Market Trends of Hydrogen Fuel Cell Vehicle Industry
Passenger Cars to Lead the Market
Passenger vehicles currently dominate the hydrogen fuel cell vehicle (FCV) market, outpacing commercial vehicle segments for a multitude of reasons. While overall FCV sales are still modest, passenger cars account for a significant portion. S&P Global Mobility projects that passenger FCVs will capture around 78% of the global hydrogen fuel cell vehicle market share by 2025.
Major automakers are prioritizing passenger FCVs in their initial hydrogen vehicle offerings. This focus is evident in the launch of several commercially available hydrogen car models, such as the Toyota Mirai and Hyundai Nexo.
Hydrogen refueling infrastructure is still in its early stages of development globally. Setting up a wide network of refueling stations is crucial for the widespread adoption of FCVs. However, establishing this infrastructure is easier for passenger vehicles due to their well-defined usage patterns and concentration in urban areas.
Some of the notable developments in the industry include:
- In July 2023, Ballard Power Systems Inc. received orders for 96 hydrogen fuel cell engines from Solaris Bus & Coach sp. z o.o., including 52 for Solaris Urbino hydrogen buses in Germany and 44 for Solaris buses in European cities.
- In July 2023, Ballard Power Systems Inc. signed an agreement with Ford Trucks to supply a fuel cell system for a hydrogen fuel cell-powered vehicle prototype. Ford Trucks plans to develop a Fuel Cell Electric Vehicle (FCEV) F-MAX as part of the project, with an initial purchase order for 2 FCmoveTM.-XD 120 kW fuel cell engines.
- In February 2023, the California Air Resources Board (CARB) mandated that all new commercial trucks sold in the state by 2040 must be zero-emission vehicles, potentially accelerating the development of commercially viable electric and hydrogen trucks in the future.
- In December 2022, Hyundai announced plans to invest USD 1.7 billion to build a dedicated hydrogen fuel cell production facility in South Korea, highlighting the continued focus on passenger FCVs.
While passenger vehicles will likely maintain their lead in the near future, advancements in battery technology and infrastructure development could pave the way for wider adoption of commercial FCVs in the long run.
North America is a Major Market in this Industry
North America, particularly the United States, is currently at the forefront of the hydrogen fuel cell vehicle (FCV) market. Governments in the United States and Canada have implemented supportive policies promoting FCVs. These include FCV purchase tax credits, hydrogen infrastructure development funding, and zero-emission vehicle mandates. For example, the United States offers a tax credit of up to USD 7,500 for purchasing a new FCV.
Compared to other regions, North America enjoyed a headstart in FCV adoption. Early investments have been made in hydrogen refueling stations, particularly in California, which boasts the highest concentration of stations globally.
Major automakers like Toyota, Hyundai, and General Motors have a significant presence in North America and are actively developing and launching FCVs in this market. This focus ensures a wider selection of FCVs available to consumers.
- In March 2024, General Motors announced a fleet of medium-duty trucks powered by hydrogen fuel cells in a pilot initiative sponsored by the US Department of Energy. The primary objective is to validate hydrogen, the universe's most abundant element, as a viable alternative to diesel vehicles.
- In January 2024, GM and Honda commenced the production of hydrogen fuel cells designed for deployment in commercial trucks, heavy equipment, generators, and, to a lesser extent, passenger vehicles. The fuel-cell modules manufactured through their joint venture in Michigan will be integrated into a hydrogen-powered Honda CR-V, set to debut in March 2024 and be available for limited sales in California.
- In February 2023, the US Department of Energy announced a USD 1 billion investment in clean hydrogen initiatives, including funding for hydrogen refueling infrastructure development.
- In March 2023, Hyundai announced plans to build a dedicated hydrogen fuel cell production facility in the United States, signifying growing confidence in the North American market.
