Electric Vehicles and Fuel Cell Vehicles Market Size, Share, Growth, Global Industry Analysis, By Type (PHEV, EV), By Application (Commercial Use, Home Use), Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights, and Forecast From 2024 To 2031

Updated On: 01 April 2024

ELECTRIC VEHICLES AND FUEL CELL VEHICLES MARKET REPORT OVERVIEW

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The global electric vehicles and fuel cell vehicles market was USD 122510 in 2021 and is anticipated to expand from USD 122510 to USD 1050683.29 million by 2031 and exhibit a CAGR of 24.0% during the forecast period. 

The electric vehicles and fuel cell vehicles market has witnessed a negative impact of the humanitarian crisis. In the past decade, the electric vehicles and fuel cell vehicles market has witnessed monumental development in technology. Electric vehicles and fuel cell vehicles provide better economy than gas-propelled vehicles. They are almost silent, have a better driving range, offer fast refueling, and emit zero carbon on use. These attributes surge the demand for electric vehicles and fuel cell vehicles. The increasing concerns for excessive carbon emissions from vehicles and the growing shift of consumers from fossil fuels to clean energy resources have boosted the market's growth. The rising popularity and adoption of electric and fuel cell vehicles due to the growing need for reduced carbon emissions is expected to foster immense growth for the market.

COVID-19 IMPACT

"Manufacturers Resume Operations Amidst Pandemic"

The novel coronavirus global outbreak has severely impacted the global economy. The sudden surge in the CAGR is attributable to the electric vehicles and fuel cell vehicles market growth and demand, returning to pre-pandemic levels after the pandemic ends.

The unforeseen emergence of the COVID-19 pandemic has drastically affected the global economy. It has stagnated the growth of several industries and markets, including the global electric vehicles and fuel cell vehicles market. The shift in consumer’s focus on essential expenditures coupled with the high unemployment rates has resulted in reduced demand for vehicles. The shutdown of manufacturing facilities due to stringent lockdowns and curfews imposed by the governments of several nations has impacted the market growth. Moreover, the disruptions in the global supply chain networks due to halted air transport and worldwide trade ban have aggravated the situation. Nonetheless, the vaccines are available to the masses, and the manufacturers in the automotive industry have resumed their operations with reduced production and under strict measures. The market is gradually recovering and is expected to gain steep traction once the pandemic is over.

LATEST TRENDS

"Hydrogen Buses to Uptick Growth Opportunities for the Market"

With the increasing government zero-emission mandates worldwide, the adoption of electric and hydrogen buses has increased in recent years. Hydrogen buses are costlier than battery-based buses and diesel buses. However, they provide more energy-per-unit mass over lithium-ion batteries. Also, the fuel cell stacks are lighter than lithium-ion battery packs, which helps to deliver better efficiency. The hydrogen buses can travel longer distances and have a shorter refueling time. They also offer better maneuverability due to their lightweight.

Moreover, an entire fleet of these buses can be operated using only a few hydrogen stations. Due to their zero emissions, and low operational costs, hydrogen buses can offer lucrative growth opportunities for the electric vehicles and fuel cell vehicles market in the forthcoming years. Recently, Solaris Bus & Coach launched its Urbino 12 hydrogen-electric bus in 2019.

ELECTRIC VEHICLES AND FUEL CELL VEHICLES MARKET SEGMENTATION

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Based on type, the market bifurcates into PHEV and EV. Based on application, the market fragments into commercial use and home use. Out of these, the EV segment is expected to witness the highest growth in the market.

Geographically, the market is classified into four major regions- North America, Europe, Asia Pacific, and the Rest of the World.

DRIVING FACTORS

"Favorable Government Policies & Subsidies to Fuel Market Growth"

The governments of major economies emphasize on the adoption of electric and fuel cell vehicles due to the increasing focus on lowering carbon emissions. Many nations have introduced subsidies on the purchase of electric vehicles and fuel cell vehicles to promote the growth of the market. For instance, the Indian government offers a maximum subsidy of Rs. 10,000 on electric two-wheelers purchase, Rs. 30,000 on electric three-wheeler purchase, Rs. 1,50,000 on electric four-wheeler purchase, and Rs. 20 lakhs on electric bus purchase. Based on the battery pack, the subsidy varies on the purchase of different types of vehicles. Such initiatives are expected to boost the adoption of electric and fuel cell vehicles and augment the global electric vehicles and fuel cell vehicles market growth.

"Hydrogen-Powered Boats & Ships to Create a New Growth Segment for the Market"

The shipping industry is currently developing hydrogen-powered engines for boats and ships to cut emissions and replace fossil fuels. Ships account for 3% of the global greenhouse gas emissions, and the figures are expected to rise by up to 50% by 2050 if the industry does not find a suitable energy alternative by then. The hydrogen-powered engines are being considered as range extenders for ships and boats, if not for long-distance hauls. The still-nascent technology is being tested on Hydroville, which is a 16-passenger shuttle being tested between Kruibeke and Antwerp. It is the world’s first hydrogen-powered passenger vehicle. The development of hydrogen-powered engines is likely to create lucrative growth opportunities for the market.

RESTRAINING FACTORS

"High Costs & High Flammability to Pose Threats for Market Growth"

Hydrogen is a highly expensive fuel. It may lower carbon emissions, but it is an inefficient substitute for fossil fuels. The hydrogen-powered vehicles are scarcely available in the market. As a result, the high costs of hydrogen due to low demand may hinder market growth. Additionally, hydrogen fuel cells are more prone to burst or ignite a fire under extreme heat. The high flammability of hydrogen is expected to restrain the market growth.

ELECTRIC VEHICLES AND FUEL CELL VEHICLES MARKET REGIONAL INSIGHTS

"Favorable Government Initiatives to Boost Growth in Asia Pacific "

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North America is projected to emerge dominant in the global electric vehicles and fuel cells market share. The increasing per capita income levels, expanding automotive industry, and the presence of key players in the market, such as Tesla and Ford, are anticipated to fuel the market growth.

Europe is expected to gain significant growth in the forthcoming years. The rising penetration of prominent electric vehicles’ manufacturers such as Tesla is expected to bolster the market growth. The increasing development of electric cars by key players present in the region, such as Mercedes Benz, Audi, and Volkswagen, are likely to complement the growth of the market. Furthermore, strict carbon emission regulations are expected to stimulate market growth.

Asia Pacific is projected to witness rapid growth in the electric vehicles and fuel cell vehicles market. The increasing personal disposable income levels, expanding automotive industry, and the rising production of vehicles are anticipated to fuel the market growth. Additionally, the favorable government initiatives and subsidies on the purchase of fuel cell electric vehicles in countries such as India are expected to stimulate market growth.

The Rest of the World is expected to witness considerable growth in the upcoming years. The rising demand for electric vehicles due to the growing environmental concerns is projected to bolster the market growth.

KEY INDUSTRY PLAYERS

"Key Players Emphasize on the Development of Extended Range Batteries to Capture Growth in Market"

The key players in the global electric vehicles and fuel cell vehicles market are primarily focused on the development of advanced fuel cell technology to be used across different types of vehicles. They are extensively invested in research and development technologies. The favorable government investments in electric and fuel cell vehicles are helping the market wade through the pandemic's adverse impact. The key players are reorganizing their operational and logistical networks that were impacted by the pandemic. The key players simultaneously adopt ingenious growth strategies such as new product launches, technological developments, partnerships, mergers, acquisitions, collaborations, and others to enhance their market positions and generate greater revenues.

List of Key Market Players Profiled:

• BYD
• Tesla
• Nissan
• BMW
• Mitsubishi
• Volkswagen
• Renault
• BAIC
• GM
• Ford
• JAC
• Yutong
• SAIC
• Zhong Tong
• ZOTYE
• KANDI
• King-long
• VOLVO
• Mercedes Benz
• Chery
• Audi
• TOYOTA

KEY INDUSTRY DEVELOPMENTS:

March 2019: Solaris Bus & Coach launched its Urbino 12 hydrogen-electric bus through a world premiere.

December 2020: Toyota launched the New Mirai, a premium hydrogen FCEV car available in two grades.

REPORT COVERAGE

The global electric vehicles and fuel cell vehicles market report offers an in-depth assessment of the market. It emphasizes on vital factors, such as components, end-users, applications, and leading companies. Other than this, the report offers vital insights into the ongoing market trends and highlights the recent industry developments. In addition to the above-mentioned factors, the report envisages significant factors contributing to the market’s growth in recent years.