Fuel Cell Vehicle (FCV) Market Size, COVID-19 Impact Analysis, Regional Analysis, Application Development, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI217
Fuel Cell Vehicle Market size is projected to garner significant gains through 2027, driven by the alarming concerns raised by toxic emissions from petrol and diesel vehicles. Various central governments are now coming up with stringent policies favoring the adoption of fuel cell vehicles, further complementing the business landscape.
Fuel cell vehicles operate on hydrogen, thus making them an economical choice among end-users and consumers. Hydrogen fuel cell vehicles boast of high potential to alleviate emissions related to the transportation sector. The vehicle does not generate any GHG emission during operation unlike diesel-powered or gasoline vehicles. Such advantages are speculated to have a positive impact on overall FCV market share.
Moreover, research and development activities in hydrogen and fuel cells business would further augment the fuel cell vehicle market size over 2021-2027. Citing an instance, the U.S Department of Energy, in 2020, announced its plans of investing up to $100 million over the next five years in two novel DOE National Laboratory-led associations to develop hydrogen and fuel cell technologies.
High initial cost of development is expected to challenge the market growth throughout the analysis period. However, stringent environmental norms and participation of major players in development of these vehicles are likely to offer lucrative growth opportunities for the overall market expansion.
Fuel cell vehicle market from the buses segment is speculated to garner massive gains through 2027. Fuel cells enhance the performance of electric buses by generating power from hydrogen to charge the batteries. Fuel cell electric buses are known to offer a one-to-one replacement for CNG and diesel buses, with no compromise being made in service. Lately, various bus producers and other vehicle makers are looking forward to offering fuel cells busses or pivoting to the business space to expand the market of fuel cell vehicles worldwide. Stating an example, Tata Motors announced receiving order from Indian Oil Corporation to furnish 15 hydrogen fuel cell buses. The latter is expected to use these buses to assess the potential of producing hydrogen-based PEM fuel-cell technology in the Indian sub-continent.
Based on the regional landscape, North America is anticipated to emerge as a remunerative hub for the overall fuel cell vehicle industry. This can be ascribed to the ongoing advancements by various automakers in hydrogen and fuel cell technologies. Nikola, in 2021, publicized its plans for North American fuel cell vehicles. According to reports, the company plans to introduce fuel-cell electric cabover and sleeper trucks in the economies of North America.
Prominent leaders operating in the fuel cell vehicle market space include Acumentrics SOFC, Altergy Systems, Ceramic Fuel Cells Limited, Ballard Power Systems, and BIC Consumer Products. Other market participants are Toyota Motor, BMW, Hyundai Audi, Nissan, and others. These companies are leaving no stone unturned to introduce novel innovations in the space, in an attempt to gain a significant position in the market.
In December 2020, Toyota Motor revealed a long-travelling, sleeker version of Mirai, its hydrogen fuel cell-powered car. The automakers foresee the vehicle as a bridge to a hydrogen powered society.
In yet another instance, Hyundai announced deploying 30 hydrogen fuel cell trucks in the Californian sub-continent by 2023.
COVID-19 pandemic impact on fuel cell vehicle market forecast
The novel coronavirus pandemic explosion has had a severe impact on various industries and businesses. The trillion-dollar automotive industry is no exception to this. Stringent lockdown norms and movement restrictions, production halt, disruption in supply chains, and more added to the decline in automobile sales. This significantly impacted the growth curve of fuel cell vehicle market. However, upliftment of the lockdown regulations and with businesses getting back on track, the future of the market is expected to thrive in 2021 and beyond.
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