The challenge of achieving global transport decarbonisation targets has made it clear that the automotive industry cannot rely on any single solution. Hydrogen, whether used as an internal combustion engine (ICE) fuel or in a fuel cell-powered electric vehicle (FCEV), is becoming an increasingly attractive proposition to supplement batteries. Despite this, the hydrogen economy itself presents the greatest barrier to practical implementation.
In 2022, the global green hydrogen market was valued at US$4.5bn, according to Precedence Research. However, one-third of total capacity (20 million tons annually) comes from China alone. By comparison, the US industry produces approximately 691,000 tons—only 3.45% of the former’s contribution. Its relative infancy means that any meaningful growth will require considerable investment in production infrastructure, storage facilities and transport logistics.
Nonetheless, Precedence Research forecasts exponential global market growth over the proceeding decade—US$134.4bn by 2032, a CAGR of 40.6%—and the US is anticipated to rise at a comparable rate (from US$662.2m to US$17.8bn) across the same period. At the heart of this momentum is one key piece of legislation: the Inflation Reduction Act (IRA).