Fuel Cell Electric Vehicle (FCEV) Market Size by Vehicle (Heavy Duty Vehicles, Agriculture, Buses, Port Vehicles/Container Handling or Transport, Automotive, Class 8/Long Haul, Forklift, E-Bikes), By Distance (Short, Long) & Forecast, 2023 - 2032
Report ID: GMI2375
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Published Date: February 2023
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Report Format: PDF
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Base Year: 2022
Companies covered: 16
Tables & Figures: 395
Countries covered: 20
Pages: 250
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Fuel Cell Electric Vehicle (FCEV) Market
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Fuel Cell Electric Vehicle Market Size
Fuel Cell Electric Vehicle Market size exceeded USD 2.5 billion in 2022 and is projected to expand at more than 25% CAGR from 2023 to 2032 driven by the rising adoption of electric vehicles globally.
In the wake of the climate catastrophe, renewable energy is increasingly becoming a mainstream energy source. As governments adopt advantageous regulations, subsidies, and tax incentives to boost investor engagement in renewable energy production, many investors are exploring untapped markets, which is expected to support industry growth. Furthermore, pollution-reduction programs and government laws prohibiting the use of diesel engines have encouraged manufacturers to cut carbon emissions and increase fuel economy in vehicles, prompting automakers to begin focusing on FCEV.
The development of hydrogen fueling stations and electric vehicle charging stations, which is a key focus of top industry players, coupled with significant government investment, is also predicted to propel business expansion. In December 2020, the California Energy Commission authorized a USD 115 million investment plan to build up to 111 new hydrogen fueling stations in the state by 2027 to serve hydrogen fuel cell electric cars (FCEVs). Similarly, in September 2021, GreenCore collaborated with Loop Energy to work on the design and implementation of hydrogen-powered fast-charging stations in order to combat "range anxiety" and increase the viability of electric vehicles.
High FCEV production costs may limit product uptake
Raw material and manufacturing costs of fuel cell stacks increase the overall cost of FCEVs, which will restrain FCEV market growth. This high price is attributed to the use of precious metals, including platinum and iridium, as catalysts in the fuel cell stack production process. The limited availability of well-equipped fuel stations is also restricting industry progression. However, ongoing infrastructure development programs and investments in renewable energy sources are set to help manufacturers overcome this restraint through the forecast timeline.
Fuel Cell Electric Vehicle Market Analysis
In terms of vehicles, the automotive segment held over 35% share of the fuel cell electric vehicle market in 2022. Fuel cell-powered vehicles have various advantages over electric vehicles, including cheaper maintenance costs, quicker recharging, longer range, and zero emissions. As the sector continues to explore alternative fuel technologies, industry participants are entering new markets with the goal of offering revolutionary mobility solutions in terms of both human-centric technology and sustainability, which is slated to drive segment growth. To quote an instance, in January 2023, automotive firm MG Motor India debuted its third-generation hydrogen fuel cell technology at the Auto Expo 2023, which can be utilized in fuel-cell passenger vehicles and other vehicle platforms.
The short distance segment accounted for 90% of the fuel cell electric vehicle market share in 2022. Hydrogen vehicles provide a longer range than fully electric vehicles. Rising customer preference for EVs has increased the popularity of electric two-wheelers and E-bikes for short-distance travel due to the creative design, ease of use, and low environmental effect. Moreover, the advent of upgraded fuel cell systems is projected to contribute to sector growth through 2032. To cite an instance, in September 2022, Loop Energy, a hydrogen fuel cell producer, showcased its innovative 120 kW fuel cell system at IAA Transportation 2022, which can achieve fuel-cost parity with diesel up to eight years earlier.
Asia Pacific FCEV market is anticipated to witness nearly 25% growth rate through 2032 owing to prominent government initiatives encouraging low-emission transportation options. In October 2020, the Chinese government announced incentives for firms developing core fuel cell technology to strengthen the country's position in the production of hydrogen-powered automobiles. Carmakers are increasingly using new technologies for fuel cell electric cars (FCEVs) and also for commercial vehicles including construction equipment, thereby impelling regional business growth. In February 2023, Japan's Honda Motor Co. stated its plans to co-develop a new hydrogen fuel cell system with General Motors Co., to boost its hydrogen business.
Fuel Cell Electric Vehicle Market Share
The competitive landscape of the global fuel cell electric vehicle market consists of major companies, such as
These firms are concentrating on strengthening their market presence by focusing on product innovation.
Impact of COVID-19 pandemic
The COVID-19 pandemic and measures implemented to mitigate its negative repercussions have had an impact on nearly all industries as well as the global economy. Notably, transportation has been one of the most affected industries. In general, the global automotive market has suffered as a result of macroeconomic conditions, particularly for electric vehicles, which remain heavily reliant on financial assistance. While the COVID-19 outbreak has taken a heavy toll on automakers, the EV sector is thriving as entrepreneurs innovate to restore operations in the post-pandemic scenario. Additionally, governments around the world are assisting businesses to continue their operations, which is poised to further promote business progression.
The FCEV market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD and shipments in Units from 2018 to 2032, for the following segments:
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Market Insights, By Vehicle
Market Insights, By Distance
The above information has been provided for the following regions and countries: