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Hydrogen Fuel Cell Vehicle Market is Estimated To Witness High Growth
Posted: Nov 13, 2023
Hydrogen fuel cell vehicles convert hydrogen into electricity through an electrochemical reaction to power an electric motor, emitting only water vapor and warm air. They are more efficient than gasoline or diesel-powered vehicles and produce no harmful tailpipe emissions. Fuel cell vehicles also have a longer driving range than battery electric vehicles, making them suitable for heavy-duty transportation.
Market key trends:
The Hydrogen Fuel Cell Vehicle Market Size is expected to witness significant growth over the forecast period owing to increasing government support and initiatives focused on developing hydrogen refueling infrastructure. Several countries and states have announced ambitious targets and action plans to develop hydrogen infrastructure including Japan, South Korea, Germany, California, and Canada. Additionally, declining fuel cell system costs and technological advancements are also supporting the adoption of these zero-emission vehicles. Major automakers are ramping up production of fuel cell electric vehicles with models from Hyundai, Toyota and Honda already available in select markets. Growing consumer awareness about environmental benefits and various incentives are further aiding the transition toward clean mobility based on hydrogen.
Porter’s Analysis
Threat of new entrants: Hydrogen fuel cell technology needs heavy R&D investments which creates barriers for new companies to enter this market.
Bargaining power of buyers: Buyers have significant bargaining power due to availability of alternative fuel options like electric vehicles. They can negotiate on price and demand other benefits.
Bargaining power of suppliers: Few large companies manufacture fuel cells and hydrogen storage systems. This gives them strong influence on pricing and supply.
Threat of new substitutes: Electric vehicles are emerging as major substitutes. Continuous technological advancements can disrupt this market.
Competitive rivalry: Intense competition exists among major automakers to gain early mover advantage through investment in technology and availability of wider refueling infrastructure.
SWOT Analysis
Strength: Fuel cells have zero emissions and provide longer range than electric vehicles. Many countries offer subsidies and tax credits to promote hydrogen technology.
Weakness: High production costs of fuel cells and lack of hydrogen refueling stations limit mass adoption. Technology is still in development phase with performance and durability challenges.
Opportunity: Growing environmental concerns are driving demand for clean energy vehicles. Supportive government policies worldwide aim to develop hydrogen economy.
Threats: Uncertain oil prices can slow down shift to alternative fuels. Electric vehicles have cost advantage currently due to existing charging infrastructure.
Key Takeaways
The global Hydrogen Fuel Cell Vehicle Market is expected to witness high growth, exhibiting CAGR of 54% over the forecast period, due to increasing environmental regulations regarding carbon emission from vehicles. Asia Pacific dominates the global market currently due to presence of major automakers and growing hydrogen infrastructure in countries like Japan, South Korea and China. Key regional markets include Germany, France and United States.Read Our More Blogs : https://www.feedsfloor.com/cars/hydrogen-fuel-cell-vehicle-market-estimated-witness-high-growth-owing-increasing-government
Coherent Market Insights *Note: 1. Source: Coherent Market Insights, Public sources, Desk research 2. We have leveraged AI tools to mine information and compile it