The automotive fuel cell market is anticipated to expand at a high CAGR over the forecast period.
Automotive Fuel Cell are electric-powered vehicles that use a fuel cell to power an electric motor to drive. They are more efficient than traditional internal combustion engine vehicles and produce no harmful emissions which helps reduce global warming and is environmentally friendly. Fuel cell vehicles are zero-emissions vehicles that emit only warm air and water vapor. They use a propulsion system which is similar to electric vehicles, where hydrogen-powered fuel is converted to electricity by the fuel cell.
The most common type of fuel cell for vehicle applications is the polymer electrolyte membrane (PEM) fuel cell, where hydrogen is introduced to the anode and oxygen (from the air). A hydrogen fuel cell functions like a battery, producing electricity, which can run an electric motor made up of three parts: an electrolyte, an anode, and a cathode. Instead of requiring recharging, however, the fuel cell can be refilled with hydrogen.
INTRODUCTION:
The major market drivers for automotive fuel cells are increasing global warming as our regular combustion engine produces a lot of harmful emissions while burning the fuel. It impacts the environment, leading to an increase in carbon footprint. Hence, an alternative to that is electric cars which are not harmful to the environment and are also cheaper compared to combustion fuel. This reduces harmful gases in the environment to help reduce global warming. They can help create a more sustainable future in which money is saved, reduce air pollution, and provide an enjoyable driving experience. Additionally, electric cars can offer incentives like solo access to the carpool lane and federal, state, and local rebates.
MARKET DRIVERS:
Traditional fossil fuel-powered commercial vehicles, especially trucks and buses, are responsible for increasing transportation emissions, which leads to harming the environment. To reduce that, many new automobile companies are investing in automotive fuel vehicles to provide an alternative to fossil fuel-powered vehicles, which are more environment friendly to use. For instance, TATA Motors is launching a new electric SUV, Harrier. ev. The Harrier. ev is a distinctive, dynamic, and elegant SUV. They are extending this pedigree to the Gen 2 EV architecture, delivering an uncompromised range and top-notch advanced features.
Initiatives taken by government bodies around the world to switch to green energy mobility to reduce transportation pollution are projected to drive the automotive fuel cell market.
Several governments are already making plans around the globe to promote fuel-cell electric vehicles (FCEVs) on the road, which will also help the automotive fuel-cell industry grow. For instance, in 2023, US President Joe Biden is investing in America's agenda, which will lead to a manufacturing and clean energy boom and accelerate the production of affordable electric vehicles. The Indian government is also working on making charging infrastructure for electric vehicles. Charging stations are an important part of sustaining electric vehicle transport for the long term.
A major shift towards hydrogen-powered vehicles in the automotive industry can be seen in recent times. Many automobile companies like Hyundai are making hydrogen-fueled vehicles like Hyundai's hydrogen fuel-powered vans or buses. Governments are also investing and promoting for infrastructure of hydrogen fuel. Hydrogen fuel-powered vehicles give impressive range and tackle the increasing operational cost of conventional combustion engines.
MARKET RESTRAINT:
The lack of charging infrastructure for electric vehicles and also for hydrogen-fueled vehicles is restraining the automotive fuel cell market. Hydrogen infrastructure includes Hydrogen production plants, storage facilities, fuel stations, and roads made for FCEVs. However, the development of electric vehicle infrastructure is one of the key factors to ensure the growth in demand for electric vehicles. Unfortunately, EV charging infrastructure in most developing countries is inadequate at present and yet to catch up to meet the requirement, which in turn is restraining the automotive fuel cell market growth.
Prominent growth is projected in the Asia Pacific region
The Asia Pacific region is expected to show major growth in the automotive fuel cell industry as currently, they have the most number of automotive fuel and hydrogen fuel stations. Moreover, these region's governments, like South Korea, China, India, and Japan, are promoting and investing in the automotive fuel industry. They are also continuously developing infrastructure in the regions related to automotive fuel cells.
Many leading automobile manufacturers, such as Toyota, Hyundai, and Honda, are from the Asia Pacific region. They are also shifting towards adopting automotive fuel technology and manufacturing new products based on that. This is a major reason contributing to this region's prominent growth.
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