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Hydrogen Vehicles Market

Hydrogen Vehicles Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

Published Date: Upcoming | Format:

Industry: Automotive & Transport | Author Name: Chetan

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Rising concerns apropos of environmental changes along with depleting natural resources, several technologies are being acknowledged and launched that are sustainable and back the eco-friendly concept. Increasing awareness regarding air pollution coupled with increasing traffic count have made it imperative for automotive manufactures to look for alternatives that offer higher performance alongside reducing air pollution. In addition, favourable support from governments across countries to cater to environment conditions is being witnessed. For instance, in California committed funds to develop around 100 hydrogen fuelling stations in order to meet the target of 1.5 million vehicles with zero-emission by end of 2025. These aspects continue to drive the growth of the hydrogen vehicles market worldwide.

Demand for Fuel Efficient and High-Performance Vehicles to Bolster Growth of Hydrogen Vehicles Market

With the ongoing depletion of natural resources and increasing pressure on non-renewable sources of energy, it is becoming increasingly important to switch to energy sources that are renewable and can provide high performance. Sustainability being the core concept along with reduction in greenhouse gas emissions, research on the use of hydrogen powered automobile is being focused upon. Hydrogen vehicles do not require gasoline and are significantly economical as compared to conventional fuel-based vehicles. Moreover, water being the only by-product of hydrogen, hydrogen vehicles are considered as zero-emission vehicles. As compared to vehicles with IC engine, hydrogen vehicles have higher efficiency, around 60%-70% more than hybrid and IC engine vehicles.

Also, increasing price rise of conventional fuels such as diesel and petrol due to rising crude oil prices has impacted the automotive industry. Customers are re-visiting their decision on buying conventional vehicles due to significant increase in petrol worldwide. This has paved an opportunity for using fuel efficient technologies in automobiles. Against this backdrop, the demand for hydrogen vehicles is likely to witness an upswing, considering the aspect that these vehicles are more efficient than hybrid or electric counterparts.

Automobile Backed by Phosphoric Acid Fuel Cells (PAFC) Likely to Influence Hydrogen Vehicles Market Growth

Increasing demand of hydrogen vehicles backed by phosphoric acid fuel cells is being witnessed recently. This is mainly due to advantages of phosphoric acid fuel cells such as low vapour pressure, higher stability, low electrolyte volatility and higher tolerance to carbon monoxide and carbon dioxide. Additionally, use of phosphoric acid fuel cells allows an efficiency increase by 70%, making them an apt choice for hydrogen vehicles. This is possible due to their ability to convert water to steam at a range of 150–200 degrees. That said, phosphoric acid fuel cells are finding applications in commercial vehicles such as trucks and buses. In the following years, it is likely that the hydrogen vehicles market will witness high contribution from vehicles integrated with the PAFC technology.

Hydrogen Powered Passenger Cars Likely to Gain High Steam

Hydrogen powered passenger cars are expected to gain high traction in the years to follow. Demand for highly efficient passenger cars to drive short distances is driving the hydrogen vehicles market. Hydrogen powered vehicles were initially considered as more efficient for longer distances, particularly favourable for the commercial vehicle segment. However, perceived benefits with regards to customer convenience and satisfaction have translated into potential opportunities for hydrogen vehicles to penetrate passenger cars segment. Apart from improved efficiency and zero emissions, hydrogen powered passenger vehicles need less time for refuelling as compared to electric counterparts. One hydrogen vehicle, with a full tank can run 500 kms and can be refilled within two minutes similar to conventional gasoline passenger vehicles. However, electric vehicles require couple of hours to reach full charge. This can facilitate customer higher convenience quotient along with providing the user an emission free highly fuel-efficient vehicle to drive shorter distances. In this background, hydrogen backed vehicles are expected to witness high demand, consequently contributing towards growth of the hydrogen vehicles market.

Asia Pacific’s Lucrativeness Backed by Zero-Emission Targets of Emerging Economies

Emerging economies in Asia Pacific region are expected to showcase incremental growth apropos to use of hydrogen vehicles. Governments across countries such as China and India are focused on reducing carbon emissions, especially due to the growing automobile industry in these countries. For instance, India is focusing on testing hydrogen vehicles to reduce its GHG emissions. NTPC (National Thermal Power Corporation), India’s biggest power generator, is planning to invest in procuring hydrogen vehicles for pilot projects. This initiative is also backed by and acknowledged by few of the major companies including Tata Motors, KPIT Technologies and Ashok Leyland.

Likewise, China is another regional market with significant opportunities for hydrogen vehicles. Incentivised by the China Government subsidies, around 35 projects associated with fuel cells, hydrogen fuelling stations and hydrogen vehicles worth US$ 17 billion were signed in 2021. This is mainly driven by the country’s target to achieve zero-carbon emission by end of 2060, which is expected to fuel the growth of the hydrogen vehicles market in the country.

Hydrogen Vehicles Market: Competitive Landscape

Few of the major players in the hydrogen vehicles market include Daimler AG, BMW AG, GM Hydrogenics, Audi AG, Toyota, Hyundai and Honda Motor Company Ltd.

Global Hydrogen Vehicles Market is Segmented as Below:

By Vehicle Type

  • Passenger Vehicles
  • Commercial Vehicles
  • Heavy Commercial Vehicles

By Technology

  • Proton Exchange Membrane Fuel Cell
  • Phosphoric Acid Fuel Cell

By Region

    • U.S.
    • Canada
    • Mexico
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Hydrogen Vehicles Market

  • Hydrogen Vehicles Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value and Volume, 2018 - 2021
  • Volume Consumption at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Production Output Analysis (Major Producing Regions)
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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