Fuel Cell Electric Vehicle Market Growth Opportunities

In fuel cell electric vehicles governments are taking initiatives to invest in and enhance the infrastructure for electric vehicles which further helps in expanding the market growth. 

In fuel cell electric vehicles governments are taking initiatives to invest in and enhance the infrastructure for electric vehicles which further helps in expanding the market growth.


By 2030, The global fuel cell electric vehicle market size is projected to touch around USD 35.60 billion and is poised to grow at a CAGR of 53.4% from 2022 to 2030.

Fuel Cell Electric Vehicles Overview

Fuel cell electric vehicles (FCEVs) are powered by hydrogen. They are more efficient than conventional internal combustion engine vehicles and produce no tailpipe emissions—they only emit water vapor and warm air. FCEVs and the hydrogen infrastructure to fuel them are in the early stages of implementation. The U.S. Department of Energy leads research efforts to make hydrogen-powered vehicles an affordable, environmentally friendly, and safe transportation option. Hydrogen is considered an alternative fuel under the Energy Policy Act of 1992 and qualifies for alternative fuel vehicle tax credits.

What is a fuel cell electric vehicle?

FCEVs use a propulsion system similar to that of electric vehicles, where energy stored as hydrogen is converted to electricity by the fuel cell. Unlike conventional internal combustion engine vehicles, these vehicles produce no harmful tailpipe emissions. Other benefits include increasing U.S. energy resiliency through diversity and strengthening the economy.

FCEVs are fueled with pure hydrogen gas stored in a tank on the vehicle. Similar to conventional internal combustion engine vehicles, they can fuel in less than 4 minutes and have a driving range over 300 miles. FCEVs are equipped with other advanced technologies to increase efficiency, such as regenerative braking systems that capture the energy lost during braking and store it in a battery. Major automobile manufacturers are offering a limited but growing number of production FCEVs to the public in certain markets, in sync with what the developing infrastructure can support.

The global fuel cell electric vehicle market size was valued at USD 4.98 billion in 2021 and grew to USD 6.19 billion in 2022. As an awareness related to the benefits of good air quality and the bad effects of regular emissions is driving the market. Governments are taking initiatives to invest and enhance the infrastructure for the electric vehicles it further helps in expanding the market. Various technological advancements and increased number of refueling facilities are helping the market grow. Rapid industrialization and expansion of the production facilities is fostering the acceptance of fuel cell electric vehicles in Asia Pacific region.

The FCEV market was badly impacted by the COVID-19 pandemic due to lockdowns and restrictions on traveling. The production and delivery was delayed. The raw material supplies were also delayed. However, post pandemic, there has been a recovery as there is an ease on restrictions and there are supportive government policies.

How Do Fuel Cell Electric Vehicles Work Using Hydrogen?

Like all-electric vehicles, fuel cell electric vehicles (FCEVs) use electricity to power an electric motor. In contrast to other electric vehicles, FCEVs produce electricity using a fuel cell powered by hydrogen, rather than drawing electricity from only a battery. During the vehicle design process, the vehicle manufacturer defines the power of the vehicle by the size of the electric motor(s) that receives electric power from the appropriately sized fuel cell and battery combination. Although automakers could design an FCEV with plug-in capabilities to charge the battery, most FCEVs today use the battery for recapturing braking energy, providing extra power during short acceleration events, and to smooth out the power delivered from the fuel cell with the option to idle or turn off the fuel cell during low power needs. The amount of energy stored onboard is determined by the size of the hydrogen fuel tank. This is different from an all-electric vehicle, where the amount of power and energy available are both closely related to the battery's size. Learn more about fuel cell electric vehicles.

Emissions

Like electric vehicles, FCVs are zero-emission vehicles - they have no smog-related or greenhouse gas tailpipe emissions. Emissions are created in the process of producing and transporting hydrogen fuel.

While hydrogen is abundant in the universe, it must be separated from other compounds to be used as fuel. This process can be energy intensive. The amount of emissions associated with producing hydrogen fuels depends on the source of hydrogen and production method. Currently, the majority of hydrogen that is made for use as a fuel comes from natural gas, but hydrogen fuel also can be made from water, oil, coal, and plant material. Hydrogen can even be produced from your trash! Pilot projects have used landfill gas and wastewater to make hydrogen fuel.

Highlights of This Study

💡 Due to investment from the private and government sectors in the FCEV segment. The market is expected to grow.
💡 Increased awareness about the environmental pollutants and stringent government policies to eliminate the carbon footprints. The fuel cell electrical vehicle market is expected to. Grow during the forecast period.

Regional Analysis of Fuel Cell Electric Vehicle Market

30 countries have announced over 228 large scale hydrogen projects which will promote the fuel cell vehicles and the hydrogen refueling stations. France is aiming for fuelcell passenger cars of up to 5000 in number, to 50,000 passenger cars by the year 2028. The first country in the world to deploy a passenger train is Germany, the train will be on tracks by the year 2023. The United States President. Signed a bill on December 15, 2021 which invests in the hydrogen industry to curtail the harmful emissions.

In December 2020 Canada stated that it has a long term vision for operating more than 5,000,000 FCEV,s, by the year 2050, as a part of their hydrogen strategy for Canada. The only country to have the largest number of fuel cell vehicles in the world is South Korea. South Korea aims by the year 2040. The developmental plan states 2.9 million passenger cars will be running 80,000 taxis, 40,000 buses and 30,000 trucks. The Indian Government has formulated a scheme for electric, hybrid and fuel cell vehicles, which aims to promote the manufacturing of these green vehicles. And make India a part of the global supply chain.

Market Dynamics of Fuel Cell Electric Vehicle Market

Drivers: As the restrict vehicle emission regulations in many nations across the world the fuel cell electric vehicle market shall boom. In North America, stringent rules are made for the emission regulations, which makes North America the greatest market. In the European countries, the governments are investing in the development of the fuel cell electric vehicle technologies Because it will drive the global market. In Asia Pacific region, adoption of electric vehicles is leading to a growth in this market. As FCEV market provides low emission mobility solutions Latin America is also adopting this technology.

Restraints: Very high investments are needed for building the charging charger infrastructure. For this sector, this happens to be a challenge for the market. Also, the fuel stations are limited or not well equipped. The expansion of the industry is restricted due to the failing distribution network, Fear of electric shock and Flammability due to the use of hydrogen fuel cell, so this happens to be a restraint in the growth of the market. Apart from that it also has competition from the Battery electric vehicles, the plug-in hybrid electric vehicle that restrain the growth of the market.

Opportunities: The private sector and the government sector is investing in the development of hydrogen refueling infrastructure. The FCEV's have very good efficiency. It covers a good range. And his fueling time is comparable to the traditional automobiles. The fuel cell electrical vehicles resolve the problems that are faced by the electric vehicles that are battery operated. As the fuel cell vehicles provide improved performance, they have a shorter refueling time and they cover longer range. These vehicles are preferred by many consumers. The fuel cell vehicle has a driving range of up to 380 miles. The Environmental Protection Agency USA emphasizes on the usage of FCEV'S to reduce the environmental pollutants. In order to develop the vehicle are emissions by 80%. Up to the year 2050. European Union is promoting the adoption of green vehicles.

Challenges: As the Manufacturing of the FCEV involves a lot large expense the cost of the vehicles is also high. And since there is limited hydrogen fueling infrastructure, this poses a challenge for the growth of the market. The performance of the FCEV is already tested, but some technological advancements are still needed. Apart from that, the cost of an FCEV,s has to at least meet the ICE vehicles.

Top Leaders Listed: Audi AG, Ballard Power Systems Inc., BMW Group, Daimler AG, Honda Motor Co limited, Volvo Group, Toyota Motor Corporation, General Motors Company, Man Se, American Honda Motor Co., and Toshiba

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