Fuel Cell Electric Vehicle (FCEV) Market Analysis

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.
 

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.