Hydrogen Vehicle Market size was valued at USD 2.05 billion in 2024 and is anticipated to exceed USD 257.59 billion by the end of 2037, expanding at over 44.6% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of hydrogen vehicle is evaluated at USD 2.78 billion.. The rising focus on fuel economy worldwide as well as surging demand for fuel-efficient cars is strengthening the demand for hydrogen vehicles. Research unveils that hydrogen fuel economy is equivalent to around 2x that of gasoline vehicles owing to which there is a surge in demand for hydrogen cars globally. It was found that the global sale of hydrogen cars grew by 8.8%, and reached a total of 16,195 units in the January-October period of 2022 from 14,879 in 2021. Moreover, it is projected that the demand for low-carbon hydrogen from transport will be surged up to 6TWh by 2030.
Most fuel cell electric vehicles (FCEVs) are powered by hydrogen. These electric vehicles (EVs) use an electric motor to power the wheels instead of an internal combustion engine and comprise an electric traction motor, battery, battery pack, fuel cell stack, fuel filler, fuel tank, direct current (DC) converter, power electronics controller, thermal system, and transmission. FCEVs rely primarily on hydrogen (H2) gas in the fuel tank of vehicles and oxygen (O2) in the air to generate electricity with water and heat as byproducts. Hydrogen car companies are constantly working on different types of hydrogen cars as well as green hydrogen projects and by 2030, it is anticipated that hydrogen to be in use across a range of transport modes, including, cars, buses, large goods vehicles (LGV), and rail, besides early stage uses in commercial shipping and aviation.
Hydrogen fuel cell vehicles (FCV) are zero-emission vehicles (ZEVs) and it complies with the mandate of many countries that are moving away from fossil fuel energy owing to its rapid depletion. Hence, with the growing environmental concerns as well as the high demand for fuel-efficient as well as low-emission vehicles owing to the depleting reserves of conventional fossil fuels along with the increasing government initiatives for the development of hydrogen fuel cell infrastructure, the global hydrogen market is anticipated to grow. For instance, California’s ZEV mandate and internal combustion engine ban will boost the market for hydrogen vehicles in that country.
Growth Drivers
Challenges
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Base Year |
2024 |
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Projected Year |
2025-2037 |
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CAGR |
44.6% |
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Base Year Market Size (2024) |
USD 2.05 billion |
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Projected Year Market Size (2037) |
USD 257.59 billion |
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Regional Scope |
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Vehicle Type (Commercial, Passenger)
The global hydrogen vehicle market is segmented and analyzed for demand and supply by vehicle type into commercial, passenger, and others. Out of these segments, the passenger vehicle type segment is estimated to gain the largest market share in the year 2037. The growth of the segment can be attributed to the strong customer demand along with the increasing disposable income of the middle-class population worldwide. Recent data states that in India the total passenger vehicle sales rose by around 26.7% month-over-month to 298090 units in January 2023. Moreover, the improved supplies from automakers as well as the rising culture of shared mobility especially car sharing by daily commuters is further expected to hike the demand for passenger cars, resulting in segment growth.
Technology (Proton Exchange Membrane (PEM) Fuel Cells, Phosphoric Acid Fuel Cells, Alkaline Fuel Cells, Solid Oxide Fuel Cells)
The global hydrogen vehicle market is also segmented and analyzed for demand and supply by technology into proton exchange membrane (PEM) fuel cells, phosphoric acid fuel cells, alkaline fuel cells, solid oxide fuel cells, and others. Amongst these three segments, the PEM segment is expected to garner a significant share in the year 2037. The factors applicable to the growth of the segment in the projected period include the rapid development of PEM fuel cells for transport applications, with its growing suitability in-vehicle applications, such as cars, buses, and heavy-duty trucks. The rising demand for PEM can also be attributed to its growing use in portable fuel-cell applications and for stationary fuel-cell applications. PEM fuel cells are capable of high energy densities of up to 39.7 kW/kg, compared to 2.5 kW/kg for solid oxide fuel cells.
Our in-depth analysis of the global market includes the following segments:
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By Vehicle Type |
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By Technology |
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North American Market Forecast
The North American hydrogen vehicle market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2037. The growth of the market in the region can be attributed majorly to the rising initiatives taken by policymakers to cut CO2 emissions in the region by 50% by 2030 from a 2005 baseline, owing to which a number of significant laws are made in the region. For instance, one such law is The Inflation Reduction Act 2022, which contains USD 500 billion in new spending and tax breaks, and has a provision to claim a tax credit for clean vehicles. Such policies are acting as a significant catalyst for incentivizing EVs and hydrogen cars in the region. Moreover, it is found that in 2021, some 48 retail hydrogen stations were functioning in the United States, which depicts the region’s increasing adherence to adopting clean energy fuel. These obligations, as a result, are expected to propel regional market growth.
APAC Market Statistics
The Asia Pacific hydrogen vehicle market, amongst the market in all the other regions, is projected to hold the second largest share during the projected period. The regional market growth can be primarily attributed to the presence of many giant automobile industries in the region as well as the increasing demand for vehicles by the vast pool of the population. It was observed that nearly 34 million passenger cars were sold within the Asia-Pacific region in 2021, 21 million of which were sold in China alone. This exponentially expanding base of automobiles in the region is leading to not only a rise in levels of traffic leading but also an elevation in greenhouse gas emissions caused by the transport sector along with the increasing consequences of air pollution. Hence, the increasing vehicular emission as well as the growing production of electric vehicles along with the rising investment in future transportation fuel such as hydrogen for zero-emission vehicles is estimated to propel the market growth in the region.
Europe Market Forecast
Further, the market in European, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2037. The growth of the market can be attributed majorly to the rising inclination as well as obligations of phasing out fossil fuels from the transport sector along with increasing investment in clean energy for the green economy. As it is a known fact the European Union is working towards phasing out the internal combustion engine by 2040, with this the growth opportunities for hydrogen vehicles in the region are augmenting
Ballard Power Systems a developer and manufacturer of proton exchange membrane fuel cell products received a purchase order for 15 70-kilowatt FCmoveTM-HD fuel cell modules from Tata Motors Limited.
Mercedes-Benz Group AG a revolutionizer in automobile production with Linde will jointly develop liquid-hydrogen refueling technology for hydrogen-powered vehicles.
Author Credits: Dhruv Bhatia
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