Fuel Cell Electric Vehicles (FCEV) Market size is slated to surpass USD 15 billion by 2027, according to a new research report by Global Market Insights Inc. The global shipments are expected to surpass around 200,000 units by 2027.
Supportive government initiatives to promote the increasing usage of hydrogen fuel cell vehicles along with reducing the dependency on conventionally fueled vehicles is providing a positive outlook for the industry expansion. The deployment of fuel cell buses for improving the public transportation systems coupled with increasing incentives for automobile OEMs for developing advanced FCEVs is poised to enhance market growth.
Technological advancements in fuel cells are significantly contributing toward reducing the overall operating cost and increasing vehicle efficiency. Growing shift toward green transportation and the reduction in greenhouse emission levels are augmenting the fuel cell electric vehicles market share. Increasing preferences for the development of fuel cell electric buses, hydrogen refueling infrastructure, and renewable hydrogen production are further escalating the demand.
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The availability of a limited product portfolio of vehicles from major companies is restricting the industry outlook. For instance, Toyota Mirai is among the few major fuel cell vehicle models available commercially across the globe. Moreover, the high cost compared to the conventionally fueled and electric-powered counterparts is playing a major role in limiting its sales of FCEV.
Analyst view: “Rapid advancements in fuel cell production technologies will drive the adoption of FCEVs. Deployment of advanced fuel cells in electric vehicles is likely to increase the refueling range of the vehicles, contributing to the market size.”
The COVID-19 pandemic posed numerous challenges to the automobile industry in 2020. Market factors such as rapid rise in unemployment and reduction of consumer disposable income contributed to decline in sale of FCEVs during the pandemic period. High initial and operating costs of FCEVs adversely impacted the demand for FCEVs in 2020. However, with revival of economic activities from the last quarter of 2020, the industry players are witnessing steady growth. Supportive government measures and rise in demand for FCEV will propel the market statistics.
High demand for FCEV buses in public transport
The fuel cell electric buses segment is anticipated to register around 50% gains through 2027. Impelled by an increasing focus of the governments on improving public transportation globally. For instance, in April 2020, the Ministry of Power, Indian Government and NTPC Ltd. launched a hydrogen fuel bus and car project for Leh & New Delhi. The government have introduced global Expression of Interest (EoI) to provide 10 hydrogen fuel cell electric buses.
Browse key industry insights spread across 200 pages with 294 market data tables & 23 figures & charts from the report, “Fuel Cell Electric Vehicles (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” in detail along with the table of contents:
High focus of industry participants on improving driving range and refueling time
The long range hydrogen-powered electric vehicle segment is predicted to reach USD 1.5 billion by 2027. Limited distribution infrastructure is leading to increasing demand for vehicles with high refueling range. Further, passenger vehicle manufacturers are developing automobiles that can travel over 300 miles coupled with efficient powertrain.
Stringent regulations to reduce carbon emission in Europe
The European fuel cell electric vehicles market is projecting a high growth potential at a CAGR of over 35% through 2027. Government initiatives to reduce carbon emissions from public transport are among the major factors supporting the market demand. The Europe has set targets to reduce GHG emissions by at least 80% till 2050. The regional governments are increasing their funding to support this initiative. For instance, in February 2019, the UK government awarded funding to 19 bidders with support in the purchase of 263 ultra-low emission buses. Additionally, government will provide funding of USD 18.64 million for development of charging and refueling infrastructure.
Key fuel cell electric vehicles market participants include Meritor, Inc., Honda Motor Co. Ltd, Audi AG, Nuvera Fuel Cells LLC., Toyota Motor Corporation, SAIC Motor Corporation Limited, Dana Limited, US Hybrid, Hydrogenics, Ballard Power Systems, Hyundai Motor Group, Volkswagen and Plug Power Inc. FCEV industry players are emphasizing on new product launches, collaboration & acquisition to accelerate the development of advanced FCEV and capture high market share.