APAC fuel cell powertrains market 46.7% CAGR during 2024-29, forecasts GlobalData

As emission regulations tighten and sustainability concerns grow, zero-emission vehicles like fuel cell electric vehicles (FCEVs) are gaining traction, says data and analytics company GlobalData.

They offer advantages over battery electric vehicles (BEVs), including longer range, faster refuelling, and lower weight, it says.

The Asia-Pacific (APAC) region holds nearly 90% of the FCEVs market globally, says GlobalDasta, adding the region’s fuel cell powertrains market is expected to record a compound annual growth rate (CAGR) of 46.7% over 2024–2029.

Its report Global Sector Overview & Forecast: Fuel Cell Powertrains Q3 2024 says the fuel cell powertrains market is estimated at 9100 units in 2024 and is forecast to reach 61,600 units by 2029 in the APAC region.

“Despite the benefits, there are several hurdles for FCEVs that need to be overcome to catch up with BEVs at their current adaptability stage,” says GlobalData automotive analyst Madhuchhanda Palit.

“The cost of hydrogen is one of the hurdles that need to be addressed for the widespread adoption of FCEVs.

“Hydrogen is expensive to store and transport due to its volatility, but the key cost driver is the energy source used for production,” she says.

“Green hydrogen, produced through electrolysis using renewable energy like solar or wind, is environmentally friendly but costly compared to hydrogen produced using fossil fuels.

“This price disparity presents a significant barrier to the commercial viability of FCEVs. The water crisis is another major hurdle, as making hydrogen using the electrolysis method requires a significant amount of freshwater, which is a resource that is already under stress in many parts of Asia,” says Palit.

“Research is being undertaken to find alternatives to freshwater, and also different types of electrolysis methods are being explored to improve the feasibility and efficiency of the hydrogen production process.”

Hydrogen’s high energy density gives FCEVs a longer range, faster refuelling, and fewer stops on long trips, making them particularly suitable for replacing diesel-powered trucks.

Moreover, the battery required to power heavy cargo trucks for long hauls – a class 8 truck, for instance, generally having a 1-2MWh battery – is significantly heavier than a full tank of diesel or a fuel cell configuration, which typically only needs a small battery of 20-100kWh to accompany the hydrogen, making the fuel cell powertrain a more economically viable alternative to internal combustion engine (ICE) trucks, says GlobalData.

As Asian countries focus on zero-emission vehicles, their approaches vary based on demographics and other factors, it says.

“India, for example, aims to become a key hub for green hydrogen production and export through initiatives like the ‘National Green Hydrogen Mission’.

“This could boost FCEV adoption, as India’s lower lithium reserves and large population make the faster refuelling times of FCEVs more appealing compared to BEV charging times.”

GlobalData says public and private sectors in the APAC region are making significant investments in FCEV technology.

“For example, Toyota has developed a portable hydrogen energy cartridge that is 16 inches long, seven inches in diameter, and weighs just 5kg.

“These swappable cartridges, designed for easy transport and quick replacement, simplify the refuelling process and improve hydrogen accessibility as a clean energy source.”

Palit says that while FCEVs offer a promising solution to air pollution and energy security challenges in Asia, their widespread adoption is contingent upon overcoming significant barriers, adding many consumers remain unfamiliar with FCEVs and their benefits.