Market Challenges And Opportunities

The high initial investment for developing infrastructure is one of the key challenges for the growth of the global hydrogen vehicle market

The cost required for developing the infrastructure for manufacturing hydrogen vehicles is significantly high. The initial investment by manufactures is thus high, which in turn, poses as a major factoring hampering the growth of the global hydrogen vehicles market.

Restaints

Lack of conventional fuel sources along with concerns regarding growing carbon footprint is fuelling the growth of the global hydrogen vehicle market

Factors driving the growth of the global market include increasing CO2 emissions in conjunction with stringent regulations being formulated to control the emission of such harmful gases. Hydrogen vehicles are responsible for controlling the CO2 emission, as hydrogen combines with oxygen in the fuel cell to produce water, which is a clean by-product. Hydrogen vehicles are eco-friendly, thus the demand for these vehicles is increasing, in turn, boosting the growth of the hydrogen vehicles market.

Furthermore, stringent government regulations towards controlling the carbon emissions from vehicles are another factor expected to increase the demand for hydrogen vehicles during the forecasted period. Regulations such as Low Emission Vehicle (LEV) III, Tier 3, and Super Ultra Low Emissions Vehicle (SULEV) regulations are being implemented in order to ensure the least carbon emissions. The adoption of hydrogen vehicles is increasing, as these vehicles offer enhanced power and fuel-efficiency. Thus, fuelling the growth of the global hydrogen vehicle market.

Reduction in prices of the hydrogen cell is expected to drive market growth in the near future