Fuel Cell Electric Vehicle (FCEV) Market Research Report: By Type (PEMFC, PAFC), Range (Short, Long), Vehicle Type (Passenger Vehicle, Commercial Vehicle) – Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global fuel cell electric vehicle market was valued at ~$3 billion in 2020. The major influencers for the growth of the market are the strict norms for carbon emissions, increasing adoption of electric vehicles in emerging economies, longer drive range offered by these vehicles, and growing need for better fuel efficiency.

The market has been negatively impacted by the epidemic of COVID-19. With lockdowns implemented globally, manufacturing facilities were shut down. The effects were observable in the crude prices as well, which went historically low, into negatives. Thus, the high prices of FCEVs, along with the low prices of crude oil, discouraged people from adopting FCEVs.

Due to Stringent Norms to Curb Vehicular Pollution, Passenger Vehicle Category Accounted for Larger Share in 2020

The passenger vehicle category held the larger share in the fuel cell electric vehicle market in 2020, on the basis of vehicle type. This can be attributed to the rising per capita income in the developing markets, high demand for clean personal mobility, and stringent government norms to curb vehicular pollution. Moreover, many countries are planning the conversion of taxi and cab fleets into FCEVs. For instance, South Korea is targeting to deploy approximately 120,000 fuel cell vehicles by the end of 2040.

Short Range Category To Witness Faster Growth owing to Rising Demand for Low-Emission Vehicles for Everyday Commute

The short category is projected to witness the faster growth in the market during the forecasted period, based on range. This can be attributed to the rising demand for low-emission vehicles for short-distance travel or commuting. Moreover, such vehicles are being increasingly used across diverse applications, including transportation of goods within ports and airports and by e-commerce companies to reduce their carbon footprint, which renders a positive market outlook.

Fastest Growth of APAC Supported by Stringent Emission Norms of Regional Governments

The presence of stringent government regulations is one of the main factors responsible for the fastest growth of the Asia-Pacific (APAC) market for fuel cell electric vehicle, globally. In addition, the major countries in the region have been investing heavily for the development of hydrogen fuel cell vehicles. Toyota Motor Corporation and Hyundai Motor Company offer fuel cell passenger cars, buses, and logistical vehicles in the region.

Technological Advancements for Improved Range and Efficiency Are Major Trends

Fuel cell vehicles have gained popularity in recent years as a result of their improved performance, shorter refueling time, and longer range. Other than these advantages and reduced emissions, the technology results in superior power and higher torque. ​Furthermore, a fuel cell vehicle has a driving range of 300 to 380 miles. Moreover, recent catalyst developments are key for the future of the fuel cell technology, as they will improve durability through innovative catalyst layer designs. Thus, the continuous technological advancements in the fuel cell technology can be viewed as a major trend in the market for fuel cell electric vehicle.

Stringent Carbon Emission Norms and Rising Adoption of Zero-Emission Vehicles To Drive Market for Fuel Cell Electric Vehicle

Stringent carbon emission regulations, including those with respect to fuel efficiency, implemented at the international and country levels continue to drive the growth of the fuel cell electric vehicle market. The mounting concerns over carbon dioxide emissions globally are leading to the reducing demand for conventional vehicles, ultimately benefiting the market for fuel cell electric vehicle. For instance, the U.S. Environmental Protection Agency (EPA) emphasizes the usage of FCEVs to reduce carbon dioxide emissions. Furthermore, the European Union is dedicated to reducing vehicular emissions by 80% by the year 2050 from the 1990 levels, by promoting the adoption of green vehicles.

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Market Players Are Involved in Collaborations and Partnerships

The key strategies adopted by the manufacturers of FCEVs are partnerships and collaborations with other automobile original equipment manufacturers (OEMs).

• In June 2020, Toyota formed a joint venture in China with five other companies for the development of fuel cells. Named United Fuel Cell System R&D, the joint venture fetched an initial investment of $46 million. The companies involved in the joint venture are Dongfeng Motor Corp., Guangzhou Auto, China FAW Corp., Beijing Automobile Group Co., and Beijing SinoHytec Co.
• In April 2020, Daimler AG formed a $1.3-billion hydrogen fuel cell Joint venture with Volvo Group. The two auto manufacturers are expected to bring out hydrogen-fuel-powered commercial vehicles in the future.

Key Players in Fuel Cell Electric Vehicle Market Include:

Market Size Breakdown by Segments

The fuel cell electric vehicle market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Type

• Polymer Electrolyte Membrane Fuel Cell (PEMFC)
• Phosphoric Acid Fuel Cell (PAFC)

Based on Range

• Short
• Long

Based on Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa

Market Segment Analysis of Countries

• Further breakdown of 16 listed countries will be provided as per below segmentation:
  • By type
  • By range
  • By vehicle type