Commercial Hydrogen Vehicle Market

Commercial Hydrogen Vehicle Market Outlook (2024 to 2034)

The global commercial hydrogen vehicle market is expected to reach a value of US$ 5.24 billion in 2024 and subsequently advance rapidly at a CAGR of 26.9% to end up at US$ 53.24 billion by 2034.

The benefits of hydrogen fuel cells for the automotive industry are quite well known. The costly method of separating molecules of water into hydrogen and oxygen, however, has prevented the widespread use of hydrogen as a fuel in vehicles. Nevertheless, researchers are working continuously to develop a low-cost technique for producing hydrogen energy.

• A study that was published by researchers from Swinburne University of Technology and Griffith University in Nature Communications proved that they had successfully separated hydrogen by utilizing catalysts made of cheap metals such as nickel and iron to break it from water particles.

In light of gaining a stronghold in the market, manufacturers are building the infrastructure needed for the mass manufacturing of hydrogen vehicles. Due to significant investments made by manufacturers and numerous other factors, the growth of the global market for hydrogen vehicles seems to be bright, contributing to commercial hydrogen vehicle market growth.

Electric vehicles (EVs) have become a much more attractive choice for people in recent years and will drive commercial hydrogen vehicle demand. Hydrogen fuel penetration as an environment-friendly source in developed regions is projected to drive demand for commercial hydrogen vehicles. Innovation in low-cost commercial hydrogen vehicles will also positively impact commercial hydrogen vehicle market growth.

Public awareness and environmental consciousness are vital factors driving the adoption of sustainable transportation solutions including hydrogen vehicles. There is a gaining popularity need to address climate change, as the impacts of global warming are becoming more and more visible, more people are trying their best to reduce greenhouse gas emissions.

Need to conserve natural resources and protect the environment is driving many vehicle manufacturers to understand and invest in new more effective and cleaner automobiles. All of these factors are contributing to the expansion of the commercial hydrogen vehicle market size.

Report Attribute	Detail
Commercial Hydrogen Vehicle Market Size (2024E)	US$ 5.24 Billion
Forecasted Market Value (2034F)	US$ 53.24 Billion
Global Market Growth Rate (2024 to 2034)	26.9% CAGR
North America Market Share (2024E)	35.7%
East Asia Market Value (2024E)	US$ 1.96 Billion
Buses & Coaches Segment Value (2034F)	US$ 2.82 Billion
DMFC Segment Value (2034F)	US$ 1.4 Billion
Key Companies Profiled	Anglo American; DAF; Daimler Truck; General Motors; Hinduja Group; Hyundai Motor Group; Hyzon Motors; International Truck; Komatsu; MAN; New Flyer Industries Ltd.; Nikola Corporation; PACCAR Inc.; SAIC Motor Corporation Limited; SANY Heavy Truck; Toyota Motor Corporation; Van Hool; Volvo AB.

What is the Way Ahead for Commercial Hydrogen Vehicle Manufacturers?

“Focus on Enhancing Fuel Economy and Achieving Greater Driving Range”

Improved fuel efficiency and longer driving distances are two important factors that are expected to propel the market expansion of hydrogen vehicles. Compared to ICE vehicles, FCEVs offer better fuel efficiency.

An FCEV typically gets to more than 70 per gallon of gasoline-equivalent (MPGe), while an ICE car only gets around less MPGe on a highway. An FCEV's fuel efficiency can be increased via hybridization significantly. An FCEV gets about 55 MPGe on urban roads, compared to 20 MPGe for ICE vehicles. Some FCVs can get over 300 miles on one tank of hydrogen fuel.

The average driving range of battery electric vehicles (BEV) typically lies between 200 to 250 miles with a fully charged battery, which can take hours to charge. FCVs can be refueled in as little as five minutes. Improved fuel economy and a longer range will therefore raise the demand for FCEVs, which is, in turn, projected to boost demand for commercial hydrogen vehicles.

“Rising Environmental Concerns Driving Demand for Eco-friendly Mobility Solutions”

Due to growing concerns about environmental deterioration and the depletion of natural resources, several technologies that encourage eco-friendly methods of sustaining the atmosphere are being introduced to the market at a wide scale. Furthermore, as a result of the environmental friendliness of hydrogen fuel cell vehicles over other conventional vehicles, they are also becoming more popular due to increased awareness about the effects of air pollution, rising levels of traffic, and increased greenhouse gas emissions.

Since hydrogen fuel is produced with less waste than fossil fuels, it is regarded as being more environmentally friendly. Water is the sole by-product created during the generation of hydrogen, making it a clean fuel. Hydrogen is more affordable because it can also be manufactured utilizing a variety of domestic resources.

What Do Commercial Hydrogen Vehicle Companies Need to Watch Out For?

“High Cost of Fuel Cells and Competition from Battery Technology”

The price of fuel cells is a significant barrier for the automobile fuel cell market. On average, commercial hydrogen fuel cell vehicles cost too much. A catalyst, stacks, bipolar plate gas diffusion layers, and a membrane are the important components of a fuel cell.

Hydrogen and oxygen are combined in fuel cells to create energy through a chemical reaction. Oxygen enables the burning of other materials at lower temperatures, and hydrogen is a highly flammable gas. Fuel can catch fire if not handled carefully since hydrogen flames have the potential to explode and are invisible.

As a result of increased research and development in battery technology, battery prices continue to decline. Owing to all the mentioned factors, it is anticipated that the high cost of raw materials, including carbon fiber for the production of hydrogen fuel tanks and platinum metal for the fuel cell anode, will restrain the market.

Country-wise Evaluation

China and the United States hold a substantial commercial hydrogen vehicle market share.

Why is There Lot of Limelight on the Market in the United States?

“Focus on Reducing Dependency on Oil”

Attribute	United States
Market Value (2024E)	US$ 1.64 Billion
Growth Rate (2024 to 2034)	25.6% CAGR
Projected Value (2034F)	US$ 16.04 Billion

Hydrogen stands out as a promising renewable option.

• In 2023, the United States Energy Information Administration reported daily consumption of 10,099 million barrels of crude oil, underscoring the limited petroleum reserves and escalating fuel prices that are prompting automakers to explore alternative fuel sources.
• Advent Technologies Holdings exemplified this shift by entering a three-year agreement in September 2022 with the German state of Brandenburg.

This initiative aims to deploy fuel cell systems at key communication sites in the region, leveraging advancements in hydrogen extraction from diverse natural resources beyond oil.

Why are Sales of Hydrogen Vehicles Rising in China?

“Government Initiatives Promoting Adoption of Hydrogen Vehicles”

Attribute	China
Market Value (2024E)	US$ 1.86 Billion
Growth Rate (2024 to 2034)	24.6% CAGR
Projected Value (2034F)	US$ 16.74 Billion

Government initiatives encouraging the use of hydrogen cars are a key commercial hydrogen vehicle market trend in China. To curb emissions and fight atmospheric pollution, the Chinese government has been aggressively supporting the creation and application of hydrogen fuel cell automobiles. Hydrogen-powered vehicles are becoming more and more popular in China as a result of growing environmental concerns and a drive towards sustainable transportation options.

Category-wise Analysis

Based on fuel-cell technology, the market is segmented into PAFC, DMFC, and PEMFC.

Which Vehicle Type Will Account for Higher Market Share?

“Extensive Use of Fuel-Cell Technology in Buses and Coaches for Long-Distance Travel”

Attribute	Buses & Coaches
Segment Value (2024E)	US$ 2.82 Billion
Growth Rate (2024 to 2034)	26.8% CAGR
Projected Value (2034F)	US$ 30.37 Billion

Fuel cell technology has become widely used in the hydrogen commercial vehicle industry, especially in buses and coaches. In their final use, these heavy-duty trucks are increasingly choosing hydrogen as their fuel of choice. These cars' fuel cell technology presents a viable option for long-distance, emission-free mobility.

Which Fuel Cell Technology is the Most Popular in This Space?

“PEMFC Offering Efficient and Clean Energy Production”

Attribute	PEMFC
Segment Value (2024E)	US$ 4.62 Billion
Growth Rate (2024 to 2034)	27% CAGR
Projected Value (2034F)	US$ 50.47 Billion

Vehicles powered by hydrogen are becoming increasingly common in a variety of end uses. The application of proton exchange membrane fuel cell (PEMFC) technology in hydrogen car technology is growing worldwide. PEMFC has a lot of promise for a lot of uses, such as stationary power generation and transportation, because of its effective and clean energy production.

Market Competition

For years, fuel cell car prices have been dropping significantly, and throughout the next ten years and beyond, they will keep declining. The cost of fuel cell vehicles, particularly buses, has decreased by 65% in the last few years, despite their low production volume.

Significant advancements in fuel cells have been made thanks to technological advances and product upgrades by many key players in the commercial hydrogen vehicle market. A variety of additional factors, such as the following, have also helped to lower the overall cost of fuel cell electric vehicles: Lower cost and better integration of the vehicle's electric drivetrain, the decreased cost of the hydrogen storage tank, hybridization of the vehicle's fuel cell and batteries, and adapting themselves to key market trends such as hydrogen generation and hydrogen fuel cells.

• In November 2021, Hinduja Group's premier Ashok Leyland revealed that the corporation is working on commercial vehicles powered by hydrogen, and a team is actively building these vehicles.
• In September 2021, Hyundai Motor Group aimed to become the first vehicle maker in the world to power all its commercial vehicle models with fuel cell systems, intending to make hydrogen vehicles more widely available by lowering the cost of the technology by 2028.
• In January 2021, truck manufacturer Navistar International Corp. announced a partnership with American automobile maker General Motors Co. and others to develop a commercial truck powered by hydrogen fuel cells, along with an accompanying fueling infrastructure.

Fact.MR provides detailed information about the price points of key manufacturers of commercial hydrogen vehicles positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Commercial Hydrogen Vehicle Market Research

• By Fuel Cell Technology :

  • PAFC
  • DMFC
  • PEMFC

• By Fuel Capacity :

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

• By Vehicle Category :

  • LCVs
  • HCVs
  • Buses & Coaches
  • Industrial Trucks

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa