Fuel Cell Powertrain Market

A significant transformation driven by the global push towards decarbonization and clean energy mobility is driving fuel cell powertrain market. With the implementation of strict emission norms and incentives to adopt zero-emission vehicles by governments and regulatory bodies across major economies, hydrogen-powered fuel cell vehicles (FCVs) development is accelerating. 

Key advancements are also playing important role in enhancing the efficiency, durability, and cost-effectiveness of fuel cell systems. Innovations in membrane electrode assemblies, bipolar plates, and hydrogen storage systems help reduce the overall cost per kilowatt, making fuel cells more practical for mass-market deployment. Furthermore, collaboration between automakers, fuel cell stack providers, and hydrogen producers is streamlining the value chain and encouraging standardization.

With the modular and scalable powertrain architectures for diverse vehicle classes, startups and established players are further widening application potential. However, challenges such as high production costs, underdeveloped refueling infrastructure, and hydrogen sourcing are still there. Despite these hurdles, the fuel cell powertrain market is poised for steady growth with strong market growth expected over the next decade, especially in Asia-Pacific and Europe. This growth is attributed to global stakeholder's investment in green hydrogen production and long-term sustainability goals.

Fuel Cell Powertrain Market Trends

Improved fuel economy and greater driving range are driving the market growth.

Compared to ICE vehicles, FCEVs have superior fuel efficiency. The fuel efficiency of an FCEV is approximately 63 miles per gallon petrol equivalent (MPGge), whereas that of an ICE vehicle is 29 MPGge on highways, according to the US Department of Energy. An FCEV's fuel efficiency can be increased by up to 3.2% via hybridization. An FCEV has a fuel efficiency of about 55 MPGge on urban roads, compared to ICE vehicles' 20 MPGge. Additionally, diesel has a lower energy density (45.5 MJ/kg) than petrol (45.8 MJ/kg), at 45.5 MJ/kg.

Compared to petrol or diesel, hydrogen has an energy density of about three times higher at about 120 MJ/kg. On a full charge, the driving range of FCEVs and BEVs differs significantly. While BEVs typically have a range of about 110 miles with a fully charged battery, FCEVs can travel approximately 300 miles without refueling. The Honda Clarity has the best EPA driving score of any US zero-emission car. It can travel up to 366 miles per charge. The market for fuel cell powertrains will be driven by rising demand for FCEVs and better fuel economy and range.

Thus, driving the air-powered vehicle market revenue.

For example, the Indian Ministry of Petroleum and Natural Gas (MoPNG) revealed plans to build solar hydrogen refueling stations at two places for the exhibition of fuel cell vehicles at tourist attractions such Delhi-Agra, Gujarat (Statue of Unity), etc. in March 2021. In addition to the advancement of fuel cell technology, a strong infrastructure that can support the requirements of hydrogen-powered transportation must be built.  

The Global Fuel Cell Powertrain Market Industry is projected to experience robust growth, with estimates indicating a rise from 5.67 USD Billion in 2024 to 25.43 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 14.62% from 2025 to 2035, reflecting the increasing adoption of fuel cell technologies across various sectors. The market dynamics are influenced by factors such as technological advancements, government support, and rising demand for clean energy solutions. These projections highlight the potential for fuel cell powertrains to play a significant role in the global transition towards sustainable energy.

Government incentives and support are pivotal in shaping the Global Fuel Cell Powertrain Market Industry. Various nations are offering subsidies, tax breaks, and grants to encourage the development and deployment of fuel cell technologies. For instance, the United States Department of Energy has initiated programs aimed at advancing hydrogen and fuel cell research, which fosters innovation and reduces costs. Such support mechanisms are likely to enhance market growth, as they lower the financial barriers for manufacturers and consumers. This trend may lead to a market valuation of 25.43 USD Billion by 2035, reflecting the increasing commitment to sustainable energy solutions.

The increasing focus on energy security is driving interest in the Global Fuel Cell Powertrain Market Industry. As nations seek to diversify their energy sources and reduce dependence on imported fossil fuels, fuel cells present a viable alternative. Countries are exploring hydrogen production from renewable sources, which enhances energy independence and sustainability. This strategic shift is expected to bolster the market, as fuel cell technologies align with national energy security goals. The emphasis on energy resilience may lead to accelerated adoption rates and further investment in fuel cell powertrain solutions.

The Global Fuel Cell Powertrain Market Industry is experiencing a notable surge in demand for clean energy solutions. Governments worldwide are increasingly implementing stringent emissions regulations, which drives the adoption of fuel cell technologies. For instance, countries like Japan and Germany are investing heavily in hydrogen infrastructure, aiming to reduce carbon footprints. This trend is expected to propel the market size to approximately 5.67 USD Billion in 2024, as industries and consumers alike seek sustainable alternatives to traditional fossil fuels. The shift towards cleaner energy sources is likely to foster innovation and investment in fuel cell powertrains.

The Global Fuel Cell Powertrain Market Industry is significantly influenced by the growing investment in hydrogen infrastructure. As more countries recognize the potential of hydrogen as a clean energy carrier, investments in production, storage, and distribution facilities are on the rise. For example, the European Union has launched initiatives to establish a comprehensive hydrogen network across member states. This infrastructure development is essential for the widespread adoption of fuel cell technologies, as it ensures the availability of hydrogen fuel for various applications. The expansion of hydrogen infrastructure is likely to catalyze market growth and enhance the viability of fuel cell powertrains.

Technological advancements play a crucial role in the growth of the Global Fuel Cell Powertrain Market Industry. Innovations in fuel cell efficiency, durability, and cost-effectiveness are making these systems more appealing for various applications, including transportation and stationary power generation. For example, the development of proton exchange membrane fuel cells has significantly improved performance metrics, leading to increased adoption in commercial vehicles. As these technologies mature, they are projected to contribute to a compound annual growth rate of 14.62% from 2025 to 2035, further solidifying the market's position in the energy landscape.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Asia Pacific is anticipated to be the largest market because of the region's rising demand for passenger automobiles and fuel-efficient vehicles. Some of the major players in the market for fuel cell powertrains are based in this area, including Denso Corporation, Shanghai Fuel Cell Vehicle Power System Co., Ltd., and Doosan Corporation. Most fuel cell automobiles have been sold in this region, even though fewer market-related businesses are here than in North America and Europe.

The Hyundai NEXO and Toyota Mirai, which saw sales of 8,900 and 17,940 units, respectively, in 2021, are two of the most popular models. South Korea accounted for almost 92% of the sales of the Hyundai NEXO in 2021, whereas Japan sold most of the Toyota Mirai.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Fuel Cell Powertrain Market Share By Region 2024 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

In 2022, North America had the second-largest proportion. The market is expanding due to the rising demand for FCEVs in California. Chevron USA Inc. and Iwatani Corporation of America (ICA) agreed to construct 30 hydrogen filling stations in California in February 2022. According to the CARB, the state will have over 176 hydrogen stations to accommodate about 250,000 fuel-cell automobiles. Therefore, the market expansion in the targeted region is fueled by the development of hydrogen infrastructure and rising demand for automobiles without emissions.

Europe's fuel cell powertrain market accounts for the third-largest market share. The main OEMs have spent a lot of money improving the technology, including Toyota, Ford, Honda, GM, Hyundai, Volkswagen, Daimler, and BMW. In order to fulfil rising customer expectations, fuel cells have been extensively developed for passenger automobiles. Several major businesses are now actively investing in and testing these technologies on the road.

For instance, The BMW Group stated in June 2021 that it has begun testing vehicles with a hydrogen fuel cell powertrain; prototypes of the BMW I Hydrogen Next will be evaluated on a number of parameters, including dependability, safety, and efficiency. Further, the German fuel cell powertrain market held the largest market share, and UK fuel cell powertrain market was the fastest-growing market in the European region.

Leading industry players are spending a lot of money on R&D to diversify their product offerings, which will spur further growth in the fuel cell powertrain market. Market participants are also engaging in various strategic actions to increase their worldwide footprint. Important market developments include introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. The air-powered vehicle business must provide affordable products to grow and thrive in a more cutthroat and competitive market environment.

One of the primary business strategies manufacturers use in the global fuel cell powertrain industry to benefit customers and expand the market sector is local manufacturing to reduce operational costs. Some of the biggest gains in recent years have come from the fuel cell powertrain sector. Major players in the fuel cell powertrain market include AVID Technology Ltd (UK), Brown Machine Group (US), Ballard Power Systems (Canada), Ceres Power (UK), Delphi Technologies (UK), Cummins (US), ITM Power Manufacturers (UK), Denso Corporation (Japan), Bloom Energy (US), Robert Bosch (Germany), and SFC Energy (Germany).

Proton exchange membrane (PEM) fuel cell products are developed and produced by Ballard Electricity Systems Inc. for various markets, including portable electricity, material handling, heavy-duty motive (including applications for buses and trams), and engineering services. Ballard has designed and shipped more than 400 MW of fuel cell devices up to this point. Geoffrey Ballard, Keith Prater, and Paul Howard created Ballard under Ballard Research Inc. in 1979 to conduct high-energy lithium battery research and development.

Ballard began investing in the development of PEM fuel cell technology in 1989, and since then, it has provided PEM fuel cell products to numerous top product manufacturers worldwide. Ballard and Weichai Power entered into a strategic partnership agreement in 2018. Weichai purchased 19.9% of Ballard's shares for 163 million USD. Ballard and Weichai plan to provide the Chinese market with fuel cell systems for trucks, buses, and forklifts.

From 2017 to 2020, Delphi Technologies operated as a stand-alone automaker before being bought out by BorgWarner Inc. When Delphi Automotive, once a division of General Motors, changed its name to Aptiv and spun off its powertrain and aftermarket-related operations to a stand-alone company, Delphi Technologies PLC, the company Delphi Technologies was created. The 4.5 billion dollar business started trading on the New York Stock Exchange with the previous Delphi Automotive ticker symbol, DLPH. On December 6, 2017, it was included in the S&P MidCap 400 Index.

The business operated in the passenger car and commercial vehicle segments, providing combustion systems, electrification items, software, and controls, and was involved in vehicle maintenance through a global aftermarket network.