Hydrogen Vehicles Market

Hydrogen Vehicles Market Outlook (2023 to 2033)

According to Fact.MR, the global hydrogen vehicles market expanded at an exceptionally high CAGR of 91.6% from 2018 to 2022. Worldwide demand for hydrogen vehicles reached a value of US$ 35.26 billion in 2022. The global market is forecasted to surge ahead at a CAGR of 30.8% and reach a size of US$ 675.19 billion by the end of 2033.

Rising environmental concerns along with increasing government initiatives to develop hydrogen fuel cell infrastructure are projected to generate lucrative opportunities for market players in the coming 10 years. Technological advancements taking place in the automotive sector and high initial investments in infrastructure are projected to have a positive impact on market growth opportunities. Due to increasing worries about the depletion of natural resources and environmental degradation, numerous technologies are being introduced to promote eco-friendly principles and achieve sustainable development.

• Demand for PEMFC (proton exchange membrane fuel cells)-based hydrogen vehicles is estimated to increase at a CAGR of 30.4% and reach a valuation of US$ 564.46 billion by 2033.
• Sales of hydrogen vehicles in Germany are predicted to expand at a CAGR of 31.8% and reach US$ 35.78 billion by 2033-end.
• The South Korean market is set to progress at 31.2% CAGR and reach a value of US$ 257.92 billion by 2033.

More people, in recent years, have become aware of the consequences of air pollution and rising emission levels of greenhouse gases. These factors are leading to the increased adoption of hydrogen vehicles as eco-friendly solutions.

Various policies are deployed by numerous governments around the world to cater to different environmental conditions. They are investing a significant amount in the production and purchase of sustainable transportation facilities. Subsidies, incentives, etc. are provided by various governments to increase the sales of hydrogen vehicles.

Hydrogen vehicles do not emit any type of greenhouse gases and other harmful pollutants, including nitrogen oxides. Manufacturers are striving to develop commercial hydrogen vehicles that are beneficial for the environment and provide a better range.

For instance :

• In October 2020, Hyundai successfully delivered seven units of its XCIENT fuel cells. Additionally, the company is collaborating with renowned logistics companies in the United States to expand the availability of fuel-cell heavy-duty vehicles on a larger scale.

Fact.MR, a provider of market research and competitive intelligence, recently published a report about the market dynamics of hydrogen vehicles prevailing around the world. Growth driving factors, regional overview, new developments, etc. are some prominent parameters that are included in the research report.

Report Attributes	Details
Hydrogen Vehicles Market Size (2023)	US$ 46.11 Billion
Predicted Market Value (2033)	US$ 675.19 Billion
Global Market Growth Rate (2023 to 2033)	30.8% CAGR
Passenger Vehicle Segment Growth Rate (2023 to 2033)	31.2% CAGR
China Market Value (2033)	US$ 120.18 Billion
Germany Market Growth Rate (2023 to 2033)	31.8 % CAGR
South Korea Market Value (2033)	US$ 257.92 Billion
Key Companies Profiled	Mercedes-Benz GM Hydrogenics DAF Ballard Power System Toyota Motor Corporation Hinduja Group Daimler AG FuelCell Energy Inc. Hyundai Motor Company Audi AG BMW AG General Motors Honda Motor Company Ltd.

What are the Factors Influencing the Demand Growth for Hydrogen Vehicles?

“Rising Adoption of Zero Emission Technology”

In recent years, hydrogen vehicles have gained a substantial market share in the global automotive sector. This is primarily due to their utilization as alternative-fuel vehicles. Furthermore, the zero-emission capability of hydrogen vehicles is expected to drive their demand.

Zero emissions, low maintenance requirements, and low weight of hydrogen vehicles are propelling their demand among environmentally conscious consumers. The automotive industry is extensively researching hydrogen fuel cell technology for its growing popularity as a renewable source of energy in hydrogen vehicles.

“Increasing Focus of Manufacturers on R&D Activities”

Several players are concentrating on R&D activities to develop many advanced automotive machines and are investing heavily in this technology. Extensive research made it possible to use advanced automotive machines in different vehicles and thorough research is conducted before the release of vehicles in the automotive sector.

Researchers are constantly engaged in R&D activities to offer more efficient and advanced products to consumers.

The emergence of hydrogen vehicles in the market was made possible by the invention of an economical method for generating hydrogen energy. This breakthrough has paved the way for the development of more vehicles powered by hydrogen.

What are the Challenges Faced by Hydrogen Vehicle Manufacturers?

“Comparatively High Cost of Raw Materials”

The anticipated increase in raw material prices, such as platinum used in carbon fiber and fuel cell anodes for hydrogen fuel tanks and similar vehicles, is expected to pose challenges to market expansion over the next 10 years.

How are Start-ups Shaping the Hydrogen Vehicles Landscape?

“Growing Emphasis of Start-ups on Innovative Designs”

Notable progress has been witnessed in hydrogen technology in recent years. There have been developments in electricity generation from diverse sources like coke, coal, biomass, organic waste, and tar. These innovations hold the potential to enhance the efficiency and cleanliness of electricity generation. Start-ups leveraging innovative designs are expected to expand their presence in the industry.

Country-wise Insights

What is the Demand Outlook for Hydrogen Vehicles in the United States?

“Rising Awareness about Environmental Pollution Fueling Sales of Hydrogen Vehicles”

Demand for hydrogen vehicles in the United States is predicted to increase at a CAGR of 30.5% and reach US$ 164.07 billion by 2033-end. Rising awareness about environmental pollution is predicted to boost demand for hydrogen vehicles there.

Availability of the latest technology along with the rising demand for automation in the United States is projected to boost sales of hydrogen vehicles. The United States adopted some advanced automation technologies to stimulate growth opportunities in the automation industry for the development of more efficient and environmentally friendly products.

What Makes South Korea and Japan Lucrative Markets for Hydrogen Vehicle Manufacturers?

“High Environmental Awareness and Government Initiatives to Reduce Carbon Emissions”

Sales of hydrogen vehicles in Japan are anticipated to expand at a CAGR of 31.2% and reach US$ 95.20 billion by 2033. Demand for hydrogen vehicles in South Korea is estimated to advance at a 31.2% CAGR and reach a value of US$ 257.92 billion by 2033-end.

Environment-conscious people from these countries are inclined to adopt hydrogen vehicles due to their ability to emit lower levels of greenhouse gases. Governments are also taking steps to ban carbon-emission vehicles, which is leading to the rising sales of hydrogen vehicles. By March 2020, the Japanese government, in collaboration with the auto industry, had introduced approximately 160 hydrogen fueling stations.

• The South Korean government mentioned that the transition to a hydrogen economy is predicted to create around 420,000 new jobs while bringing in a revenue of US$ 38 billion by 2040.

Category-wise Insights

Which Technology is Widely Preferred for Hydrogen Vehicles?

“High Demand for PEMFC-based Hydrogen Vehicles Due to Their Tailored Electrical Output and Pure Hydrogen Operation at Low Temperatures”

Demand for PEMFC (proton exchange membrane fuel cells)-based hydrogen vehicles are projected to advance at a 30.4% CAGR and reach a value of US$ 564.46 billion by 2033-end. PEMFC cells generally operate at comparatively low temperatures. They are capable of tailoring the electrical output to match dynamic power requirements and operate on pure hydrogen.

Which Type of Hydrogen Vehicle Accounts for Higher Sales?

“Robust Manufacturing Support for Hydrogen Passenger Vehicles Fueling Their Sales”

Sales of hydrogen passenger vehicles are forecasted to increase at a CAGR of 31.2% and reach a value of US$ 532.72 billion by the end of 2033. Hydrogen-fueled vehicles are becoming popular in the passenger sector driven by the increasing demand, growing supply, and robust manufacturing support.

Need for low-emission vehicles is rising substantially as environmentally conscious individuals are transitioning to zero-emission vehicles.

Key Market Players

and strengthening the supply chain management system are some key initiatives that are taken by leading players.

Key players in the global market are actively investing in expanding their consumer base across the globe.

For instance :

• Hydron Motors, in February 2021, announced a business collaboration with Decarbonization Plus. This acquisition helped the company get complete support and funding from the long-established plan of Hyzon for the zero-emission and hydrogen cell-powered commercial transportation sector.
• On April 01, 2021, Alstom strengthened its presence in the global market with the purchase of Helion Hydrogen Power. This initiative helped the company expand its portfolio of competitive and innovative solutions.

Key players in the hydrogen vehicles market are Mercedes-Benz, GM Hydrogenics, DAF, Ballard Power System, Toyota Motor Corporation, Hunduja Group, Daimler AG, FuelCell Energy Inc., Hyundai Motor Company, Audi AG, BMW AG, General Motors, and Honda Motor Company Ltd.

Segmentation of Hydrogen Vehicles Industry Research

• By Technology :

  • PAFC (Phosphoric Acid Fuel Cells)
  • DMFC (Direct Methanol Fuel Cells)
  • PEMFC (Proton Exchange Membrane Fuel Cells)

• By Fuel Capacity :

  • Up to 75 kW
  • 76 to 100 kW
  • 101 to 150 kW
  • Above 150 kW

• By Vehicle Category :

  • Passenger
  • Commercial

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa