Hydrogen Fuel Cell Vehicle Market To Garner $42.03 Billion by 2026

According to the report published by Allied Market Research, the global hydrogen fuel cell vehicle market generated $651.9 million in 2018 and is expected to garner $42.03 billion by 2026, witnessing a CAGR of 66.9% from 2019 to 2026. The research provides an extensive analysis of changing market trends, key investment pockets, major segments, and competitive scenario.

The rise in environmental concerns and supportive government initiatives for the development of hydrogen fuel cell infrastructure propel the growth of the global hydrogen fuel cell vehicle market. However, the high costs of investments in infrastructure restrain market growth. On the other hand, technological advancements and untapped potential of hydrogen fuel cells offer new lucrative opportunities in the market.

Based on vehicle type, the passenger vehicle segment accounted for more than three-fourths of the total share of the market in 2018, and is estimated to retain its leadership status during the forecast period. This is due to its features including ease in parking, improved gas mileage, and lowered costs in comparison to larger vehicles. Moreover, the commercial vehicle segment is estimated to register the highest CAGR of 72.6% during the forecast period.

Based on fuel cell technology, the proton exchange membrane fuel cell segment accounted for the largest share of the global hydrogen fuel cell vehicle market in 2018, accounting for more than two-fifths of the total share, and is estimated to retain its dominant position during the forecast period. Moreover, this segment is projected to grow at a CAGR of 69.2% from 2019 to 2026. The research also analyzes the segments including phosphoric acid fuel cells and others.

Based on region, North America accounted for the largest market share in terms of revenue, holding nearly two-fifths of the market in 2018, and is estimated to maintain its lead position throughout the forecast period. This is attributed to the presence of key players and the rise in development activities of hydrogen refueling stations (HRS). However, LAMEA is expected to register the highest CAGR of 71.0% from 2019 to 2026, owing to huge scope in the region for commercial and industrial usage of hydrogen fuel cell vehicles.