Middle East Hydrogen Fuel Cell Electric Vehicle

Middle East Hydrogen Fuel Cell Electric Vehicle

FCEVs are zero-emission vehicles – they produce no tailpipe pollution except water vapor. In addition, compared to internal combustion vehicles, FCEVs greatly reduce greenhouse gas carbon emissions even when accounting for the full hydrogen fuel life cycle. Currently, automobile manufacturers are focusing on the production of advanced fuel-cell electric vehicle systems & fuel-cell technologies at relatively lowers costs, thereby accelerating the growth of the market.

The Middle East Hydrogen Fuel Cell Electric Vehicle Market is expected to grow at a steady rate of around 31.36% owing to the burgeoning adoption of fuel cell electric vehicles over the world. One key driver of the Middle East fuel cell market is the government's focus on renewable energy and the reduction of greenhouse gas emissions. Many countries in the region have set ambitious targets for the adoption of clean energy and the reduction of carbon emissions, and are taking steps to encourage the development of fuel cell technology as a key part of their clean energy strategies. Moreover, increasing demand for clean energy is also likely to drive growth in the Middle East fuel cell market. As concerns about climate change and the environmental impact of traditional energy sources continue to grow, there is likely to be an increasing demand for clean and sustainable energy solutions. Fuel cells, which produce zero emissions and can be powered by a variety of renewable energy sources, are well-positioned to meet this demand. For instance, In 2021, Hyzon Motors announced to build an assembly plant in Saudi Arabia with the local industrial conglomerate Modern Group. The plant has been to be built in the city of Neom in the northwest of the country and will have an annual capacity for the assembly of up to 10,000 FC commercial vehicles.

• Based on vehicle type, the market is bifurcated into passenger vehicles and commercial vehicles. Among these passenger vehicles dominated the fuel cell electric vehicles and are expected to show the same trend in the forecast period. This technology offers numerous advantages, inclusive of zero-emissions, longer driving ranges, and shorter refueling times in comparison to traditional electric powered automobiles. As a result, FCEVs have gained more popularity within the passenger vehicle segment.
• Based on type, the market is segmented into Proton Exchange Membrane, Solid Oxide Fuel Cell, and Phosphoric Acid Fuel Cell. Among these, Proton Exchange Membrane has a high market share in 2022 and will dominate during the forecast period. This is due to PEM being considered as the most efficient with high energy conversion efficiency, which provides better mileage and longer driving ranges for FCEVs. Moreover, PEM fuel cells can quickly start and ramp up power production, making them suitable for automotive applications.
• Based on the range, the market is bifurcated into short-range and long-range. Among these, short-range attain a high market share during the forecast period, whereas the long-range segment has the highest CAGR in the forecast period. This is because short-range FCEVs typically have a decreased price tag as compared to long-variety motors. Moreover, Short-range FCEVs are often well-suited for urban environments and shorter commutes, where longer travel distances may not be as necessary. Additionally, developing advanced, high-capacity fuel cell systems that can provide long ranges without compromising on cost, weight, or performance can be challenging.
• For a better understanding of the market adoption of the bonded magnets industry, the market is analyzed based on its worldwide presence in countries such as the United Arab Emirates, Saudi Arabia, Egypt, Kuwait, Turkey, Israel, and the Middle East Market. The United Arab Emirates (UAE) has a significant share of the Middle East fuel cell electric vehicle (FCEV) market because the UAE government has been actively promoting the adoption of electric vehicles, including FCEVs, as part of its sustainability goals. The government has provided incentives and subsidies to encourage the purchase of electric vehicles and has also invested in the development of charging infrastructure. Furthermore, the UAE is home to a large number of oil and gas companies, which has resulted in a significant amount of air pollution in the country. As a result, there is a growing demand for low-emission transportation options, such as electric vehicles and FCEVs. Moreover, several automakers, including Toyota, Hyundai, and Honda, offer FCEVs in the UAE. This provides consumers with a variety of options and makes it easier for them to switch to FCEVs. For instance, in 2022, The Dubai Electricity and Water Authority (DEWA) announced plans to build a new hydrogen production facility, which will use renewable energy to produce hydrogen for FCEVs. Therefore, the persistent government support from countries to make FCEVs affordable and easily accessible to consumers is catering to the demand for fuel-cell electric vehicles in the region.
• Some of the major players operating in the market include Hyundai Motor Company; Toyota Corporation; Honda Motor Company; Audi AG; Ashok Leyland Ltd.; Nissan Motor Co., Ltd.; Daimler AG; Volvo Group; Solaris Bus & Coach sp. z o.o.; Nikola Corporation.