by The global hydrogen fuel cell vehicle market is estimated to be valued at US$ 1.46 billion in 2023 and is expected to exhibit a CAGR of 54.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hydrogen fuel cell vehicles are vehicles that use hydrogen gas as a fuel source to generate electricity. These vehicles offer several advantages, including zero emissions, longer driving ranges, and shorter refueling times compared to conventional gasoline-powered vehicles. With the increasing concerns about air pollution and the need to reduce greenhouse gas emissions, the demand for environmentally friendly vehicles like hydrogen fuel cell vehicles is on the rise. These vehicles also play a crucial role in achieving energy diversification and reducing dependence on fossil fuels.
Market Key Trends:
One key trend in the hydrogen fuel cell vehicle market is the growing investments and collaborations in hydrogen infrastructure development. As hydrogen fuel cell vehicles require a network of hydrogen refueling stations for widespread adoption, governments and companies are increasingly investing in the development of hydrogen refueling infrastructure. This is aimed at addressing one of the major barriers to the adoption of hydrogen fuel cell vehicles and promoting their use on a larger scale. These investments and collaborations are expected to accelerate the growth of the hydrogen fuel cell vehicle market in the coming years.
Porter’s Analysis
Threat of New Entrants:
The hydrogen fuel cell vehicle market is expected to face a moderate threat of new entrants. The high initial capital investment required to enter the market and establish a manufacturing infrastructure acts as a deterrent for new players. Moreover, the market is dominated by a few well-established players who already have a strong foothold in the industry.
Bargaining Power of Buyers:
Buyers in the hydrogen fuel cell vehicle market have a moderate bargaining power. The limited number of players in the market gives buyers limited alternatives. However, as the market grows and more players enter, buyers are expected to have more options and hence, gain more bargaining power.
Bargaining Power of Suppliers:
Suppliers in the hydrogen fuel cell vehicle market hold a moderate bargaining power. The industry relies on a complex supply chain, involving suppliers of fuel cell stacks, hydrogen storage systems, and other components. However, as the market expands, the bargaining power of suppliers is likely to decrease due to increased competition.
Threat of New Substitutes:
The threat of new substitutes to hydrogen fuel cell vehicles is limited. There are currently no viable alternatives that offer similar benefits in terms of zero emissions and longer range. However, advancements in battery technology and the increasing popularity of electric vehicles could pose a potential threat in the long run.
Competitive Rivalry:
The competitive rivalry in the hydrogen fuel cell vehicle market is intense. Key players such as Audi AG, Ballard Power Systems Inc., BMW Group, Daimler AG, General Motors Company, Honda Motor Co., Ltd., and Hyundai Motor Group are constantly engaged in product development, collaboration, and strategic partnerships to gain a competitive edge. The increasing investments in research and development activities further intensify the competition in the market.
Key Takeaways
The Global Hydrogen Fuel Cell Vehicle Market Size is expected to witness high growth, exhibiting a CAGR of 54.3% over the forecast period of 2023-2030. This growth can be attributed to increasing environmental concerns and government initiatives to promote zero-emission vehicles. For example, countries like Japan and South Korea have set ambitious targets for hydrogen fuel cell vehicles, which is driving the market growth.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the hydrogen fuel cell vehicle market. This can be attributed to the strong presence of key players in the region, government support and investments in hydrogen infrastructure, and increasing consumer demand for clean and sustainable transportation solutions.
The key players operating in the hydrogen fuel cell vehicle market include Audi AG, Ballard Power Systems Inc., BMW Group, Daimler AG, General Motors Company, Honda Motor Co., Ltd., and Hyundai Motor Group. These players are investing in research and development to improve the efficiency and performance of hydrogen fuel cell vehicles. They are also focusing on expanding their production capacities and forming strategic partnerships to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
