Alternative-fuel vehicles are gaining traction as a sustainable mobility solution to reduce emissions from the transportation sector. Hydrogen vehicles powered by fuel cells offer zero-emissions transport with refueling time comparable to gasoline vehicles. The need to expand hydrogen refueling infrastructure to promote the adoption of hydrogen vehicles is driving significant investments in building hydrogen stations. Various governments are offering attractive subsidies and incentives for setting up hydrogen stations to boost the growth.
The global Hydrogen Vehicle Market is estimated to be valued at US$ 3.58 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends fueling the growth of the hydrogen vehicle market is the expanding hydrogen refueling infrastructure across countries. Automakers are focusing on developing more commercially viable fuel cell vehicles but lack of hydrogen refueling stations is a major barrier limiting the mass adoption of this technology. To address this challenge, both public and private sector players are investing heavily in building the necessary hydrogen infrastructure. For instance, Europe and countries like Germany, France and the UK are leading the development with targets of establishing hundreds of hydrogen stations over the next few years. Similarly, in North America and Asia Pacific, hydrogen refueling networks are progressing at a fast pace with support from both national and local governments. This ongoing infrastructure expansion will play a crucial role in enabling the commercialization of hydrogen vehicles.
Segment Analysis
The global hydrogen vehicle market is dominated by the passenger vehicle segment. The segment accounted for over 65% share of the overall market in 2023 owing to the increasing demand for fuel cell electric vehicles (FCEVs) from consumers. FCEVs offer superior driving range and faster refueling time as compared to battery electric vehicles, making them attractive alternatives to internal combustion engine vehicles particularly for long distance travel applications.
Key Takeaways
The Global Hydrogen Vehicle Market Demand is expected to witness high growth over the forecast period of 2023 to 2030. The market is estimated to rise at a CAGR of 13% during the same period to reach a size of US$ 21.64 Bn by 2030 from US$ 3.58 Bn in 2023.
Regional analysis
Asia Pacific is expected to dominate the global hydrogen vehicle market over the forecast period. The region accounted for over 40% share in 2023 owing to strong government support for hydrogen vehicle adoption in countries such as Japan, South Korea, and China. These countries are focusing on establishing hydrogen refueling infrastructure and production facilities to drive commercial vehicle and passenger vehicle sales. Japan has emerged as a leader with over 9,000 FCEVs already on roads as of 2022.
Key players
Key players operating in the hydrogen vehicle market are Fox-IT (Part of NCC Group), Advenica, Owl Cyber Defense, AEP Networks, Waterfall Security Solutions, Nexor, Unisys Corporation, Siemens AG, BAE Systems plc, Thales Group, L3Harris Technologies, Inc., Airbus Defence and Space, Raytheon Technologies Corporation, Fortinet Inc., Palo Alto Networks, Inc.
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