Hydrogen vehicles run on fuel cells that convert hydrogen gas into electricity to power an electric motor. This process emits only water vapor and warm air. As concerns regarding air pollution and greenhouse gas emissions from gasoline and diesel vehicles continue to rise, manufacturers are focusing on developing affordable hydrogen fuel cell vehicles as a zero-emission alternative. The adoption of hydrogen vehicles can help nations meet their emissions reduction targets and compliance with stringent emission norms. The fuel cell technology offers advantages of fast refueling comparable to gasoline vehicles and higher driving range than all-electric vehicles on a single fill. This makes hydrogen vehicles a promising solution for commercial vehicle fleets as well as individual customers seeking electric vehicles with longer range.
The global Hydrogen Vehicle Market is estimated to be valued at US$ 3.58 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the hydrogen vehicle market is the ongoing focus on bringing down the costs of fuel cell systems to levels comparable to conventional gasoline vehicles. Several automakers are investing in fuel cell and hydrogen technology research and development with the aim of mass producing affordable vehicles in the next decade. Partnerships between automakers, gas station owners, and hydrogen suppliers are working to establish the necessary fueling infrastructure to minimize range anxiety issues. Government promotion through subsidies and tax incentives in leading economies such as Japan, South Korea, Germany, and California are accelerating commercial deployment. As the technology matures and production scales up, the total cost of ownership of hydrogen fuel cell electric vehicles is expected to reach parity with internal combustion engine vehicles, driving significant adoption in the coming years.
Threat of new entrants: It is moderate as huge capital investments are required for production facilities and infrastructure development. However, support from governments can help lower the entry barriers over time.
Bargaining power of buyers: It is low currently due to limited availability and high costs of vehicles. Growing consumer acceptance and investments in hydrogen infrastructure may increase buyer power in long run.
Bargaining power of suppliers: It is moderate as technologies for Fuel Cells and hydrogen storage solutions have few alternatives currently. Established automakers can influence suppliers.
Threat of new substitutes: It is moderate in passenger vehicles but high for commercial applications. Electric vehicles pose major threat but hydrogen offers better refueling times and driving ranges.
Competitive rivalry: Competition is intensifying as major automakers are investing to commercialize the technology and gain early mover advantage.
The Global Hydrogen Vehicle Market Demand is expected to witness high growth. The market size is projected to reach US$ 3.58 Mn in 2023 and is estimated to surpass US$ 10 Bn by 2030, expanding at a CAGR of around 13%.
Regional analysis: Asia Pacific region currently dominates the market and is expected to maintain its lead position during the forecast period. Countries like Japan, South Korea and China are aggressively pushing hydrogen fuel cell technologies and investments in refueling infrastructure.
Key players: Key players operating in the Hydrogen Vehicle market are Fox-IT, Advenica, Owl Cyber Defense, AEP Networks, Waterfall Security Solutions, Nexor, Unisys Corporation, Siemens AG, BAE Systems plc, Thales Group, L3Harris Technologies, Inc., Airbus Defence and Space, Raytheon Technologies Corporation, Fortinet Inc., and Palo Alto Networks, Inc. Major automakers like Toyota, Hyundai, Honda have launched several Fuel Cell electric vehicles models.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it