Report

Global automotive fuel cell powertrain market is projected to witness a CAGR of 25.35% during the forecast period, 2025-2032, growing from USD 1.08 billion in 2024 to USD 6.59 billion in 2032. The transition to sustainable mobility, emissions controls, and the rising need for zero-emission transport solutions are driving the global automobile fuel cell powertrain market. Growing investment in hydrogen infrastructure and growing fuel cell efficiency and durability are also driving adoption.
Automakers are incorporating fuel cell vehicles (FCVs) to complement battery-electric vehicles, particularly for applications requiring long-range and fast refueling. Government green targets and business green targets also propel market growth. As an innovative technology, fuel cell powertrains transform hydrogen into clean electricity to propel automobiles without compromising performance. With the ability to provide longer ranges and quick refueling, they have become a realistic solution for passenger automobiles, commercial trucks, and buses. The evolution of the hydrogen economy, driven by collaboration among auto manufacturers, energy providers, and policymakers, is becoming increasingly likely in fuel cell mobility.
As the transport industry transitions towards decarbonization, fuel cell powertrains are increasingly included in the electrification strategy. Their addition to heavy-duty and long-haul usage proves they can assist in overcoming the limitations that battery-electric technology is unable to overcome, as economies of scale and continued innovation drive the market for fuel cell powertrains towards steady growth, where a central role to be played in clean and fuel-efficient transport in the future.
For instance, in February 2025, Toyota Motor Corporation (Toyota) developed a new fuel cell (FC) system, its third-generation fuel cell system (3rd Gen FC System), as part of its continued efforts toward the realization of a hydrogen society. The all-new 3rd Gen FC System is designed to meet the needs of the commercial sector with the same durability as conventional diesel-powered engines.
Strategic Alliance Advances High-Power Hydrogen Powertrains for Heavy-Duty Applications
Strategic collaboration among leading auto and energy companies is accelerating the advancement of high-power hydrogen fuel cell systems for heavy-duty transportation. The collaboration aggregates deep technology experience in fuel cells, hydrogen generation, and vehicle integration to deliver powertrain solutions for trucks, buses, and off-highway equipment. With an effort for efficiency, durability, and scalability, the collaboration aims to respond to the critical need for zero-emission solutions in long-haul and high-use applications. This effort lends momentum to mobility based on hydrogen, propelled by growing fueling infrastructure and facilitating regulatory regimes. The collaboration will propel commercialization, presenting fleet operators with a credible roadmap to decarbonization without harming performance or transport flexibility in stringent transport markets.
For instance, in August 2024, NUVERA FUEL CELLS, LLC, partnered with UK-based Viritech Ltd. through an MoU to advance hydrogen powertrains for commercial vehicles. With joint testing and technical collaboration, Nuvera will supply its E-Series Fuel Cell Engines for integration into Viritech's VPT60N powertrain. The alliance aims to develop a high-power-density fuel cell system (up to 8kW/L) using Nuvera's stack tech, targeting aerospace, motorsports, and automotive sectors.
Next-Gen Hydrogen Mobility Drives Advanced FCEV Development
The fuel cell powertrain market is undergoing transformative development as next-gen hydrogen mobility technologies redefine clean mobility. Car makers and tech companies are introducing landmark innovations in fuel cell systems with increased efficiency, improved durability, and cost parity in terms of the total cost of ownership. These technologies majorly impact commercial transportation, with hydrogen powertrains allowing for long-range operations with no emissions. Complementary regulatory environments and growing investments in the manufacture of green hydrogen are powering infrastructure development, forming a good ecosystem for the adoption of fuel cells. As fleet operators and logistics companies focus more on decarbonization, hydrogen automobiles are a strategic choice over diesel and battery-electric options. With continued R&D and intra-industry collaboration, fuel cell powertrains will be in the middle of the sustainable mobility matrix in passenger and light business vehicle markets.
For instance, in September 2024, BMW AG announced that its first mass-market fuel cell electric vehicle (FCEV) would be in production in 2028, complementing its line of zero-emission vehicles. The strategic risk plays on the synergies in BMW's partnership with Toyota in unifying their technological strengths for next-generation fuel cell technology as a gamble to provide an attractive hydrogen-powered proposition to battery EVs. The partnership aims to overcome cost and infrastructure barriers, delivering customers with greater ranges and faster refueling, premium mobility's most significant advantage. It is a significant step towards BMW's multi-powertrain approach, firmly establishing hydrogen as a choice alongside its electric lineup.
Passenger Vehicles Lead the Fuel Cell Powertrain Market
The majority of the fuel cell powertrain market is acquired by passenger vehicles by vehicle type segment, as auto manufacturers continue to compete to offer hydrogen-fueled sedans and SUVs because of rigid emissions controls and changing consumer tastes for cleaner-burning vehicles. The luxury names that are pioneering the effort, adding advanced fuel cell technology that combines zero-emission performance without trade-offs in driving range or refueling ease. Government incentives and the establishment of hydrogen refueling infrastructure in major markets are also driving environmentally aware consumers' adoption. The leadership of the segment is supported by ongoing improvements in system efficiency and cost, enabling fuel cell vehicles to become increasingly competitive relative to traditional and battery-electric options. Passenger cars will remain the driving force as urbanization and clean air measures continue accelerating, driving innovation and commercialization of the hydrogen mobility market.
For instance, in February 2025, Honda Motor Co., Ltd. unveiled its next-generation fuel cell module, marking rapid progress since the CR-V e:FCEV's mid-2024 launch. This fuel cell is a successor to the current model Honda co-developed with General Motors (GM); this fully in-house system delivers 150kW output while slashing production costs by 50% and doubling durability. Most notably, it triples the volumetric power density leap in compact efficiency. This breakthrough could accelerate FCEV adoption by addressing cost, longevity, and space constraints, positioning Honda as a leader in hydrogen mobility innovation beyond its current SUV applications.
Asia-Pacific Leads the Global Fuel Cell Powertrain Market
Asia-Pacific market has become the leading region in the fuel cell powertrain business, led by forward-looking governments, heavy investment in R&D, and vibrant industrial bases. India, Japan and South Korea are front-runners here, with both local automakers and tech players leading the innovation in advanced fuel cell vehicles and rolling out infrastructure for them. The Chinese government's drive towards hydrogen mobility, supported by incentives and demonstration-at-scale activities, further guarantees the region a high demand. With expanding hydrogen refueling networks and rising adoption in the passenger and commercial vehicle markets, Asia-Pacific is acquiring the highest demand in terms of volume and value in the fuel cell powertrain market. The strategic focus of the companies on clean energy transition and strong public-private partnerships makes it the center of fuel cell powertrain expansion.
For instance, in March 2024, Hyzon Motors Inc. launched its single stack 200kW fuel cell system and powertrain in a vehicle. The vehicle � Hyzon's 200kW Prime Mover, the Australian term for a heavy-duty commercial truck designed to tow a semi-trailer � was officially unveiled at the Kangan Institute's Automotive Centre of Excellence (ACE) in Melbourne.
Future Market Scenario (2025 � 2032F)
� Next-gen fuel cells will achieve higher efficiency and lower costs, making FCEVs competitive with BEVs. Material innovations and scaled production will drive performance parity.
� Global hydrogen refueling networks will multiply, supported by public-private investments. Strategic placement along freight corridors will boost commercial adoption.
� Fuel cells will expand beyond automotive into aviation, marine, and stationary power. Heavy-duty sectors will lead initial large-scale deployments.
� Stricter carbon regulations and green hydrogen mandates will accelerate FCEV adoption. National hydrogen strategies will create regional market hotspots.
Key Players Landscape and Outlook
The global fuel cell powertrain market features intense competition among established automakers, specialized technology firms, and energy giants. Industry leaders dominate with mature FCEV platforms, while innovative players such as Ballard Power Systems and Cummins drive advancements in fuel cell stack technology. Strategic collaborations between automakers and hydrogen infrastructure providers are reshaping the ecosystem, with joint ventures accelerating commercialization. Chinese manufacturers are rapidly expanding their footprint through government-backed initiatives. The competitive arena is further enriched by startups focusing on niche applications and cost optimization. As the market evolves, differentiation through technological superiority, supply chain integration, and strategic partnerships will determine market leadership in this high-growth sector.
For instance, in March 2025, Viritech Ltd. launched a feasibility study, backed by UK government funding, to explore hydrogen fuel cell range extenders (REX) for electric on/off-highway vehicles. Currently limited to heavy commercial use, the project assesses portable FC systems for light-category (L-Cat) vehicles, aiming to extend range while meeting automotive regulations. Supported by the Advanced Propulsion Centre, this initiative could unlock new applications for niche mobility, from off-road EVs to compact utility transport. If successful, it would mark the first scalable hydrogen REX solution for lighter vehicles, bridging a critical gap in zero-emission versatility.
Viritech is actively seeking to engage with L-Cat vehicle OEMs and last-mile delivery operators to discuss how the FC REX powertrain can support their specific requirements.