Fuel cell electric vehicles utilize a fuel cell to power an onboard electric motor. Fuel cells are more efficient compared to traditional international combustion engines. The increasing awareness regarding emission levels is expected to elevate the demand for such vehicles. Furthermore, rising government initiatives for the progress of the electric vehicle industry are expected to generate remunerative market opportunities. For example, the Indian Government offers Faster Adoption and Manufacturing of Hybrid and Electric (FAME) vehicles to promote electric mobility solutions. Further, the search for alternative fuel sources has enhanced the adoption of fuel cell electric vehicles.
Business Research Insights estimates that the fuel cell electric vehicles market size was US$ 1698.8 million in 2021 and is expected to reach USD 10470 million in 2028, exhibiting a CAGR of 29.7% during the forecast period.
Post COVID-19 Impact: Rising Production Activities and Increased Electric Vehicle Sales Propelled Industry Growth
The resumption of activities post the COVID-19 pandemic has fostered manufacturing activities. The adoption of automated production has allowed manufacturers to enhance their capacities and expand their sales. The increasing awareness regarding the benefits of electric vehicles and their lower pollution rates are likely to fuel the industry’s growth. Furthermore, several companies have aimed to incorporate effective Research & Development (R&D) activities to elevate sales and improve product quality. Moreover, increasing awareness and rising popularity of fuel cell electric vehicles have opened remunerative growth opportunities for this industry. These factors elevated the market growth during the pandemic.
Business Research Insights highlights the top 6 players operating in this industry.
1. Honda (Japan)
Honda is a Japanese company that was founded in 1948. The company is a manufacturer of some of the most top-of-the-line products and offers companies excellent automotive products. Further, the company’s fully electric vehicle does not harm the environment and offers a smooth driving experience.
2. Hyundai (South Korea)
Hyundai is a South Korean company that was founded in 1967. The company is a provider of some of the best electric vehicles. The company offers a five-seater electric SUV vehicle named Hyundai Kona.
3. Toyota Mirai (U.S.)
Toyota Mirai is headquartered in the U.S. and was founded in 2014. The company offers excellent electric vehicles that enhance consumers’ driving experience. Toyota offers two new models with several colors for a guaranteed comfortable and pollution-free driving and riding experience.
4. SAIC Motor (China)
SAIC Motor is a Chinese company that was founded in 1997. The company offers a slew of electric vehicles, advanced batteries, and innovative automotive components. The company’s electric vehicle offerings are elegant and provide excellent performance.
5. Yutong (China)
Yutong is a Chinese company that was founded in 1963. It is a manufacturer of electric buses and commercial vehicles that offer best-in-class performance. It houses the largest production base and provides excellent pollution-free vehicle options.
6. Foton Motor (Beijing)
Foton is headquartered in Beijing and was founded in 1996. The company’s fuel cell electric vehicle options reduce pollution. It also offers several products ranging from buses, trucks, utility vehicles, and others.
Future Growth Scenario of the Industry
The increasing demand for alternative fuel resources is expected to enhance the demand for fuel cell electric vehicles. Furthermore, the rising adoption of fuel-efficient and low-emission vehicles is expected to surge the demand for the product. Moreover, the increasing focus on developing technologically advanced high-power vehicles is likely to fuel the demand for efficient fuel sources. Such vehicles reduce emissions and provide novel features to vehicles. Low energy consumption, efficiency, rising fuel prices, and the establishment of electric fueling stations are expected to foster the industry’s progress.
Furthermore, the industry is facing rapid growth due to the increasing value of the industry globally. The spike in annual growth rates, increasing number of companies offering fuel cell electric vehicles, and the announcement of favorable policies for developing efficient electric vehicles are factors fueling the industry’s progress. In addition, the rising pollution of vehicles is expected to provide remunerative growth opportunities for the industry.