Global 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 surpass 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 market growth. According to a research report by the Fuel Cells and Hydrogen (FCH) organization in 2018, a standard FC bus can reduce approximately 800 tons of CO2 emissions in 12 years compared to buses operating on conventional fuel. 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 FCEV industry 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 market demand. However, the impact of this restraint is expected to reduce over 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 over the coming years. Deployment of advanced fuel cells in electric vehicles is expected to increase the refueling range of the vehicles, contributing to the market share.”
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 market demand propelled by 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 expected to regain momentum with the economic revival post the reduction of the pandemic impacts.
The increasing demand for hydrogen-powered electric buses in public transport
According to this report, the buses segment held a market share of 20% in 2019 and is projected to grow rapidly through 2026 driven by growing electric vehicles demand for commercial and public transport in North America and Europe.
Supporting government initiatives play a major role in the growing market representation of electric buses during the forecast timeframe. For instance, in January 2018, the European Union introduced a new project called the Joint Initiative for Hydrogen Vehicles across Europe (JIVE2) under the International Association of Public Transport (UITP). The program aims to deploy 300 fuel cell buses in 22 cities across Europe by 2021.
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:
Growing adoption of long-range FCEVs in commercial sector
The long range hydrogen-powered electric vehicle market revenue is expected to reach USD 1.45 billion by 2026. This steady growth is attributed to the limited hydrogen distribution infrastructure. This led to a growing demand for vehicles with high refueling range for long distance travels.
FCEV market players 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. For instance, in 2018, Nikola Motor Company unveiled a prototype of hydrogen-based fuel cell truck with a driving range of up to 1,200 kilometers, which is to be commercialized by 2023.
Stringent emission regulations driving the market revenues in Europe
The European FCEV market share is projecting a high growth potential at 35% CAGR through 2026. The increasing demand from countries including Spain, Sweden, France, and the UK is positively influencing the regional market growth trends. 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. Similarly, all light commercial vehicles are required to meet 147g/km by 2020.
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.