Fuel Cell Vehicle Market Size, Share & Trends Analysis Report By 2030.

The global fuel cell vehicle market size was valued at USD 1.45 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 52.5% from 2023 to 2030.

The surge in population has resulted in rising pollution levels and has shifted the trend toward clean fuels and green technology to curb carbon emissions effectively. It has had a favorable influence on FCV demand in recent years. The change from conventional fuel automobiles to environment-friendly vehicles has recently accelerated the demand for FCVs. Other factors, such as strict environmental laws, incentives and subsidies for clean fuels, and hazardous gas emissions from combustion engine vehicles, drive the market growth throughout the forecast period. Furthermore, the increasing awareness regarding vehicle emissions has led manufacturers to design alternate powertrains, increasing the market's development.

Fuel Cell Vehicle Market Segments

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of 66.3% in 2022. The proliferating sales of cars in countries such as South Korea and Japan are the primary factors for the growth of the passenger cars market in this region. Furthermore, Government initiatives in Japan for the usage of fuel cell vehicles and provision of support to consumers through subsidies for the purchase of the vehicles are driving the market growth in this region. For instance, in November 2021, China's Development and Reform Commission issued a directive to manufacture 5,000 hydrogen fuel cell automobiles by 2025 for port transportation, buses, and intercity logistics. Thus, such booming developments in clean energy within the automotive sector are anticipated to drive the fuel cell vehicle growth over the forecast period.

Vehicle Type Insights

The passenger cars segment accounted for the largest revenue share of 84.7% in 2022 and is expected to expand at the fastest CAGR over the forecast period. The surge in the adoption of passenger cars in countries such as Japan and South Korea drives segment growth in the fuel-cell vehicle market. Depleting fossil fuel sources is driving the price of vehicle fuel. It prompts the government to look for sustainable, low-emission sources to power vehicles.

The LCV segment is expected to expand at a significant CAGR of 48.6% during the forecast period. Light commercial vehicles are instrumental vehicles used for supply chain purposes. Using a fuel cell instead of a battery converts electrochemical energy into torque and high efficiency. Thus, using fuel cells in long-distance travel vehicles such as LCVs is an ideal choice from a cost-saving and efficient travel perspective.

Browse through Grand View Research's Automotive Transportation Industry Research Reports.

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Key Companies Market Share Insights

Companies highly invest in RD for fuel cell vehicles. Several mergers and acquisitions, partnerships, and collaborations are expected to be some growth strategies the companies follow to expand their businesses. For instance, in February 2023, BMW launched the hydrogen-operated BMW iX5. The pilot fleet of the BMW iX5 was planned to be used worldwide by various target groups for demonstration and trial purposes. With the launch of the iX5 Hydrogen Pilot Fleet, BMW reaffirmed its dedication to exploring innovative options for sustainable and environmentally friendly transportation.

Recent Developments

In August 2022, Toyota announced a hydrogen fuel-cell truck joint venture with Isuzu and Hino Motors. These trucks were designed for the mass market and help address the challenges faced by the transportation industry and contribute to achieving a carbon-neutral society.
In July 2022, PowerCell, a Swedish company, partnered with ZeroAvia to develop and deliver 5,000 aviation-optimized (PEM) Proton Exchange Membrane fuel cell stacks between the years 2024 and 2028. As a part of the partnership, PowerCell established its presence in the UK and formed a production team alongside ZeroAvia's production facilities.
In March 2022, Toyota launched a green hydrogen-based advanced (FCEV) fuel cell electric vehicle, Toyota Mirai. Powered by a hydrogen fuel cell battery, this vehicle offers a range of up to 650 KM on a single charge.

Key Fuel Cell Vehicle Companies: