Hydrogen Fuel Cell Electric Vehicle Market: Current Analysis and Forecast (2023-2030)

FCEVs are zero-emission vehicles - they produce no tailpipe pollution except water vapor. In addition, compared to internal combustion vehicles, FCEVs greatly reduce greenhouse gas carbon emissions even when accounting for the full hydrogen fuel life cycle. Currently, automobile manufacturers are focusing on the production of advanced fuel-cell electric vehicle systems & fuel-cell technologies at relatively lowers costs, thereby accelerating the growth of the market.

The Hydrogen Fuel Cell Electric Vehicle Market is expected to grow at a steady rate of around 42.64% owing to the burgeoning adoption of fuel cell electric vehicles over the world. The surge in the sales of fuel cell electric vehicles is one of the key factors driving the demand for the hydrogen fuel cell electric vehicle market during the forecast period.

High Demand: The demand for fuel cell electric vehicles is driven by initiatives taken by governments of various countries to promote hydrogen cars as these cars produce only water vapor as exhaust, which is much cleaner than the carbon emissions produced by traditional gasoline-powered cars. Moreover, Hydrogen has a much higher energy density than gasoline, which means that hydrogen-powered cars can travel further on a single tank of fuel. This makes them an attractive option for long-distance travel. For instance, in 2022, according to the report published by MDPI, the sales of FCEVs increased year on year from 25,212 units in 2019 to 34,804 in 2020 to 51,437 in 2021.

Government Initiatives: In Sept 2022, the US Department of Energy (DOE) released a draft National Clean Hydrogen Strategy and Roadmap, which outlines three key priorities: concentrating on the deployment of at least four regional clean hydrogen hubs; focusing on the deployment of strategic, high-impact uses of hydrogen; and lowering the price of clean hydrogen to USD 1/kg by 2031. Moreover, in Nov 2021, the Infrastructure Investment and Jobs Act, a USD 1.2 trillion bipartisan infrastructure bill, was signed into law by President Biden.

Therefore, the growing adoption of electric vehicles over the world drives the bonded magnets market.

Based on vehicle type, the market is bifurcated into passenger vehicles and commercial vehicles. Among these passenger vehicles dominated the fuel cell electric vehicles and are expected to show the same trend in the forecast period. This technology offers numerous advantages, inclusive of zero-emissions, longer driving ranges, and shorter refueling times in comparison to traditional electric powered automobiles. As a result, FCEVs have gained more popularity within the passenger vehicle segment.

Based on type, the market is segmented into Proton Exchange Membrane, Solid Oxide Fuel Cell, and Phosphoric Acid Fuel Cell. Among these, Proton Exchange Membrane has a high market share in 2022 and will dominate during the forecast period. This is due to PEM being considered as the most efficient with high energy conversion efficiency, which provides better mileage and longer driving ranges for FCEVs. Moreover, PEM fuel cells can quickly start and ramp up power production, making them suitable for automotive applications.

Based on the range, the market is bifurcated into short-range and long-range. Among these short-range attain a high market share during the forecast period whereas the long-range segment has the highest CAGR in the forecast period. This is due to the short-range FCEVs typically have a decreased price tag as compared to long-variety motors. Moreover, Short-range FCEVs are often well-suited for urban environments and shorter commutes, where longer travel distances may not be as necessary. Additionally, developing advanced, high-capacity fuel cell systems that can provide long ranges without compromising on cost, weight, or performance can be challenging.

For a better understanding of the market adoption of the bonded magnets industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada), Europe (Germany, Netherlands, U.K., France, Switzerland, Rest of Europe), Asia-Pacific (China, Japan, South Korea, Rest of Asia-Pacific), Rest of World. The Asia Pacific region is projected to be the dominating region in the forecast period. The demand for fuel-cell electric vehicles in the Asia-Pacific region is growing rapidly due to several factors such as favorable government policies, technological advancements, investment by governments and private players, and economic growth. Further on, the region is the world's biggest automobile market, and governments in many countries, including China, Japan, and South Korea, have been actively promoting the adoption of fuel-cell electric vehicles to reduce pollution and carbon emissions by providing rebates on cars and trucks. For instance, in 2023, in South Korea, the purchase of a new passenger car will qualify for government support of 22.5m won ($18,000) with some states adding local subsidies on top - Busan and Incheon are each offering top-ups of up to 33.5m won ($27,500), and purchased trucks and buses qualify for 21m-26m won ($17,000-$21,000) of subsidies and garbage trucks for 72m won ($59,000. Therefore, the persistent government support from countries to make FCEVs affordable and easily accessible to consumers is catering to the demand for fuel-cell electric vehicles in the region.

Some of the major players operating in the market include: Hyundai Motor Company; Toyota Corporation; Honda Motor Company; Audi AG; Ashok Leyland Ltd.; Nissan Motor Co., Ltd.; Daimler AG; Volvo Group; Solaris Bus & Coach sp. z o.o.; Nikola Corporation.