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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
  • Published Date: Feb 2023
  • Report Format: PDF

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.

Fuel Cell Electric Vehicle Market

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

Global Fuel Cell Electric Vehicle (FCEV) Market Volume Share

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.

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.

Fuel Cell Electric Vehicle Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 16
  • Tables & Figures: 395
  • Countries covered: 20
  • Pages: 250
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