Fuel Cell Powertrain Market Research Report Information By Component (Fuel Cell System, Battery System, Drive System, Hydrogen Storage System and Others), Drive Type (Rear Wheel Drive (RWD), Front Wheel Drive (FWD) and All-Wheel Drive (AWD)) Vehicle Type (Passenger Cars, Light Commercial Vehicle (LCV), Buses and Trucks), Power Output (Less than 150 KW, 150–250 KW and More than 250 KW) And Region (Asia-Pacific, Europe, North America, And Rest Of The World) –Market Forecast Till 2032

Fuel Cell Powertrain Market Overview:

Fuel Cell Powertrain Market Size was valued at USD 0.2 Billion in 2023. The fuel cell powertrain market industry is projected to grow from USD 0.34 Billion in 2024 to USD 12.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 56.80% during the forecast period (2024 - 2032). Rising demand for low-emission automobiles and expanding vehicle range, technology advancements resulting in lower fuel cell costs, and the rising cost of gas and diesel are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fuel Cell Powertrain Market Trends

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  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.

Governments are spending more and more on alternative energy sources, such as fuel cells, in response to the rising pollution levels in the world. The transportation industry was the second-largest contributor to GHG emissions in US in 2015, according to the US EPA, accounting for 27% of the nation's emissions. Governments are investing, supporting, and launching efforts to employ fuel cells. 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.  

Fuel Cell Powertrain Market Segment Insights:

Fuel Cell Powertrain Component Insights

Based on components, the global automotive flex fuel engine market segmentation includes fuel cell, battery, drive, and hydrogen storage systems. With the highest CAGR during the forecast period, the fuel cell segment has the largest market share. The fuel cell system is one of FCEV's most significant and expensive parts. The fuel cell makes up the fuel cell system, which costs around 60% of the FCEV's overall price. Thus, rising FCEV sales are driving demand for fuel cell systems and the market's growth.

Fuel Cell Powertrain Power Output Insights

Based on power output, the global automotive flex fuel engine market segmentation includes less than 150 KW, 150–250 KW, and more than 250 KW. In 2022, the less than 150 KW segment dominated the market, and this dominance is anticipated to last the entire projection period. Most fuel-cell electric cars, particularly those sold as passenger cars, have a power output of under 150kW. For instance, the Toyota Mirai, one of the best-selling fuel cell cars, has a motor that generates 128kW of electricity. Therefore, rising demand for fuel-cell passenger automobiles is projected to fuel category expansion in the near future.

Figure 1: Fuel Cell Powertrain Market by Power Output, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fuel Cell Powertrain Vehicle Type Insights

Based on vehicle type, the global automotive flex fuel engine market segmentation includes o passenger cars, light commercial vehicles (LCV), buses, and trucks. The category of passenger cars, which dominated the market in 2022, is anticipated to experience the quickest CAGR throughout the projected period. A significant portion of the market for fuel cell-based powertrains comes from passenger cars. In addition to the automaker's efforts to release new fuel cell-powered passenger vehicles to meet the rising demand for green mobility globally, the rising popularity of passenger fuel cell vehicles like the Toyota Mirai, Hyundai NEXO, and others is anticipated to spur segment growth during the forecast period.

Fuel Cell Powertrain Regional Insights

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, MRFR 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.

Fuel Cell Powertrain Key Market Players & Competitive Insights

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.

Key Companies in the fuel cell powertrain market include

• AVID Technology Ltd (UK)


• Ballard Power Systems (Canada)


• Brown Machine Group (US)


• Ceres Power (UK)


• Cummins (US)


• Delphi Technologies (UK)


• Denso Corporation (Japan)


• ITM Power Manufacturers (UK)


• Robert Bosch (Germany)


• Bloom Energy (US)


• SFC Energy (Germany)

Fuel Cell Powertrain Industry Developments

In 2024, Ballard was given a follow-on order for twelve fuel cell engines from Canadian Pacific Kansas City (CPKC) rail to reinforce its existing fleet of hydrogen-powered locomotives for regular switching and local freight services.

Hydroplane Ltd announced in June 2022 that it would adopt a plan to decarbonize flight through hydrogen fuel cell technology that can retrofit with current general aviation aircraft. Moreover, the company communicated about its recently closed funding round with an undisclosed amount of $2 million from angel investors who requested their name not be made public.

Scots are collaborating with Battery Cell Specialist, a major battery manufacturing site, to develop more advanced hydrogen hypercars and heavy goods vehicles in June 2022.

Bloom Energy engages Ferrari as a partner to lead luxury and automotive globally over 75 years towards carbon neutrality by 2030 in June 2022. The company also placed Bloom's solid oxide fuel cells at one megawatt (MW) at Ferrari's expanding manufacturing facility in Maranello, Italy.

In May 2022, Ballard Power Systems entered into strategic partnerships with Wisdom Motor Company Limited, Temple Water Group and Bravo Transport Services Limited to accelerate the adoption of commercial fuel cell electric vehicles (FCEVs) across Hong Kong.

Fuel Cell Powertrain Market Segmentation:

Fuel Cell Powertrain Component Outlook

• Fuel Cell System


• Battery System


• Drive System


• Hydrogen Storage System


• Others

Fuel Cell Powertrain Drive Type Outlook

• Rear Wheel Drive (RWD)


• Front Wheel Drive (FWD)


• All-Wheel Drive (AWD)

Fuel Cell Powertrain Power Output Outlook

• Less than 150 KW


• 150–250 KW


• More than 250 KW

Fuel Cell Powertrain Vehicle Type Outlook

• Passenger Cars


• Light Commercial Vehicle (LCV)


• Buses


• Trucks

Fuel Cell Powertrain Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America