The global hydrogen truck market size is anticipated to reach USD 5,429.7 million in 2024. It is projected to surge at a CAGR of 41.2% during the assessment period to reach a value of USD 171,050 million by 2034.
The principal benefit of using hydrogen is that it burns clearly with zero carbon emissions, keeping the air clean and decreasing potential hazards to lung health. Hydrogen trucks are efficient compared to fossil-fuel-powered trucks as they save fuel costs while operating with low noise. The high energy efficiency of these trucks makes them a better alternative in the long run.
The trucks boast a similar or better operational efficiency compared to diesel or compressed natural gas (CNG) trucks. Hydrogen can be produced when excess renewable energy is available and stored for later use during low production times. The use of hydrogen fuel increases energy security and independence, making hydrogen-powered trucks resilient to geopolitical disruptions in oil supply.
| Attributes | Description |
|---|---|
| Estimated Global Hydrogen Truck Market Size (2024E) | USD 5,429.7 million |
| Projected Global Hydrogen Truck Market Value (2034F) | USD 171,050 million |
| Value-based CAGR (2024 to 2034) | 41.2% |
Hydrogen-powered trucks offer a longer driving range compared to other alternatives to fossil-fuel-based engines, thereby making them suitable for long-haul transport. They help in decreasing overall upfront costs as they have lower maintenance costs compared to diesel engines.
Government authorities across the globe are implementing stringent emission control regulations, making hydrogen-powered trucks a viable option for diesel-powered vehicles. Key industry players along with government authorities are set to heavily invest in infrastructure development, including hydrogen refueling stations and production facilities, thereby supporting growth.
Innovations in the industry are anticipated to reduce the upfront costs of hydrogen fuel cells and trucks, making them extra competitive. Rising awareness regarding the benefits of hydrogen fuel cells is set to boost demand.
For the market to rise at a steady pace, a reliable, sustainable, and cost-effective supply of hydrogen is required. The initial upfront costs of hydrogen are high compared to diesel-powered vehicles, which can act as a significant limitation for growth.
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The table below showcases the projected CAGRs for the global hydrogen truck industry over semi-annual periods ranging between 2023 and 2024. The analysis offers businesses a better understanding of the growth over the year by revealing critical shifts in performance and growth patterns of the industry. The first half (H1) of 2023 spans from January to June. The second half or H2 includes July to December.
Numbers showcased in the table present the growth rate for each half between 2023 and 2024. The industry is set to surge at a CAGR of 40.6% in the first half (H1) of 2023. The second half of the same year is anticipated to showcase a slight increase in the growth rate at a CAGR of 41.3%.
| Particular | Value CAGR |
|---|---|
| H1 | 40.6% (2023 to 2033) |
| H2 | 41.3% (2023 to 2033) |
| H1 | 40.9% (2024 to 2034) |
| H2 | 41.5% (2024 to 2034) |
Moving in the following period, from H1 2024 to H2 2034, the CAGR is anticipated to decline to 40.9% in the first half (H1) and then rise to 41.5% in the second half (H2).
Government Bodies to Provide Subsidies to Make Hydrogen Affordable
Government bodies across the globe are investing in the development of hydrogen-fueling infrastructure. They are supporting the construction of hydrogen production facilities to ensure a reliable supply of fuel.
Authorities are further offering subsidies and grants to make hydrogen affordable for consumers, thereby helping offset the upfront costs of the hydrogen fuel cell technology. Tax credits provided by several governments are anticipated to decrease the total cost of ownership for hydrogen trucks, making them attractive to businesses and individuals.
The implementation of stringent emission standards, especially for commercial vehicles, makes it challenging to meet regulatory requirements. This drives demand for clean alternatives like hydrogen-powered trucks. Authorities are partnering with private companies to accelerate the development and commercialization of hydrogen trucks.
Environmental Sustainability Benefits to Boost Adoption
Hydrogen-powered trucks are projected to contribute to a green future. Unlike gasoline and diesel-powered trucks, these produce zero emissions during operation, thereby assisting in mitigating climate change and reducing carbon footprint. They emit comparatively fewer pollutants and particulate matter, thereby improving air quality in urban areas.
Hydrogen fuel cells are set to convert chemical energy into electrical energy with push efficiency compared to traditional internal combustion engines. Hydrogen can be produced from renewable energy sources, enabling the trucks to be powered by clean and sustainable energy, thereby reducing environmental impact.
It can also be produced simply from water and biomass, making it extra sustainable and infinite compared to fossil fuels. These trucks operate with substantially less noise compared to diesel or gasoline-powered trucks. They are hence being adopted, especially in urban areas, to reduce noise pollution.
Partnerships and Collaborations Give Rise to Pilot Projects
Partnerships and collaborations play a pivotal role in shaping the market. Original equipment manufacturers (OEMs) are partnering with fuel cell manufacturers to develop and commercialize hydrogen-powered trucks. Collaboration is critical in facilitating the transfer of technology between OEMs and fuel cell manufacturers, thereby accelerating the development of efficient and cost-effective hydrogen fuel cell systems.
Partnerships between government agencies and research institutions are likely to assist in shaping new policies and regulations supporting the growth of hydrogen-powered trucks. These collaborations can also bring innovations in hydrogen technology. Partnerships between logistics and transportation companies and hydrogen truck manufacturers can enable pilot projects and fleet testing.
It will likely assist in providing valuable data on the reliability, economic viability, and performance of hydrogen trucks. Collaborations are also likely to focus on optimizing supply chains to support the increasing adoption of these trucks, including the transportation and storage of hydrogen fuel.
Principal Consultant
The global hydrogen truck industry was valued at USD 975.7 million in 2019. It grew at a CAGR of 40.9% during the historical period ranging from 2019 to 2023. It attained a value of USD 3,845.4 million in 2023.
The market witnessed a gradual increase in sales during the historical period. This growth was primarily driven by early adoption and niche applications. Innovations in hydrogen fuel technology coupled with infrastructure development for hydrogen refueling centers played a vital role in driving growth. Government authorities across the globe rolled out several policies and subsidies supporting the adoption of hydrogen-powered trucks.
The industry is projected to reach USD 5,429.7 million by 2024 and is anticipated to grow at a CAGR of 41.2% during the assessment period. The industry is predicted to reach USD 171,050 million by 2034.
The market is anticipated to witness exponential growth during the forecast period. Government authorities worldwide are projected to implement stringent emission standards to make hydrogen trucks a viable substitute to diesel-powered vehicles.
There is set to be a rise in investments in hydrogen refueling stations and production facilities. Innovations in technology and economies of scale are likely to decrease the cost of hydrogen fuel cells and trucks, thereby making these extra competitive.
Key characteristics that distinguish Tier 1 organizations from others are their stability and brand recognition. These organizations constitute a significant portion of the global industry. They employ unique technologies in their production processes to boost output.
The companies possess an extensive product portfolio and have manufacturing facilities spread across several regions. Prominent companies in Tier 1 are Hyundai Motor Company, Nikola Corporation, Toyota, Volvo, Daimler Trucks, Volkswagen/Scania, and Stellantis N.V.
Businesses operating in specific regions fall under Tier 2. These organizations are renowned on the global stage and have a substantial impact on the regional economy.
The organizations have a broad knowledge of the industry and ensure regulatory compliance. Well-known companies in Tier 2 are Hyzon Motors, Ballard Power Systems, ITM Power, Linde plc, Plug Power Inc., Renault Trucks, Paccar, Kenworth Trucks, and H2X Global.
Tier 3 is primarily made up of medium-to-small-sized businesses having regional headquarters. These enterprises have a limited geographical reach, resulting in less competition among players.
Compared to industry giants in Tier 1 and Tier 2, Tier 3 businesses are less structured and formalized. Key enterprises in Tier 3 include Cellcentric GmbH & Co. KG, Dongfeng Motor Corporation, Esoro AG, Ares Motor Works, Beiqi Foton Motor, Great Wall Motor Company Ltd., Grove Hydrogen Automotive, Transpower, US Hybrid Inc., XCMG Group, Xiamen King Long International Trading Co., Ltd., and Nel Hydrogen.
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The section offers businesses with an overview of the industry. It comprises a detailed examination of the emerging trends and opportunities on a country-by-country basis. This country-specific analysis of the dynamics is projected to assist organizations in understanding the complex nature of the business.
India is estimated to dominate during the forecast period with a projected CAGR of 41.5% through 2034. France, Spain, and Italy are set to follow behind to become the prominent countries with anticipated CAGRs of 41.1%, 40.9%, and 40.7%, respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 41.5% |
| France | 41.1% |
| Spain | 40.9% |
| Italy | 40.7% |
| Canada | 40.7% |
The hydrogen truck market in Germany is likely to rise at a CAGR of 40.3% during the assessment period. The country is investing heftily in building a network of hydrogen stations to make refueling convenient for truck operators. It is focusing on increasing its hydrogen production capacity to ensure a reliable supply for fuel cell vehicles.
Germany has set ambitious climate targets for itself with the aim to substantially reduce its greenhouse gas emissions. Hydrogen trucks perfectly align with these goals, thereby fostering their widespread adoption in the country.
Several Germany-based automobile brands are heavily investing in the development of hydrogen engines. For instance, in September 2023 Daimler Truck, headquartered in Leinfelden-Echterdingen, created a prototype of Mercedes-Benz GenH2 truck to test the distance the truck will be able to run on one fill of liquid hydrogen. The truck covered a distance of 1,047 km, from Rhineland-Palatinate to Berlin, achieving the milestone of Hydrogen Record Run.
India is anticipated to witness a CAGR of 41.5% during the forecast period. The Ministry of New and Renewable Energy in India has launched the National Green Hydrogen Mission to make India the global hub for green hydrogen production, utilization, and export.
The Strategic Interventions for Green Hydrogen Transition (SIGHT) was rolled out to support domestic manufacturing of electrolytes. It offers incentives for the production of green hydrogen. The Green Hydrogen Hub mission has been implemented to identify and develop regions to support large-scale production and utilization of hydrogen.
The development of a hydrogen economy is likely to create new jobs in several sectors. Hydrogen is anticipated to decrease India’s reliance on imported fossil fuels, resulting in rising energy security.
The government of the United States has made substantial investments to develop a nationwide hydrogen fueling infrastructure, thereby making it convenient for operators to adopt hydrogen vehicles. Federal and state governments are offering tax credits and other financial incentives to encourage the adoption.
Stringent emission standards for commercial vehicles are bolstering the requirement for clean alternatives like hydrogen trucks. Innovations in hydrogen production processes aimed at making it cost-effective and sustainable are further propelling adoption. Companies in the logistics and transportation sector in the United States are looking to decrease their environmental footprints and enhance operational efficiency.
Hydrogen trucks offer a promising solution for long-haul transportation compared to battery-electric trucks which are likely to face limitations of range and charging time. Initiatives like California’s Zero-emission Mandate for all heavy-duty trucks aim to achieve zero emissions by 2040, thereby driving the adoption of hydrogen trucks.
The section offers businesses insightful data and analysis of the two leading segments. Segmentation of these categories helps companies understand the dynamics and invest in the beneficial zones.
Analysis of the growth assists organizations to gain a thorough understanding of the trends, opportunities, and challenges. This examination is anticipated to assist organizations navigate the multifaceted environment of the business world and make informed decisions.
Heavy-duty trucks are anticipated to lead the vehicle segment with a value share of 50.3% in 2024. In terms of application, logistics is predicted to dominate with a value share of 60.8% in the same year.
| Segment | Heavy Duty Trucks (Vehicle) |
|---|---|
| Value Share (2024) | 50.3% |
Heavy-duty trucks are gaining traction in terms of vehicle type. They are anticipated to attain a value share of 50.3% in 2024. Hydrogen-powered trucks offer a long-range and zero-emission solution for heavy-duty transport, making these suitable for long-haul trucking routes. This is particularly beneficial for regions with extensive highway networks and a high volume of long-distance freight.
As government authorities worldwide implement stringent regulations to address climate change and pollution, heavy-duty trucks that significantly contribute to these issues, are under increasing pressure to adopt clean technologies. Hydrogen trucks provide a viable alternative to diesel-powered engines.
The logistics and transportation industry is progressively looking to decrease its carbon footprint and enhance operational efficiency. Hydrogen-powered trucks offer a sustainable and efficient solution for heavy-duty transportation, aligning with the rising demand for clean and sustainable transportation options.
| Segment | Logistics (Application) |
|---|---|
| Value Share (2024) | 60.8% |
Logistics is anticipated to attain a dominant share of 60.8% in 2024 in terms of application. The logistics industry heavily relies on heavy-duty trucks. Rising environmental concerns and the shift toward alternative vehicles are pressurizing key companies to adopt hydrogen-powered heavy-duty trucks to reduce their environmental impact.
Rising investments in hydrogen fueling infrastructure are making it convenient for logistics companies to operate hydrogen trucks. Consumers are becoming increasingly concerned about environmental sustainability. Businesses in the logistics landscape are therefore adopting hydrogen-powered trucks to improve their brand image and attract eco-conscious consumers.
Key players in the industry include Cellcentric GmbH & Co. KG, Dongfeng Motor Corporation, Esoro AG, Ares Motor Works, Beiqi Foton Motor, H2X Global, Hyundai Motor Company, and Hyzon Motors. Established players, with the advantage of existing consumer bases and distribution networks, are heavily investing to bring innovations in hydrogen truck technology.
Fuel cell manufacturers are progressively entering the hydrogen truck market as they have extensive expertise in the development and manufacturing of fuel cells.
Start-ups and emerging companies in the competitive landscape are focusing on bringing innovative solutions and technologies to the market. These companies are likely to have a competitive advantage in terms of agility and flexibility. Established companies are building strategic alliances with new entrants to combine their respective strengths and resources for the greater good.
Companies that will be able to develop efficient, reliable, and cost-effective hydrogen fuel cell systems are anticipated to have a significant competitive advantage. Manufacturers are working toward securing access to a robust network of fueling stations to facilitate the adoption of hydrogen trucks. Government support and policies play a crucial role in shaping the dynamics of the market.
Businesses that can effectively leverage government support are likely to maintain a competitive edge in the industry. Cost-effectiveness will be paramount and brands will be required to work on providing cost-competitive prices compared to diesel-powered vehicles to drive adoption.
Industry Updates
In terms of vehicles, the industry is segregated into heavy-duty trucks, medium-duty trucks, and small-duty trucks.
Above 400 Km and below 400 Km are the two ranges available worldwide.
Type III and Type IV are the two Types available worldwide.
Logistics and municipal are the two key applications.
The market is spread across North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, the Middle East and Africa, and Oceania.
It is predicted to reach USD 5,429.7 million in 2024.
It is estimated to reach USD 171,050 million by 2034.
Hydrogen-powered trucks do exist and the market is set to witness substantial growth over the next decade.
Cellcentric GmbH & Co. KG, Dongfeng Motor Corporation, Esoro AG, Ares Motor Works, Beiqi Foton Motor, and H2X Global are a few key companies.
It will likely rise at a CAGR of 41.2% from 2024 to 2034.
Hydrogen-fueled trucks offer direct and indirect emission reductions, unlike electric trucks, as they do not produce emissions or rely on the energy grid.
India is anticipated to dominate with a CAGR of 41.5% during the forecast period.
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