Environmental concerns are on the rise. This promotes the adoption of carbon-neutral technologies. Fuel Cell Vehicles (FCVs) are one such prominent discovery. The fuel cell vehicle market is anticipated to grow at an exponential CAGR of 52.2% in 2031. FCVs are also known as Fuel Cell Electric Vehicles (FCEVs). The increasing R&D in the field drives market growth. Additionally, government initiatives are significantly contributing to market growth.
For instance, in November 2024, the Federal Ministry for Digital and Transport (BMDV) and the federal states of Baden-Württemberg and Rhineland-Palatinate provided funding of €226 million ($245.3 million) to Daimler Truck Holding AG for the development, small-series production, and customer deployment (operation and maintenance) of 100 fuel cell trucks.
Similarly, in December 2023, the Union Minister for New & Renewable Energy and Power, India, announced the adoption of green hydrogen in the country with the launch of the National Green Hydrogen Mission. The mission will cost INR 19,744 crore ($2.4 billion) and aim to make India the Global Hub for the production, usage, and export of Green Hydrogen and its derivatives.
The major companies serving the fuel cell vehicle market include Audi AG, Mercedes-Benz AG, Volvo Car Group, Robert Bosch GmbH, Hyundai Motor Company, and others. The market players are considerably contributing to the market growth by adopting various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, among others.
Recent Developments
- In October 2024, Hyundai Motor Company unveiled the INITIUM hydrogen fuel cell electric concept vehicle. The concept features a new design 'Art of Steel'. The range offers a targeted driving range of over 650 km with an 18-inch tire and a maximum motor output of 150 kW. The previews will be launched in the first half of 2025.
- In September 2024, BMW and Toyota partnered to develop fuel cell technology, to launch the first-ever series production fuel cell electric vehicle (FCEV) of BMW in 2028.
- In June 2024, Honda started the production of the 2025 Honda CR-V e:FCEV at the Performance Manufacturing Center (PMC) in Ohio. It is the only FCEV made in America, the first production of hydrogen FCEV in the US. It will feature a fuel cell system with plug-in EV charging capability.
- In January 2024, Stellantis NV expanded its hydrogen fuel cell offer with in-house production starting on mid-size and large vans in Europe. The manufacturing plants in Hordain (France) and Gliwice (Poland), will offer electrified options in the commercial vehicle industry. The fuel cell vans deliver a range of 400 km (mid-size) and 500 km (large), with refueling times of 4-5 minutes.
- In January 2024, Hyundai Motor and Kia signed an agreement with Gore to co-develop polymer electrolyte membrane (PEM) for hydrogen fuel cell systems. The collaboration will cover test protocol and key aspects of PEM development. The partnership aims to develop an advanced fuel cell system for commercial vehicles.
- In December 2023, Daimler Truck Holding AG started building the first customer-trial fleet of Mercedes-Benz GenH2 Trucks.
- In November 2023, Honda showcased a prototype of its next-generation Hydrogen Fuel Cell System Module, jointly developed with General Motors Company, at the 2023 European Hydrogen Week. The system will have applications in FCEV, commercial vehicles, construction machinery, and stationary power stations.
- In October 2023, Isuzu Motors Ltd. and Honda Motor Co., Ltd. presented the GIGA FUEL CELL, a fuel cell (FC)-powered heavy-duty truck co-developed by the two companies. The companies plans to introduce the production model to the market in 2027.
- In September 2023, the Union Minister of Petroleum & Natural Gas and Housing and Urban Affairs flagged off the first Green Hydrogen Fuel Cell Bus at Kartavya Path in Delhi.
- In December 2022, Hyundai Motor Group’s fuel cell system brand HTWO signed a partnership with ENGINIUS, to supply fuel cell systems for mass production of hydrogen-powered commercial trucks. The partnership will provide zero-emission power for waste collection trucks and medium cargo trucks for intra-city goods delivery.
- In September 2022, Hyundai Motor Company and Iveco Group unveiled the first IVECO eDAILY Fuel Cell Electric Vehicle, at IAA Transportation 2022.
- In August 2022, Hyundai Motor Company exported XCIENT Fuel Cell heavy-duty trucks to Germany. Seven German companies in logistics, manufacturing, and retail will put 27 XCIENT Fuel Cell trucks into fleet service with funding for eco-friendly commercial vehicles from Germany’s Federal Ministry for Digital and Transport (BMDV).
- In March 2022, the Union Minister for Road Transport and Highways launched the Green Hydrogen Fuel Cell Electric Vehicle (FCEV) Toyota Mirai.