May 18, 2024
Hydrogen Vehicle Market

Electric Vehicle Segment Is The Largest Segment Driving The Growth Of Hydrogen Vehicle Market

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 28% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Hydrogen vehicles run on hydrogen fuel cells that generate power through an electrochemical reaction between hydrogen and oxygen to produce electricity to power an electric motor. Hydrogen vehicles offer higher efficiency and lower emissions than gasoline or diesel vehicles.

Market key trends:

One of the key trends in the hydrogen vehicle market is the development of hydrogen refueling infrastructure across major economies. Establishment of hydrogen refueling stations is essential for the adoption of hydrogen vehicles at a large scale. Several governments are investing significantly towards building hydrogen refueling infrastructure to make hydrogen easily accessible for consumers and encourage the switch to hydrogen vehicles from conventional vehicles. For instance, the US Department of Energy aims to install 400 hydrogen refueling stations by 2025 to enable the transition to emission-free transportation.

SWOT Analysis

Strength: Hydrogen vehicles emit no emissions and only emit water vapor, making them more environmentally friendly. Toyota, Hyundai, and other major automakers investing heavily in developing hydrogen fuel cell technologies.

Weakness: Lack of hydrogen fueling infrastructure currently limits the adoption of FCVs. Producing and transporting hydrogen is still costly compared to conventional fossil fuels. Fuel cells and hydrogen storage systems add significant costs to retail prices of FCVs compared to conventional vehicles.

Opportunity: Growing global concerns about air pollution and climate change are driving support for zero-emissions transportation. Declining battery costs and advancing technologies may help fuel cell powertrains compete more effectively with electric vehicles.

Threats: Slow pace of building out hydrogen filling stations deters mass adoption of the technology. Consumer acceptance of battery-powered EVs continues to rise rapidly posing a challenge. Declining battery costs may make EVs produce comparable driving ranges at lower costs than FCVs in the near term.

Key Takeaways

The global Hydrogen Vehicle Market Growth is expected to witness high growth, exhibiting a CAGR of 28% over the forecast period, due to increasing global concerns about rising pollution levels and stringent emission norms. Growing climate change awareness among consumers is also driving demand for clean mobility solutions.

Regional analysis: Asia Pacific dominated the global market in 2023, accounting for over 35% of the total share, due to robust government policies and infrastructure development programs in countries such as Japan and South Korea. China is also emerging as a major market for hydrogen vehicles due to huge investments in building a network of refueling stations across major cities. Europe is anticipated to witness fastest growth during the forecast period supported by EU CO2 regulations and EV subsidies and mandates.

Key players operating in the hydrogen vehicle market are Toyota Motor Corporation, Hyundai Motor Company, Honda Motor Co., Ltd., and Ballard Power Systems. Toyota is a pioneer in FCV technologies and has sold over 10,000 Mirai sedans globally since 2014. Hyundai began deliveries of Nexo SUV with a driving range over 500 km in 2018 and is focused on Europe and China markets. Ballard, a leading fuel cell systems provider, is supporting OEM development programs.

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