Fuel Cell Electric Vehicles Market Size, Share, Growth, Global Industry Analysis, by Type (Passenger Vehicles and Electric Vehicles) By Application (For Public Lease and For Sales), Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights, and Forecast From 2024 To 2032

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FUEL CELL ELECTRIC VEHICLES MARKET REPORT OVERVIEW

The global fuel cell electric vehicles market size was valued at USD 1.24 billion in 2023 and is projected to touch USD 21.45 billion by 2032, at a CAGR of 35.1% during the forecast period. Asia-Pacific holds leading position in fuel cell electric vehicles market share in 2023.

Fuel Cell Electric Vehicles are vehicles that use a fuel cell to power an onboard electric motor. In automobiles, fuel cells use oxygen from the air and compressed hydrogen to generate energy to power an electric motor. They are more fuel efficient than traditional internal combustion engines and release no toxic tailpipe emissions only water vapor and warm air. The development of fuel cell electric vehicles was gradual in the first decade of the twenty-first century due to technological limitations and raw material costs. Recently, a number of automakers have begun to collaborate on the development of fuel cell electric car technologies. So far, only three major global automobile manufacturers are capable of mass-producing fuel cell electric vehicles.

The rising demand for fuel cell Class 8 or long-haul trucks can be related to the greater expenses of fueling them. The increased weight, along with the need to travel long distances and transport commodities, will encourage the use of fuel cell technologies in such vehicles. Participants in the industry are continually spending in research and development to build sophisticated trucks that use fuel cell technologies.

COVID-19 Impact: Halt on Manufacturing Operations to Slower Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with fuel cell electric vehicles experiencing lower-than-anticipated/higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the fuel cell electric vehicles market growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 outbreak had a negative influence on the market. Manufacturing facilities were shut down due to the global lockdowns. The impacts were also visible in crude prices, which fell to new lows and even moved into negative territory. Therefore, the high cost of FCEVs, along with the cheap cost of crude oil, deterred people from buying them. Manufacturing operations and R&D activities of industry companies were harmed by market variables such as labor shortages, component shortages, raw material shortages, and supply chain disruptions. Furthermore, as customers' purchasing power declined, so did market demand for FCEVs.

LATEST TRENDS

"Technological Advancements to Boost Market Growth"

Due to higher performance, shorter refueling times, and longer range, fuel cell vehicles have grown more profitable in recent years. In addition, the water content of the exhaust, a reduction in emissions dimension, and higher power and torque output all play a role in the adoption of fuel cell technologies for automobiles. Furthermore, significant growth in the regional transportation industry is contributing to rising environmental challenges such as climate change and poor air quality. The demand for clean energy sources has grown due to high fossil fuel usage, increasing the fuel cell electric vehicles market growth over the forecast period. Because gasoline is a fossil fuel, it is not a renewable source of energy and will eventually run out. To support sustainable growth, it is critical to develop and utilize alternative fuel sources. This entails the use of hydrogen fuel cell automobiles, electric vehicles that do not require gasoline and are more cost-effective than traditional vehicles. An electric vehicle, for example, transfers almost 50% of the electrical energy from the grid to power at the wheels, whereas a gas-powered vehicle translates only around 17%–21% of the energy contained in the fuel.

FUEL CELL ELECTRIC VEHICLES MARKET SEGMENTATION

• By Type Analysis

By type, the market is segmented into Passenger Vehicles and Electric Vehicles.

• By Application Analysis

Based on application, the market is divided into For Public Lease and For Sales.

DRIVING FACTORS

"Increasing Demand for Hydrogen Powered Vehicles to Boost Industry Progress"

The market share of fuel cell electric vehicles is growing as demand for reducing carbon emissions and improving air quality grows. Fuel cell electric vehicles are becoming more popular due to rising environmental concerns about vehicle emissions. The preference for employing new technology in heavy-duty freight trucks to achieve efficient vehicle performance will enhance product penetration even more. The demand for hydrogen-powered vehicles is increasing as consumer expenditure and transportation requirements rise. Rapid urbanization, combined with a slew of development projects, is opening up possibilities for the adoption of environmentally friendly automobiles. The fuel cell electric vehicle market is expected to develop due to favorable economic conditions and rising living standards.

"Government Initiatives and Investments to Foster Progress of the Market"

Multiple government-funded research programs and projects are being established, with a particular focus on the development of new fuel cell technologies. Several organizations, like the FCH JU, are sponsoring fuel cell and hydrogen energy research, development, and demonstration initiatives. Collaborative projects and initiatives are promoting the development of efficient hydrogen generation technologies, lowering the overall cost of fuel cell manufacturing. The industry will grow as government initiatives and investments to improve the infrastructure for electric vehicle charging outlets increase. Highway England announced a USD 17 million investment in 2020 to improve the charging outlet every 20 miles in the UK. This will boost the number of charging station sites and connections in the region, boosting the expansion of the FCEV business.

RESTRAINING FACTORS

"High Pricing and Environmental Concerns to Impede Market Growth"

Fuel cells employ a chemical reaction to generate energy from hydrogen and oxygen. Hydrogen is a highly flammable gas, and oxygen aids in the combustion of other materials at lower temperatures. The fuel can catch fire if not handled properly—hydrogen flames are invisible and can explode if not handled properly. Fuel cells are installed inside FCEVs, where hydrogen gas is kept under pressure. The hydrogen could catch fire if a spark of electricity comes into touch with it. Although there are various electronic and electrical components in a car that can generate heat or electric sparks, fuel cells produce electricity without combustion, which reduces the odds of a vehicle catching fire.

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FUEL CELL ELECTRIC VEHICLES MARKET REGIONAL INSIGHTS

"Increasing Number of Fuel Stations to Facilitate Market Growth in the North America"

North America is expected to dominate the fuel cell electric vehicles market share. The U.S. has a large number of hydrogen fuel stations serving the market in North America. Both the U.S. and Canada have been supportive of the low-emission vehicle sector. In some states, such as California in the U.S. and British Columbia in Canada, fuel cell vehicles are in high demand.

Because of government programs to create zero-emission fuel cell vehicles and establish hydrogen filling stations, the European fuel cell electric vehicle industry is expected to grow significantly. Clean Hydrogen in European Cities (CHIC) and the Joint Initiative for Hydrogen Cars (JIVE) are working to commercialize fuel cell electric buses, which will help to meet the growing demand for fuel cell electric vehicles in the region. Over the study period, easier availability of e-bikes that offer simplicity of operation in high-traffic regions is boosting the industry size.

KEY INDUSTRY PLAYERS

"Companies Invest Heavily in Research and Development Activities to Improve Brand Position"

To improve their position in the market, industry participants are forming various partnerships and collaborations with automobile OEMs and government-backed oil and gas corporations. In order to encourage the use of fuel cell electric vehicles, industry participants are offering significant incentives. The adoption of fuel cell electric vehicles is being aided by low-cost leasing options and rebate offers on new cars.

INDUSTRY DEVELOPMENT

Toyota Corporation announced a new hydrogen production facility and refueling station at its defunct automobile factory in Melbourne, Australia, in March 2021, ahead of the release of its second-generation fuel-cell vehicle, the Mirai FCEV. A 200-kilowatt electrolyzer and a 100-kilowatt battery are part of the facility, which is powered by an 84-kilowatt solar array and a 100-kilowatt battery.

LIST OF TOP FUEL CELL ELECTRIC VEHICLES COMPANIES

• Honda (Japan)
• Hyundai (South Korea)
• Toyota Mirai (U.S.)
• SAIC (U.S.)
• Yutong (China)
• Foton (Beijing)

REPORT COVERAGE

The study examines the competitive landscape, capacity, and recent developments such as mergers, acquisitions, investments, capacity expansions, and plant turnarounds for the top players in the fuel cell electric vehicles market. It's thorough research that focuses on key and secondary drivers, market share, leading segments, and geographic analysis. The research also examines significant players, major collaborations, mergers and acquisitions, and current innovation and corporate policies.