The surging requirement for automobiles with low carbon emissions because of the implementation of stringent carbon emission norms, and rapid advancements in fuel cell technology are expected to power the global fuel cell electric vehicle market during 2021–30, claims P&S Intelligence.
Fuel cell electric vehicle market generated revenue of $3,059.5 million in 2020, but the COVID-19 pandemic hampered progress of the fuel cell electric vehicle market. The imposition of lockdowns in several countries impacted manufacturing activities. The ripple effects were clearly visible in crude prices, which fell into negatives. In addition to the falling crude prices, the high cost of the fuel cell electric vehicles also negatively impacted their sales, thereby affecting the market growth.
The fuel cell electric vehicle market is divided into commercial vehicle and passenger vehicle categories. Between these, the commercial vehicle category is expected to demonstrate faster growth during the forecast period. This is ascribed to the surging requirement for emission-free commercial vehicles for logistical operations and public transportation.
The Asia-Pacific (APAC) region is expected to demonstrate the fastest growth throughout the forecast period due to the enactment of strict emission regulations by the governments of China and Japan.
Further, APAC has several fuel cell vehicle manufacturers, such as Toyota Motor Corporation, SAIC Motor Corporation Limited and Hyundai Motor Company, who will propel the growth of the fuel cell electric vehicle market in the region during the forecast period.
Additionally, initiatives such as the promotion of zero-emission vehicles at major events, like the summer Olympics, are also driving market growth in the region.
The players in the fuel cell electric vehicle market are actively focusing on collaborations, product launches, and partnerships to strengthen their industry position. For example, Hyundai Motor Group announced the launch of the Xcient Fuel Cell, which is its first ever truck powered by fuel cell technology, in July 2020.
Toyota Motor Corporation started a joint venture with five other organisations to develop fuel cells in China, in June 2020. China FAW Corp., Guangzhou Auto, Beijing Automobile Group Co., Beijing SinoHytec Co. and Dongfeng Motor Corp. are the other companies in the joint venture. This venture is called the United Fuel Cell System R&D, and it initially attracted an investment of $46 million.
Notable fuel cell electric vehicle market players are Toyota Motor Corporation, Honda Motor Co., Tata Motors Limited, Hyundai Motor Company, Solaris Bus & Coach, Daimler AG, SAIC Motor Corporation Limited, Nikola Corporation, and Ashok Leyland Ltd.
Electric scooters and motorcycles are rapidly finding their way into the fleet of e-commerce and last-mile delivery and shared mobility companies. Presently, APAC is the largest electric scooter and motorcycle market due to the dominance of China on the worldwide EV sector.