Fuel Cell Vehicle Market Report – Size & Forecast 2028

Fuel Cell Vehicle Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Electrolyte (PEMFC and PAFC), Power Output (Less than 100 kW, 100-200 kW, and Above 200 kW), and Vehicle Type (Passenger Car, Buses, Trucks, and Light Commercial Vehicles)

  • Report Code : TIPAT00002640
  • Category : Automotive and Transportation
  • Status : Published
  • No. of Pages : 148
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The fuel cell vehicle market is projected to reach US$ 6,051.17 million by 2028 from US$ 570.43 million in 2021; it is estimated to register a CAGR of 40.1% during 2021–2028.

Analyst Perspective:

In recent years, the fuel cell vehicle market has gained significant attention and momentum as a promising alternative to conventional gasoline-powered vehicles. Fuel cell vehicles (FCVs) are powered by hydrogen fuel cells, which induce electricity through a chemical reaction between hydrogen and oxygen, producing water vapor as the only emission. One of the main advantages of FCVs is their environmental friendliness. Since they emit only water vapor, they contribute to reducing greenhouse gas emissions and air pollution, addressing the global concerns of climate change and urban pollution. This characteristic has led to increased government support and incentives for adopting and developing fuel cell technology. Regarding market growth, the fuel cell vehicle market has witnessed steady progress.

Automakers and technology companies have been investing heavily in research and development to improve fuel cell vehicles' efficiency, performance, and affordability. As a result, the range of FCVs has significantly increased, addressing one of the initial concerns related to the limited driving range. Although the fuel cell vehicle market is still relatively small compared to traditional internal combustion engines and electric vehicles, it is expected to experience substantial growth in the coming years. The increased demand for sustainable transportation solutions, coupled with advancements in fuel cell technology and infrastructure development, will likely drive the expansion of the market. Additionally, partnerships and collaborations between automakers, energy companies, and governments are fostering the growth of the fuel cell vehicle market. These alliances aim to accelerate the deployment of fuel cell vehicles and promote research and development.

Market Overview:

The fuel cell vehicle market focuses on vehicles powered by fuel cell technology, which utilizes hydrogen as a fuel source to generate electricity. The market has seen notable growth due to increasing environmental concerns and the need for sustainable transportation options. Government regulations and incentives have played a crucial role in promoting the adoption of fuel cell vehicles. Advancements in fuel cell technology, collaborations among industry stakeholders, and ongoing research and development efforts have further propelled the market's expansion. Challenges such as high costs and limited infrastructure remain, but the market holds significant potential for future growth as technology improves and demand for cleaner transportation solutions continues to rise.

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Fuel Cell Vehicle Market: Strategic Insights

Market Size Value inUS$ 570.43 million in 2021
Market Size Value byUS$ 6,051.17 million by 2028
Growth rateCAGR of 40.1% from 2021 to 2028
Forecast Period2021-2028
Base Year2021
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Market Driver:

Increase in Environmental Concern to Drive Growth of Fuel Cell Vehicle Market

The increasing environmental concern has emerged as a significant driver in the market growth of fuel cell vehicles. As people become more aware of the detrimental effects of traditional gasoline-powered vehicles on the environment, there is a growing demand for cleaner and greener transportation alternatives. This heightened environmental consciousness has created a favorable market environment for fuel cell vehicles. Fuel cell vehicles utilize hydrogen as a fuel source, which is an abundant and clean energy carrier. When hydrogen is mixed with oxygen in a fuel cell, it produces electricity, with water vapor as the only byproduct. This emission-free operation is a key factor in attracting environmentally conscious consumers. The rising awareness about air pollution and greenhouse gas emissions has resulted in stricter environmental regulations imposed by governments and regulatory bodies. Many countries and regions have set ambitious targets to reduce carbon emissions and encourage sustainable transportation. In response, automakers are increasingly focusing on developing fuel cell vehicles as a part of their portfolio to meet these regulations and appeal to the environmentally conscious customer base.

Furthermore, the advancements in fuel cell technology have led to significant improvements in the performance and efficiency of fuel cell vehicles. These vehicles now offer longer driving ranges and faster refueling times, making them more practical for everyday use. The growing infrastructure for hydrogen refueling stations is also supporting the market growth of fuel cell vehicles by addressing one of the major challenges associated with their adoption. Moreover, the increasing investments and research efforts in fuel cell technology by automotive manufacturers, energy companies, and governments have accelerated the development and commercialization of fuel cell vehicles. These investments have not only improved the technological capabilities of fuel cells but have also contributed to reducing their production costs, making them more competitive in the market.

Segmental Analysis:

Based on vehicle type, the fuel cell vehicle market is segmented into passenger cars, buses, trucks, and light commercial vehicles. The passenger cars segment held the largest share of the market in 2020, and is estimated to register the highest CAGR in the market during the forecast period. The passenger cars segment has emerged as the largest share of the fuel cell vehicles market due to various factors. Growing global focus on reducing carbon emissions and transitioning to sustainable transportation has increased the demand for fuel cell vehicles. Automakers have invested in developing and commercializing fuel-cell passenger cars, improving their efficiency, range, and affordability.

The availability of a wide range of fuel-cell passenger car models, advancements in hydrogen infrastructure, and the advantages of fuel-cell technology, such as long driving ranges and shorter refueling times, have contributed to the segment's success. Overall, the passenger cars segment reflects fuel cell technology's increasing acceptance and viability in the automotive industry.

Regional Analysis:

The Asia Pacific fuel cell vehicle market was valued at US$ 301.69 million in 2021 and is projected to reach US$ 4,113.9 million by 2028; it is expected to grow at a CAGR of 45.2% during the forecast period. The Asia Pacific region has emerged as the dominant force in the fuel cell vehicle market. With its vast population, rapid urbanization, and growing concerns over pollution and climate change, the region has actively embraced cleaner and more sustainable transportation alternatives. One of the key factors contributing to the region's dominance is the strong government support and policies promoting the adoption of fuel cell vehicles. Countries like Japan, South Korea, and China have implemented favorable regulations, tax incentives, and subsidies to encourage the use of fuel cell vehicles. These measures have created a conducive environment for manufacturers, investors, and consumers alike, fostering market growth. Japan, in particular, has been at the forefront of fuel cell vehicle development and deployment. The Japanese government has set ambitious targets for hydrogen infrastructure development, aiming to establish a network of hydrogen refueling stations nationwide.

Additionally, major Japanese automakers, such as Toyota and Honda, have invested significantly in fuel cell vehicle research and development, leading to commercializing models like the Toyota Mirai and Honda Clarity. South Korea has also made remarkable progress in the fuel cell vehicle market. The government has prioritized the development of hydrogen infrastructure and actively supporting the deployment of fuel cell buses and commercial vehicles. Companies like Hyundai and Kia, both based in South Korea, have been instrumental in driving the adoption of fuel cell vehicles through their innovative models like the Hyundai Nexo and Kia Niro. With its massive population and growing concern for air pollution, China has also recognized the potential of fuel cell vehicles. The Chinese government has introduced generous subsidies and targets for fuel cell vehicle production to establish the country as a global leader in hydrogen technologies. Several Chinese automakers, including BYD, BAIC, and Geely, have invested heavily in fuel cell vehicle development, contributing to the region's overall market dominance. Furthermore, the Asia Pacific region benefits from its strong manufacturing capabilities and technological expertise. The presence of established automotive manufacturers, as well as a robust supply chain, has facilitated the production and commercialization of fuel cell vehicles. Additionally, the region boasts advanced research and development centers, academic institutions, and partnerships between industry and academia, driving technological advancements in fuel cell technology.

Key Player Analysis:

The fuel cell vehicle market analysis consists of the players such as Hyundai Motor Company; Toyota Motor Corporation; Cummins Inc; General Motors; AB Volvo; Honda Motors Co., Ltd.; Riversimple; Hyzon Motors; Daimler AG; and Ballard Power Systems Inc. Among the players in the fuel cell vehicle Cummins Inc and Hyundai Motor Company are the top key players owing to the diversified product portfolio offered.

Recent Developments:


Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the fuel cell vehicle market. A few recent key market developments are listed below: 

  • In April 2021, SAFRA Materiel Transport Public and Symbio (a subsidiary of Michelin and Faurecia) signed an agreement to manufacture 1500 hydrogen buses.
  • In December 2020, Toyota launched its new vehicle Mirai. The vehicle runs on a fuel cell powered by hydrogen as fuel. Toyota Mirai gets a 142.2-liter fuel tank, and the fuel cell offers a max power of 171hp and 221Nm of peak torque.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Electrolyte, Power Output, and Vehicle Type

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Australia, Canada, China, France, Germany, India, Italy, Japan, Latin America, Middle East and Africa, South Korea, United Kingdom, United States

Frequently Asked Questions

What are the key trends in the fuel cell vehicle market report?

Adoption of heavy duty trucks has increased considerably in the recent years. For instance, China witnessed a rise in the registrations of electric vehicles in 2020 by 10% in comparison to 2019. Further, the new registrations for heavy duty vehicles increased by 23% in Europe. Companies operating in the global truck market are working progressively towards the adoption of fuel cell trucks due to longer range the trucks offer. Companies operating in the fuel cell vehicles market have taken up numerous initiatives to boost the adoption of fuel cell trucks in the global market. For Instance, in January 2022, H2 Mobility announced that it aims at deploying 2,000 fuel cell powered trucks on the European roads by 2030.

What would be forecast period in the fuel cell vehicle market report?

The forecast period for the global fuel cell vehicles market is 2021 to 2028.
The fuel cell vehicle market is expected to witness steady growth during the forecast period from 2021 to 2028, owing to the rising demand from passenger car segment.

Which region is expected to witness significant demand for fuel cell vehicles market?

APAC is likely to register for the highest CAGR in the fuel cell vehicles market during the forecast period.
The region includes major nations such as India, China, Japan, South Korea, and Australia. South Korea and China are the fastest-growing manufacturing markets in APAC.

Which electrolyte segment has the largest market share in 2020?

Based on electrolyte type, the fuel cell vehicles market is segmented into PEMFC and PAFC. The PEMFC segment led the fuel cell vehicles market with a share of more than 99% in 2020

What is the key factor driving the fuel cell vehicle market?

Increasing Demand for Clean Energy
Declining Cost of Green Hydrogen

Which are the top companies that holds the highest market share in fuel cell vehicle market?

Hyundai Motor Company, Toyota Motor Corporation, Ballard Power Systems Inc, Hyzon Motors, and Daimler AG are among the leading players offering innovative solution in the market .

The List of Companies - Fuel Cell Vehicles Market

  1. Hyundai Motor Company
  2. Toyota Motor Corporation
  3. Cummins Inc
  4. General Motors
  5. AB Volvo
  6. Honda Motors Co., Ltd.
  7. Riversimple
  8. Hyzon Motors
  9. Daimler AG
  10. Ballard Power Systems Inc

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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