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Fuel Cell Electric Vehicle (FCEV) Market Analysis

Report ID: GMI2375
Published Date: Feb 2023
Report Format: PDF

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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.

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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.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of fuel cell electric vehicle (FCEV) crossed USD 2.5 billion in 2022 and is slated to record significant growth at over 25% gains through 2032 owing to the increasing adoption of electric vehicles.

The automotive segment held more than 35% of the revenue share in 2022 and is estimated to witness exponential growth between 2023 and 2032 attributed to rising inclination towards zero-emission hydrogen passenger cars.

The Asia Pacific market is predicted to grow at more than 25% CAGR over the next 10 years due to the growing number of government initiatives that are encouraging low-emission transportation options.

Hyster-Yale Materials Handling, Audi AG, Dana Limited, Toyota Motor Corporation, Ballard Power Systems, US Hybrid, Hyundai Motor Co., Ltd., Hydrogenics, Honda Motor Co., Ltd., Anhui Hell, Plug Power, Inc. and Shanghai Shenli Technology Co., Ltd. are some of the leading enterprises operating in the FCEV industry.