Automotive Fuel Cell Market Report (2024 - 2030) - Size and Share Analysis, Industry Trends, and Growth Forecasts

Automotive Fuel Cell Market Outlook

The global automotive fuel cell market stood at USD 229.4 million in 2023 and it is expected to reach USD 2,152.3 million by 2030, advancing at a CAGR of 38.9% during the forecast period.

The market for automotive fuel cell-based vehicles is expanding gradually as an alternative to traditional conventional internal combustion engines and battery electric vehicles. This technology emits just water vapor as an exhaust, which helps in reaching net zero emissions while having major advantages of an internal combustion vehicle in aspects of long-range traveling and rapid filling times.

Over 300 miles of driving range is possible for these vehicles thanks to the fuel cell technology. When compared to battery-operated vehicles, it lessens the weight of hauling large batteries, which makes it lighter.

Many organizations are making investments in the assembly of fuel cell refueling networks to support the expansion of fuel cell vehicles (FCVs), despite the hurdles of lack of related infrastructure. Also, to increase the competition in the segment, research is being conducted by some major players with a large market capital to improve the efficiency of the fuel at a very low cost.

A wider market possibility is also indicated by the fact that fuel cell technology is being investigated for commercial uses such as vehicles operating in the taxi sector, trucks, or buses.

Additionally, because the fuel cell technology is mountable, it could have a future scope of being used in transport-related industries, such as aviation and maritime, which further open up new markets and prospects for industry-wide decarbonization incentives.

The market is further supported by regulatory assistance, which consists of incentives and the requirements for clean and green transportation. Frameworks for the production, delivery, and storage of hydrogen are being developed as part of integrated hydrogen ecosystems thanks to partnerships among automotive companies, energy firms, and government agencies.

Despite obstacles like high initial costs and environmental concerns linked to fuel cell production, the market for automotive fuel cells continues to advance, driven by technological progress and supportive policies by the government.

The environment in which automotive fuel cells are produced is largely influenced by the steps taken by governments. As a part of their larger initiatives to lower greenhouse gas emissions and promote sustainable transportation, several nations are putting laws into place by offering financial incentives to encourage the development and deployment of FCVs.

The logistics and construction industries are using material-handling vehicles, such as forklifts and trucks. Light-duty cars and warehouse forklifts employ fuel cells in place of internal combustion engines, mainly to increase efficiency and lower fuel consumption.

The International Energy Agency (IA) estimated that 15.2 thousand fuel cell vehicles were in use worldwide, as of 2022.

Automotive Fuel Cell Market Trends & Driver

Improved Fuel Economy and Increased Driving Range

• Compared with internal combustion engine (ICE) vehicles, fuel cell electric vehicles have an improved fuel economy. ICE vehicles usually obtain 29 miles per gallon gasoline equivalent (MPGge) on highways; whereas, fuel cell electric vehicles can achieve about 63 MPGge. The fuel economy of fuel cell electric vehicles could increase by 3.2% with hybridization.
• Moreover, fuel cell electric vehicles have a fuel efficiency of about 55 miles per gallon as compared to internal combustion engine vehicles with an average of 20 miles per gallon in urban environments.
• Long journeys of FCVs are made feasible by refillable onboard tanks, which store fuel to cut down on refiling time.
• It is expected that the combination of higher fuel efficiency and longer driving range will result in the rising demand for fuel cell electric vehicles (FCEV) that will be beneficial to the automotive fuel cell industry.
• The specific energy of hydrogen is 40,000 Wh/kg, which is higher than that of typical Li-ion batteries, which have a specific energy of just 250 Wh/kg.

Inadequate Infrastructure for Hydrogen

• The infrastructure required to produce hydrogen needs to be established to accommodate transportation systems powered by hydrogen. Hydrogen infrastructure includes hydrogen production plants, hydrogen fuel stations, and hydrogen facilities.
• Many countries have little accessibility to hydrogen infrastructure. This is because this infrastructure needs a lot of money both from industry players and governments.
• For the proper functioning of fuel cell electric vehicles (FCEVs), hydrogen fueling stations have to be placed every 300 miles.
• In order to accelerate the widespread use of hydrogen as a clean energy source, this will set up a network of hydrogen producers, users, and infrastructure.
• To accomplish this, several countries such as the U.S., Canada, the U.K., Japan, South Korea, and China are working together with producers like Plug Power and Ballard Power Systems.
• The United States Department of Energy (DOE) announced in 2023 that it would be allocating USD 7 billion to set up local renewable hydrogen hubs (H2Hubs).
• Another problem that needs to be resolved is to expand hydrogen storage facilities.
• The main requirement for hydrogen storage is that it needs to be kept in liquid form at –252.8 °C or under high pressure, or it can be compounded chemically.

Segmentation Overview

Vehicle Type Market Evaluation

• The passenger cars category holds the largest market share.
• The growing market share of passenger fuel cell electric vehicles can be seen in a number of models that are currently available, such as Toyota Mirai, Hyundai Nexo, Honda Clarity, Nissan X-trail FCEV, and Mercedes Benz GLC FCEV.
• In the aspect of expanding potential in the passenger cars category, auto manufacturers such as BMW, Jaguar, and Land Rover are rapidly investing in and preparing for the release of new fuel cell models.
• BMW plans to incorporate fuel cell technology in its existing X6 and X7 vehicles, and Jaguar Land Rover is collaborating with industry partners to develop a hydrogen fuel cell Defender, with an objective of having zero tailpipe emissions by 2036.

Vehicle types covered in the report include:

• Buses
• Light Commercial Vehicles (LCVs) (Fastest-Growing Category)
• Passenger Cars (Largest Category)
• Trucks

Fuel Type Insights

• The methanol category held the largest market share in 2023.
• In order to reduce carbon emissions in the automotive sector, fuel cells are becoming an important factor in the industry.
• Vehicles and other specialized sectors use methanol fuel cells in large amounts as compared to others.
• Furthermore, throughout the forecast period, methanol will increase its market share in the fuel population by using the same route as hydrogen fuel cells.
• To increase efficiency and stability, researchers are trying to find the best metal glass compositions in methanol oxidation fuels.

The following fuel types are included in the report:

• Hydrogen (Fastest-Growing Category)
• Methanol (Largest Category)
• Ethanol

Electrolyte Type Analysis

• The polymer electronic membrane fuel cell category is projected to grow at the highest CAGR, of 40%, during 2024–2030, as well it holds the largest market share.
• This is because it has the advantages of clean water and high energy conversion rates. Contrary to its rivals, it is more cost-effective and ecologically benign.
• Whereas, phosphoric acid fuel cells (PAFCs) utilize platinum catalyst, which is finely distributed on a carbon and silicon carbide structure that houses the anode and cathode.

Electrolyte types covered in the report are:

• Polymer Electronic Membrane Fuel Cell (Fastest-Growing and Largest Category)
• Direct Methanol Fuel Cell
• Alkaline Fuel Cell
• Phosphoric Acid Fuel Cell
• Proton Exchange Membrane Fuel cell

Power Rating Insights

• The 100–200 W category is projected to grow at the highest CAGR, of 38%, during 2024–2030.
• This is because this power-rating-based light commercial vehicle (LCV) is being increasingly developed by automakers and businesses to meet the rising need for last-mile delivery applications.

It can be further classified as:

• Below 100 W
• 100–200 W (Fastest-Growing)
• Above 200 W (Largest Category)

APAC Leads the Global Market

Geographically, Asia-Pacific is the largest market, with a revenue share of 90% in 2023. This is ascribed to the robust incentives and grants along with government regulations.

• It is projected that this will enhance customer acceptability and inspire private investments from businesses looking to create worldwide fuel cell network recharging stations.
• Around 20 fuel cell vehicle models are projected to be introduced by top original equipment manufacturers (OEMs) in the region during the next 5 years.
• By 2030, it is projected that the number of Toyota fuel cell electric vehicles will reach 165,000 while the number of Hyundai fuel cell electric vehicles will reach 148,000.
• Considering the case of South Korea, the government has proposed to swap out 26,000 compressed natural gas (CNG) buses with fuel cell buses by 2030.
• South Korea is leading the automotive fuel cell industry in the region. The goal of the local OEMs and the government is to standardize the electrification of power terrains worldwide.

Whereas, Europe is the fastest-growing market, advancing at a CAGR of 36% during 2024–2030. The growth is dependent on strict regulations on emissions, better technology infrastructure, the exemption in tax credits, and the presence of key industry players in the region.

Further, regions and countries analyzed for this report include:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe (Fastest-Growing Regional Market)
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • China
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea (Largest Country Market)
  • Australia
  • Rest of APAC
• Rest of the World (RoW)

Competition Analysis

The EV market is consolidated in nature, owing to the presence of a few major domestic and international players. However, the continual appearance of new players is impacting the established companies. In addition, industry players are taking several strategic development measures, such as product launches, collaborations and partnerships, and mergers and acquisitions, to gain a competitive edge in the market.

Automotive Fuel Cell Companies’ News

• The Adani Group and Ballard Power Systems signed a non-binding pact in February 2022 to assess a joint investment case for the industrialization of hydrogen fuel cells for different industrial and mobility applications in India.
• With the opening large durability test facility in Italy, Nuvera Fuel Cells declared the extension of its fuel cell engine testing capability in March 2021.
• Robert Bosch GmbH announced in March 2021 that it planned to develop automobile fuel cell (FC) system components. The company said that, in addition to FC stacks, which are now under development, it will additionally be developing integrated systems that incorporate hydrogen gas injectors and air valves—two essential parts of fuel cell vehicles (FCVs).
• Market leaders in the automotive fuel space include Nedstack Fuel Cells, Ballard Power Systems Inc., Doosan Fuel Cell Co. Ltd., and Hydrogenics. With the goal of surpassing their rivals, these organizations have been growing their operations through the use of cutting-edge technologies.
• Doosan Fuel Cell, the South Australian Government, and HyAxiom, a Doosan Corporation division, executed a declaration of collaboration in February 2023.
• The Iveco Group stated in July 2022 that it will be working with HTWO to provide its upcoming hydrogen-powered buses in Europe with the best fuel cell systems available.
• Hyundai Motor Group’s fuel cell system-based hydrogen business brand, HTWO was first launched in December 2020 in accordance with Hyundai’s strong commitment to hydrogen economy.