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), By Distance (Short, Long), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026
Published Date: Sep 2020 | Report ID: GMI2375 | Authors: Preeti Wadhwani, Prasenjit Saha
Industry Trends
Fuel Cell Electric Vehicle Market size exceeded USD 1 billion in 2019 and is expected to grow at 38% CAGR from 2020 to 2026. Increasing consumer awareness related to healthy air quality and harmful effects of vehicular emissions is driving the industry growth.
Growing investments from local & state governments in the development of hydrogen refueling infrastructure is boosting the FCEV market demand. According to the industry update, in February 2018, the U.S. Department of Energy (DOE), in a public-private partnership with FCEV OEMs launched the H2USA initiative to establish a robust hydrogen refueling infrastructure to encourage environmental friendly transportation options.
Get more details on this report - Request Free Sample PDF
Rapidly changing technology landscape is providing robust growth opportunities to the FCEV industry. Advancements in the field of Polymer Electrolyte Membrane (PEM) technology allow fuel cells to operate at a lower temperature and offer a quick start to FCEVs, contributing to the market growth trends.
PEM cells allow fuel cell electric vehicles to work efficiently by eliminating electrode migration, liquid handling, and electrode replenishment problems. The ability of PEM cells to reduce the overall vehicle weight and enhance the performance of FCEVs is supporting the market outlook through 2026.
The high costs and initial investments associated with fuel cell electric vehicles are one of the prominent factors restricting the market growth. The incorporation of advanced technologies and high cost components into FCEVs increases the risks of failures and adds to maintenance and repair costs.
Market players are currently focusing on reducing the initial costs of fuel cell electric vehicles by introducing low-end variants for targeting a broad customer base. Further reductions in the cost of critical components such as batteries will minimize the impacts of the industry challenges.
The FCEV market is projected to witness a sluggish growth until the first half of 2021. Market analysis and trends attribute the stagnant demand for FCEVs to the plummeting automobile sales due to the COVID-19 pandemic. The pandemic has led to huge financial losses, causing a steep decline in consumers’ spending capacity. High cost of fuel cell electric vehicles coupled with rising financial insecurities among customers is restricting the market expansion. The pandemic has also hampered the production capacity of manufacturers, causing a wide demand-supply gap in the industry.
Report Coverage | Details | ||
---|---|---|---|
Base Year: | 2019 | Market Size in 2019: | 1 Billion (USD) |
Historical Data for: | 2016 to 2019 | Forecast Period: | 2020 to 2026 |
Forecast Period 2020 to 2026 CAGR: | 38% | 2026 Value Projection: | 14 Billion (USD) |
Pages: | 235 | Tables, Charts & Figures: | 317 |
Geographies covered (20): | U.S., Canada, UK, Germany, France, Sweden, Italy, Norway, Spain, Netherland, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE, South Africa | ||
Segments covered: | Vehicle, Distance | ||
Companies covered (16): | Ballard Power Systems, Nuvera Fuel Cells, LLC, Meritor, Inc., US Hybrid, Hydrogenics, Dana Limited, Sunrise Power Co. Ltd., Plug Power, Inc., Ceres Power Holdings Plc, Shanghai Shenli Technology Co. Ltd., Toyota Motor Corporation, Honda Motor Co. Ltd., Hyundai Motor Company, Audi AG, Volkswagen AG, SAIC Motor Corporation Limited | ||
Growth Drivers: |
|
||
Pitfalls & Challenges: |
|
Get more details on this report - Request Free Sample PDF
Supportive government initiatives driving the automotive FCEV market
The automotive segment valued at USD 670 million in 2019 and is poised to register over 35% growth rate through 2026 propelled by the increasing demand for low emissions and low-noise mobility solutions.
Supportive government initiatives such as subsidies offered on the purchase of FCEVs are driving the adoption of electric cars and bikes powered by fuel cells. Moreover, market leaders are launching low-cost hydrogen-powered electric passenger cars to attract consumers.
Increasing demand for short range FCEVs in diversified applications
Get more details on this report - Request Free Sample PDF
The market size of the short distance segment will expand at a CAGR of 38% during the forecast period. Increasing demand for low-emission fuel cell electric vehicles such as bikes and scooters for short distance travels is contributing to the escalating adoption of FCEVs across the globe. Additionally, growing usage of such vehicles across diversified applications including material handling and transportation of goods in ports will provide a positive market outlook.
In response to the growing demand, FCEV industry players are launching new models in the market. For instance, in June 2019, Engie Solutions in partnership with Metropole de Nice, launched a hydrogen fuel cell-powered electric bike. Such innovative launches are expected to enhance the market penetration.
Policies and government support fueling the Asia Pacific market size
Get more details on this report - Request Free Sample PDF
The Asia Pacific FCEV market revenue was over USD 770 million in 2019. The market led by Japan and China will foresee significant growth with increasing fuel cell stack shipments for the transport industry. Global industry players including Hydrogenics and Ballard are collaborating with Chinese manufacturers to develop innovative fuel cell modules and technology. Further, initiatives such as deployment of zero-emission vehicles in events, such as Tokyo summer games 2021, will positively influence the regional market statistics.
The growth of APAC market has been backed by government policies such as exemption of purchase taxes by government authorities in South Korea, India, and Japan. The introduction of “dual-credit policy” in China in 2018 encourages automobile manufacturers to produce a minimum number of FCEVs per year, further contributing to the market demand.
Partnerships and collaboration are the key strategies adopted by industry players
Manufacturers of FCEVs are laying a strong emphasis on partnerships and collaborations with automobile OEMs to improve their market representation. For instance, in June 2020, Toyota formed a joint venture with five companies for the development of fuel cells in China. The companies in the joint venture are Beijing Automobile Group Co., China FAW Corp., Dongfeng Motor Corp., Guangzhou Auto, and Beijing SinoHytec Co. This joint venture is named the United Fuel Cell System R&D and has attracted an initial investment of USD 46 million.
Market players are also emphasizing on the development of electric vehicle technologies in collaboration with other industry players to strengthen their foothold in the market. For instance, in January 2020, the Honda Motor Co. Ltd. collaborated with Isuzu Motor Ltd. to conduct joint research on fuel-cell-powered heavy-duty trucks. Through this strategic collaboration, the company aims to introduce a prototype model in two years and conduct road tests.
Key players operating in the FCEV market include Toyota Motor Corporation, Honda Motor Co., Ltd., Hyundai Motor Group, Audi AG, Volkswagen, and SAIC Motor Corporation Limited. Other prominent players include Ballard Power Systems, LLC, Meritor, Inc., US Hybrid, Nuvera Fuel Cells, Hydrogenics, Sunrise Power Co. Ltd., Dana Limited, Plug Power, Inc., Shanghai Shenli Technology Co. Ltd. and Ceres Power Holdings Plc.
This market research report on fuel cell electric vehicle (FCEV) includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipment in units from 2020 to 2026 for the following segments:
Market, By Product
- Heavy Duty Vehicles
- Agriculture
- Buses
- Port Vehicles/Container Handling or Transport
- Automotive
- Class 8/ Long haul
- Others
Market, By Distance
- Short
- Long
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Sweden
- Norway
- Asia Pacific
- China
- India
- Japan
- South Korea
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- Saudi Arabia
- UAE
- South Africa
Frequently Asked Questions (FAQ) :
Buy Now
Need a Discount? Get in touch with us for special pricing
Request DiscountConnect with our sales team
- Phone: 1-302-846-7766
- Toll Free: 1-888-689-0688
- Email: sales@gminsights.com
- Chat With Us: Click here to start
Premium Report Details
Get a report that explains COVID-19 impact on this market, request a free sample now
Benefits of Association
Data Coverage & Quality
GMI reports provide the most comprehensive coverage of any focus industry, ensuring a holistic and deep understanding of the market, along with actionable and granular data. We also take pride in our commitment to quality and strive to ensure that our clients get their moneys worth.
Client Trust & Security
GMI maintains strict code of conduct as a business and is committed to ensure that the privacy and trust of our clients are always maintained. As an organization, we also strive to be fully compliant with privacy laws, PCI and information security guidelines.
Customer Service
Our customers rely on us to produce accurate, reliable and timely information. Service orientation is a key mission for us as an organization; our process is guided by the desire to ensure that our clients are provided the best possible solutions in optimal timeframe. GMI stands by its commitment to service, providing timely assistance in both pre-sales and post-sales support for our clients.
GMIPulse, our report store
We have introduced ‘GMIPulse’, which is our report store; designed to offer clients a one-stop platform for all market research and business intelligence requirements. Clients can access reports, presentations, raw data excel sheets as well as detailed company profiles. GMIPulse allows you to track relevant industries and stay informed with latest innovation, competitive and regulatory developments to help design strategic framework.