PUBLISHER: The Business Research Company | PRODUCT CODE: 1664325
PUBLISHER: The Business Research Company | PRODUCT CODE: 1664325
A fuel cell vehicle operates as an electric vehicle, utilizing a fuel cell to power its onboard electric motor, sometimes supported by a small battery or supercapacitor. These automotive fuel cells generate electricity by harnessing oxygen from the air and compressed hydrogen.
The primary categories of fuel cell vehicles comprise passenger vehicles and commercial vehicles. Passenger vehicles specifically refer to motor vehicles intended for transporting passengers and their belongings, with a capacity of carrying up to twelve passengers, excluding the driver, and not equipped for towing trailers. Various fuel cell vehicle technologies encompass proton exchange membrane fuel cells (PEMFC), solid oxide fuel cells (SOFC), direct methanol fuel cells (DMFC), phosphoric acid fuel cells (PAFC), and molten carbonate fuel cells (MCFC), catering to both private and commercial end users.
The fuel cell vehicle market research report is one of a series of new reports from The Business Research Company that provides fuel cell vehicle market statistics, including fuel cell vehicle industry global market size, regional shares, competitors with a fuel cell vehicle market share, detailed fuel cell vehicle market segments, market trends and opportunities, and any further data you may need to thrive in the fuel cell vehicle industry. This fuel cell vehicle market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The fuel cell vehicle market size has grown exponentially in recent years. It will grow from $2.15 billion in 2024 to $3.26 billion in 2025 at a compound annual growth rate (CAGR) of 51.6%. The growth in the historic period can be attributed to global concerns about air quality, corporate sustainability initiatives, government incentives and subsidies, consumer demand for clean transportation, demonstration projects and pilot programs.
The fuel cell vehicle market size is expected to see exponential growth in the next few years. It will grow to $15.27 billion in 2029 at a compound annual growth rate (CAGR) of 47.2%. The growth in the forecast period can be attributed to reduction in fuel cell system costs, advancements in hydrogen production, increased investment in R&D, focus on long-range fuel cell vehicles, integration of FCVS in public transport. Major trends in the forecast period include advancements in fuel cell technology, increased global collaboration, integration with renewable energy, advances in hydrogen storage, technological collaborations and partnerships.
The fuel-cell vehicle market is anticipated to experience significant growth, driven by the increased demand for fuel-efficient, high-performance, and low-emission cars. Electric vehicles (EVs) have gained prominence, propelled by the growing emphasis on fuel efficiency, high performance, and low emissions, particularly in the context of aspirations for net-zero emissions and defense against COVID-19. EVs and hybrid vehicles, known for their environmental friendliness and efficiency compared to traditional combustion-powered engines, are experiencing widespread adoption. According to the Global EV Outlook 2022 report, electric vehicle sales doubled from the previous year in 2021, reaching a new high of 6.6 million units, with global electric car sales reaching 6,600,000 units, a significant increase from 2,980,000 units in the previous year. This surge in demand for fuel-efficient and low-emission vehicles is a key driver for the growth of the fuel-cell vehicle market.
The growth of the fuel cell vehicle market is also expected to be propelled by the increasing personal disposable income of consumers. Personal disposable income, representing the amount available for spending or saving after taxes and other obligatory deductions, influences the adoption of fuel cell vehicles. Higher disposable incomes empower consumers to afford premium-priced fuel cell vehicles, contributing to market growth. For example, in August 2023, the Bureau of Economic Analysis reported a slight increase of $7.3 billion (less than 0.1 percent) in disposable personal income in the United States. The growing personal disposable income is therefore a driving force behind the expansion of the fuel cell vehicle market.
Technological advancement is a significant trend gaining traction in the fuel cell vehicle market. Major companies in this sector are concentrating on developing new technologies to enhance the efficiency and cost-effectiveness of fuel cells. For example, in October 2023, Nikola Corporation, a US-based company specializing in zero-emission vehicles and hydrogen station infrastructure, launched the Hydrogen Fuel Cell Electric Truck. This truck represents advancements in hydrogen-powered technology, focusing on improved performance and operational efficiency. Each truck is designed to hold 70 kg of hydrogen, offering an approximate range of 500 miles on a full tank. Additionally, the trucks can be refueled in about 20 minutes, making them competitive with traditional diesel refueling times.
Major companies in the fuel cell vehicle market are strategically developing modified engines with flex-fuel technology to enhance profitability and meet evolving market demands. Modified engines, in this context, refer to internal combustion engines that have undergone alterations or customization from their original factory specifications, aiming to improve performance, power output, or other characteristics. For example, in August 2023, Toyota Motor Corporation, a leading Japanese automotive manufacturer, introduced the electrified flex-fuel Innova HyCross car in India. This vehicle is recognized as the world's first fully ethanol-powered car equipped with a flex-fuel engine. The flex-fuel engine is a modification of the standard 2.0-liter, four-cylinder engine found in the Innova HyCross hybrid MPV. This engine runs on E85 fuel, a blend consisting of 85% ethanol and 15% gasoline. The Innova HyCross flex-fuel model, featuring a modified engine, is expected to deliver a fuel economy up to 30% better than the standard hybrid version due to its utilization of E85 fuel. Additionally, this flex-fuel vehicle incorporates a self-charging lithium-ion battery that can power the vehicle in electric mode, offering a more environmentally friendly and fuel-efficient transportation option.
In January 2022, Daimler Truck North America, a US-based clean energy solutions provider, announced a $650 million joint venture with BlackRock Renewable Power and NextEra Energy Resources. This collaboration aims to accelerate the development of hydrogen fuel cell and electric vehicle charging infrastructure for medium- and heavy-duty trucks. The partnership intends to establish a robust network of charging stations along key U.S. freight routes, focusing on facilitating the transition to zero-emission vehicles. BlackRock Renewable Power is a US-based investment platform, while NextEra Energy Resources is a US-based renewable energy company.
Major companies operating in the fuel cell vehicle market include Toyota Motor Corporation, Honda Motor Co. Ltd., Hyundai Motor Company, Volvo AB, General Motors, Bayerische Motoren Werke Aktiengesellschaft AG, Audi AG, Ford Motor Company, Ballard Power System Inc., Nikola Corporation, SAIC Motor Corporation Limited, Mercedes-Benz Group, Plug Power Inc, Daimler Truck, Beiqi Foton Motor Co. Ltd., Dongfeng Motor Corporation, Great Wall Motor, Hyzon Motors, Riversimple, Symbio.one, Tata Motors, VDL Bus & Coach, Wrightbus, Yutong Group, Proton Motor Fuel Cell GmbH, PowerCell Sweden AB, Intelligent Energy, ITM Power
North America was the largest region in the fuel cell vehicle market in 2024. Asia-Pacific is expected to be the fastest-growing region in the fuel cell vehicle market during the forecast period. The regions covered in the fuel cell vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the fuel cell vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The fuel cell vehicle market consists of sales of buses and coaches, passenger cars and commercial vehicles. 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.
Fuel Cell Vehicle Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on fuel cell vehicle market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for fuel cell vehicle ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The fuel cell vehicle market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.