Sixfold Hike in Fuel Cell Vehicles Forecast by End of Decade

Global sales of fuel cell-powered light-duty vehicles will grow at an average annual rate of 46% per year to top 14,400 units in 2019, according to a new report by Infiniti Research Ltd.’s Technavio unit.

Shipments of fuel cell vehicles totaled less than 2,200 units in 2014, according to the U.K.-based research firm. It says Asia Pacific accounted for more than 70% of the 2014 volume, followed by the Americas (20%) and Europe (10%).

The forecasted growth is expected to be driven by increasing demand for energy-efficient vehicles, higher energy costs, government incentives and an improved hydrogen infrastructure. Reduced platinum content and other technology advances also will help drive costs down, Technavio says.

The recent wave of fuel cell-related industry partnerships also is expected to spur market growth. Technavio lists collaborations between General Motors and Honda, BMW and Toyota, Volkswagen and Ballard, and Daimler, Ford and Nissan as examples of the trend.

Similar increases are projected for fuel cell-powered buses, material handling equipment and aerospace applications.