Fuel Cell Electric Vehicle Market Report 2025

The fuel cell electric vehicle market size has grown exponentially in recent years. It will grow from $4.44 billion in 2024 to $5.7 billion in 2025 at a compound annual growth rate (CAGR) of 28.4%. The growth in the historic period can be attributed to government incentives and subsidies, environmental regulations, infrastructure development, increasing public awareness, and R&D investments.

The fuel cell electric vehicle market size is expected to see exponential growth in the next few years. It will grow to $14.57 billion in 2029 at a compound annual growth rate (CAGR) of 26.4%. The growth in the forecast period can be attributed to advancements in hydrogen production, global expansion of hydrogen infrastructure, cost reductions, increased consumer acceptance, and stringent emission standards. Major trends in the forecast period include hydrogen-powered commercial vehicles, integration of FCEVs in sustainable mobility, collaborations in the hydrogen ecosystem, focus on lightweight materials, and hydrogen fuel cell range extender.

The increasing adoption of electric vehicles is anticipated to drive growth in the fuel-cell electric vehicle (FCEV) market. Electric vehicles are powered by one or more electric motors using energy from an onboard battery pack. Both electric vehicles and FCEVs offer significant environmental advantages, including reduced greenhouse gas emissions and improved air quality, contributing to a sustainable transportation future. For example, in March 2024, the International Energy Agency, a France-based intergovernmental organization, reported that approximately 14 million electric cars were registered globally in 2023, a 35% increase from the 10.5 million registered in 2022. Electric vehicles accounted for 18% of total car sales in 2023, up from 14% in the previous year. This growth highlights strong momentum in the EV market, with weekly registrations surpassing 250,000 in 2023. Notably, battery electric vehicles made up 70% of the total electric car stock in that year. Thus, the rise in electric vehicle adoption is fueling the growth of the fuel-cell electric vehicle market.

The increasing adoption of heavy-duty vehicles is anticipated to drive the growth of the fuel-cell electric vehicle market. Heavy-duty vehicles, designed for handling substantial loads and specialized tasks, are witnessing a growing acceptance of fuel-cell electric propulsion, particularly in trucks and buses. The extended ranges offered by fuel-cell electric vehicles make them well-suited for applications requiring extensive travel, such as long-haul trucking. A notable example is the World Resources Institute's report in September 2023, which indicated a significant increase in the collective count of electric school buses, reaching 5,982 in June 2023 - marking a substantial rise of over 3,200 buses compared to June 2022. Consequently, the increasing adoption of heavy-duty vehicles is a driving force behind the growth of the fuel-cell electric vehicle market.

Major players in the fuel-cell electric vehicle market are actively pursuing innovative solutions, exemplified by their focus on technologies such as electric compressor technology. This technology involves the use of electrically driven compressors across various applications. A notable instance is Garrett Motion Inc., a Switzerland-based solutions provider, which introduced the advanced Electric Fuel Cell Compressor (FCC) in June 2023. This high-performance electric air compressor optimizes fuel cell system power density and output efficiently, contributing to enhanced fuel cell stack efficiency and durability throughout the vehicle's lifespan in a compact form.

Prominent companies in the fuel-cell electric vehicle market are also committed to developing groundbreaking products, including prototypes utilizing hydrogen fuel cell electric technology. A hydrogen fuel cell electric prototype integrates an experimental version of a hydrogen fuel cell electric powertrain, relying on the chemical reaction between hydrogen and oxygen to generate electricity for the electric motor. For instance, Toyota Motor Corporation, a Japan-based automotive manufacturer, unveiled the Hilux in September 2023. This hydrogen fuel cell electric prototype aims to achieve carbon-free mobility through diverse powertrain solutions, such as fuel cell electric, plug-in hybrid electric, battery electric, and hybrid electric.

In June 2024, Hyundai Motor, a South Korea-based automobile manufacturer, acquired the hydrogen fuel cell (HFC) business of Hyundai Mobis for an undisclosed amount. This acquisition aims to consolidate the group's research and production capabilities, enhancing its position in the fuel-cell electric vehicle (FCEV) market while accelerating development and lowering costs. This strategic move positions Hyundai as a key player in the emerging FCEV industry. Hyundai Mobis is a South Korea-based company that specializes in automotive components, including modules and systems like fuel cell systems.

Major companies operating in the fuel cell electric vehicle market include Volkswagen AG, Toyota Motor Corporation, Mercedes-Benz Group, General Motors, Mitsubishi Corporation, Honda Motor Co. Ltd., FAW Group Ltd., SAIC Motor Corp. Ltd., Hyundai Motor Group, Nissan Motor Co. Ltd., Audi AG, Renault Group, Bayerische Motoren Werke AG, Iveco Group N.V., Dongfeng Motor Corporation, Denso Global, Tata Motors Limited, Ashok Leyland, Kenworth Truck Company, Dayun Automobile Co. Ltd., Rolls-Royce PLC, Ballard Power Systems Inc., Hyzon Motors, Nikola Corporation, H2X Global.

Asia-Pacific was the largest region in the fuel-cell electric vehicle market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the fuel cell electric vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the fuel cell electric vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

A fuel-cell electric vehicle (FCEV) is an electric vehicle that employs a fuel-cell system to produce electricity for powering an electric motor. Diverging from battery electric vehicles (BEVs), which store electricity in onboard batteries, FCEVs generate electricity through an electrochemical reaction involving hydrogen fuel and oxygen from the air. Fuel-cell electric vehicles are known for their zero emissions, adaptability, rapid refueling, and diverse energy sources.

The primary types of fuel cell electric vehicles include polymer electrolyte membrane fuel cells (PEMFC), proton exchange membrane fuel cells, phosphoric acid fuel cells, among others. A polymer electrolyte membrane fuel cell (PEMFC) is a specific type of fuel cell that utilizes a polymer electrolyte membrane as its crucial component. These vehicles are categorized as short-range and long-range and are accessible in various forms, including passenger vehicles, light commercial vehicles, and heavy commercial vehicles.

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

The fuel-cell electric vehicle market consists of sales of solid oxide fuel Cell (SOFC) Vehicles, forklifts, and material handling equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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