Recent Released Report by Acumen Research and Consulting, the global fuel cell vehicle market size is poised to report USD 1.74 billion by 2026, the market is projected to grow with 33.8% CAGR during the forecasted timeframe. The fast growth during the period can be attributable to rising awareness and investments by governments in order to form strict environmental regulation and imposing incentives for use of clean energy worldwide leading to for developing and adopting fuel cells in vehicle.
Fuel cell vehicles (FCVs), also synonymously called fuel cell electric vehicles (FCEVs), have gained traction in recent times due to increase in usage of conventional fuels which leads to rise in air pollution. Growing concern over alarming pollution levels has led to shift in trend toward green technologies and clean fuels in order to efficiently reduce the carbon footprint. This has impacted demand for FCVs positively over the past few years.
The global fuel cell vehicle market is likely to grow at a fast during the forecast period owing to governments across the world taking initiatives to heavily invest in development of fuel cell technology. Such investments by the governing bodies have led to minimizing the presence of expensive noble metals in a fuel cell, effectively decreasing their prices. Rising fund allocation has also resulted to establishment of infrastructure which is necessary, such as hydrogen filling stations.
Numerous government initiatives and programs to encourage the use of fuel cell vehicles have led to an increase in awareness among the consumers and gradually adoption of fuel cell vehicles, consequently growing their need over the past few years.
However, existence of handful manufacturers in the global fuel cell vehicle market has made the consumers choose from limited product unlike the conventional counterparts. As of 2017, only three vehicles have been commercialised and only in specific regions such as North America, Europe, and Asia Pacific. This could pose as a key challenge which may hinder the growth of global fuel cell vehicle market.
Over the years, the manufacturers are continuously working on innovating and improving performance of FCVs in order to match the conventional fuel vehicles standards, in terms overall experience especially the power output. Increasing importance on acceptance of FCEVs owing to their pollution-free characteristics, in addition to improved infrastructure, is attributed to promote the global fuel cell vehicle market over the forecast period.
This gradual shift from conventional fuel vehicles toward eco-friendly ones has considerably increased in recent years, thereby encouraging demand for fuel cell vehicle. Stringent environment regulations, availability of incentives and subsidies for use of clean fuels, and harmful gas emissions from combustion engine vehicles are other factors expected to drive the market over the forecast period.
The global fuel cell vehicle market is segmented into region. On the basis of region the global fuel cell vehicle market is segmented into Latin America, Europe, Asia Pacific, North America, and Middle East & Africa.
North America accounted for the largest market share in 2017 and is anticipated to exhibit a CAGR of over 35.8% over the forecast period. This can be credited to huge investments by the US Department of Energy (DoE) in development of fuel cells and improvement of infrastructure. Although fuel cell vehicles market in Europe accounted for just over 4.0% of the overall market revenue in 2017, it is anticipated to be the fastest growing region with CAGR of more than 38.4% over the forecast period.
The key players catering to the global fuel cell vehicle market are Toyota Motor Corporation, Honda Motor Company, Ltd., and Hyundai Motor Company. The global players are continuously investing in R&D and innovating to attract more and more business and from the emerging nation such as China and India, the manufacturers are creating awareness. Players are also involved in strategic partnership, merger and acquisition to sustain in the competitive market and to build a competitive shield against the competitors. Further changing customers’ preferences are encouraging global players to develop innovative technology solution to cater best to the market. Also, Increasing R&D activities and investments coupled with technological advancements to commercialise highly efficient products are anticipated to offer lucrative opportunities for industry participants.
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