrogen vehicles. Stringent emission regulations in regions like Europe and China are forcing automakers to shift their focus towards more eco-friendly transportation technologies. Additionally, availability of federal and state incentives on the purchase of electric and hydrogen vehicles in countries like US and Japan is encouraging consumers to opt for such vehicles, thereby positively impacting the hydrogen vehicle market growth.

PEST Analysis

Political: Hydrogen vehicle investment incentives and policies favoring renewable energy are boosting adoption. For example, California aims to have 5 million zero-emission vehicles, including fuel cell electric vehicles, on the road by 2030.

Economic: Lower fuel cell system costs and declining battery prices are improving the economics of hydrogen vehicles compared to gasoline vehicles. Widespread commercialization could also create jobs in manufacturing and fueling infrastructure.

Social: Growing environmental awareness is increasing demand for clean, renewable energy options in transportation. Younger generations that grew up with environmental issues being discussed are particularly interested in low-carbon solutions like fuel cell electric vehicles.

Technological: Advancements in fuel cell and battery technologies are extending vehicle range while bringing down costs. More compact and efficient hydrogen storage is making the technology suitable for a wider variety of vehicle types from cars to commercial trucks.

In terms of value, the Asia Pacific region is currently the largest and most concentrated market for Hydrogen Vehicle Market . This is due to supportive government policies and industry funding in countries like Japan, South Korea and China who are major automotive manufacturing hubs. Nationwide hydrogen refueling networks are also being developed across these countries which is necessary for widespread commercialization.

Europe is anticipated to become the fastest growing regional market from 2024 to 2031. The European Union has committed to carbon neutrality by 2050 which will require transitioning road transportation away from internal combustion engines. Germany, France and Britain specifically have introduced incentives and charging infrastructure plans aimed at making hydrogen vehicles more accessible.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it