Automotive Fuel Cell Market by Vehicle Type (Buses, Trucks, LCVs, Passenger Cars), Component, Fuel Type, Hydrogen Fuel Points, Operating Miles, Power, Capacity, Specialized Vehicle Type and Region - Global Forecast to 2030
[330 Pages Report] The global automotive fuel cell market is expected to increase from USD 0.2 billion in 2024 to USD 2.1 billion by 2030, with a CAGR of 48.0% over the forecast period. Government subsidies for environmentally friendly hydrogen production, the development of an integrated hydrogen ecosystem, the launch of new generation H2 fuel vehicles, and OEM plans to establish their own H2 refueling ecosystems are all expected to boost the automotive fuel cell business. The sector is also seeing developments like mobile and community hydrogen fueling systems, which make H2 more accessible for home applications. Air Liquide, Linde, and Powertech Labs are among the companies exploring low-cost, mobile refueling options to help boost market acceptance of fuel-cell electric vehicles.
Innovative business models such as H2EG's H2 fleet service, Riversimple's Pay-Per-Mile leasing service, subscription services and H2 fuel card system are expected to drive demand for FCEVs, and consequently automotive fuel cells in coming years. The market will also be driven by new applications across H2 vans and pickups. Currently, OEMs such as Stellantis (Netherlands) and Renault (France) provide H2 vans, while H2X is developing H2 pickups.
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Market Dynamics:
Driver: Improved Fuel Efficiency and Driving Range
Vehicles powered by hydrogen fuel cells outperform ICE vehicles in terms of fuel efficiency. They can obtain over 63 miles per gallon gasoline equivalent (MPGge), beating most ICE vehicle models, which average 29 MPGge on the highway. Hybridization also has the potential to improve these vehicles' fuel efficiency by 3.2%. In cities, H2 FCEVs have a fuel economy of 55 MPGge, compared to ~20 MPGge in ICE vehicles. Further, FCEVs can have thravel over 300 miles from one refuel. The average EV on the other hand has a range of around 150 miles. Honda Clarity has the highest EPA range of up to 366 miles. This combination of fuel efficiency and extended driving range is expected to drive demand for H2 FCEVs, consequently driving demand of automotive fuel cells.
Restraint: High infrastructure costs for H2 fuel station setup
Hydrogen fuel station setup cost is much higher compared to petroleum, diesel, and other fuels including fast EV chargers. Further, cost of transportation for H2 fuel is also currently much higher than other fuel types. This can be led by cost of setting H2 pipelines as well as recurring cost of transport of cryogenic hydrogen. This has led to slower growth in H2 fueling infrastructure around the world than other alternative fuels. Higher safety system investment is also required due to necessary precautions and safety measures due to hydrogen being an easily combustible fuel. Hydrogen fuel station setup cost ~USD 1-2 million by value. Meanwhile gasoline fuel station cost ~USD 200,000 and CNG fuel station cost ~USD 150,000, and EV fast charging stations cost less than USD 200,000.
Opportunity: H2 Fuel Cell Vans to be a key emerging market opportunity
With surge in conventional fuel prices, and rising concern for automotive emissions, the automotive industry is witnessing a shift towards low emission vehicles, including fuel-cell vans. Companies such as Hyvia, Hyundai, and Bosch have planned to introduce H2 vans. OEMs such as Renault and Stellantis already have such vans operational across Europe. These vans come with higher range and can be refueled faster compared to their electric counterparts. Further, governments initiatives to promote fuel-cell technology and invest in hydrogen infrastructure will drive demand for these vehicles. Countries across Europe, along with China, and American states such as New York and California actively contributing to the development of hydrogen hubs.
Challenge: Insufficient hydrogen infrastructure and storage
Popularization of H2 powered vehicles require setup of sufficient H2 refueling stations and other hydrogen infrastructure. This includes hydrogen production plants, fuel stations, storage facilities, which are ideal for FCEVs. As per ACEA, there must be H2 fuel stations across every 300 miles to support H2 in vehicles, as that is the driving range for FCEVs. However, hydrogen refueling infrastructure setup is currently limited in most countries. H2 storage is another challenge that needs to be addressed for market growth. Hydrogen storage need to be under high pressure or as liquid H2 (−252.8?°C) with the help of chemical compounding. Further, high density of H2 poses a challenge for its storage. Thus, the concerns over hydrogen infrastructure and storage need to be settled for the automotive fuel cell market.
Market Ecosystem
Europe is expected to be the fastest growing hydrogen infrastructure provider in the coming years
Europe is experiencing rapid growth in the hydrogen fuel points market, with Germany and France leading the expansion. Other countries like the UK, Belgium, Denmark, Italy, Norway, Netherlands, Spain, Sweden, and Switzerland are also contributing to the market's growth. The increase in fueling stations is driven by new emission reduction policies. Germany, in particular, has seen significant growth due to collaborations between German OEMs and the government, resulting in an increase in fuel cell electric vehicles (FCEVs). France has worked with Germany to enhance hydrogen fueling points. Shell subsidiaries have approved the construction of Holland Hydrogen L, set to become Europe's largest renewable hydrogen plant in 2025. In 2022, 82 MOBILITY secured 110 million euros to expand large hydrogen refueling stations, with notable investments from Shell, Air Liquide, Daimler Truck, EG Group, and Hyundai.
Passenger Car is estimated to be the largest segment during the forecast period
During the forecast period, the automotive fuel cell market is expected to grow rapidly, with passenger cars leading the way. The passenger car segment is expected to dominate, driven by a high adoption rate, increasing demand for personal mobility, and government initiatives to convert ICE taxi fleets into zero-emission vehicles. The increasing popularity of fuel cell passenger cars is evident through the availability of various models in the market, such as Toyota Mirai, Hyundai Nexo, Honda Clarity, Mercedes-Benz GLC FCEV, Nissan X-Trail FCEV, and Riversimple RASA. Automotive companies like BMW, and Jaguar Land Rover are also actively investing in and planning to launch new fuel cell models in response to the growing potential in this market. For instance, BMW intends to introduce fuel cell technology in its X6 and X7 models, while Jaguar Land Rover is developing a hydrogen fuel cell Defender, aiming for zero tailpipe emissions by 2036 through collaborative efforts with industry partners.
Asia Oceania's to lead the automotive fuel cell market by volume
The Asia Oceania region currently has the highest number of hydrogen fuel stations worldwide, with the governments of Japan, China, South Korea, India, and Australia spearheading the expansion of hydrogen infrastructure. These nations are actively fostering the growth of Fuel Cell Electric Vehicles (FCEVs) with rapidly evolving systems in the market. Leading Original Equipment Manufacturers (OEMs) such as Toyota, Hyundai, and Honda are pivotal in advancing the adoption of fuel cell vehicles across the region. Additionally, some countries have introduced FCEV buses and trucks, with Ballard playing a key role in developing an extensive FCEV bus and truck network in China. Despite ambitious targets aiming for 800,000 cumulative FCEV sales in Japan and establishing 1,000 refueling stations by 2030, the FCEV market encounters notable challenges. Despite substantial government subsidies, the limited development of refueling infrastructure and inadequate vehicle supply hinder the widespread adoption of FCEVs in the country. Noteworthy initiatives in the bus sector include Kansai Airport in Japan and companies like Solaris and the West Midlands deploying hydrogen fuel cell buses. In the truck industry, major players such as Nikola, SINOTRUK, Hyundai, Sym.Pjg, and Daimler Truck are actively engaged in developing and deploying heavy-duty hydrogen fuel cell trucks. As of September 2023, ENEOS manages 43 hydrogen refueling stations across four major metropolitan areas in Japan.
Key Market Players
The automotive fuel cell market is dominated by established players such as Ballard Power Systems (Canada), Hyster-Yale (US), Plug Power(US) ITM Power(UK) and Cummins (US). These companies provide fuel cell technologies and possess robust worldwide distribution networks. They have implemented comprehensive expansion initiatives, engaging in collaborations, partnerships, and mergers and acquisitions to establish a strong market presence.
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Report Metric |
Details |
|
Market size available for years |
2020–2030 |
|
Base year considered |
2023 |
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Forecast period |
2024-2030 |
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Forecast units |
Volume (Thousand Units) and Value (USD Million/Billion) |
|
Segments covered |
Market by Vehicle Type (Buses, Trucks, LCVs, Passenger Cars), Component, Fuel Type, Hydrogen Fuel Points, Operating Miles, Power, Capacity, Specialized Vehicle Type and Region |
|
Geographies covered |
Asia Oceania, Europe, North America, and RoW |
|
Companies Covered |
Ballard Power Systems (Canada), Hyster-Yale (US), Plug Power (US) ITM Power(UK) and Cummins (US) |
This research report categorizes the automotive fuel cell market based on vehicle type, component, specialized vehicle type, operating miles, power output, hydrogen fuel points and fuel cell type, and region.
Based on Vehicle Type:
- Buses
- LCVs
- Passenger Cars
- Trucks
Based on Component:
- Air Compressors
- Fuel Processors
- Fuel Stacks
- Humidifiers
- Power Conditioners
Based on Operating Miles:
- 0-250 Miles
- 251-500 Miles
- Above 500 Miles
Based on Power Output:
- <150 kW
- 150-250 kW
- >250 kW
Based on Specialized Vehicle Type:
- Material handling vehicles
- Refrigerated trucks
Based on Propulsion:
- FCEV
- FCHEV
Based on Hydrogen Fuel Points:
- Asia Oceania
- Europe
- North America
Based on Fuel Type:
- Hydrogen
- Methanol
- Ethanol
Based on Region:
-
Asia Oceania
- Australia
- China
- Japan
- India
- South Korea
-
North America
- US
- Canada
- Mexico
-
Europe
- Belgium
- Denmark
- France
- Germany
- Italy
- Netherlands
- Norway
- Spain
- Sweden
- Switzerland
- UK
Recent Developments
- In December 2023, Plug Power, the company in focus, successfully installed a one-megawatt proton exchange membrane electrolyzer at the Amazon Fulfillment Center, DEN8. This milestone signifies Amazon's inaugural initiative in producing low-carbon hydrogen to fuel more than 225 hydrogen fuel cell-driven forklift trucks operating at the facility.
- In November 2023, Ballard Power Systems entered into a supply contract with Solaris Bus & Coach sp. z o.o. (Poland). Ballard Power Systems has publicly revealed multiple purchase orders, totaling 62 hydrogen fuel cell engines, destined for Solaris Bus & Coach. These advanced fuel cell engines are earmarked for use in buses operating in Germany and Poland, contributing to the expansion of sustainable transportation in the region.
- In October 2023, a 50kW fuel cell module (FC module) was developed by Toyota Motor, representing a compact fuel cell (FC) system. This innovative module, designed for various applications like lift trucks, agricultural machinery, and construction equipment, provides versatile installation possibilities.
- In March 2023, Hyster-Yale-Generator-Fuel Cells officially launched the commercial availability of the G-Series Fuel Cell Power Generators, offered in 360 kW and 470 kW modules. This modular and zero-emission power solution is designed for various applications in the commercial and industrial sectors, such as data centers, electric vehicles, backup power systems, and microgrids.
- In September 2023, Ballard Power Systems and QUANTRON collaborated to unveil their first fuel cell electric vehicles, highlighting the seamless integration of QUANTRON's vehicle engineering expertise with Ballard's state-of-the-art fuel cell technology.
Frequently Asked Questions (FAQ):
What is the current size of the automotive fuel cell market?
The current size of the automotive fuel cell market is estimated at 23 thousand units in 2024.
Who are the winners in the automotive fuel cell market?
The automotive fuel cell market is dominated by market is dominated by established players such as Ballard Power Systems (Canada), Hyster-Yale (US), Plug Power(US) ITM Power(UK) and Cummins (US)., among others. They have worked on providing offerings for the automotive fuel cell ecosystem. They have initiated partnerships to develop their fuel cell technology and offer best-in-class products to their customers.
Which region will have the largest automotive fuel cell market by value?
North America will be the largest automotive fuel cell market by value due to the huge volume of investments in the region and growing demand for zero-emission commercial and passenger transport vehicles.
What are the key technologies affecting the automotive fuel cell market?
The key technologies affecting the automotive fuel cell market are Non-precious metal catalyst (NPMC), compact fuel cell module, and new battery technologies.
Which segment by vehicle type is dominating the automotive fuel cell market?
The largest market share of the automotive fuel cell market, based on vehicle type, is attributed to the passenger car segment. .
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The study involved four major activities in estimating the current size of the automotive fuel cell market. Exhaustive secondary research was done to collect information on the market, the peer market, and the child markets. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation processes were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources such as company annual reports/presentations, press releases, industry association publications [for example, Fuel Cell and Hydrogen Energy Association (FCHEA), International Organization of Motor Vehicle Manufacturers, European Alternative Fuels Observatory (EAFO), International Energy Association (IEA)], articles, directories, technical handbooks, trade websites, technical articles, and databases (for example, Marklines, and Factiva) have been used to identify and collect information useful for an extensive commercial study of the global automotive cell market.
Primary Research
Extensive primary research was conducted after acquiring an understanding of the automotive fuel cell market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand (automotive OEMs) and supply (automotive fuel cell providers) sides across major regions, namely, North America, Europe, and Asia Oceania. Approximately 30% and 70% of primary interviews were conducted from the demand and supply sides, respectively. Primary data was collected through questionnaires, emails, and telephonic interviews.
In the canvassing of primaries, various departments within organizations, such as sales, operations, and marketing, were covered to provide a holistic viewpoint in the report. After interacting with industry experts, brief sessions were also conducted with highly experienced independent consultants to reinforce the findings from primaries. This, along with the in-house subject matter experts’ opinions, led to the findings described in the remainder of this report.
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Market Size Estimation
The bottom-up approach has been used to estimate and validate the size of the Automotive fuel cell market by vehicle type. In this approach, the vehicle sales statistics for each vehicle type [Passenger Cars, Light Commercial Vehicles, Buses, and Trucks] have been considered at the country level.
To determine the market size, in terms of volume, a mapping of fuel cell vehicles has been carried out for each country and vehicle type. The number of fuel cell electric models varied from country to country. After this, the types of FCEVs sold were identified, which derived the volume of each segment type. The country-level data was summed up to arrive at the region-level data in terms of volume. The summation of the country-level market size gives the regional market size, and a further summation of the regional market size provides the global market size.
Market Size Validation
The top-down approach has been used to estimate and validate the size of the Automotive fuel cell market at the global level, and by miles covered, power capacity, fuel cell type in terms of volume.
The top-down approach has been used to estimate and validate the size of the market. This approach identifies key fuel cell type, miles covered and power capacity segments of Automotive fuel cells at the regional level. The penetration of each identified segment is multiplied by the volume of each vehicle at the regional level to derive the total segment volume.
For instance,
- The Automotive fuel cell market for operating miles was derived using the top-down approach to estimate the subsegments- <250 miles,251-500 miles, above 500 miles.
- The market size, in terms of volume, was derived at the regional level for each segment using this method. The total volume of the market was multiplied by the adoption rate breakup percentage of these segments in regional level (for miles covered, power capacity) and global level (for fuel cell type), respectively.
Data Triangulation
After arriving at the overall market size of the global market through the above-mentioned methodology, this market was split into several segments and subsegments. The data triangulation and market breakdown procedure were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact market value data for the key segments and subsegments. The extrapolated market data was triangulated by studying various macro indicators and regional trends from both the demand- and supply-side participants.
Market Definition
According to Alternative Fuel Data Center (AFDC) fuel cell produces electricity and heat by electrochemically reacting hydrogen fuel with oxygen. Stringent emission regulations have led to the increased use of fuel cells in the automotive and transportation industry. A fuel cell electric vehicle (FCEV) is a type of electric vehicle that uses a fuel cell. A fuel cell can also be used in combination with a battery or supercapacitor to power the onboard electric motor. In an FCEV, hydrogen is pumped into the car and then fed to the fuel cell stack. The fuel cell stack is the center where hydrogen is electrochemically converted into electricity with no combustion and zero emissions. Fuel cells in vehicles generate electricity to power the motor. As long as hydrogen is available, the fuel cell will continue to produce electricity. Most fuel cell vehicles are classified as zero-emission vehicles that emit only water and heat.
List of Key Stakeholders
- Alternative Fuels Data Center (AFDC)
- Automobile OEMs
- Automotive fuel cell raw material suppliers
- Automotive fuel cell suppliers
- California Fuel Cell Partnership (CaFCP)
- California Hydrogen Business Council (CHBC)
- Canadian Hydrogen Fuel Cell Association (CHFCA)
- Environmental Protection Agency (EPA)
- Fuel Cell and Hydrogen Energy Association (FCHEA)
- Hydrogen gas suppliers
- Hydrogen station service providers
- United States Council for Automotive Research LLC (USCAR)
Report Objectives
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To segment and forecast the automotive fuel cell market size in terms of volume (thousand units) and Value (USD Million)
- To define, describe, and forecast the market based on vehicle type, component, specialized vehicle type, H2 fuel station, power output, operating miles, fuel cell type, fuel type and region.
- To segment the market and forecast its size, by volume and value, based on region (Asia Oceania, Europe, and North America)
- To segment and forecast the market based on vehicle type (passenger car, light commercial vehicle, bus, truck)
- To segment and forecast the market based on component (fuel processor, fuel stack, humidifier, air compressor, and power conditioner)
- To segment and forecast the market based on H2 Fuel Station (Asia Oceania, Europe, and North America)
- To segment and forecast the market based on power capacity (<150 kW, 150-250 kW, >250 kW)
- To segment and forecast the market based on operating miles (0-250 Miles, 250-500 Miles, Above 500 Miles)
- To segment and forecast the market based on fuel type (hydrogen, methanol, ethanol, others)
- To analyze the technological developments impacting the market
- To analyze opportunities for stakeholders and the competitive landscape for market leaders
- To provide detailed information regarding the major factors influencing the market growth (drivers, challenges, restraints, and opportunities)
- To strategically analyze markets with respect to individual growth trends, future prospects, and contribution to the total market
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To study the following with respect to the market
- Value Chain Analysis
- Pricing Analysis
- Technological Roadmap
- Ecosystem
- Technology Analysis
- Case Study Analysis
- Patent Analysis
- Regulatory Landscape
- Buying Criteria
- To strategically profile key players and comprehensively analyze their market shares and core competencies.
- To track and analyze competitive developments such as deals (joint ventures, mergers & acquisitions, partnerships, collaborations), new product developments, and other activities carried out by key industry participants.
Available Customizations
With the given market data, MarketsandMarkets offers customizations in line with company-specific needs.
- Automotive Fuel Cell Market, By Propulsion at Country Level
- Automotive Fuel Cell Market, Additional Countries (Up to 3)
- Profiling of additional market players (Up to 3)
Generating Response ...
Growth opportunities and latent adjacency in Automotive Fuel Cell Market