Latest News- Fuel Cells For Automotive Industry Market: Hydrogen is expected to lead the Fuel Type segment during 2024-2028

The Fuel Cells For Automotive Industry Market is being driven by Increased demand for efficient and cleaner fuel

The Fuel Cells For Automotive Industry Market is expected to grow at a CAGR of 35.28% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 8572.6 million. In the automotive industry, advancements in technology have significantly reduced the cost of producing fuel cells. This cost reduction is primarily due to the decreased usage of platinum in fuel cells. Initially, high-end models like Honda's FCX Clarity sedan were considered prohibitively expensive. However, major strides have been made in lowering the price of fuel cell electric vehicles (FCEVs). Hyundai, for instance, has managed to reduce the cost by an impressive 70% over the past decade. This price decrease will undoubtedly make FCEVs more accessible to consumers, thereby fueling market growth in the forecast period. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Fuel Type
  • Hydrogen
  • Methanol
• Application
  • Light-duty vehicles
  • Heavy-duty vehicles
  • Others
• Geography
  • APAC
    • China
    • Japan
    • South Korea
  • North America
    • US
  • Europe
    • Germany
  • South America
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Increased demand for efficient and cleaner fuel
• Government incentives for fuel cell vehicles
• Advantages of hydrogen fuel cell vehicles

However, the market also witnesses some limitations, which are as follows:

• Lack of refueling infrastructures for FCEVs
• High cost of installation of fuel cells
• Fuel cell durability issues and high dependence on subsidies

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Market Scope in Fuel Cells For Automotive Industry Market Research Report

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Research Analysis Overview

In the automotive industry, the adoption of alternative energy sources, such as fuel cells, is gaining momentum. Fuel cell technology, including SOFC (Solid Oxide Fuel Cells) and Tri-gen systems, is revolutionizing the transportation sector by providing hydrogen-based fuel for electric vehicles (EVs). Power conditioners and air compressors are essential components in the balance of plant for fuel cell systems. Plug Power and Ballard Power Systems are key players in this market. The use of fuel cell vehicles in place of traditional internal combustion engine vehicles can significantly reduce greenhouse gas emissions and vehicle emissions. Hydrogen, produced from clean hydrogen hubs, is a promising alternative to fossil fuels. The electric motor in fuel cell vehicles runs on electricity generated from the reaction between hydrogen and oxygen. The global energy review indicates a positive trend in electric vehicle sales and the adoption rate of fuel cell technology. The transportation sector, which is a major contributor to carbon emissions, can greatly benefit from the transition to hydrogen-based fuel. Therefore, fuel cells are set to play a significant role in the future of the automotive industry.

Market Research Overview

In the fuel cells for automotive industry market, businesses specializing in the generation and distribution of renewable energy through fuel cells are the focus. This market encompasses independent power producers, energy merchants, and fuel cell technology manufacturers. The expansion of this sector will be fueled by government incentives and ambitious targets promoting the adoption of renewable fuel cells in the automotive industry.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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Website: www.technavio.com/