Hydrogen Vehicle Market Size

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.