Global Fuel Cell Electric Vehicles Market By Vehicle Type (Passenger Vehicles, Heavy commercial vehicles, and Light commercial vehicles), By Range, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Fuel Cell Electric Vehicles Market size is expected to be worth around USD 199.4 Billion by 2032 from USD 3.7 Billion in 2022, growing at a CAGR of 50.50% during the forecast period from 2023 to 2032.

Population growth has shifted toward cleaner fuels and greener technologies to effectively control CO2 emissions. This has positively impacted the fuel cell electric vehicles demand in recent years. The demand for fuel-cell electric vehicles has accelerated due to the shift from conventional fuel-powered vehicles to environmentally friendly vehicles. Other factors, such as stringent environmental laws, availability of clean fuel incentives with subsidies, and hazardous gas emissions from internal combustion engine vehicles, drive market growth throughout the forecast period. Moreover, increasing awareness of vehicle emissions has prompted manufacturers to develop alternative powertrains to boost market development.

Various technological innovations and advancements, with an increasing number of charging stations, contribute to the market’s growth. Rapid industrialization and expansion of production facilities are driving the acceptance of fuel-cell electric vehicles worldwide. A major challenge for the fuel cell electric vehicles market is the large investment required for electric vehicle charging infrastructure. Additionally, the government and private sectors heavily invest in fuel-cell electric vehicles, fueling the market’s growth.

Driving Factors

Long Cruising Range and Better Fuel Economy are Driving the Growth of Fuel Cell Electric Vehicles Market.

Better fuel economy and long-distance range are the primary factors in the growth of the fuel cell electric vehicles market. Fuel cell electric vehicles have a longer cruising range than the other vehicles in competition. Fuel cell electric vehicles with a fully charged battery can cover up to 300 miles on a single charge. The efficient fuel economy and improved range distance attract customers towards fuel cell electric vehicles. These factors are boosting the growth of the fuel-cell electric vehicles market.

The demand for fuel-cell electric vehicles is rising in various sectors like automotive and transportation. Fuel cell electric vehicles have a long-distance range, quiet operation, fast refueling, and minimum or 0 emissions. Therefore, fuel cells are widely adopted in the automotive and transportation sectors. Governments worldwide are promoting the use of fuel-cell electric vehicles in transportation by funding and investing in developing these vehicles. These factors are expected to drive the market growth of fuel-cell electric vehicles.

Restraining Factors

The High Cost of Fuel Cells is Obstructing the Growth of the Fuel Cell Electric Vehicles Market.

The high cost of fuel cells is a major hurdle for the fuel cell electric vehicles market. Fuel cells are constructed using bipolar plates, membranes, stacks, catalysts, and gas diffusion layers. In fuel cells, hydrogen atoms are oxidized into protons and electrons. The chemical reactions are supported through the use of catalysts. Platinum is commonly used as a catalyst in some fuel cells used in automobiles. Platinum is one of the most expensive of all metals. The catalyst accounts for a major share of the fuel cell’s total cost. This makes the fuel cells more expensive than the other batteries in the market.

Growth Opportunities

Investments from the Government and Private Sectors are Expected to Create Many Opportunities in the Fuel Cells Electric Vehicles Market.

The private and government sectors are heavily investing in developing hydrogen fuel infrastructure. Fuel cell electric vehicles have better efficiency than the others in the competition. The refueling time and good distance range are much less than that of other automobiles. In addition, fuel-cell electric vehicles solve the problems faced by battery-electric vehicles. Many consumers prefer these vehicles in the market. Fuel-cell electric vehicles have an average range of 300 miles. These key factors attract customers toward fuel-cell electric vehicles, increasing the demand for these vehicles. This is expected to create many opportunities in the global fuel cells electric vehicles market.

Trending Factors

The Trend of Environmental Friendly Vehicles is Boosting the Growth of the Fuel Cells Electric Vehicles Market.

Electric vehicles powered by fuel cells are becoming an integral part of the automotive industry and represent a way to achieve energy efficiency while reducing emissions of pollutants and other greenhouse gases. The growing environmental concerns have led governments and environmental agencies to apply strict emission standards and regulations, which are expected to increase the cost of manufacturing fuel-efficient internal combustion engines. This will drive the demand for electric powertrains over the next few years.

Increasing government initiatives are expected to be crucial in promoting fuel-cell electric vehicles in many countries. Several countries are implementing plans to ban petrol and diesel cars in the upcoming years to reduce emissions and encourage the sales of fuel-cell vehicles. Several tax relaxations and incentives for electric vehicles are also being put in place to encourage the sales of these vehicles. These initiatives are expected to drive the demand for electric vehicles, supporting the growth of the fuel-cell electric vehicles market.

COVID-19 Impact Analysis:

COVID-19 Pandemic Impacted Negatively on the Fuel Cells Electric Vehicles Market.

The market has been negatively affected by the outbreak of the COVID-19 pandemic. Production facilities were closed, and the implementation of lockdowns and restrictions worldwide obstructed transportation modes. The impact of the pandemic has also been seen in oil prices which have historically reached the highest. The high price of fuel-cell electric vehicles and high oil prices have restricted the growth of the automotive industry, thereby decreasing the demand for fuel-cell electric vehicles in the market.

Vehicle Type Analysis

Government Support is Boosting the Growth of Passenger Vehicles in the Global Fuel Cell Electric Vehicles Market.

Fuel cell electric vehicles are classified into light commercial vehicles, heavy commercial vehicles, and passenger vehicles based on vehicle type. From these vehicle types, passenger vehicles dominated the market with a major revenue share in the account in 2022. The wide adoption of passenger vehicles in countries like South Korea and Japan is driving the growth of this segment in the fuel-cell electric vehicles market. Governments worldwide are promoting renewable and low-emission fuel sources for vehicles due to decreasing reserves of fossil fuels and increasing their price.

Light commercial vehicles are anticipated to grow significantly during the forecast period of 2023 to 2032. Light commercial vehicles are used in the transportation supply chain. Many companies are promoting using fuel cells instead of a battery to increase the efficiency of vehicles.

Type Analysis

Proton Exchange Membrane Fuel Cells are Expected to Grow Significantly During the Forecast Period.

Based on type, fuel cell electric vehicles are divided into proton exchange membrane fuel cells, polymer electrolyte membrane fuel cells (PEMFC), phosphoric acid fuel cells, and other types. Among these types, a large market share is anticipated for proton exchange membrane fuel cells. This segment’s growth is because it offers higher power density, shorter start-up times, and lower operating temperatures than other types.

Range Analysis

Short Range Segment Dominates Over the Long Range Segment in Fuel Cell Electric Vehicles Market.

By range, the fuel cells electric vehicles market is classified into short and long ranges. The short-range segment is anticipated to grow significantly from this range during the forecast period. The rising demand for everyday vehicles with low emissions has boosted the demand for short-range than long-range segments. Short range segment is mainly used for shorter distances, like goods transportation in airports and dockyards. Many companies in short-range segment fuel cell electric vehicle production are focusing on developing these vehicles to reduce the environmental carbon footprint.

Market Key Segments:

Vehicle Type

• Passenger Vehicles
• Light commercial vehicles
• Heavy commercial vehicles

Type

• Polymer Electrolyte Membrane Fuel Cell (PEMFC)
• Proton Exchange Membrane Fuel Cell
• Phosphoric acid Fuel Cell
• Other Types

Range

• Short Range
• Long Range

Regional Analysis:

Asia Pacific region is the fastest-growing global fuel cell electric vehicles market. Asia Pacific region covered a major revenue share of 63.6% in 2022. The growth of this region is due to the increasing demand for fuel-cell electric vehicles and strict government regulations over the pollution levels of vehicles. Governments in the Asia Pacific region have implemented various rules to decrease the carbon footprint and promote fuel-cell electric vehicles. Governments are investing heavily in the developing infrastructure of electric vehicles in the region. The infrastructure of expanding charging stations for electric vehicles will be done in the upcoming years to meet the countries’ demands and regulations. This is expected to boost the sales of electric vehicles in the region.

Europe is anticipated to have a significant CAGR over the forecast period. The presence of major fuel-cell electric vehicle companies in the region supports the growth of fuel-cell electric vehicles in the market.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis:

Major players in the fuel cell electric vehicles market are focused on various strategic policies to develop their respective businesses in foreign markets. Many fuel-cell electric vehicle companies are concentrating on expanding their existing operations and R&D facilities. Furthermore, fuel cell electric vehicles market businesses are developing new technologies and portfolio expansion strategies through investments, mergers, and acquisitions. Some of the major players in the fuel cell electric vehicles market are Toyota Motor Corporation, Honda Motor Co., Nikola Corporation, Hyundai Motor Group, Ballard Power Systems, Daimler AG, Volvo AB, BMW AG, General Motors, Audi AG, Volkswagen AG, and Other Key Players.

Market Key Players:

• Hyundai Motor Group
• Daimler AG
• Ballard Power Systems
• Volvo AB
• General Motors
• Honda Motor Co.
• Nikola Corporation
• Toyota Motor Corporation
• BMW AG
• Volkswagen AG
• Audi AG
• Other Key Players

Recent Developments:

• In June 2022, Woven Planet and Toyota partnered to develop the new Portable Hydrogen Cartridge Prototype.
• Daimler trucks and Volvo AB collaborated in 2021 to develop hydrogen fuel cells.
• In December 2021, the United States president signed a bill to invest in the hydrogen industry to reduce the toxic emissions and carbon footprint.

Report Scope: