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Hydrogen Vehicle Market Projected to Reach $45 Billion by 2035

19 Sept 2023

The global hydrogen vehicle market is set for remarkable growth, with revenues expected to surpass $45 billion by 2035, according to a report by Research Nester. The market is projected to expand at a staggering compound annual growth rate (CAGR) of approximately 45% between 2023 and 2035, driven by the rising preference for fuel-efficient vehicles, particularly hydrogen-powered ones.

Growing Preference for Fuel Efficiency

Hydrogen vehicles are gaining popularity due to their fuel efficiency and environmental benefits. In 2021, global hydrogen car sales reached around 15,400 units, a clear indication of their increasing appeal. Hydrogen vehicles emit only water when in operation, making them environmentally friendly. Additionally, hydrogen fuel offers comparable driving ranges and rapid refueling times, similar to traditional internal combustion engines, making them highly efficient and in high demand.

The widespread use of fossil fuels has led to issues such as extreme heat, air pollution, and ozone layer depletion. Vehicle emissions are a significant contributor to greenhouse gas emissions. Hydrogen, as a renewable energy source, offers a promising solution. Fuel cells use hydrogen and oxidants to generate power, with water being the only byproduct. The transition to hydrogen vehicles is expected to enhance energy efficiency and reduce greenhouse gas emissions.

Regional Growth Highlights

  1. North America: The hydrogen vehicle market in North America is poised to lead in market share. Growing interest in hydrogen vehicles has driven the adoption of hydrogen buses, particularly in the United States. Around 4% of zero-emission buses in the country are hydrogen-powered, and this deployment is expected to increase significantly over the next decade. Government initiatives aim to develop hydrogen refueling infrastructure, encouraging transit operators and agencies to invest in hydrogen buses.

  2. Asia Pacific: The Asia Pacific region is also witnessing substantial growth in the hydrogen vehicle market, driven by government initiatives and environmental awareness. Countries like India are actively promoting hydrogen production and adoption, aiming to become global leaders in green hydrogen. Rising concerns about air pollution and greenhouse gas emissions are driving the adoption of hydrogen fuel cell vehicles in this region.

Segments Driving Growth

  1. Passenger Vehicles: The passenger vehicle segment is anticipated to generate the highest revenue by 2035. The growth is attributed to the expanding middle-class population, which is expected to increase its spending on hydrogen vehicles as government initiatives make them more affordable.

  2. Proton Exchange Membrane (PEM) Fuel Cells: The PEM fuel cell segment is set for significant growth, driven by developments in PEM fuel cell technology for transportation applications. These fuel cells offer high energy densities, making them suitable for various in-vehicle applications.

Key Market Players

Leading players in the hydrogen vehicle market include Ballard Power System Inc., Toyota Motor Corporation, Mercedes-Benz Group AG, Hyundai Motor Company, Hydrogenics, Bayerische Motoren Werke AG (BMW), Cummins Inc., General Motors Company, Power System PLC, Horizon Fuel Cell Technologies, and others.

Recent Developments

  1. Tata Motors Limited has ordered 15 70-kilowatt FCmoveTM-HD fuel cell modules from Ballard Power Systems.

  2. Mercedes-Benz Group AG is collaborating with Linde to develop liquid-hydrogen refueling technology for hydrogen-powered vehicles.

The global hydrogen vehicle market is on the cusp of significant growth, driven by a focus on fuel efficiency, government initiatives, and environmental awareness. As hydrogen continues to gain traction as a clean and renewable energy source, the future of hydrogen-powered vehicles appears promising.

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