Fuel Cell Vehicle Market: Overview
The market size for the fuel cell vehicle market was USD 1029.4 million in 2021, and it is projected to grow at a CAGR of 47.5 percent during the forecast period. The onboard electric motor of hydrogen fuel cell vehicles is powered by a hydrogen fuel cell. Electricity is produced using a hydrogen fuel cell powered by hydrogen. Vehicles powered by hydrogen fuel cells have a great potential to cut emissions in the transportation industry. Unlike vehicles powered by diesel and gasoline, this one does not emit greenhouse gases (GHG) while in motion. Due to growing worries about environmental deterioration and the depletion of natural resources, many technologies promoting the eco-friendly idea of sustaining the environment are being introduced to the market. Furthermore, while hydrogen fuel cell vehicles are more environmentally friendly than other conventional vehicles, they are becoming more popular due to rising levels of traffic, increased greenhouse gas emissions, and increased awareness of the effects of air pollution.
The various governments have implemented several policies to address environmental issues. For instance, to fulfill its goal of 1.5 million zero-emission vehicles by 2025, the U.S. state of California committed funds to create 100 hydrogen filling stations, propelling the market for hydrogen fuel cell vehicles. Because it is a fossil fuel, gasoline cannot be renewed as an energy source and will eventually run out. Creating and employing alternate fuel sources to promote sustainable growth is critical. This comprises the use of electric and hydrogen fuel cell vehicles, which are more cost-effective than conventional automobiles and do not require gasoline. The efficiency of hydrogen fuel cell vehicles is 60–70% higher than that of hybrid and internal combustion engine automobiles. Due to the recent increase in the price of gasoline and diesel, there is a greater demand for fuel-efficient automobiles.
The market for fuel cell vehicles is currently in its early stages of development and expansion; thus, initial costs and risks are high. A few vehicles from Toyota Motor Corporation, Honda Motor Corporation, and Hyundai Motor Group are currently operating in some particular places, but many technologies are still in the experimental stage. Based on their previous prototypes, European automakers like BMW AG and Audi are creating fuel cell vehicles with a later launch date. Renault made the hydrogen fuel cell-powered SUV prototype. The 16kW fuel cell in the Scenic Vision SUV will assist increase the vehicle's driving range to 800 kilometers without recharging. The carbon footprint will be decreased by 75% compared to the conventional electric vehicle model, and the battery will be lightweight. The French automaker's model won't be accessible. By 2024, the business will introduce its all-electric model.
Fuel Cell Vehicle Market: COVID-19 Impact
The COVID-19 epidemic shut down the entire ecosystem and stopped the production and distribution of ground-breaking cars worldwide. Manufacturing operations for fuel cell vehicles were impacted since they had to stop expanding until the lockdowns were lifted. Due to the need to alter manufacturing levels for the car industry, final deliveries were delayed, and sales decreased. The automobile industry is also renowned for requiring significant expenditures and ongoing finance to be viable. This led to a suspension of manufacturing in the early stages of the pandemic, and the decline in demand hurt fuel cell vehicle makers and automotive fuel cell, manufacturers. However, the financial flow for sales and investments resumed as soon as the pandemic faded. The production of cars began to accelerate as soon as the financial resources stabilized. This motivated manufacturers of automobile fuel cells to pick up their research, development, and testing again, which helped the market expand.
Fuel Cell Vehicle Market: Drivers
Rise in Demand for Automobiles with Low Emissions, Great Performance, and Fuel Efficiency Drives Market Growth
Because it is a fossil fuel, gasoline cannot be renewed as an energy source and will eventually run out. Creating and employing alternate fuel sources to promote sustainable growth is critical. This comprises the use of electric and hydrogen fuel cell vehicles, which are more cost-effective than conventional automobiles and do not require gasoline. For instance, a gas-powered vehicle only manages to convert roughly 17%–21% of the energy stored in gasoline. In contrast, an electric vehicle transfers over 50% of the electrical energy from the grid to power at the wheels. Due to the recent increase in the price of gasoline and diesel, there is a greater demand for fuel-efficient automobiles. The depletion of fossil fuel reserves and the rising desire of businesses to maximize profit from these oil reserves have contributed to this.
Future Hydrogen Fuel Cell Plans are Quite Ambitious, Driving the Market's Expansion
Toyota, a pioneer in the automobile business, has presented ambitious ideas for a hydrogen fuel cell-powered future city. According to the corporation, the city would be situated in Japan at the foot of Mount Fuji, and its residents would include scientists, researchers, employees, and their families. Despite this, it is anticipated that demand for hydrogen fuel cell vehicles will increase. Additionally, when manufacturing costs are reduced, new opportunities will inevitably arise in the future, ushering in a new era of transportation.
Fuel Cell Vehicle Market: Restraints
High Initial Infrastructure Costs Impede Market Expansion
Powertrains that use hydrogen fuel cells are available that don't generate harmful pollutants like nitrogen oxides and particulate matter or greenhouse gases from their tailpipes. This function encourages vendors to use this technology. However, it is anticipated that the high cost of raw materials, including platinum for the fuel cell anode and carbon fiber for producing hydrogen fuel tanks, will restrain the market's expansion.
Fuel Cell Vehicle Market: Segment Overview
To Boost Efficiency, Fuel Cell Vehicle Market is Expanding its Applicability to Heavy Commercial Vehicles
Hydrogen fuel cell vehicles are extending their use to big commercial trucks to boost the economy. For instance, Hyzon Motors Inc., a significant global player in developing commercial vehicles powered by hydrogen fuel cells and emitting zero emissions, recently announced the development of a hydrogen storage system technology that can reduce the weight and manufacturing costs of the commercial vehicle. The new technology, which has not yet received a patent, can reduce the number of manufacturing components used by 75%, the system's weight by 43%, and the system storage cost by 52%. This concept is based on a single rack system that can hold five hydrogen cylinders at once and uses lightweight composite material for the system metal print.
Polymer Electrolyte Membrane Fuel Cell Dominate Market due to its High Power Density
Based on Type, the market is divided into proton exchange membrane fuel cell, phosphoric acid fuel cell, polymer electrolyte membrane fuel cell (PEMFC) and others. The PEMFC is dominating the segment. Features such as less start-up time, and lower working temperature, among others, will help it dominates the segment.
Fuel Cell Vehicle Market: Regional Landscape
Asia-Pacific to Dominate market due to Passenger Car Market Expansion
In terms of revenue, Asia Pacific accounted for more than 65% of the market in 2021. The main driver of this region's passenger car market expansion is the rising number of auto sales in nations like South Korea and Japan. The market in this region is expanding due to government measures in Japan to use fuel cell vehicles and to assist consumers by providing subsidies for the purchase of vehicles. Government programs encouraging the use of fuel cell cars and offering customer assistance in the form of vehicle subsidies in Japan are both boosting the market's expansion in this area. As an illustration, in November 2021, a mandate from China's development and reform commission called for producing 5,000 hydrogen fuel cell vehicles for intercity logistics, buses, and port transportation by 2025. As a result, it is projected that the blooming development of clean energy in the automotive industry will propel the expansion of the fuel cell vehicle market over the forecast period.
Europe is anticipated to have the greatest CAGR during the projection period, followed by the Asia Pacific. Integrating fuel cell systems and fuel cells in passenger and commercial vehicles is a constant focus of major businesses in the European areas. For instance, the European Daimler company announced plans to add electric and hydrogen fuel-powered vehicles to their lineup by 2030 May 2022. Additionally, France's extensive use of commercial vehicles for public and governmental purposes promotes market expansion.
Fuel Cell Vehicle Market: Competitive Landscape
Before releasing its second-generation fuel-cell vehicle, the Mirai FCEV, in March 2021, Toyota Corporation unveiled a new hydrogen production plant and refueling station at its shuttered auto factory in Melbourne, Australia. The facility has an on-site 100-kilowatt battery and an 84-kilowatt solar array that can power a 200-kilowatt electrolyzer together. Toyota Motor Corporation and Beijing SinoHytec announced a joint venture in March 2021 to manufacture hydrogen fuel cell cars for the Chinese market. According to a joint announcement, the two businesses plan to contribute 72 million USD to Huafeng Fuel Cell Co. Ltd. The company's first vehicle, which is expected to go into production in 2023, will be based on Toyota's MIRAI hydrogen fuel cell vehicle.
Few of the Fuel Cell Vehicle Market players include Ballard Power Systems Inc., BMW Group, Audi AG, Honda Motor Co Limited, Daimler AG, Volvo Group, Toyota Motor Corporation, General Motors Company, American Honda Motor Co., Toshiba, Man Se.
Regional Classification of the Global Fuel Cell Vehicle Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Fuel Cell Vehicle Market
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