Government Investments to Boost Fuel Cell Vehicles’ Commercial Growth

17th September 2019: Fuel cell electric vehicles (FCEVs) or Fuel cell vehicles (FCVs), is a category of electric vehicle which uses a fuel cell, as an alternative to a battery, or in mixture with a super capacitor or battery to power its on-board electric motor. 

North American Segment Estimated to Account for the Largest Share in 2017

The regional variants in the fuel cell vehicle market include North America, Europe, and Asia Pacific. North America accounted for a large market share in 2017 and is anticipated to maintain its dominance in the forecast period. The growth is attributed to the rising development rate of fuel cell infrastructure, such as hydrogen filling stations.

Significant investments by the United States Department of Energy in the growth of fuel cells to efficiently encourage acceptance of FCVs is the foremost factor expected to drive the market demand in the years to come. In addition, numerous states such as California, New York, Nebraska, and Connecticut, have introduced rebate programs that include incentives for fuel cell electric vehicles.

Europe is also estimated to expand at the highest CAGR over the forthcoming period. The European Commission declared a huge investment in the market to be done over a six year period, has led to this substantial growth in the region.

Europe is followed by Asia Pacific region, which is estimated to grow at a healthy pace in the forecast period. The growth is attributed to subsequent adoption and aggressive promotion of fuel cell electric vehicles in economies such as Japan. The Japanese government plans to increase the acceptance of fuel cell vehicles to about 40,000 by the 2020 Tokyo Olympics. Huge investments in countries such as South Korea and China, to set up this industry is also estimated to significantly contribute to the development of the Asia Pacific segment in the forecast period.

Market Insights: 

Leading companies operating in fuel cell vehicle market are Honda Motor Company, Ltd., Hyundai Motor Company and Toyota Motor Corporation. Honda and Toyota have advertised their cars in the sedan sector whereas Hyundai has commercialized its sport utility vehicle (SUV). On the other hand, the market is consolidated at present, numerous manufacturers have declared their alternatives to be launched over the forecast period.