Market Challenges And Opportunities

Global Hydrogen Fuel Cell Vehicle Market Drivers:

Rise in concerns regarding environment is a major driver for the market growth

The concerns about degradation of environment and depleting natural resources are growing all over the world. The rate of greenhouse emissions through diesel-powered vehicles continues to increase in several industries. However, market players are introducing different technologies in the market that are based on environmentally-friendly concepts for sustaining the environment. Along with this, the awareness regarding impacts of air pollutions is increasing worldwide. These factors are in turn driving the demand for fuel cell vehicles, which is expected to drive growth of the global hydrogen fuel cell vehicle market over the forecast period.

Growing initiatives from governments to fuel the market growth

Governments of countries across the world are focusing initiatives toward development of hydrogen fuel cell infrastructure in order to cater environment conditions. For instance, according to California Energy Commission, the state government announced that it will be supporting development of 100 hydrogen refueling stations to achieve the 1.5 million zero-emission vehicles target by 2025. Thus, this factor is projected to aid in growth of the global hydrogen fuel cell vehicle market over the forecast period.

Global Hydrogen Fuel Cell Vehicle Market Opportunities:

Increasing technological developments to bring multiple business opportunities in the global hydrogen fuel cell vehicle market over the forecast period. The rise in research and development activities associated with hydrogen fuel cell technology is leading to partnerships and joint developments for adoption of hydrogen fuel cell vehicle. Thus, the market is likely to see several growth opportunities in the coming future.

Growing popularity of fuel-cell vans are anticipated to generate growth opportunities in the global hydrogen fuel cell vehicle market over the forecast period. With rise in cost of traditional non-renewable fuels such as diesel, petrol, and gas, the operation cost of ICE vans is increasing. Whereas fuel-cell vans are capable of transporting passengers and carry goods without harming the environment. For instance, subsidiaries of Stellantis introduced three hydrogen-fueled van models in the end of 2021. Thus, this factor is likely to create lucrative growth opportunities in the market over the forecast future.

Global Hydrogen Fuel Cell Vehicle Market Restraints:

High investment required for the infrastructure to limit the market growth

The use of hydrogen fuel cell technology has various advantages such as no emission of tailpipe GHG and other hazardous pollutants. Due to this feature, the popularity of this technology is increasing among vendors. However, the high cost required for raw materials such as platinum and carbon fiber for the development of hydrogen infrastructure is expected to hinder growth of the global hydrogen fuel cell vehicle market over the forecast period.

High reactivity and flammability of hydrogen gas to impede the market growth

Fuel cells produce electricity through a chemical process with the use of oxygen and hydrogen. As oxygen helps other compounds to burn event at lower temperature, and hydrogen naturally being a highly flammable gas, the risk of explosion is a concerning factor. When fuel is handled improperly, it can catch fire. This factor in turn impedes adoption of this technology. However, with technological advancements, novel hydrogen fuel cell technologies with more safety are being introduced in the market. This in turn is expected to support the market growth.