The rising demand for vehicles with low carbon emissions, due to the strict norms on carbon emissions, and significant developments in the fuel cell technology are predicted to drive the global fuel cell electric vehicle market during the forecast period. Due to all these factors, the fuel cell electric vehicle market generated $3,059.5 million revenue in 2020.
The outbreak of COVID-19 has negatively impacted the fuel cell electric vehicle market. Due to the lockdowns worldwide, production activities have been affected severely. The ripple effects were visible in the crude prices as well, which stooped historically low, into negatives. Coupled with the high cost of FCEVs, the low crude prices demotivated people from purchasing FCEVs.
The fuel cell electric vehicle market is categorized into passenger vehicle and commercial vehicle, based on vehicle type. Of these, the commercial vehicle category is expected to witness the faster growth during the forecasted period. This is attributed to the rising demand for emission-free commercial vehicles for public transportation and logistical operations.
Further, the market is categorized into short and long, based on range. In 2020, the long category accounted for the majority share owing to the increasing adoption of heavy-duty vehicles for long-haul transportation and logistics requirements. To reduce the overall operational costs, various companies in the logistics industry are adopting sustainable means of transportation and replacing conventional means with advanced and efficient alternative-fuel vehicles.
Geographically, Asia-Pacific (APAC) is expected to witness the fastest growth during the forecast period. This will majorly be because of the implementation of stringent emission norms by the government in Japan and China. Furthermore, the presence of major manufacturers of fuel cell vehicles, such as Hyundai Motor Company, Toyota Motor Corporation, and SAIC Motor Corporation Limited, will boost the fuel cell electric vehicle market size in APAC during the forecast period. Furthermore, initiatives such as the promotion of zero-emission vehicles during major events, such as the 2020 Summer Olympics (branded as Tokyo 2020), are going to positively impact the market in the region.
Fuel cell electric vehicle market players are actively pursuing partnerships, collaborations, and product launches to enhance their market presence. For instance, in July 2020, Hyundai Motor Group revealed the Xcient Fuel Cell, which is its first truck based on the fuel cell technology.
Similarly, in June 2020, Toyota Motor Corporation created a joint venture with five other companies for the development of fuel cells in China. The companies in the joint venture are China FAW Corp., Beijing Automobile Group Co., Guangzhou Auto, Dongfeng Motor Corp., and Beijing SinoHytec Co. This joint venture attracted an initial investment of $46 million, and it is called United Fuel Cell System R&D.
Some of the major players operating in the fuel cell electric vehicle market are Honda Motor Co., Toyota Motor Corporation, Hyundai Motor Company, Daimler AG, Tata Motors Limited, Ashok Leyland Ltd., Nikola Corporation, Solaris Bus & Coach sp. z o.o., and SAIC Motor Corporation Limited.