Hydrogen Fuel Cell Vehicle Market Trends
Growth Drivers
- Emergence of Technological Advancements - In times there have been significant advancements in fuel cell technology that have resulted in notable improvements in the efficiency, reliability, and cost-effectiveness of hydrogen fuel cell vehicles. One notable breakthrough lies in the development of robust and effective fuel cell stacks, which form the core of these vehicles' power systems. These upgraded fuel cell stacks can generate levels of power using the same amount of hydrogen resulting in improved efficiency and increased driving range.
Moreover, advancements, in hydrogen storage techniques have made it possible to store amounts of hydrogen in smaller tanks thereby further extending the range capabilities of hydrogen fuel cell vehicles.
- Industry Collaboration- The expansion of the market for hydrogen fuel cell vehicles greatly depends on collaboration within the industry. When companies join forces it can result in advancements, in fuel cell technology, leading to enhanced efficiency, reliability, and affordability of these vehicles. As an example, BMW and Toyota have formed a partnership to manufacture hydrogen fuel cell vehicles by the middle of this decade. This collaboration will assist BMW in reaching its goal of achieving 50% electrification across its lineup two years earlier than originally planned for 2030.
- Long Driving Range and Quick Refueling: Hydrogen powered vehicles generally provide driving distances than electric vehicles that rely solely on batteries. Additionally, these hydrogen fuel cell cars can be refueled swiftly similar to gasoline-powered automobiles. For instance, hydrogen cars usually have an edge over electric cars. A hydrogen car can cover, more than 300 miles on just one tank while electric cars usually offer ranges of 200-300 miles. This helps alleviate concerns, about range limitations and offers consumers a familiar refueling experience.
Challenges
- High Cost of Infrastructure Development: The development of infrastructure poses a hurdle for hydrogen fuel cell vehicles (FCVs). The limited number of hydrogen refueling stations makes potential buyers wary of investing in FCVs as they have concerns, about the convenience and range of refueling options.
- Limited availability of hydrogen fuel cell vehicle models
- Hydrogen FCVs face strong competition from battery electric vehicles, which have advanced in technology and cost
Hydrogen Fuel Cell Vehicle Market: Key Insights
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
46.2% |
|
Base Year Market Size (2024) |
USD 2.12 billion |
|
Forecast Year Market Size (2037) |
USD 269.01 billion |
|
Regional Scope |
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