Global Fuel Cell Powertrain Market Size, Share, Growth Analysis, By Component(Hydrogen Storage systems, Battery systems), By Vehicle Type(Passenger Cars, Light Commercial Vehicles) - Industry Forecast 2022-2028

Fuel Cell Powertrain Market was valued at USD 167.9 million in 2021, and it is expected to reach a value of USD 4,928.0 million by 2028, at a CAGR of 62.1% over the forecast period (2022-2028).

A fuel cell powertrain is an electrically powered system that employs a fuel cell to convert hydrogen energy into electricity. Transportation, emergency backup power, and material handling are some of the applications for fuel cells. Fuel cell powertrains are more effective and environmentally benign than internal combustion engine powertrains since they do not emit hazardous pollutants.

To convert hydrogen-based energy into electricity, a fuel cell is utilised in a fuel cell powertrain, which is an electrically powered system. Fuel cells have a variety of applications, including transportation, emergency backup power, and material handling. Fuel cell powertrains are incredibly efficient and environmentally friendly because they do not emit harmful emissions like internal combustion engine powertrains. According to the US Department of Energy, the deployment of fuel cell powertrains increases energy security.

The rising sales of fuel cell electric vehicles (FCEV) are driving the expansion of the fuel cell powertrain market. Some OEMs, however, were compelled to suspend manufacturing in the first quarter of 2020 due to the pandemic-induced lockdown. Nevertheless, numerous OEMs resumed production at lower capacity utilisation levels in the second quarter. As a result, lower car manufacturing and lower vehicle demand have resulted in a significant drop in FCP demand. This is expected to result in lower investment in new R&D activities in the near to medium term. As a result, the major impact of COVID-19 on the market is lower demand for FCPs due to lower vehicle production, increased emphasis on commercial vehicle (LCV, HCV) applications, and reduced investment in the immediate term.

Top-down and bottom-up approaches were used to estimate and validate the size of global Fuel Cell Powertrain Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to get the final quantitative and qualitative data.

Segments covered in this report:

The Fuel Cell Powertrain Market is segmented based on the Component, Vehicle Type, and region. Based on the Component, the Fuel Cell Powertrain Market is segmented as Hydrogen Storage systems, Battery systems, Drive systems, Fuel Cell Systems, Fuel Cell Systems, and Others. Based On Vehicle, the Fuel Cell Powertrain Market is segmented as Passenger Cars, Light Commercial Vehicles, Trucks, and Buses. Based on Region Fuel Cell Powertrain Market is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.

Driver

Increasing public awareness about greenhouse gas emissions will provide numerous opportunities. Throughout the projection period, rising environmental awareness about air pollution and greenhouse gas emissions will significantly enhance the market for fuel cell powertrains. Furthermore, as FCEV usage grows and automotive technology advances, the market expands.

Restraints

Excessive flammability and difficulty detecting hydrogen leakage are expected to stymie industry growth. Furthermore, the market for fuel cell powertrains is projected to experience hurdles due to high demand for BEVs and HEVs, as well as a shortage of infrastructure for fuel cell vehicles.

Substantial development in battery and hybrid electric vehicles, as well as hydrogen leaks' severe flammability, are expected to stymie the market for fuel cell powertrains. The COVID-19 pandemic has also had a negative influence on global car supply chains and production, which is expected to lower demand for fuel cell powertrains.

Market Trends

The growing environmental challenges, such as climate change and poor air quality, as a result of rapid regional transportation sector growth and excessive fossil fuel use, have fueled the demand for clean energy sources. Fuel cells emit no emissions and contribute to the reduction of greenhouse gases.

A fuel cell is primarily used to maximise energy security while reducing economic reliance on oil and gas. Expanding hydrogen refuelling infrastructure and rising environmental concerns are expected to boost the growth of the vehicle fuel cell industry. ​