North America is Dominating Fuel Cell Electric Vehicle Market

Posted by Pramod Arya on January 18th, 2024

The global fuel cell electric vehicle market is experiencing growth, according to P&S Intelligence. The growth of the market can be credited to the stringent rules for CO2 emissions, growing acceptance of EVs in developing countries, longer drive ranges provided by such vehicles, and rising requirements for improved fuel effectiveness.

Based on vehicle type, in the past few years, the passenger vehicle category had the larger share of the industry. This can be credited to the increasing disposable income in emerging markets, the huge demand for clean personal mobility, and strict government rules n order to control vehicular pollution.

Furthermore, several nations are planning the adaptation of taxi and cab fleets into FCEVs. For example, South Korea is aiming to deploy around 120,000 fuel cell vehicles by 2040.

On the basis of range, the short category is estimated to witness faster development in the fuel-cell electric vehicle market, in the coming few years. This growth can be credited to the increasing need for low-CO2 release vehicles for short-distance commuting.

Furthermore, these vehicles are being progressively used across diverse applications, such as the transport of goods inside airports and ports and by e-commerce businesses to lessen their CO2 footprint, which is contributing to the growth of the industry.

Strict CO2 emission guidelines, such as those with respect to fuel effectiveness, executed at the global and country levels remain to boost the development of the fuel cell electric vehicle industry. Hence, the stringent rules for CO2 emissions, growing acceptance of EVs in developing countries, longer drive range provided by such vehicles, and rising requirement for improved fuel effectiveness, are the major factors contributing to the growth of the fuel cell electric vehicle market.