The fuel cell electric vehicle (FCEV) market is anticipated to record exponential growth by 2027 owing to the mounting demand for hybrid and electric vehicles worldwide. The demand is being driven by increasing expendable consumer income across key regions and growing awareness about the benefits, both financial and environmental, of battery-powered vehicles.
Fuel cell electric vehicles (FCEVs) are powered by pure hydrogen gas, which is converted into electricity by stacks of fuels cells. These vehicles are more efficient than conventional internal combustion engine vehicles, as they release no harmful tailpipe emissions. Stringent regulations imposed to reduce harmful CO2 emissions have driven industry adoption in recent years. Moreover, shifting consumer preference towards low emission personal mobility solutions has propelled market expansion.
Furthermore, industry players have been undertaking profitable initiatives to cater to the escalating demand for high-performance zero-emission vehicles, which has favorably impacted the overall business outlook. To cite an instance, in November 2020, Nuvera Fuel Cells, LLC, a leading provider of fuel cell power solutions, launched its novel fuel cell engine, dubbed the Nuvera?(R) E-60 Fuel Cell Engine, as an addition to its E-series fuel cell solutions. The latest Nuvera?(R) E-60 fuel cell engine has been designed to enable vehicle electrification of trucks, buses, and material handling equipment.
The fuel cell electric vehicle (FCEV) market has been segmented on the basis of distance, vehicle, and region.
In terms of vehicle, the market has further been classified into Class 8/long haul, heavy duty vehicles, port vehicle/container handling or transport, agriculture, automotive, buses, and others.
The port vehicle/container handling or transport sub-segment is set to develop at a significant pace over the assessment period. Increasing requirement to lower emissions generated from port operations is likely to boost segmental growth through 2021-2027.
From the distance point of view, the fuel cell electric vehicle market has been segregated into long and short. The short sub-segment is projected to garner a considerable valuation by 2027, progressing at a CAGR of more than 40% through the forecast timeline. Surging global demand for vehicles such as e-bikes, tractors, and forklifts is slated to drive product demand in the next few years.
From the regional perspective, the Latin America fuel cell electric vehicle market is poised to gain notable traction over the review period on account of the rising dispensable income of consumers across the region. Moreover, the increasing requirement for personal mobility among consumers would support the demand for advanced vehicles, which is estimated to propel regional market expansion over the forthcoming years.