The global Hydrogen Vehicle Market is composed of fuel cell electric vehicles, which use hydrogen as fuel to power an electric motor. Fuel cell electric vehicles have zero emissions and offer high fuel efficiency. With growing concerns regarding pollution and climate change, there is increasing demand for sustainable mobility solutions, leading more automobile manufacturers to invest in developing hydrogen fuel cell vehicles.
The global Hydrogen Vehicle Market is estimated to be valued at US$ 5.89 Billion 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 propelling the growth of the hydrogen vehicle market is the increasing support from governments worldwide for the development of hydrogen infrastructure. Many countries are introducing policies and investment plans to boost the adoption of hydrogen fuel cell technology. For instance, the Japanese government aims to have around 200,000 fuel cell electric vehicles on roads by 2025. It plans to install 80-100 hydrogen refueling stations by 2019 and 160-320 stations by 2025. Similarly, Germany, France, South Korea and California are also developing hydrogen infrastructure to promote the use of fuel cell electric vehicles. The growing government support is encouraging automobile manufacturers to invest more in related technologies, thereby driving the demand for hydrogen fuel cell vehicles.
SWOT Analysis
Strength: Hydrogen vehicles have a higher driving range than electric vehicles, with hydrogen fuel cells providing power. They can be refueled in minutes, similar to gasoline vehicles.
Weakness: Hydrogen is an expensive fuel to produce. A lack of hydrogen refueling infrastructure limits the adoption of these vehicles. The technology is still developing and initial costs of the vehicles are high.
Opportunity: Growing support from governments worldwide to develop a hydrogen economy and fueling infrastructure presents an opportunity. Established automakers are investing heavily in bringing more hydrogen models to the market.
Threats: Other zero-emission technologies like battery electric vehicles have a head start in the marketplace and receive more consumer acceptance currently. Fluctuations in oil prices can impact the economics of transitioning to hydrogen.
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 Billion in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031.
Regional analysis reveals that Asia Pacific dominates the market currently due to strong government backing of hydrogen initiatives in countries like Japan, South Korea and China. Japan aims to have 800,000 fuel cell vehicles on roads by 2030.
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. Established automakers are collaborating with energy companies on co-developing the hydrogen infrastructure, driving the market’s expansion.
Toyota’s Mirai hydrogen sedan has catalyzed mainstream interest in the technology. Hyundai delivered over 1000 units of its Nexo SUV in 2020. Honda plans greater hydrogen focus through its Clarity models. Collaboration between the industry and governments will be pivotal in creating networks of hydrogen refueling stations for greater consumer access.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
