The Global Fuel Cell Electric Vehicles Market is estimated to reach USD 199.4 billion by 2032, up from USD 3.7 billion in 2022. This market will grow at a CAGR of 50.5% over the period 2023-2032. The fuel cell electric vehicles are an important part of the automotive and transportation industry. The demand for fuel-cell electric vehicles has accelerated due to the shift from conventional fuel-powered vehicles to environmentally friendly vehicles. The increasing population is shifting towards renewable fuels and greener technologies to control emissions effectively. This has positively impacted the fuel cell electric vehicles demand in recent years. The increasing awareness of vehicle emissions has prompted manufacturers to develop alternative power-trains to boost the development of the market.
- By Vehicle Type, passenger vehicles dominated the market in 2022.
- By Type, proton exchange membrane fuel cell is anticipated to hold the largest share during the forecast period of 2023 to 2032.
- By Range, the short-range segment dominated over the long-range segment in 2022.
- In 2022, Asia Pacific dominated the market with the highest revenue share of 63.6%.
- Europe will grow at a significant CAGR from 2023-2032.
Various innovations and technological advancements, along with the increasing number of charging stations, are contributing to the growth of the fuel-cell electric vehicles market. Harmful effects of vehicle emissions are inclining individuals towards environmentally friendly vehicles. Also, rapid industrialization and expansion of production capacity are driving global acceptance of fuel-cell electric vehicles. A major challenge for the fuel cell electric vehicle market is the high investment required for electric vehicle charging infrastructure. The government and private sector are investing heavily in fuel-cell electric vehicles. This is boosting the growth of the fuel-cell electric vehicle market.
Factors affecting the growth of the Fuel Cell Electric Vehicles industry
There are several factors that can affect the growth of the fuel cell electric vehicles industry. Some of these factors include:
- Stringent regulations on pollution: many governments across the world are implementing strict rules and regulations to lower the toxic gases emission and reduce the carbon footprint. These initiatives from governments are boosting the global fuel cell electric vehicles market.
- Efficient and low emission: the benefits of fuel cell electric vehicles, like highly efficient powertrain systems for better performance and 0 emissions from the vehicles, are propelling the growth of fuel cell electric vehicles in the market.
- Government Initiatives: private organizations and governments in many countries are heavily investing in the fuel cell electric vehicles market to promote the usage of these vehicles and reduce the carbon footprint of the country.
- High-performance vehicles: fuel cell electric vehicles use a powertrain system, which is said to be a high-performance system in these types of vehicles. Customers are switching to these vehicles owing to their high performance.
Top Trends in Global Fuel Cell Electric Vehicles Market
In order to increase energy efficiency and reduce emissions of pollutants and other greenhouse gases, fuel-cell electric vehicles are in great demand and are quickly becoming a staple of the automotive sector. Governments and environmental organizations have implemented tight emission limits and regulations in response to growing environmental concerns. The price of producing internal combustion engines that are fuel-efficient is anticipated to go up as a result. During the next few years, this will fuel the demand for electric powertrains.
In order to cut emissions and boost sales of fuel-cell vehicles, governments are expected to play a significant role in promoting fuel-cell electric vehicles in many different countries by preparing to outlaw gasoline and diesel vehicles in the next years. Many financing companies are also providing tax breaks and incentives for the purchase of electric automobiles to promote their sales. The market for fuel-cell electric vehicles is anticipated to rise as a result of these measures, which are anticipated to increase demand for electric vehicles.
The benefits of fuel cell electric vehicles, like highly efficient powertrain systems for better performance and 0 emissions from the vehicles, are boosting the market. Fuel cell electric vehicles use a powertrain system which is said to be the high-performance system in these types of vehicles. Customers are switching to these vehicles owing to their high performance. Moreover, private organizations and governments in many countries are heavily investing in the fuel cell electric vehicles market to promote the usage of these vehicles and to reduce the carbon footprint of the country.
The largest revenue share of 63.6% was accounted for by the Asia Pacific region in 2022. Asia Pacific region is the fastest growing market in the global fuel cell electric vehicles market. The growth of this region is attributed to the increasing demand for fuel-cell electric vehicles and strict rules and regulations by the government over the pollution levels of vehicles. Governments in the Asia Pacific region have implemented various rules to decrease the carbon footprint and promote the use of fuel-cell electric vehicles. Governments are investing heavily in the developing infrastructure of electric vehicles in the region.
The competitive landscape of the market has also been examined in this report. Some of the major players include Toyota Motor Corporation, Honda Motors Co. Ltd., Nikola Corporation, Hyundai Motor Group, Ballard Power System Inc., Daimler AG, Volvo AB, BMW AG, General Motors, Audi AG, Volkswagen AG, and Other Key Players.
Factors like better fuel economy and long cruising range are the primary factors in the growth of the fuel cell electric vehicles market. These vehicles have long distance covering capacity in a single charge than the other vehicles in the competition. In a fully charged battery, fuel cell electric vehicles can cover up to 300 miles on a single charge. Improved range distance and efficient fuel economy are attracting customers towards fuel cell electric vehicles. All these factors are propelling the growth of the fuel-cell electric vehicles market.
Governments across the world are promoting the use of fuel-cell electric vehicles in transportation by funding and investing in the development of these vehicles. The demand for fuel-cell electric vehicles is rising in various sectors like automotive and transportation. Fuel cell electric vehicles have a long-distance range, quiet operation, fast refueling, and minimum or 0 emissions. Therefore, fuel cells are widely adopted in the automotive and transportation sectors.
The high cost of fuel cells is a major challenge for the fuel cell electric vehicles market. Fuel cells are manufactured by using bipolar plates, membranes, stacks, catalysts, and gas diffusion layers. In fuel cells, hydrogen atoms are oxidized into protons and electrons, and the chemical reactions are supported through the use of catalysts. Platinum is commonly used as a catalyst in some fuel cells used in automobiles. Platinum is one of the most expensive of all metals. Catalysts account for a large proportion of the total cost of fuel cells. This makes fuel cells more expensive than other batteries on the market.
Fuel-cell electric vehicles have an average range of 300 miles. These factors are attracting customers towards fuel cell electric vehicles and thereby increasing the demand for these vehicles. This is expected to create many opportunities in the global fuel cells electric vehicles market. The development of hydrogen fuel infrastructure is supported by investments from the government and private sectors. Fuel cell electric vehicles are more efficient than their competitors, and they have much shorter refueling time with better distance covering range than the other vehicles in the competition. Moreover, Fuel cell electric vehicles solve the problems faced by battery-integrated electric vehicles. These factors attract customers to switch to electric vehicles and, thereby, boost the growth of the fuel-cell electric vehicles market.
Report Segmentation of the Fuel Cell Electric Vehicles Market
Vehicles Type Insight
The wide adoption of passenger vehicles in countries like South Korea and Japan has made the passenger vehicles segment dominate this market with a major revenue share in the account in 2022. Many governments in the world are promoting the use of renewable and low-emission fuel sources for vehicles due to decreasing reserves of fossil fuels and increasing the price for it. These factors are predicted to propel the growth of the passenger vehicles segment in the fuel-cell electric vehicles market.
Light commercial vehicles are anticipated to grow significantly during the forecast period. The growth of this segment is attributed to the rising use of these vehicles in the transportation supply chain. Many companies are promoting the use of fuel cells instead of a battery to increase the efficiency of vehicles.
The proton exchange membrane fuel cells segment is anticipated to dominate the fuel cell electric vehicles market in 2022. The growth of this segment is due to it offers features like higher power density, shorter start-up times, and lower operating temperatures than other types.
The fuel cell electric vehicles market is divided into short-range and long-range on the basis of range. From this range, the short-range segment is expected to grow at a significant rate during the forecast period. Rising demand for low emissions in everyday transportation vehicles is driving more demand in the short-range segment than in the long-range segment. The short-range segment is mainly used for short-distance transportation like shipment and goods transport at airports and shipyards. Many manufacturing companies of fuel cell electric vehicles in the short-range segment are focused on developing these vehicles in order to reduce the carbon footprint in the environment.
By Vehicles Type
- Passenger Vehicles
- Light commercial vehicles
- Heavy commercial vehicles
- Polymer Electrolyte Membrane Fuel Cell (PEMFC)
- Proton Exchange Membrane Fuel Cell
- Phosphoric acid Fuel Cell
- Other Types
- Short Range
- Long Range
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
Market Key Players:
- Ballard Power System Inc.
- Volvo AB
- General Motors
- Honda Motors Co. Ltd.
- Nikola Corporation
- Toyota Motor Corporation
- BMW AG
- Hyundai Motor Group
- Daimler AG
- Volkswagen AG
- Audi AG
- Other Key Players
Recent Development of the Fuel Cell Electric Vehicles Market
- In June 2022, Woven Planet and Toyota partnered to develop the new Portable Hydrogen Cartridge Prototype.
- Daimler trucks and Volvo AB collaborated in 2021 to develop hydrogen fuel cells.
- In December 2021, the United States president signed a bill to invest in the hydrogen industry to reduce toxic emissions and reduce carbon footprint.