The global fuel cell commercial vehicle market to grow at a CAGR of 24.66% during the period 2017-2021.
Global Fuel Cell Commercial Vehicle Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
The latest trend gaining momentum in the market is Entry of big manufacturers in FCV segment. Previously, only institutes were conducting research on FCV. However, lately, major manufacturers have invested a huge sum on R&D (Toyota, Daimler, Honda, Hyundai, Mercedes-Benz, and BMW). Major bodies like The New Energy Foundation (NEF) are working in collaboration with the New Energy and Industrial Technology Development Organization (NEDO) to reduce the complexity of fuel cell technology so that it can be adopted by masses. More than 11 projects are in progress, which involves the development and validation of polymer-electrolyte fuel cell technology.
According to the report, one of the major drivers for this market is Increase in the number of hydrogen production facilities. Hydrogen is selected as the optimal replacement for traditional fossil fuels because of its abundance in the universe. It is the key fuel source that powers a fuel cell vehicle. Worldwide, around 80 million tons of hydrogen is produced every year at an average price ranging between $1.0/kg to $1.80/kg. For a sustained growth, the fuel cell market needs an additional 90 million tons of hydrogen annually.
Further, the report states that one of the major factors hindering the growth of this market is Fossil fuels are still the major energy source used to produce hydrogen. Hydrogen is a clean source of energy as its reaction with oxygen creates water, but mass production of hydrogen is a major challenge. To date, a major share of hydrogen is being produced using fossil fuels (coal, oil, natural gas, and nuclear). Producing hydrogen using electrolysis is not efficient because of the high demand for electricity and a lower output ratio. Power sources, such as biomass, wind, hydropower, and solar are not enough to meet the requirements of hydrogen production.