Global Fuel Cell Electric Vehicle (FCEV) Market is slated to garner robust growth through 2032 owing to the stringent regulations imposed by the governments, concerning reducing pollution levels caused by diesel engines. Moreover, the cost of conventional, non-renewable fuels such as petrol and diesel is rising, opening new market possibilities for electric cars powered by fuel cells.
Factors such as improved technology and added features have drawn consumer interest towards fuel-cell electric cars. Additionally, industry players are concentrating on enhancing their market positions by introducing new products. For instance, in November 2022, Honda announced developing FCEVs centered on its CR-V crossover, starting 2024. Honda’s fuel cell electric car is set to include a plug-in feature that enables switching between an onboard battery for short journeys and a hydrogen flow for longer ones.
The fuel cell electric vehicle market has been divided in terms of vehicle, distance, and region.
Based on vehicle, the buses segment is expected to hold sizable market share over the review period. The adoption of fuel cell technology in buses is credited to governments’ increasing focus on making investments to improve public transportation. The advantages of incorporating fuel cells into buses to support traveling long distances, in tandem with lower refueling times & higher driving ranges as compared to electric vehicles, are expected to accelerate the segmental growth.
With respect to distance, the long segment is speculated to attain strong gains through the forecast years. The growth of fuel cell technologies in automobiles, buses, and trucks is propelling the long-distance FCEV market. Since hydrogen has a greater energy density than electrical storage devices such as batteries, it can travel farther than systems that rely on batteries as energy sources. Besides, restricted network availability of hydrogen fuel stations has enabled automobile OEMs to offer longer driving ranges for their cars, thus influencing the segmental growth.
From the regional perspective, the Middle East & Africa FCEV market is anticipated to flourish through 2032. The regional market growth can be credited to the rising investments in the construction of a hydrogen refueling infrastructure across the developing economies. The widespread use of hydrogen fuel cell-based automobiles in MEA will also increase with the growing demand for hydrogen fueling stations.