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Fuel Cell Commercial Vehicle Market Overview
The global fuel cell commercial vehicle market is expected to witness notable growth during the forecast period 2019–2025, on account of favorable incentive programs by governments of several countries to boost the adoption of eco-friendly vehicles. Several governments across the globe are focusing on decreasing air pollution by encouraging the adoption of eco-friendly vehicles, which include fuel cell vehicles. These vehicles do not discharge harmful pollutants, such as hydrocarbons, carbon monoxide, and volatile organic compounds.
On the basis of vehicle type, the fuel cell commercial vehicle market has been categorized into light commercial vehicle (LCV), medium commercial vehicle (MCV), and heavy commercial vehicle (HCV). Among these, LCVs held the largest share in the market in 2018. This can be mainly attributed to the high demand for LCVs, supported by the higher adoption of fuel cell technology in these vehicles as compared to other vehicles.
Geographically, Asia-Pacific (APAC) is expected to account for the largest share in the fuel cell commercial vehicle market during the forecast period. The increasing demand for low- or zero-emission vehicles in several countries of the region, coupled with the growing focus of fuel cell stack manufacturers on China for product manufacturing, is expected to boost the market growth in APAC.
Fuel Cell Commercial Vehicle Market Dynamics
Awareness about the advantages of green energy vehicles over internal combustion engine vehicles is increasing across the world. Many countries are implementing plans to promote the adoption of alternate-fuel vehicles, which, in turn, is boosting the growth of the fuel cell commercial vehicle market. For instance, the Ohio Development Services Agency runs the Alternative Fuel Transportation Program, which offers financial support to local governments, non-profit organizations, businesses, and school districts for the installation and purchase of alternative fueling, blending, and distribution facilities or terminals. Furthermore, in Luxembourg, buyers of fuel cell vehicles are benefitted from a tax allowance on the registration fees of $5,907.5 (EUR 5,000).
Besides, the increasing focus on the advancement of fuel cell technology based on ethanol is expected to fuel the growth of the industry during the forecast period. With the rising advertising activities for the adoption of fuel cell automobiles, many major industry stakeholders, including Tier 1 suppliers and vehicle manufacturers, have started focusing on low-priced fuel cell technology. This has led to the growth of ethanol-based fuel cell technology. Ethanol-based fuel cells are cost-effective and also help increase the driving range of heavy vehicles. Such factors are, thus, boosting the growth of the fuel cell commercial vehicle market across the globe.
Major factors restraining the growth of the market are the high cost of fuel cell commercial vehicles and underdeveloped refueling infrastructure in several countries of the world. The price of fuel cell commercial vehicles is higher than that of conventional commercial vehicles, as there are few manufacturers involved in the production of fuel cell vehicles. Furthermore, the market is currently in its nascent phase and is characterized by an underdeveloped value chain. Such factors result in the high cost of these vehicles, which further results in the lack of interest among the buyers and hampers the growth of the fuel cell commercial vehicle market.
Fuel Cell Commercial Vehicle Market Competitive Landscape
The global fuel cell commercial vehicle market is at the nascent stage, witnessing gradual adoption of fuel cell vehicles across various countries. Major market players include Daimler AG, General Motors Company, Hyundai Motor Company, New Flyer Group Inc., Toyota Motor Corporation, Volkswagen AG, Ford Motor Company, and Tata Motors Limited.