April 12, 2024

The global Hydrogen Vehicle Market is projected to driven by growing environmental concerns


The global hydrogen vehicle market has witnessed substantial growth in the recent years owning to the significant advantages offered by these vehicles over conventional vehicles. Hydrogen vehicles or fuel cell electric vehicles use hydrogen as fuel stored in high-pressure tanks to power fuel cells that generate electricity to drive electric motors, emitting only water vapor and warm air. They provide longer range than battery electric vehicles, with refueling time similar to gasoline vehicles. They help reduce dependence on fossil fuels and offer zero direct emissions. The growing environmental concerns and stringent emission regulations imposed by governments worldwide to curb pollution are a major factor driving automakers to focus on developing clean hydrogen fueled vehicles.

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, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the hydrogen vehicle market is the development of affordable fuel cell systems. Currently, the cost of fuel cells is substantially higher than conventional internal combustion engines. However, with the growing adoption and advancements in technology, the fuel cell costs are expected to come down substantially. Manufacturers are focusing on utilizing less platinum in fuel cells and developing low-temperature fuel cells that can further bring down the costs. Another key trend is the development of hydrogen refueling infrastructure. Lack of readily accessible hydrogen refueling stations acts as a barrier to the mass adoption of these vehicles. However, companies operating hydrogen refueling stations and governments worldwide providing funding support are helping expand the refueling infrastructure network.

Porter’s Analysis

Threat of new entrants: Moderate – The market has high capital investment costs for setting up production infrastructure and developing fuel cell technology which deters new entrants. However, increasing innovations and advancements are lowering entry barriers.

Bargaining power of buyers: High – Buyers have several options to choose from leading automakers. They can negotiate on prices by comparing competing offerings.

Bargaining power of suppliers: Moderate- While the market has multiple component and raw material suppliers, leading automakers possess greater bargaining power being major customers.

Threat of new substitutes: High – Electric and hybrid vehicles are emerging as strong alternatives offering convenience of refueling and longer range. Battery technologies are continuously improving posing a threat.

Competitive rivalry: Intense – Major automakers are aggressively investing in developing advanced fuel cell vehicles and expanding refueling infrastructure to gain market share in this emerging space.

Key Takeaways

The global Hydrogen Vehicle Market is expected to witness high growth over the forecast period of 2024 to 2031. 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.

Regional analysis: Asia Pacific is expected to dominate the market owing to high government investments and supportive policies for development and adoption of hydrogen fuel cell vehicles especially in China, Japan and South Korea. These countries are emerging as key production and refueling infrastructure hubs.

Key players: Key players operating in the Hydrogen Vehicle Market are Toyota Motor Corporation, Hyundai Motor Company, Honda Motor Co. Ltd., Daimler AG., Audi, BMW, General Motors, MAN, Ford Motor Company, and VOLVO. Toyota and Hyundai have taken an early mover advantage launching several FCEV models and expanding sales volumes. Other automakers are also actively investing in this space.

The key players are focusing on strategic collaborations to jointly develop fuel cell systems, hydrogen production and refueling stations to accelerate the commercialization of hydrogen vehicles. OEMs are also establishing regional partnerships to localize manufacturing and service networks.


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