According to our latest market study on "Fuel Cell Vehicles Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Electrolyte, Power Output, Vehicle Type, and Industry,” the market is projected to reach US$ 6,051.17 million by 2028 from US$ 570.43 million in 2021; it is estimated to grow at a CAGR of 40.1% from 2021 to 2028.
Fuel cell vehicles are primarily powered by hydrogen-powered fuel cells. Numerous countries across the globe are strategizing toward the higher adoption of fuel cell vehicles. Currently, most of the hydrogen produced globally is from fossil fuels; stakefolders in the fuel cell vehicle market are focusing on the adoption of green hydrogen. The declining cost of green hydrogen is expected to have a positive impact on the growth of the fuel cell vehicle market during the forecast period. According to statistics from the European Commission, green hydrogen produced through renewable sources costs between the range of US$ 2–6/kg. It is estimated that price of hydrogen will decline to below US$ 1/kg by 2030. Some of the major factors expected to drive the demand for green hydrogen include the development of electrolytes, increasing market players, economies of scale, and growing industrial applications. The US government has setup numerous strategies targeting a complete clean energy economy by 2050. For instance, the State Government of California in the US has committed to invest US$ 20 million every year until 100 hydrogen fueling stations are built in the state. Countries in Europe have also taken up numerous initiatives to boost the demand for fuel cell vehicles in the region. For instance, according to the Hydrogen Roadmap Europe, 45 million hydrogen-powered fuel cell vehicles are expected to be on the European roads by 2050. Such initiatives to boost the adoption of clean energy sources by various nations across the globe are expected to drive the demand for fuel cell vehicles during the forecast period.
Fuel cell vehicles compete with plug-in electric vehicles to expand the market for alternative fuel vehicles. It provides advantageous features such as it takes less time to get fully charged, has a longer range of more than 300 miles, and emits water vapor and warm air that makes it more lucrative for adopting fuel cell vehicles in North American countries. Increasing investment in R&D to develop fuel cell technologies is augmenting the market growth. For instance, the US Department of Energy (DOE) has announced its plan to invest US$ 100 million in the next five years to advance hydrogen and fuel cell technologies. This investment is made with an aim to enable resiliency, energy security, and economic growth across various sectors. Thus, the growing adoption of emission-free vehicles to achieve the Paris agreement, coupled with booming investment prospects and regulatory supports, is the prominent factor attributed to the growth of the fuel cell vehicles market.
Impact of COVID-19 Pandemic on Global Fuel Cell Vehicles Market
According to the latest situation report from World Health Organization (WHO), the US, India, Brazil, Russia, the UK, France, Italy, Germany, Argentina, and South Africa are among the worst-affected countries due to the COVID-19 outbreak. The pandemic has disturbed fuel cell vehicle businesses and vendors around the globe. The factory shutdowns, travel bans, trade bans, and border lockdowns have adversely affected the fuel cell vehicles market industry.
Key Findings of Study:
The fuel cell vehicles market is analyzed on the basis of electrolyte, power output, vehicle type, and geography. Based on electrolyte, the fuel cell vehicle market is bifurcated into PEFC and PAFC. In 2020, the PEMFC segment led the fuel cell vehicle market, accounting for a larger market share. By power output, the fuel cell vehicle market is categorized into up to 100 kW, 100–200 kW, and above 200 kW. In 2020, the up to 100 kW segment accounted for the largest market share. Based on vehicle type, the fuel cell vehicle market is segmented into passenger cars, buses, trucks, light commercial vehicles. In 2020, the passenger cars segment accounted for the largest market share.
