Fuel Cell Commercial Vehicle Market Size (2024 - 2029)

Fuel Cell Commercial Vehicle Market Analysis

The Fuel Cell Commercial Vehicle Market size is estimated at USD 1.41 billion in 2024, and is expected to reach USD 5.82 billion by 2029, growing at a CAGR of 32.82% during the forecast period (2024-2029).

Over the long term, the fuel cell commercial market will be driven by the government's enactment of stringent emission norms, growing mass urban transportation, rising demand for alternate fuel vehicles, and increasing investments to enhance hydrogen fuel cell technology. Various governments across the world are increasingly setting emission standards to promote the reduction of carbon emissions. It, in turn, is leading commercial vehicle manufacturers to develop alternative fuel technologies, such as hydrogen fuel cells, which can be incorporated into buses, trucks, and vans, among other vehicles. For instance,

• In August 2022, the Indian government announced a commitment to reduce the Emission Intensity of its GDP by 45% by 2030 compared to 2005 levels. The aggressive policies adopted by the government to tackle carbon emissions are contributing to the surging demand for fuel-cell buses across the country.

• In order to tackle climate change, the European Parliament adopted the European Climate Law, which raises the EU's target of reducing net emissions of greenhouse gas by at least 55% by 2030. From a long-term perspective, the European Union aims to be carbon neutral by the end of 2050.

The fuel cell commercial vehicle market is fairly new compared to the industry's electric and IC engine counterpart markets on a global scale. Due to the early stages of development and production of this technology in vehicles, the market witnessed various incumbents such as Mercedes-Benz, PACCAR, and Toyota, among others, commencing the launch of hydrogen fuel cell commercial vehicles in recent years. However, the market is also witnessing the integration of several entrants, which can change the landscape of the industry through lower-priced offerings than incumbent automakers.

Moreover, buses and trucks have dominated the fuel cell commercial vehicle market, with vans and other light commercial vehicles, such as pickup trucks, only contributing to a smaller share of overall sales worldwide. However, in recent years, various companies have constantly invested hefty sums in their research and development to manufacture fuel cell vans, pickup trucks, and other light commercial vehicles in the market. Such developments are expected to positively impact the demand for fuel-cell commercial vehicles during the forecast period.

• In July 2023, Spectronik, a Singapore-based fuel cell solutions specialist, unveiled the prototype of a van powered by its hydrogen fuel cells system. It can carry up to 1 tonne of cargo. The van includes a range of 500 km and can be refueled rapidly within five minutes, making it a solution that offers environmentally friendly transport and logistics.

With the increasing investments in developing advanced fuel cell technology and the expanding alternative fuel vans and pickup truck demand, the fuel cell commercial market is expected to witness surging growth during the forecast period.

Fuel Cell Commercial Vehicle Industry Segmentation

Fuel cell commercial vehicles refer to trucks, buses, vans, etc., which utilize a fuel cell, sometimes in combination with a small battery or supercapacitor, to power its onboard electric motor. Fuel cells in commercial vehicles generate electricity generally using oxygen from the air and compressed hydrogen.

The fuel cell commercial vehicle market is segmented by vehicle type, power range, and geography. By vehicle type, the market is segmented into buses, trucks, vans, and other vehicle types (pickup trucks, etc.). By power range, the market is segmented into below 100 kW, 100 kW - 200 kW, and above 200 kW. By geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.

The report offers market size and forecasts for fuel cell commercial vehicles in value (USD) and volume (units) for all the above segments.