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), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Fuel Cell Electric Vehicle Market size valued at USD 1 billion in 2020 and is estimated to grow at over 40% CAGR between 2021 and 2027. Rising consumer awareness related to benefits of healthy air quality and the harmful impacts of vehicular emissions is driving the market growth.
 

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Rising government initiatives and investment to enhance the infrastructure for electric vehicles charging points will propel the market expansion. In 2020, Highway England has announced an investment of around USD 17 million to enhance the charging point every 20 miles in the UK. This will increase the number of charging point locations and connections in the region, accelerating the industry growth of FCEVs.
 

The increasing number of hydrogen refueling facilities coupled with rapid technological advancements are positively influencing the market progression. The rapid adoption of industry 4.0 technologies and automated zero emission machines in the manufacturing sector in Asia Pacific countries is fostering the acceptance of FCEVs. Rapid industrialization and the expansion of production facilities are providing a positive market outlook for product penetration.
 

High investments required for building charging infrastructure is a major market factor challenging the market value of FCEV. Limited availability of well-equipped fuel stations and distribution network capabilities is restricting the industry expansion. However, increasing government and private sector investments in development of hydrogen refueling infrastructure is predicted to reduce the impact of this restraint during the forecast period.
 

The FCEV market was adversely impacted by the COVID-19 pandemic. Government-enforced lockdowns and stringent travel restrictions globally led to supply chain disruptions, shortage of labor and delay in production and delivery of FCEVs. Component and raw material suppliers faced critical issues related to supply of required raw materials to OEMs. The market demand for FCEVs including e-bikes, passenger cars, and heavy-duty trucks declined due to rising financial insecurities among the population. However, the industry witnessed steady recovery post COVID-19 pandemic owing to easing of travel restriction and supportive government policies to boost the usage of hydrogen powered vehicles.
 

Lower refueling time and enhanced efficiency will support the demand for fuel cell automotive vehicles

The automotive segment held 15% of the market share in 2020. The increasing demand for fuel cell automotive vehicles is attributed to their benefits including zero emission, improved efficiency, and lower refueling time compared to electric vehicles. Additionally, continuous support from government organizations to expand revenue share will further play an important role in the industry during the forecast timeframe. Furthermore, the absence of complex mechanical parts and components play a significant role in reducing maintenance costs, thereby augmenting the industry progression of FCEV.
 

High adoption of passenger cars to travel short distances will spur the segment growth

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The short distance segment in the FCEV market is anticipated to register 40% growth rate through 2027 led by the increasing demand for vehicles including e-bikes, tractors, and forklifts across the globe. The growing inclination of consumers toward zero-emission vehicles coupled with the rising spending power is supporting the market for short-distance vehicles such as fuel cell-powered e-bikes.
 

Supportive government initiatives will be stimulating the market revenue in APAC region

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Asia Pacific fuel cell electric vehicle market size is expected to reach over USD 10 billion by 2027, with over 100,000 units of new FCEVs sold. FCEVs are poised to generate considerable rise in the consumer interest owing to higher efficiency compared to traditional gas & diesel-fueled counterparts in Asia Pacific countries. Stringent government rules to curb pollution levels and ban on diesel engines have accelerated the development for alternative fuel vehicles in the region.
 

The APAC region is growing due to strong government policies supporting the acceptance of such vehicles across the country. Moreover, the construction of 1,000 refueling stations to cater to the increasing impelling the industry demand to support one million FCEV’s by 2030.
 

High emphasis of market players on collaborations and partnerships

Major companies operating in the market include SAIC Motor Corporation Limited, Honda Motor Co., Ltd., Toyota Motor Corporation, Volkswagen, Hyundai Motor Group, and Audi AG. Other prominent market leaders include US Hybrid, Nuvera Fuel Cells, LLC, Meritor, Inc., Hydrogenics, Sunrise Power Co. Ltd., Plug Power, Inc., Sunrise Power Co. Ltd., Dana Limited, Ceres Power Holdings Plc, Ballard Power Systems, and Shanghai Shenli Technology Co. Ltd.
 

Participants operating in the industry are adopting various partnerships & collaborations with automotive OEMs and government backed oil & gas corporation to strengthen their foothold in the market.
 

The market research report of 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 2016 to 2027 for the following segments:

Market, By Vehicle

• Heavy Duty Vehicles
• Agriculture
• Buses
• Port Vehicles/Container Handling or Transport
• Automotive
• Class 8/Long Haul
• Others

Market, By Distance

• Long
• Short

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
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa