To improve the website's functionality, we use cookies, including third-party cookies. Read our Privacy Policy for more information
I AgreeAnalysis of Automotive Fuel Cell Systems Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global automotive fuel cell systems market is valued at US$ 2 billion in 2023 and is forecasted to jump to US$ 65 billion by 2033, rising at an astonishing CAGR of 41.6% from 2023 to 2033 (forecast period).
Fuel cells are used in electric vehicles to power their onboard electric motor instead of a battery or in conjunction with a battery or supercapacitor. Automotive fuel cell technology is an appealing prospect for automakers since it allows them to produce high-energy cells that can power automobiles. Fuel cells typically run on oxygen from the air and compressed hydrogen. Since most fuel cell vehicles release water and heat, they are categorized as zero-emission vehicles.
The outbreak of COVID-19 impacted various industrial and commercial sectors, halting new investments in a variety of industries. Furthermore, the COVID-19 outbreak also had a moderate impact on the ability of governments to meet emission targets due to cash constraints among customers, while environmental and climate concerns remain the primary threat to the world in the long term.
The emergence of COVID-19 undoubtedly contributed to a global green wave, with significant reductions in harmful emissions. Moreover, the consistent deployment of fuel cell electric vehicles (FCEVs) allowed governments to make the best of a bad situation and continue the low-carbon technology utilization drive to address detrimental climate problems.
Moreover, government efforts around the world to adopt green energy mobility to limit and decrease transportation pollution is a key aspect raising the demand for automotive fuel cell systems. Numerous governments worldwide are already working out plans to support FCEVs on the road, which will also help the automotive fuel cell systems industry flourish.
Fact.MR, a market research and competitive intelligence provider, expects that such aspects will boost global demand for automotive fuel cell systems over the coming years.
Report Attributes |
Details |
Automotive Fuel Cell Systems Market Size (2023) |
US$ 2 Billion |
Projected Market Value (2033) |
US$ 65 Billion |
Global Market Growth Rate (2023 to 2033) |
41.6% CAGR |
Asia Pacific Market Share (2022) |
65% |
Passenger Cars Segment Share (2022) |
84.3% |
Key Companies Profiled |
|
“High Demand for Green Technology and Clean Fuels”
The growing population worldwide has resulted in rising pollution, driving the movement toward green technology and clean fuels to cut carbon emissions effectively. The transition from traditional fuel automobiles to eco-friendly vehicles to reduce the environmental impact of carbon emissions has significantly enhanced the demand for automotive fuel cell systems.
Other reasons, such as strict environmental laws, subsidies and incentives for clean fuels, and toxic gas emissions from internal combustion engine vehicles, are expected to drive market growth over the forecast period. Fuel-cell vehicles have a long range, provide quick refueling, are silent, and emit no greenhouse gases or pollute the air. As a result, fuel cells are perfect for automotive and transportation applications.
Don't Need a Global Report?
Save 40% on Country & Region specific reports
“Flammable Nature of Hydrogen an Issue”
A chemical reaction between hydrogen and oxygen generates energy in fuel cells. Hydrogen is highly combustible, whereas oxygen helps other compounds burn at lower temperatures. The auto-ignition temperature of the fuel is the lowest and is difficult to detect during the day. If not handled properly, the fuel can burn up.
Hydrogen flames are invisible and have the potential to explode. The possibility of a fire at hydrogen fuel stations is very considerable. As a result, the extremely volatile nature of hydrogen gas is a significant impediment to market expansion.
“High Initial Investments to Develop Hydrogen Fueling Infrastructure”
Developing a hydrogen fuel station and the associated infrastructure is more expensive than constructing a station to distribute diesel, petroleum, or any other fuel type. Moreover, since hydrogen is a highly flammable fuel, it necessitates costly equipment as well as proper precautions and safety measures. As a result, automobile prices rise, impeding the broad adoption of hydrogen-powered vehicles.
“Increasing Automobile Sales and Strong Government Support”
Increasing automobile sales in countries such as Japan and South Korea are a key element driving the regional market growth. Government policies in Japan that encourage the use of fuel-cell vehicles and provide consumer support in the form of vehicle subsidies are also boosting regional market expansion.
Furthermore, Japan has set a goal of building 900 hydrogen refueling stations by 2028 and 700,000 fuel cell vehicles by 2030. The Ministry of Knowledge Economy in South Korea is likewise making similar attempts to encourage the adoption of fuel cells.
“United Kingdom and Germany to Promote Regional Market Growth”
The European Union intends to drastically reduce greenhouse gas emissions from the transportation sector. Consequently, numerous European countries, such as the United Kingdom and Germany, have highlighted the introduction of novel technology, such as fuel cells, to meet these goals. This is expected to present a considerable opportunity in the coming years for fuel cell manufacturers.
Fuel cell buses are the most common application of fuel cell systems in the United Kingdom and Germany, and the number of these buses is likely to grow in the future.
“Increasing Use of Fuel-Cell Vehicles”
The North American market is experiencing considerable growth as governments across the region are increasing their investments and initiatives to substitute existing bus and taxi fleets with zero-emission vehicles. North America has been a pioneer in fuel cell development, owing to the presence of prominent fuel cell businesses such as Fuel Cell Energy (US), Plug Power (US), and Ballard Power (Canada).
The United States is the leading market in North America. California is an important state in the United States in terms of focusing on and pushing the usage of hydrogen vehicles. The state has invested heavily in the construction of hydrogen infrastructure for FCEVs. The state currently has the most fuel-cell vehicles on the road.
More Insights, Lesser Cost (-50% off)
Insights on import/export production,
pricing analysis, and more – Only @ Fact.MR
“Growing Demand for Personal Mobility and Launch of New Fuel Cell Passenger Cars”
Passenger car sales are being driven by rising demand for personal mobility. Moreover, numerous fuel cell passenger cars are available on the market, including Honda Clarity, Nissan X-Trail FCEV, Toyota Mirai, Riversimple RASA, and Mercedes-Benz GLC FCEV. Several businesses are preparing to debut new models in the future years, recognizing the tremendous potential in the fuel cell passenger car industry.
Moreover, demand for fuel cell LCVs (light commercial vehicles) is growing, owing to increased demand for intercity commercial use. Furthermore, the growing e-commerce market and last-mile delivery are also pushing the demand for fuel-cell LCVs.
Key players in the automotive fuel cell systems market are concentrating on tactics such as collaborations, investments, new developments, R&D activities, and acquisitions to expand and strengthen their worldwide presence. Moreover, numerous start-ups are working on innovative solutions
Know thy Competitors
Competitive landscape highlights only certain players
Complete list available upon request
- Premium Report Details -
- Let's Connect -
- Quick Contact -
- Get Started -
Get insights that lead to new growth opportunities
Buy NowGet A Special pricing for start-ups and universities
Enquiry Before Buying- Humble, Yet Honored -
- Related Reports -
The global automotive fuel cell systems market is valued at US$ 2 billion in 2023.
Global demand for automotive fuel cell systems is expected to surge at a CAGR of 41.6% from 2023 to 2033.
The market for automotive fuel cell systems is anticipated to reach US$ 65 billion by 2033.
Asia Pacific accounted for 65% share of the global market in 2022.
Ballard Power Systems, Inc, Daimler AG, Ceres Power Holdings PLC, Hyundai Motor Company, Honda Motor Co., Ltd, Nissan Motor Co., Ltd, and Toyota Motor Corporation are leading players in the global market.