PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1607775
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1607775
Global hydrogen truck market is projected to witness a CAGR of 13.56% during the forecast period 2025-2032, growing from USD 2.17 billion in 2024 to USD 6.00 billion in 2032. The market has experienced significant growth in recent years and is expected to maintain an expansion in the coming years owing to increasing awareness of climate change and air pollution, rapid setup of hydrogen technology R&D centers across emerging countries, and government regulations concerning emission control. Hydrogen trucks are a clean alternative to traditional diesel options that emit water vapors as exhaust. Another factor that pushes market growth is strict governmental regulations on lowering emission gases generated from commercial vehicles, forcing manufacturers and fleet operators to use cleaner technologies. Increasingly, governments are promoting monetary rewards, subsidies, and gradual hydrogen refueling infrastructure, such as California's plans to create an across-the-state hydrogen network of 200 state-of-the-art hydrogen refueling stations by 2025 through the California Energy Commission Zero Emission Vehicle and Infrastructure Statistics dashboard. Advancements in technology associated with hydrogen fuel cells have played a crucial role. These improvements increase efficiency and reduce costs while expanding the range of trucks, making them appropriate for long-distance haulage.
For instance, in September 2024, Hyundai Motor Company's XCIENT Fuel Cell truck continued its journey toward realizing a hydrogen society where clean hydrogen can be utilized everywhere, surpassing 10 million kilometers in Switzerland. As of June 2024, 48 XCIENT Fuel Cell trucks across Switzerland reached this significant milestone, 3 years and 8 months after their debut. The model operating in Switzerland is equipped with a 180kW hydrogen fuel cell system and a motor with a maximum output of 350kW, tailored to meet the local market's needs. Its hydrogen capacity of 31kg can travel over 400 kilometers on a single charge.
Advancements in Hydrogen Fuel Technology to Boost Market Growth
The continuous advancements in hydrogen fuel technology, encompassing cost reductions in fuel cells and electrolyzers, improvements in durability and efficiency, and enhanced infrastructure development, collectively drive the growth of the global hydrogen truck market. These trends make hydrogen a more practical alternative to fossil fuels and align with the international goals of making transportation sustainable. Cost reductions through research and development in fuel cells have decreased automotive fuel cell costs by 60% since 2006, with projections suggesting that high-volume production could cut costs as low as around USD 50 per kW. It can be an essential shift from renewable sources to attain global sustainability goals. Hydrogen storage solutions have recently acquired new options with current innovations, such as advanced compressed onboard storage systems that have decreased costs by 30 percent since 2013, making hydrogen trucks more practical for long-haul applications.
For instance, in June 2022, the first domestic heavy-duty commercial vehicle direct-injection hydrogen engine independently designed and developed by FAW Jiefang, CHINA FAW GROUP CO., LTD. was successfully ignited. It is a 13-liter heavy-duty engine with a running power of over 500 horsepower, the strongest power in its displacement class, and an indicated thermal efficiency of 55%, which has three major features: technical first, industry first, and international leading, marking a breakthrough in China's independent research and development of hydrogen direct injection engine.
Supportive Government Policies to Expand Hydrogen Truck Market
Stringent government policies strongly determine the formation and introduction of hydrogen trucks into the transport sector, including imposing strict emission standards. Since governments of emerging countries have been tightening emission standards for commercial vehicles, hydrogen can be seen as a potential alternative source of energy for diesel, which can let fleet operators maintain compliance with regulatory standards imposed. These standards compel companies to produce hydrogen trucks to meet the demand for hydrogen trucks and inspire manufacturers to find new and cleaner technologies. Also, governments are providing incentives to minimize the upfront cost of hydrogen fuel cell technology. Many countries offer subsidies, tax credits, and grants to make it less upfront cost intensive. For instance, in California, hydrogen infrastructure projects receive enormous financial support for building, which lowers the transition cost of hydrogen trucks for companies. It further reduces the total cost of ownership and makes switching to hydrogen vehicles more economically viable.
Furthermore, government authorities have been investing in the development of hydrogen refueling infrastructure so that they can ensure the operational requirements of hydrogen trucks. For instance, in February 2024, the Government of India launched pilot projects using hydrogen in buses, trucks, and 4-wheelers, outlaying USD 58.78 million until FY2025-2026. Under the National Green Hydrogen Mission, the Ministry of New & Renewable Energy (MNRE) issued the scheme guidelines for implementing Pilot Projects for using Green Hydrogen in the Transport Sector. Pilot projects for infrastructure development, such as hydrogen refueling stations, are supported under the program.
Heavy-duty Trucks to Dominate Market Share
Heavy-duty trucks dominate the global hydrogen truck market growth owing to expansion in the e-commerce and logistics sector, rising awareness concerning sustainable transportation, and a growing suitability for long-haul transportation. These trucks excel in long-distance trucking applications with considerably high range capabilities and refueling times as quick as conventional diesel vehicles, which means less downtime and more productivity in freight movement across regional and national boundaries, driving the global heavy-duty hydrogen trucks market growth. The other important factor is hydrogen fuel, which has higher energy density, so heavy-duty trucks can provide high power outputs while meeting all the very stringent emission controls imposed. Since governments around the world started promoting hydrogen-powered trucks, with higher emission norms in place and offering incentives for zero-emission vehicles, these have become quite an attractive option for logistics companies to reduce their carbon footprint. Continuous advancements in hydrogen fuel cell technology make the H2-based trucks competent and reliable in comparison with conventional diesel engines, and hence, they are commercially viable for fleet owners.
For instance, in November 2023, the China International Commercial Vehicle Exhibition was held as scheduled at the Wuhan International Expo Center, where China Dong Feng Motor Industry Imp. & Exp. Co., Ltd. Commercial Vehicle's green, intelligent, all-scenario application solution was unveiled, signing a demonstration cooperation agreement for 200 hydrogen-powered heavy-duty trucks in the Hanyi Hydrogen Energy Corridor, and receiving the 2024 China Innovative Truck award for the Dongfeng GX autonomous L2+ level intelligent driving tractor.
Asia-Pacific Dominates Hydrogen Truck Market Growth
Asia-Pacific emerged as the market leader in hydrogen trucks due to rapid technological developments, robust government support, and a growing demand for sustainable transportation solutions. The share is anticipated to be led by Asia-Pacific in the forecast period owing to the efforts of countries such as China, Japan, and India. Heavy investments in hydrogen refueling stations and production facilities provide support to the operational needs of hydrogen trucks. For instance, China has made tremendous strides in developing a network of refueling stations while simultaneously promoting partnerships between local manufacturers and government agencies to make hydrogen trucks more deployment friendly. This synergy model has changed China's hydrogen economy from previously being a relatively policy-led economy to more of a market-led economy, thereby accelerating its adoption.
Additionally, continuous innovation in hydrogen fuel cell technology is increasing the efficiency and cost-effectiveness of such vehicles. Improvements by key players in fuel-cell systems and advanced energy storage solutions enhance the capabilities of hydrogen trucks so that they can better compete with battery electric vehicles.
For instance, in October 2024, Ashok Leyland, the Indian flagship of the Hinduja Group, planned to commercially launch its first hydrogen-powered truck within the next 18-24 months.
Future Market Scenario (2025 - 2032F)
The future market scenario is characterized by rapid growth driven by technological innovations, supportive government policies, and a strong emphasis on environmental sustainability. Ongoing partnerships between truck manufacturers and energy companies aim to establish dedicated hydrogen corridors with sufficient refueling stations. Also, hydrogen trucks are set to play a crucial role in transforming the logistics industry and achieving global zero-emission transportation goals.
Key Players Landscape and Outlook
Government policies foster public-private partnerships that accelerate research and development in hydrogen technologies. These collaborations enable pilot projects and fleet testing, providing valuable data on the performance and reliability of hydrogen trucks. Such initiatives enhance technological advancements and help optimize supply chains related to hydrogen production and distribution.
Furthermore, authorities have been investing in the development of hydrogen refueling infrastructure so that they can ensure the operational requirements of hydrogen trucks. Cooperation between authorities, private companies, and research institutes, allows for the construction of refueling stations and production facilities. In this way, they will have access to an adequate supply of hydrogen fuel. This investment in infrastructure will be critical in alleviating the historical constraint related to availability.
For instance, in June 2023, Mitsubishi Fuso Truck and Bus Corporation, Hino Motors, Ltd. Merger-4 Firms collaborated on hydrogen. The pair will speed up the decarbonization of the transportation industry by drawing on the CASE technologies of their respective parent companies, Daimler Truck AG and Toyota Motor Corporation. Initiative in the hydrogen domain as a key focus area for cooperation, contributes to the creation of a prosperous mobility society. Daimler Truck AG and Toyota Motor Corporation were quick to recognize the potential of hydrogen energy and have driven the development of fuel cell and hydrogen engine technologies. Together with Mitsubishi Fuso Truck and Bus Corporation and Hino Motors, Ltd., the companies plan to speed up the adoption of hydrogen mobility, beginning with commercial vehicles.
For instance, in May 2023, PACCAR Inc. and Toyota Motor North America, Inc. announced an expansion of their joint efforts to develop and produce zero emissions, hydrogen fuel cell (FCEV) Kenworth and Peterbilt trucks powered by Toyota's next-generation hydrogen fuel cell modules. The expanded agreement supports ongoing development and commercialized zero-emission versions of the Kenworth T680 and Peterbilt 579 models, featuring Toyota's hydrogen fuel cell powertrain kit.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.