The global Fuel Cell Powertrain Market size is projected to reach a CAGR of 47.9% from 2023-2030.
A fuel Cell Powertrain is an electrically powered device in which a fuel cell transforms energy stored as hydrogen into electricity. It may be used in material handling, emergency backup control, and transportation. The fuel cell power train is highly efficient and environmentally safe since it does not emit toxic emissions, unlike the internal combustion engine. The powertrain fuel cell is an inexpensive zero-local-emission mobility technology. This is part of a hybrid fuel cell vehicle, in which a fuel cell produces electricity using hydrogen as an energy supply.
The increase in demand for high energy density is one of the major factors driving the growth of the fuel cell powertrain market. Also, the high need for a quick refueling system has a positive impact on the fuel cell power train market. The surge in consumption of fossil fuel enhancing concentration levels of greenhouse gas emissions and air pollutants has increased demand for the cell power train market. The rise in environmental concerns among the population drives the market. The increase in government initiatives to support fuel cell powertrain and further reduce carbon emissions across the globe further influence the market.
On the other hand, high flammability and challenges in the detection of hydrogen leakage are expected to obstruct market growth. Also, high demand for BEVs and HEVs, and limited infrastructure for fuel cell vehicles are projected to challenge the fuel cell powertrain market in the forecast period of 2023-2030.
COVID-19 had a negative impact on the fuel cell powertrain market owing to the strict lockdowns and social distancing to contain the spread of the virus. The economic uncertainty, partial shutdown of the business and low consumer confidence impacted demand for fuel cell powertrain technology. The supply chain got hampered during the pandemic along with delayed logistics activities. However, the fuel cell powertrain market is expected to regain its pace during the post-pandemic scenario due to the easing of the restrictions.
The market for fuel cell powertrains is expected to grow significantly over the next decade due to the increasing demand for zero-emission vehicles. In addition, the declining cost of fuel cell technology and the development of hydrogen refueling infrastructure are also driving the growth of this market. The market is expected to witness significant growth in Asia-Pacific, particularly in China, Japan, and South Korea, due to government initiatives promoting the adoption of fuel-cell vehicles. With the development of new and more efficient fuel cell technology, the market is expected to expand rapidly. In addition, the increasing demand for zero-emission vehicles is expected to create new opportunities for the adoption of fuel-cell powertrains in the commercial and industrial sectors.
Asia Pacific to Dominate the Market
