HYDROGEN TRUCKS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Hydrogen Trucks Market Size and Trends

The global hydrogen trucks market is estimated to be valued at US$ 4.98 Bn in 2024 and is expected to reach US$ 62.45 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 43.5% from 2024 to 2031.

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Stricter emission norms and growing emphasis on developing zero-emission logistics are fueling the demand for hydrogen-powered trucks. Many commercial vehicle manufacturers have started developing hydrogen fuel cell electric trucks and several pilot projects have been initiated globally to test the viability of these trucks for heavy-duty transportation.

Falling battery prices and improving charging infrastructure are making electric trucks a strong alternative. However, hydrogen trucks have greater range capabilities, making them more suitable for long-haul applications. Continuous technological advancements are expected to make hydrogen trucks cost competitive with diesel trucks attracting more commercial fleet owners in the coming years.

Rising Concerns Over Environmental Impacts of Transportation

With rising concerns over climate change and reduction in greenhouse gas emissions globally, hydrogen fuel cell technology is gaining significant attention as one of the promising alternative for commercial vehicles. Heavy duty trucks and buses are known to contribute significantly to air pollution and carbon emissions due to their high fuel consumption. While battery powered electric trucks are still facing challenges over range anxiety and longer recharge times, fuel cell truck offers a viable zero emission solution. The fact that hydrogen can be produced from renewable resources like solar and wind makes it appealing for sustainable transportation. Many countries and regional governments have drafted ambitious plans to promote the use of fuel cell trucks as part of their strategies to reduce carbon footprint of freight transportation sector. Major truck manufacturers are actively working to launch fuel cell models in next few years recognizing future potential of this technology. With growing regulations on emission norms, hydrogen trucks are expected to gain more traction compared to diesel variants in long run.

Market Concentration and Competitive Landscape

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Rising Demand for Clean Freight Transportation

Aside from tightening environmental regulations, increasing sustainability goals of companies involved in logistics and freight transportation is driving demand for clean solutions. Major logistics firms and goods delivery companies are exploring low carbon fuel alternatives as part of their corporate strategy to reduce environmental impact of operational activities. Adoption of zero emission trucks and buses can help companies gain better brand image and improve relationships with stakeholders. Many cities across the world have initiated programs to convert part of their municipal fleets to hydrogen or electric vehicles. Rising consumer inclination towards sustainable brands and services is another key factor driving clean technology adoption across supply chains. In order to meet sustainability targets, both public and private fleet operators are closely monitoring performance of fuel cell and battery electric trucks. Successful pilots showcasing commercial viability of these technologies would encourage broader deployment in future. Original equipment manufacturers are thus intensifying their product development efforts to cater to this emerging demand segment.

Key Takeaways from Analyst:

Major drivers of this growth include environmental regulations pushing for zero emissions vehicles and the declining costs of fuel cells and hydrogen production technologies. Government support through initiatives and subsidies in Europe and China for the development of hydrogen infrastructure will further accelerate the adoption of these trucks.

However, high initial capital costs remain a major restraint holding back a faster transition. The lack of widespread refueling stations presents another challenge although collaboration between truck makers and energy companies is increasing in key markets to address this. Operational limitations such as payload capacity and refueling times for fuel cell trucks compared to diesel also limit broader appeal currently.

Government support for fuel cell technologies is helping drive the region's leadership. In Asia, China is emerging as the fastest growing regional market backed by strong policy push for commercial vehicles to go electric. Other Asian nations like South Korea and Japan are also active with pilot fleet deployments.

Overall, while constrained by high costs presently, the hydrogen trucks market is set for exponential growth this decade as technologies mature. Success of initial deployments and expansion of refueling infrastructure will be vital for broader adoption.

Market Challenges: High Investment and Infrastructure Costs

One of the main challenges faced by the global hydrogen trucks market is the high investment and infrastructure costs associated with it. Setting up hydrogen refueling stations requires huge capital investments since the entire refueling infrastructure needs to be built from the ground up. Additionally, the production of hydrogen also has significant energy requirements. Transporting and storing hydrogen poses technical challenges as well since it is less energy dense than conventional fuels and needs high-pressure tanks for storage. These challenges significantly increase the initial costs of operating a fleet of hydrogen trucks compared to conventional diesel trucks. High vehicle costs are another barrier since the price of current hydrogen trucks is nearly double that of diesel trucks. While the total cost of ownership may be lower in the long run due to cheaper fuel costs, the higher initial investments pose a major hurdle for widespread market adoption of hydrogen trucks.

Market Opportunities: Growing Support from Government Policies and Subsidies

The growing support from government policies and subsidies presents a major opportunity for the hydrogen trucks market to drive widespread adoption. Many countries and states are supporting the transition to zero-emission trucks through incentives, tax exemptions, and investments in refueling infrastructure. Growing awareness about environmental pollution is also driving more companies to explore hydrogen trucks to reduce carbon footprints. Such supportive government policies and initiatives are expected to boost demand and help lower costs through economies of scale. This will, in turn, attract more fleet owners and private companies to adopt hydrogen trucks.

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Insights By Product Type- Transition towards clean mobility

In terms of product type, fuel cell electric trucks is expected to contribute 64.3% share of the market in 2024 owing to various advantages offered by the technology over conventional powertrains in long-haul trucking applications. Fuel cell electric trucks provide zero local emissions, high fuel efficiency, and long range due to their ability to refuel quickly comparable to conventional trucks. The technology allows trucking fleets to transition to clean mobility and lower their carbon footprint in line with sustainability goals without compromising on operations. Growing concerns regarding air pollution and carbon emissions from diesel trucks are driving regulations to incentivize adoption of zero-emission fuel cell vehicles. Also, technological advancements are steadily enhancing the efficiency and reliability of fuel cells while lowering costs. This growing appeal of fuel cell trucks to meet environmental and economic imperatives is propelling the segment's lead in market share.

Insights By Tonnage - Heavy-Duty Hydrogen Trucks (> 16 Tons) Propel Growth Due to Their Extensive Use in Long-Haul Transportation

In terms of tonnage, heavy-duty hydrogen trucks (> 16 tons) is expected to contribute 46.2% share of the market in 2024 owing to their widespread usage in long-haul transportation. Heavy-duty trucks above 16 tons are primarily used for transporting freight over long distances across regional and national boundaries. These operations require high energy density to cover hundreds of kilometers on a single refuel with heavy payloads. Hydrogen fuel cells easily meet this need while emission-free operation allows compliance with stringent emission norms. However, limited refueling infrastructure remains a hurdle for modal shift to hydrogen especially in cross-border routes. Concerted efforts by governments as well as industry collaboration to develop hydrogen corridors with sufficient refueling stations are expected to further accelerate the segment's growth.

Insights By Application- Sustainability initiatives spur last-mile adoption

In terms of application, long-haul transportation is expected to contribute 48.1% share of the market in 2024. However, Last-Mile Delivery segment is witnessing increased focus due to growing emphasis on sustainable logistics. Last-mile delivery vans carry out short-haul operations within city limits, requiring frequent refueling. This makes fuel cell and hydrogen options more suitable than diesel or gasoline variants. Leading logistics companies are piloting fuel cell electric vehicles and investing in green fleets to strengthen their sustainability credentials. They aim to lower operational costs while meeting tightening emissions rules in urban areas. Government incentives for fleet modernization along with improving refueling infrastructure are compelling more last-mile operators to choose hydrogen fuel cell vehicles over traditional powertrains. This will likely support heightened demand in the segment.

Regional Insights

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North America is expected to dominate the global hydrogen trucks market. The region is expected to account for 36.7% of the market share in 2024. The region is home to several leading truck original equipment manufacturers (OEMs) such as Freightliner, Kenworth, Peterbilt, and International that are actively investing in developing hydrogen fuel cell trucks. These trucks are well-suited for medium- and heavy-duty freight applications that require long ranges. California has played a pioneering role by offering substantial subsidies and setting stringent zero-emission vehicle mandates that make hydrogen trucks commercially viable in the state. Its ports and logistics infrastructure make it an ideal testing ground for fuel-cell trucks to replace diesel-powered vehicles. The region also attracts most of the funding in hydrogen infrastructure from both federal as well as state governments. However, costs remain high compared to diesel trucks currently.

Europe has emerged as the fastest-growing regional market for hydrogen trucks over the past few years. Supportive policies by countries like Germany and Sweden coupled with the presence of leading hydrogen systems suppliers have accelerated deployments. Leading trucking companies active across the European Union are trialing fuel-cell electric trucks to gain more insights. Major ports in Rotterdam and Hamburg have initiated pilot projects involving fuel-cell yard tractors and cargo container handling equipment. The extensive natural gas pipeline network in Europe provides an advantage to build out the hydrogen refueling infrastructure. Trucking operators are also incentivized to shift to zero-tailpipe emission vehicles by the proposed Euro 7 emission norms. All these factors indicate that Europe will be an important battleground for hydrogen trucks going forward.

Market Report Scope

Hydrogen Trucks Industry News

• In April 2024, MAN Truck & Bus, a leading commercial vehicle manufacturer based in Germany, announced plans to be the first European truck producer to launch a small series with a hydrogen combustion engine. The initially planned small series of around 200 units of the "MAN hTGX" will be delivered to customers in Germany, the Netherlands, Norway, Iceland, and selected non-European countries as early as 2025. The MAN hTGX offers an alternative zero-emission drive variant for special applications such as transporting heavy goods like construction materials, tanks, or timber. It can also serve as an environment-friendly alternative to battery-electric trucks in areas with insufficient charging infrastructure or markets where sufficient hydrogen is already available.
• In February 2024, Hyzon Motors Inc., a leading developer of hydrogen fuel cell technology and global supplier of zero-emission heavy-duty fuel cell electric vehicles, partnered with New Way Trucks, the largest privately-held refuse equipment manufacturer in North America. The objective of this collaboration is to create a fuel cell-powered refuse vehicle tailored for the North American market.
• In December 2023, Hybot, a two-year-old China-based start-up and hydrogen fuel cell commercial vehicle maker based in Guangzhou, unveiled the world's first gaseous-hydrogen-powered heavy-duty truck with a range exceeding 1,000 km. Hybot's H49 model, which features a futuristic design, can transport a full cargo load of 49 tonnes while weighing less than 9 tonnes and consuming only 8 kg of hydrogen per 100 km, thanks to its innovative fuel cell system that is 20% more efficient than rival technologies.
• In January 2023, Triton Electric Vehicle, a leading clean energy-driven advanced mobility company based in New Jersey, announced the launch of hydrogen-powered trucks at its manufacturing facility in Bhuj, Gujarat. These trucks are hybrid heavy vehicles designed for both Indian roadways and international markets.

*Definition: The global hydrogen trucks market consists of medium and heavy-duty trucks that use hydrogen as a fuel for their fuel cells to generate electricity. These hydrogen fuel cell electric trucks have zero direct emissions and can operate for long distances on a single fuel fill comparable to diesel trucks. Major truck manufacturers are developing hydrogen fuel cell electric trucks to reduce environmental pollution from commercial vehicles. The global hydrogen trucks market is expected to grow significantly in the coming years as countries invest in building the hydrogen refueling infrastructure.

Market Segmentation

•  Product Type Insights (Revenue, US$ Bn, 2019 - 2031)
  • Fuel Cell Electric Trucks
  • Hydrogen Internal Combustion Engine Trucks
•  Tonnage Insights (Revenue, US$ Bn, 2019 - 2031)
  • Light-Duty Hydrogen Trucks (< 7.5 tons)
  • Medium-Duty Hydrogen Trucks (7.5 - 16 tons)
  • Heavy-Duty Hydrogen Trucks (16 tons)
•  Application Insights (Revenue, US$ Bn, 2019 - 2031)
  • Long-Haul Transportation
  • Last-Mile Delivery
  • Refuse Collection
  • Others (Mining, Construction, etc.)
• Regional Insights (Revenue, US$ Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • South Africa
    • Rest of Middle East & Africa
• Key Players Insights
  • Anglo American Platinum Ltd.
  • Ares Motor Works
  • Beiqi Foton Motor
  • Cellcentric GmbH & Co. KG
  • Cummins Inc.
  • Dongfeng Motor Corporation
  • Esoro AG
  • Grove Hydrogen Automotive
  • H2X Global
  • Hyundai Motor Company
  • Hyzon Motors
  • Jaguar Land Rover Automotive
  • Kenworth Trucks
  • Nikola Corporation
  • Paccar