Automotive fuel cell market is growing rapidly due to increase in vehicle production as it controls the emission of toxic gases from vehicles.
A fuel cell vehicle (FCV) is a type of electric vehicle that uses a fuel cell, instead of a battery, or in combination with a battery or super capacitor, to power its on-board electric motor. Generation of electricity to power the motor, fuel cell is used. Fuel cell generally use oxygen from the air and compressed hydrogen for its operation. As most fuel cell vehicles emit water and heat, these vehicles are classified as zero-emissions vehicles.
Emerging markets for automobiles are witnessing an increase in vehicle production, which in turn is boosting the demand for automotive fuel cell. The new emissions standards for passenger cars and commercial vehicles are majorly achieved by applying changes to the engine alone.
Stringent norms imposed globally by regulatory bodies on carbon emissions of automotive are also anticipated to boost the demand for automotive fuel cell, which in turn controls the emission of toxic gases from vehicles. One approach to comply with the new emissions norms is to incorporate a proper substitution for the IC engine vehicles. Fuel cell vehicle is a better option as a substitute. High cost of the vehicle is a major disadvantage of the fuel cell market.
In terms of vehicle type, the fuel cell market for automotive can be classified into passenger vehicles (PVs) and commercial vehicles (CVs). The passenger vehicles segment can be further sub-segmented into hatchback cars, sedans, multi- purpose vehicles (MPVs), and sport utility vehicles (SUVs). The commercial vehicles segment can be further split into light-weight commercial vehicles (LCVs) and heavy commercial vehicles (HCVs).
In terms of geography, the fuel cell market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Europe accounts for a major share of the global fuel cell market for automotive, owing to the high rate of vehicle production and adoption of automotive fuel cells in order to improve the declining environmental conditions, leading to an increased production of vehicles with automotive fuel cells, especially in China and India. Furthermore, environmental standards in Europe are more stringent than the other regions.