Fuel Cell Vehicle Global Market Report 2024

The fuel cell vehicle market size has grown exponentially in recent years. It will grow from $1.43 billion in 2023 to $2.17 billion in 2024 at a compound annual growth rate (CAGR) of 52.2%. The historical growth in this sector can be credited to several factors, including worldwide apprehensions regarding air quality, corporate endeavors toward sustainability, governmental incentives and subsidies, rising consumer interest in clean transportation options, as well as the implementation of demonstration projects and pilot programs showcasing the viability of fuel cell vehicles.

The fuel cell vehicle market size is expected to see exponential growth in the next few years. It will grow to $10.56 billion in 2028 at a compound annual growth rate (CAGR) of 48.5%. Anticipated growth in the upcoming period is expected to result from various factors, including reductions in fuel cell system costs, advancements in hydrogen production technologies, heightened investments in research and development, a focus on developing long-range fuel cell vehicles, and the integration of fuel cell vehicles into public transportation systems. Key trends projected for this period encompass advancements in fuel cell technology, an upsurge in global collaborations within the industry, the integration of fuel cell vehicles with renewable energy sources, innovations in hydrogen storage methodologies, and the establishment of technological collaborations and partnerships aimed at furthering the development and adoption of fuel cell vehicles.

The fuel-cell vehicle market is anticipated to experience significant growth, driven by the increased demand for fuel-efficient, high-performance, and low-emission cars. Electric vehicles (EVs) have gained prominence, propelled by the growing emphasis on fuel efficiency, high performance, and low emissions, particularly in the context of aspirations for net-zero emissions and defense against COVID-19. EVs and hybrid vehicles, known for their environmental friendliness and efficiency compared to traditional combustion-powered engines, are experiencing widespread adoption. According to the Global EV Outlook 2022 report, electric vehicle sales doubled from the previous year in 2021, reaching a new high of 6.6 million units, with global electric car sales reaching 6,600,000 units, a significant increase from 2,980,000 units in the previous year. This surge in demand for fuel-efficient and low-emission vehicles is a key driver for the growth of the fuel-cell vehicle market.

The growth of the fuel cell vehicle market is also expected to be propelled by the increasing personal disposable income of consumers. Personal disposable income, representing the amount available for spending or saving after taxes and other obligatory deductions, influences the adoption of fuel cell vehicles. Higher disposable incomes empower consumers to afford premium-priced fuel cell vehicles, contributing to market growth. For example, in August 2023, the Bureau of Economic Analysis reported a slight increase of $7.3 billion (less than 0.1 percent) in disposable personal income in the United States. The growing personal disposable income is therefore a driving force behind the expansion of the fuel cell vehicle market.

Technological advancement emerges as a key trend in the fuel cell vehicle market, with major companies focusing on developing new technologies to enhance the efficiency and cost-effectiveness of fuel cells. For instance, in July 2021, Hyzon Motors Inc., a US-based supplier of zero-emission hydrogen fuel cell-powered heavy vehicles, introduced new onboard hydrogen storage system technology. This technology is designed to reduce the weight and manufacturing cost of commercial vehicles powered by Hyzon's hydrogen fuel cells. The storage system achieves a 43% reduction in overall weight, a 52% decrease in storage system costs, and a 75% reduction in the number of required manufacturing components for a single-rack system with the capacity to store five hydrogen cylinders. The modular architecture allows for configuration adjustments, accommodating a configurable number of hydrogen tanks, offering flexibility and cost-effectiveness. This technological innovation contributes to the overall growth and advancement of the fuel cell vehicle market.

Major companies in the fuel cell vehicle market are strategically developing modified engines with flex-fuel technology to enhance profitability and meet evolving market demands. Modified engines, in this context, refer to internal combustion engines that have undergone alterations or customization from their original factory specifications, aiming to improve performance, power output, or other characteristics. For example, in August 2023, Toyota Motor Corporation, a leading Japanese automotive manufacturer, introduced the electrified flex-fuel Innova HyCross car in India. This vehicle is recognized as the world's first fully ethanol-powered car equipped with a flex-fuel engine. The flex-fuel engine is a modification of the standard 2.0-liter, four-cylinder engine found in the Innova HyCross hybrid MPV. This engine runs on E85 fuel, a blend consisting of 85% ethanol and 15% gasoline. The Innova HyCross flex-fuel model, featuring a modified engine, is expected to deliver a fuel economy up to 30% better than the standard hybrid version due to its utilization of E85 fuel. Additionally, this flex-fuel vehicle incorporates a self-charging lithium-ion battery that can power the vehicle in electric mode, offering a more environmentally friendly and fuel-efficient transportation option.

In October 2021, Pure Hydrogen Corporation Limited, an Australia-based clean energy solutions company, acquired a 24% stake in H2X Global Limited for an undisclosed amount. This strategic move allows Pure Hydrogen to leverage its expertise in hydrogen logistics to meet the refueling needs of H2X's cars. H2X Global Limited, based in Australia, is a company focused on hydrogen fuel cell electric vehicles, aligning with the broader goals and developments in the fuel cell vehicle market. This acquisition reinforces the commitment to advancing clean energy solutions and expanding the presence of hydrogen fuel cell technology in the automotive sector.

Major companies operating in the fuel cell vehicle market report are Toyota Motor Corporation, Honda Motor Co. Ltd., Hyundai Motor Company, Volvo AB, General Motors, Bayerische Motoren Werke Aktiengesellschaft AG, Audi AG, Ford Motor Company, Ballard Power System Inc., Nikola Corporation, SAIC Motor Corporation Limited, Mercedes-Benz Group, Maschinenfabrik Augsburg-Nürnberg Societas Europaea, Plug Power Inc, Bloom Energy Corporation, Daimler Truck, Beiqi Foton Motor Co. Ltd., Dayu Automobile Trading, Dongfeng Motor Corporation, Great Wall Motor, Hyzon Motors, Riversimple, Symbio.one, Tata Motors, VDL Bus & Coach, Wrightbus, Yutong Group, Proton Motor Fuel Cell GmbH, PowerCell Sweden AB, Intelligent Energy, ITM Power.

North America was the largest region in the fuel cell vehicle market in 2023. Asia-Pacific is expected to be the fastest-growing region in the fuel cell vehicle market during the forecast period. The regions covered in the fuel cell vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the fuel cell vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of fuel cell vehicles comprise passenger vehicles and commercial vehicles. Passenger vehicles specifically refer to motor vehicles intended for transporting passengers and their belongings, with a capacity of carrying up to twelve passengers, excluding the driver, and not equipped for towing trailers. Various fuel cell vehicle technologies encompass proton exchange membrane fuel cells (PEMFC), solid oxide fuel cells (SOFC), direct methanol fuel cells (DMFC), phosphoric acid fuel cells (PAFC), and molten carbonate fuel cells (MCFC), catering to both private and commercial end users.

The fuel cell vehicle market research report is one of a series of new reports that provides fuel cell vehicle market statistics, including fuel cell vehicle industry global market size, regional shares, competitors with a fuel cell vehicle market share, detailed fuel cell vehicle market segments, market trends and opportunities, and any further data you may need to thrive in the fuel cell vehicle industry. This fuel cell vehicle market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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