Fuel Cell Powertrain Market Size, Share & Industry Analysis, By Power Output (Less than 150 kW, 150-250 kW, and More than 250 kW), By Component (Fuel Cell System, Battery System, Drive System, Hydrogen Storage System, and Others), By Vehicle Type (Passenger Cars, Commercial Vehicle, and Buses), and Regional Forecasts, 2024-2032

The global fuel cell powertrain market size was valued at USD 321.4 million in 2023. The market is projected to grow from USD 597.9 million in 2024 to USD 91,547.4 million by 2032, exhibiting a CAGR of 87.6% during the forecast period. The Asia Pacific dominated the Fuel Cell Powertrain Market with a share of 78.09% in 2023.

A Fuel Cell Powertrain (FCP) is an electric propulsion system in which the hydrogen energy stored is converted into electric power using a fuel cell. FCPs do not emit harmful tailpipe emissions compared to Internal Combustion Engine (ICE) powertrains. According to the U.S. Department of Energy (DOE), adopting FCP has enhanced the country's energy security. In addition, government initiatives have propelled the growth of the hydrogen refueling infrastructure along with rapid technological advancement of fuel cell vehicle efficiency that influences the overall fuel cell powertrain market growth.

The COVID-19 pandemic significantly impacted the global fuel cell powertrain market, causing disruptions in supply chains, production, and consumer demand. Lockdowns, travel restrictions, and economic uncertainties led to delays in new projects and reduced investments in fuel cell technology. However, as economies gradually recover and governments prioritize green initiatives, the fuel cell powertrain market is expected to rebound, driven by growing interest in clean energy solutions and decarbonization efforts.

Fuel Cell Powertrain Market Trends

Growing Adoption of Clean Energy Vehicles to Emerge as a Trend in the Global Market

Rising environmental concerns among the populace and the government's focus on fighting climate change are driving the adoption of clean energy vehicles such as FCEVs and pure Electric Vehicles (EVs). Along with the rapidly growing adoption of electric vehicles, fuel cell vehicles are also witnessing considerable adoption across some advanced economies such as the U.S., South Korea, and others.

South Korea has the highest number of fuel-cell vehicles on the road.

• For instance, according to the International Energy Agency, in 2020, South Korea had approximately 10,093 units of FCEVs on the road, followed by the U.S. with on-road 9,252 FCEVs. Similarly, other economies such as China, Japan, and others also have a significant number of on-road FCEVs.

With government investments and expected hydrogen infrastructure development shortly, the developing economies are also anticipated to witness considerable adoption of FCEVs. According to IEA, by the end of 2020, there were around 34,804 on-road FCEVs worldwide, and the number is anticipated to surge in the coming years.

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Fuel Cell Powertrain Market Growth Factors

Increasing Focus on Greenhouse Gas Emissions Reduction for Sustainable Transportation Solutions to Boost Market Growth

As governments worldwide implement stringent emission regulations and set ambitious targets to combat climate change, there is a growing pressure on automotive manufacturers to develop cleaner and more environmentally friendly vehicles. According to the International Energy Agency (IEA), the transportation sector accounts for approximately 24% of global CO2 emissions, making it a significant contributor to climate change. As a result, there is a growing emphasis on promoting alternative powertrain technologies, such as fuel cells, which offer zero-emission solutions for various transportation applications.

In addition to regulatory pressures, advancements in fuel cell technology and infrastructure are also driving market growth. This expansion will be fueled by increasing investments in fuel cell research and development, as well as government incentives and subsidies to promote the adoption of fuel cell vehicles. Moreover, expanding fuel cell infrastructure, including hydrogen refueling stations, is facilitating the commercialization of fuel cell vehicles and enhancing consumer confidence in this technology. Countries such as Japan, South Korea, Germany, and the U.S. are leading the way in developing hydrogen infrastructure and promoting fuel cell adoption.

Furthermore, partnerships and collaborations between automotive manufacturers, technology companies, and government agencies are driving innovation and accelerating the deployment of fuel cell powertrains. Companies such as Toyota, Hyundai, and Honda have invested heavily in fuel cell technology and are actively commercializing fuel cell vehicles for both passenger and commercial applications. In conclusion, the global fuel cell powertrain market is driven by a combination of regulatory mandates, technological advancements, and infrastructure development initiatives. As the world transitions toward a low-carbon economy, fuel cell vehicles are expected to play a significant role in reducing emissions and promoting sustainable transportation solutions.

Automaker's Plans to Ramp Up FCEVs Production to Accelerate Market Growth

All the leading automakers are focused on developing green mobility to offer future mobility solutions worldwide. Therefore, the automakers are investing significantly to ramp up the production of green mobility solutions such as electric and fuel cell electric vehicles that require fuel cell powertrains. For instance, in September 2021, Hyundai Motor Group announced its strategy to offer hydrogen fuel cell versions of all its commercial vehicles by 2028. The company stated that it would keep developing hydrogen fuel cell vehicles along with electric vehicles. Moreover, the company also announced its plan to launch new hydrogen fuel cell powertrains in 2023.

Similarly, automakers such as BMW, Toyota Motor Corp, Daimler, and others also embrace hydrogen fuel cell technology to offer future mobility solutions. In 2020, Toyota redesigned its fuel cell system for fuel cell powertrain to have fewer principal components and revamped other aspects of its fuel cell vehicle, enabling the company to reduce production costs by two-thirds and enhance manufacturing capacity to nearly 30,000 units annually. Therefore, such key players' involvement in developing and ramping up FCEV production will contribute to the market growth during the forecast period.

RESTRAINING FACTORS

High Cost Associated with Fuel Cell Technology, Including Manufacturing, Infrastructure Development, and Hydrogen Production to Limit Market Growth

According to a study by the International Renewable Energy Agency (IRENA), the high upfront costs of fuel cell vehicles (FCVs) and hydrogen refueling infrastructure present a significant challenge for market growth. The study estimates that the cost of fuel cell vehicles is currently two to three times higher than conventional internal combustion engine vehicles, primarily due to the expensive materials used in fuel cell stacks, such as platinum and other precious metals. Though fuel cell technology offers a promising solution for reducing emissions and achieving sustainable transportation, the initial investment required for research, development, and deployment remains a significant barrier to widespread adoption.

Furthermore, the lack of a comprehensive hydrogen infrastructure poses a significant hurdle for the widespread adoption of fuel cell vehicles. According to the Fuel Cell and Hydrogen Energy Association (FCHEA), there were only around 500 hydrogen refueling stations globally as of 2021, compared to millions of gasoline and diesel refueling stations. The limited availability of refueling infrastructure restricts the market penetration of fuel cell vehicles and hampers consumer confidence in this technology.

The cost of hydrogen production and distribution remains relatively high compared to traditional fossil fuels, further hindering the commercial viability of fuel cell vehicles. According to the U.S. Department of Energy (DOE), the cost of producing hydrogen from renewable sources such as electrolysis is still higher than conventional methods such as steam methane reforming (SMR). In addition to cost-related challenges, technical limitations such as limited driving range and long refueling times also contribute to the slow adoption of fuel cell vehicles. While significant advancements have been made in improving the efficiency and performance of fuel cell systems, these factors continue to pose challenges for mainstream adoption.

Fuel Cell Powertrain Market Segmentation Analysis

By Power Output Analysis

Less than 150kW Segment to Dominate Owing to Increasing Demand for Passenger and Commercial Vehicles

Based on power output, the market is segmented into less than 150 kW, 150-250 kW, and more than 250 kW.

The less than 150 kW segment dominated the market in 2023 and is expected to continue its dominance throughout the forecast period. The majority of fuel cell electric vehicles, especially passenger vehicles sold worldwide, have a power output of less than 150kW. For instance, one of the best-selling fuel cell vehicles, the Toyota Mirai, has a powertrain that provides a power output of 128kW. Therefore, increasing demand for fuel-cell passenger cars is anticipated to drive the segment growth in the near future.

The more than 250 kW is the fastest-growing segment. The more than 250 kW fuel cell electric engine unit has been designed for heavy-duty commercial vehicle applications. Fuel cell vehicles are gaining popularity in commercial space due to their fast refueling and long range. Therefore, the increasing demand for fuel cell vehicles with higher power output in heavy-duty commercial vehicles is likely to surge the demand for more than 250kW segment.

150 – 250 kW powertrains are used for medium-duty heavy vehicle goods carriers. It is specifically used for small and medium-duty commercial vehicles such as transit buses and utility applications. Increasing demand for higher power output in commercial FCEVs is likely to drive segment growth in the near future.

By Component Analysis

Hydrogen Storage System Segment to Lead Backed by Development in Technologies Related to Hydrogen Storage System

Based on component, the market is segmented into fuel cell system, battery system, drive system, hydrogen storage system, and others. The fuel cell system segment holds the largest share of the market, with the highest CAGR over the forecast period. The fuel cell system in FCEV is one of the major and most expensive components. The fuel cell system consists of the fuel cell, which accounts for nearly 60% of the cost of FCEV. Therefore, increasing FCEV sales is surging the demand for fuel cell systems, further fueling the fuel cell system segment growth.

Battery system holds the second-largest share of the market. All Fuel Cell Electric Vehicles (FCEVs) use electricity to power an electric motor in contrast to other electric vehicles. The low-voltage auxiliary battery delivers electricity to start the vehicle and power vehicle accessories. The secondary high-voltage battery stores energy generated from regenerative braking and provides supplemental power to the electric traction motor. Increasing demand for advanced battery systems for high-capacity energy storage and auxiliary battery for other functions in FCEV is anticipated to drive the segment growth.

The drive system segment holds a significant share of the market. The drive system uses power from the fuel cell and the traction battery pack and provides the motor to initiate the driving of the wheels. Increasing demand for zero-emission and economical drive systems in FCEVs is expected to propel the segment growth.

Hydrogen storage accounts for a considerable share of the market. Hydrogen storage is a storage system that is critical in a complete FCP. The stored hydrogen gas compressed at extremely high pressure increases the vehicle's driving range. Therefore, increasing research and development on advanced storage methods for hydrogen storage for vehicle safety is likely to accelerate segment growth.

The others segment accounts for a decent market share. The other segment includes electric motors and power control units, which help in propelling the vehicle more quietly, smoothly, and efficiently with less maintenance. Increasing demand for green mobility worldwide drives FCEV sales, further fueling segment growth.

By Vehicle Type Analysis

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Passenger Cars Segment to Dominate Backed by Growing Adoption of Passenger Cars

The market is segmented based on vehicle type: passenger cars, commercial vehicles, and buses.

By vehicle type, the passenger cars segment dominated the market in 2023 and is expected to witness the fastest CAGR during the forecast period. A passenger car is a major contributor to the fuel cell-based powertrain business. The increasing popularity of passenger fuel cell vehicles such as Toyota Mirai, Hyundai NEXO, and others, coupled with the automaker’s efforts to roll out new passenger vehicles powered by the fuel cell to provide the increasing demand for green mobility worldwide, is expected to boost the segment growth during the forecast period.

The bus segment is the fastest-growing segment estimated to exhibit a high CAGR during the forecast period. Manufacturers are heavily investing in the advancement of fuel-cell bus technology to meet the transit agency's targets for reliability and durability. However, replacement of parts, supply issues, and the cost of hydrogen fuel continue to be challenging for transit agencies deploying fuel-cell electric buses. Therefore, these factors influence the growth of this segment during the forecast period.

The commercial vehicle segment accounts for a considerable market share. A commercial vehicle is a vehicle required to be registered which is utilized for the transportation of personal goods and people. Some Asia Pacific countries contribute significant shares in commercial fuel cell vehicles. Growing adoption of commercial fuel cell vehicles worldwide due to their long range and fast refueling capability is likely to drive the segment growth.

REGIONAL INSIGHTS

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Asia Pacific dominated the fuel cell powertrain market in 2023 and is anticipated to continue its dominance throughout the forecast period with the fastest CAGR. The surge in the adoption of fuel-cell vehicles in economies such as South Korea and China is driving the market growth. The government in South Korea is highly focused on improving the hydrogen infrastructure in the region. For instance, in December 2021, the South Korean government announced 43 hydrogen stations along motorways by the end of 2022. The government is highly focused on green mobility adoption.

North America held the second-largest share in 2023. Increasing demand for FCEVs in the California region is driving market growth. In February 2022, Chevron U.S.A. Inc. and Iwatani Corporation of America (ICA) announced their contract to build 30 hydrogen fueling stations in California. California Air Resources Board (CARB) predicts that California will have over 176 hydrogen stations to support approximately 250,000 fuel-cell vehicles. Therefore, developing hydrogen infrastructure and increasing demand for emission-free vehicles drive market growth in the specified region.

The European market is characterized by initiatives such as the Fuel Cell & Hydrogen Joint Undertaking (FCH JU), financing the JIVE project (Joint Initiative for hydrogen vehicles across Europe) with USD 32 million of funding. The JIVE project aims to deliver 291 fuel cell buses across Europe by 2023. Likewise, countries such as Germany, France, and Spain, have also set targets for HRS deployment to support the long-term use of FCVs. Hence, these factors fuel the growth of this region's market.

The Rest of the World is also anticipated to register decent growth rates during the forecast period. Countries such as Chile, Argentina, and Costa Rica adopted low-carbon hydrogen, thus boosting the market's growth in the specific region.

List of Key Companies in Fuel Cell Powertrain Market

Rising Focus on Fuel Cell Powertrain Technology Development to Drive the Competition

The market is vastly fragmented and led by several global players operating in this industry. The companies focus on expanding their product range to cover a more extensive fuel cell powertrain customer base. Moreover, fuel cell systems are emerging as a more viable solution than battery-electric solutions for long-distance freight operations and transporting heavy loads. Hence, the technological advancement of fuel cell-related powertrains for heavy-duty applications is a key area of focus for several market players.

With a Diverse Product Portfolio, Robert Bosch GmbH emerged as a Leading Player in the Market. Robert Bosch GmbH has more than 200 years of experience in automotive solutions, industrial technology, and energy and building technology. Established & headquartered in Germany, it has a more comprehensive global presence in around 60 countries. The company offers fuel cell stacks, electric air compressors, hydrogen gas injectors, anode recirculation blowers, tank valves, fuel cell control units, e-axle, and high voltage DC converter generation 3evo in its powertrain segment. Bosch has a significant revenue share in automotive and automotive components. Europe contributes to the company's revenue shares majorly.

LIST OF KEY COMPANIES PROFILED:

• Cummins Inc. (U.S.)


• Robert Bosch GmbH (Germany)


• Denso Corporation (Japan)


• Ballard Power Systems (Canada)


• FEV Group (Canada)


• Nuvera Fuel Cell LLC. (U.S.)


• Plug Power (U.S.)


• SFC Energy (Germany)


• Bloom Energy (U.S.)


• Ceres Power(U.K.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024, Extreme E partnered with Symbio, to provide provide a 75kW hydrogen fuel cell replacing the battery as the principal energy source. It will be used to power the Extreme H fuel cells, created using a combination of solar and water. The technology is already being used in Extreme E, for zero-emission hydrogen mobility, to facilitate the transition to hydrogen power for the championship, which will become Extreme H in 2025.


• February 2024, Honda launched America’s first production plug-in hydrogen fuel cell electric vehicle the 2025 CR-V e:FCEV, it has a powertrain co-developed with General Motors (GM). The new module benefits from technology and economies of scale of both companies and reduces the cost by two thirds compared to the Clarity fuel cell.


• January 2024, Hyundai Motor, Kia Corporation and W. L. Gore & Associates (Gore) signed an agreement at the Mabuk Eco-Friendly R&D Center in Korea to collaborate on the development of advanced polymer electrolyte membrane (PEM) for hydrogen fuel cell systems. The goal is to develop an advanced PEM for next-generation fuel cell electric commercial vehicles.


• January 2024, Denso planned the mass adoption of hydrogen fuel cell-powered vehicles using locally produced and consumed "green" hydrogen. The company is staking its future powertrain development plans on solid oxide electrolysis cells (SOECs) to produce inexpensive green hydrogen to power its solid oxide fuel cells (SOFCs). The technologies are under development at the company’s Hirose plant, at Toyota City and Nishio City plant, both located in the heart of Japan’s Aichi Prefecture.


• January 2024, Wardwizard Innovations &  Mobility Ltd. introduced next gen hydrogen fuel cell and electrolyzer technology at Gujarat Global Summit 2024. The company also showcased FC powered scooter prototype.

REPORT COVERAGE

The report provides detailed market analysis and focuses on key aspects such as leading companies, product types, end-users, design, and technology. Besides, it offers insights into market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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