Fuel Cell Vehicle Market Methodology And Scope By 2030

Fuel Cell Vehicle Industry Overview

The global fuel cell vehicle market size was valued at USD 1.14 billion in 2021 and is anticipated to register a CAGR of 49.9% from 2022 to 2030.

The surge in population has resulted in rising pollution levels have shifted the trend toward clean fuels and green technology to curb carbon emissions effectively. This had a favorable influence on FCV demand in the recent years. The change from conventional fuel automobiles to environment friendly vehicles has accelerated the demand for FCVs in recent years. Other factors, such as strict environmental laws, the availability of incentives and subsidies for clean fuels, and hazardous gas emissions from combustion engine vehicles, are driving the market growth throughout the forecast period. Furthermore, the increasing awareness regarding vehicle emissions has led manufacturers to design alternate powertrains, increasing the market's development.

Gather more insights about the market drivers, restrains and growth of the Global Fuel Cell Vehicle Market

The outbreak of the COVID-19 brought the whole ecosystem to a halt, prohibiting the development and sale of revolutionary automobiles throughout the world. Fuel cell vehicles had to halt until the lockdowns were released before they could continue to grow, which had an impact on their manufacturing operations. As a result, manufacturing volumes for car production had to be adjusted causing late final delivery and a decline in revenue. Furthermore, the automotive industry is known for its heavy investments and requirement of constant funding to stay afloat. During the early months of the pandemic, this resulted in the stoppage of production and decreased demand had an adverse impact on manufacturers of fuel cell vehicles and automotive fuel cell producers. However, as the pandemic subsided, the cash flow for revenue and investment started again. With the financial resources becoming stable, the production of automobiles started gaining pace. This prompted automotive fuel cell producers to resume research, development, and testing operations again positively impacting the market growth.

The fuel cell vehicle market is still in its early development and growth stages. Many technologies are in it testing stage with a few automobiles from Toyota Motor Corporation, Honda Motor Corp., and Hyundai Motor Group running in some specific regions. European manufacturers such as BMW AG and Audi are developing fuel cell vehicles based on their earlier prototypes aimed at launching in the later years. Many other companies are following BMW and Audi's footprints. For instance, Renault manufactured the hydrogen fuel cell-powered SUV prototype. The SUV titled Scenic Vision will be equipped with a 16kW fuel cell which will help expand the cars driving range to 800 kilometers without the need for charging. The battery will be lightweight and the carbon footprint will be reduced by 75% as compared with the traditional electric vehicle model. However, the French carmaker model will not be available before 2030 and 2032. The company will launch its fully electric version by 2024.

Hydrogen fuel cell vehicles are expanding their applications to heavy commercial vehicles to increase efficiency. For instance, a major global player in zero-emission hydrogen fuel cell-based commercial vehicles- Hyzon Motors Inc. announced the development of the hydrogen storage system technology which can decrease the manufacturing cost and weight of the commercial vehicle. The new technology is yet to be patented and has the potential of reducing manufacturing component count by 75%, the weight of the system by 43%, and the system storage cost by 52%. This technology uses lightweight composite material for system metal print which is based on a single rack system capable of storing 5 hydrogen cylinders at once. The development of this onboard storage system technology is a collaboration between the European and U.S. division of Hyzon Motors Inc. These technological developments taking place for reducing cost and carbon emission are attempts to integrate hydrogen fuel cell technology as the main power source for future vehicle production.

Fuel cell vehicle are expensive, and the cost of hydrogen (per kilo) in some places are high thereby restraining the fuel cell vehicle market growth. Furthermore, the number of gasoline stations is restricted or inadequate in regions around the world. The industry's progress is limited by a failing distribution network, fear of electric shock, and flammability owing to the chemical attribute of hydrogen fuel cells, which act as a limitation on the market's growth. The manufacturing cost of hydrogen fuel cell vehicles is higher than the manufacturing cost of conventional vehicles. The production cost coupled with aftermarket services cost significantly increases the total ownership cost as compared to that of a standard vehicle. Aside from that, it faces competition from battery electric vehicles and plug-in hybrid electric vehicles, which are becoming popular and is limiting the market's growth.

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Market Share Insights

• May 2022: The European Daimler group announced plans to include electric vehicles and hydrogen fuel vehicles in their portfolio by 2030.

Key Companies profiled:

Some prominent players in the global fuel cell vehicle market include

• Daimler AG
• Honda Motors Co. Ltd.
• Nikola Corporation
• Toyota Motor Corporation
• Hyundai Motor Group
• Ballard Power System Inc.
• Volvo AB
• General Motors
• BMW AG
• Audi AG

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