FCEV Market revenue worth over $14 Bn by 2026
Published Date: September 23, 2020 Authors: Preeti Wadhwani, Prasenjit Saha
Fuel Cell Electric Vehicles (FCEV) Market size is likely to reach USD 14 billion by 2026, according to a new research report by Global Market Insights Inc.
Significant environmental benefits such as zero emissions and low noise will drive the FCEV industry growth. The establishment of research programs and funded projects by government authorities for focusing on the development of innovative fuel cells is providing new market opportunities.
One of the major factors hampering the market growth is the limited availability of hydrogen refueling infrastructure. The lack of well-equipped fuel stations along with limited distribution network capabilities is restricting the demand. However, the impact of this restraint is anticipated to reduce in the coming years owing to increasing government and private sector investments in development of hydrogen refueling stations.
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Analyst view: “Rapid advancements in fuel cell production technologies will accelerate the adoption of FCEVs. Deployment of advanced fuel cells in electric vehicles is expected to increase the refueling range of the vehicles.”
The growing spread of the COVID-19 pandemic is posing several challenges to the automobile industry. Manufacturers of FCEVs and other electric vehicles are facing steep reductions in the demand on account of the declining consumer disposable income and shifting focus toward purchasing essential items. The high initial and operating costs of FCEVs are further adversely impacting the market size in 2020. The FCEV market is poised to regain momentum with the economic revival post the reduction of the pandemic impacts.
Browse key industry insights spread across 235 pages with 394 market data tables & 23 figures & charts from the report, “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), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
The increasing demand for hydrogen-powered electric buses in public transport
The buses held a market share of 20% in 2019 and is projected to grow rapidly through 2026. Rising electric vehicles demand for commercial and public transport in North America and Europe is augmenting the segment growth. Supporting government initiatives play a major role in the growing market representation of electric buses.
Growing adoption of long-range FCEVs in commercial sector
The long range hydrogen-powered electric vehicle market revenue is set to reach USD 1.45 billion by 2026 impelled by the limited hydrogen distribution infrastructure. This led to an increasing demand for vehicles with high refueling range for long distance travels.
FCEV market participants are continuously investing in R&D to launch new models of long-range commercial FCEVs such as trucks and buses with advanced fuel cell technologies.
Stringent emission regulations are driving the market statistics in Europe
The European market is projecting a high growth potential at around 35% CAGR through 2026. The rising demand from countries including Spain, Sweden, France, and the UK is positively influencing the regional market growth. The establishment of stringent regulations for reducing CO2 emissions from vehicles will further contribute significantly toward the demand for FCEVs. The region has set mandatory standards that require all passenger vehicles to meet an emission target of 95g/km by 2021.
Manufacturers are focusing on collaborating with government organizations to develop commercial FCEVs. For instance, in April 2020, SAIC Motor Corporation announced a strategic agreement with Shanghai Airport Authority to deploy fuel cell buses at the Shanghai Airport. Other prominent strategies adopted by market leaders include strategic new product launches of FCEVs and acquisitions.
Key players in the FCEV market include Honda Motor Co. Ltd, Audi AG, Toyota Motor Corporation, Hyundai Motor Group, Volkswagen, SAIC Motor Corporation Limited, Ballard Power Systems, Dana Limited, Meritor, Inc., US Hybrid, Hydrogenics, Nuvera Fuel Cells LLC., and Plug Power Inc.