Electric and Fuel Cell Truck Market Set to Soar with a Remarkable 41.2% CAGR, Projected to Reach US$40.1 Billion by 2030
The global electric and fuel cell truck market is poised for exponential growth, with a staggering CAGR of approximately 41.2% anticipated during the forecast period from 2023 to 2030. By the end of 2030, the market is projected to reach a valuation of around US$40.1 billion. Electric and fuel cell trucks represent a significant shift towards sustainable and eco-friendly transportation, offering numerous environmental and efficiency benefits.
Key Market Insights:
- The market is set to witness more than a forty-fold expansion in revenue between 2023 and 2030.
- Proton exchange membrane fuel cells (PEMFC) dominate the fuel cell truck segment.
- The demand for medium and heavy-duty trucks is expected to continue its upward trajectory.
- Asia Pacific is positioned to lead the market, with North America’s electric and fuel cell truck market experiencing the most robust growth by 2030.
Advancements in Electric and Fuel Cell Truck Technology:
Electric and fuel cell trucks are at the forefront of the battle against climate change and the pursuit of sustainable transportation. These vehicles utilize advanced technologies, including fuel cells, batteries, and capacitors to store and generate electricity, offering a compelling alternative to traditional diesel-powered trucks.
Fuel cell trucks, which rely on hydrogen fuel cells to generate electricity to power the vehicle’s motors, are a key component of this market. They provide substantial environmental advantages, increased fuel efficiency, and reduced noise pollution. Notable projects, such as ITM Power’s H2Oz bus project, have demonstrated the viability of hydrogen fuel cell electric buses for public transportation in Australia.
Moreover, electric and fuel cell trucks contribute to reducing carbon emissions, aligning with global efforts to mitigate climate change and enhance sustainability.
OEM Commitment to Net Zero Emissions and Reduced Total Cost of Ownership (TCO):
In 2022, medium and heavy-duty trucks accounted for less than 10% of global on-road vehicles, but their diesel-powered engines contributed significantly to carbon emissions. Governments worldwide are increasingly promoting electric and fuel cell trucks to combat carbon and noise pollution, elevate environmental awareness, and support global economic sustainability.
Automotive industry participants are intensifying their investments in research and development, driving innovation in electric and fuel cell truck technologies. These investments have led to the introduction of new products, improved performance, and the proliferation of electric and fuel cell trucks in the market.
Supportive Government Policies and Initiatives:
Government initiatives and support for the development of electric and fuel cell trucks, with a focus on reducing carbon emissions and preserving the environment, have been instrumental in propelling the industry forward. Major industry players that prioritize innovation and environmentally friendly transportation solutions have gained market share, offering vehicles with reduced carbon dioxide emissions and lower air pollution.
Government funding for truck development has increased due to rising transportation costs, a heightened focus on environmental protection, and investments in research and development. This has driven market demand for electric and fuel cell trucks, particularly those equipped with features that reduce noise and carbon emissions.
The cost of electric and fuel cell trucks has escalated due to the market’s demand for advanced technologies, leading to increased expenses for raw materials used in manufacturing. This cost escalation poses a significant challenge that may impact market rates. Additionally, handling hydrogen, a crucial element in fuel cell technology, requires careful attention due to its highly flammable nature. Hydrogen’s combustibility may hinder the growth of the electric and fuel cell truck market.
Furthermore, the electric truck charging ecosystem has the potential to disrupt electricity distribution systems. Presently, electric trucks face performance limitations compared to their diesel counterparts, particularly in areas such as model options, recharge times, range, payloads, and overall vehicle maintenance.
Key Market Segments:
Fully Electric and Proton Exchange Membrane Fuel Cell (PEMFC) Categories Thrive:
Proton exchange membrane fuel cells (PEMFC) are dominating the fuel cell truck segment. These fuel cells are highly regarded for their high power density, low operating temperatures, and rapid startup times. Phosphoric acid fuel cells are also emerging for transportation applications due to their stability and enhanced power production. Both types of fuel cells are poised to contribute to significant market expansion.
Medium- and Heavy-Duty Trucks Take Center Stage:
Medium- and heavy-duty electric trucks are on the rise, driven by new model launches, declining battery costs, and strong support from policymakers worldwide. They are seen as a key solution for decarbonizing the global transportation sector. By 2030, medium- and heavy-duty electric trucks are projected to be more cost-competitive in terms of purchase, operation, and maintenance compared to diesel trucks. Light-duty trucks are expected to follow suit before 2030. The medium- and heavy-duty trucks category is set to dominate the electric and fuel cell truck market.
Growth Prospects Across Regions:
Asia Pacific Leads the Charge:
Asia Pacific is expected to maintain its leadership position in the electric and fuel cell truck market. The region’s growth is driven by increased goods transportation, infrastructure improvements, government funding, and a strong emphasis on zero emissions and noise reduction. Recent investments in fuel-cell-powered vehicles and hydrogen technology in various cities and countries have further boosted demand for fuel-cell commercial vehicles in the region. Notably, the Japanese government aims to achieve carbon neutrality by 2050, with hydrogen-powered vehicles playing a central role in this ambitious goal.
North America Emerges as a Lucrative Market:
North America is forecasted to experience substantial growth in the electric and fuel cell truck market. The United States, in particular, is poised for robust growth, mirroring China’s electric vehicle (EV) expansion trajectory. California is spearheading the demand for medium- and heavy-duty electric trucks, with research and development efforts and the introduction of new models by market leaders driving growth in the region.
Electric and Fuel Cell Truck Market: Competitive Landscape:
Leading players in the electric and fuel cell truck market include Volvo Inc., Daimler AG, BYD, Traton Group, Renault Trucks, SANY, China FAW Group Corp., Ltd., Dongfeng Motor Corporation Ltd., SAIC Motor, Zhejiang Geely Holding Group Co., Ltd., and Zhengzhou Yutong Group Co., Ltd.
Browse Global Electric and Fuel Cell Truck Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 (By Powertrain, By Range, By Vehicles, By Geographic Coverage and By Company): https://www.fairfieldmarketresearch.com/report/electric-fuel-cell-truck-market
Fuel Cell Powertrain Market: https://www.fairfieldmarketresearch.com/report/fuel-cell-powertrain-market
Fuel Cell Vehicle Market: https://www.fairfieldmarketresearch.com/report/fuel-cell-vehicle-market
Fairfield Market Research
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This press release first seen on Brilad