Hydrogen Fuel Cell Vehicle Market size is expected to surpass USD 58 billion by the end of 2035, growing at a CAGR of 47% during the forecast period i.e., 2023 to 2035. In the year 2022, the industry size of hydrogen fuel cell vehicle was around USD 2 billion. There is a growing awareness about climate change and air pollution, which has led to an increased emphasis, on transportation options. Hydrogen fuel cell vehicles are appealing to conscious consumers and governments as they only emit water vapor thereby helping to reduce greenhouse gas emissions.
Hydrogen powered vehicles present an option compared to conventional cars with internal combustion engines or electric vehicles using lithium ion batteries. Experts in energy and policymakers see hydrogen as a means to broaden the energy sources and decrease reliance on fuels.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~47% |
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Base Year Market Size (2022) |
~ USD 2 Billion |
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Forecast Year Market Size (2035) |
~ USD 58 Billion |
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Regional Scope |
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Growth Drivers
Moreover, advancements, in hydrogen storage techniques have made it possible to store amounts of hydrogen in smaller tanks thereby further extending the range capabilities of hydrogen fuel cell vehicles.
Challenges
Vehicle Type (Passenger Cars, LCVs, HCVs)
The passenger cars segment in the hydrogen fuel cell vehicle market is estimated to gain the largest revenue share of about 57% in the year 2035. The segment growth can be attributed to the booming demand for passenger cars from the growing middle-class population, increasing disposable income, and the availability of affordable finance for vehicles.
Additionally, the increasing demand for electric vehicles and the growing preference for ride-hailing services are also contributing to the growth of the passenger car segment. Hydrogen fuel cell vehicles provide a more efficient and cleaner form of transportation than traditional gasoline and diesel-powered vehicles. Additionally, they require less maintenance, have a longer range, and are more cost-effective than other types of vehicles.
Technology (Proton Exchange Membrane, Alkaline Fuel Cell, Solid Oxide Fuel Cell)
Hydrogen fuel cell vehicle market from the proton exchange membrane segment is estimated to gain a significant share in the year 2035. The segment growth can be attributed to the proton exchange membrane fuel cells (PEMFCs) being an attractive alternative to traditional combustion engines because they offer higher efficiency and lower emissions.
Additionally, they require less maintenance than other fuel cell types, making them more cost-effective. As a result, they have become increasingly popular for the production of zero-emission vehicles.
Our in-depth analysis of the global hydrogen fuel cell vehicle market includes the following segments:
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Vehicle Type |
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Technology |
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Range |
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APAC Market Forecast
Hydrogen fuel cell vehicle market in Asia Pacific, amongst the market in all the other regions, is anticipated to hold the largest with a share of about ~37% by the end of 2035. The market growth in the region is expected on account of the increasing government initiatives throughout the region and the availability of a wide range of vehicles powered by fuel cells. Various initiatives such as the Hydrogen Council and the 'Hydrogen Road Maps' are being rolled out in the region, which will further improve the market growth. A directive from China's Development and reform commission issued in November 2021 mandated the production of 5,000 hydrogen fuel cell vehicles for port transportation, buses, and intercity logistics by 2025. This mandate will spur the production of hydrogen fuel cell vehicles, which will lead to an increased demand for hydrogen fuel and the necessary infrastructure to store and transport it, thus driving the market growth in the region.
European Market Analysis
The European hydrogen fuel cell vehicle market is estimated to be the second largest, registering a share of about 27% by the end of 2035. The market expansion can be attributed majorly to the European Commission’s commitment to lower carbon emissions and the increasing awareness about the benefits of hydrogen fuel cell vehicles. For instance, Daimler announced in May 2022 that they are planning to include electric vehicles and hydrogen fuel vehicles in their portfolio by 2030. This is leading to the development of more efficient and cost-effective hydrogen fuel cell vehicles.
Author Credits: Payel Roy, Dhruv Bhatia
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