Fuel cells have several issues holding them back. However, with the potential benefits (very good efficiency, NO harmful exhaust emissions) and the money that is being poured into R&D, it will happen, at least in small volumes. Prototype fuel cell vehicles already exist! Mass production in significant volumes is at least 10 years out in my opinion, if the technical and other issues are solved.
Some of the issues:
1) Fuel cells require hydrogen fuel to operate efficiently and without costly fuel reformers. If you can't run on hydrogen, you need to reform another fuel to make hydrogen. The OEM's are divided, some want to reform gasoline, others want to reform methanol. I think gasoline is the only choice because of the existing infrastructure, public knowledge, etc. However, reformers are expensive, complex, inefficient and not easily sized for automotive use. In addition, they also need "pure" gasoline. The sulfur levels in gasoline at the pumps today will destroy a reformer quickly. So even this option needs new, purer, costly fuel. The IC community has been asking for better fuels for years for emissions reasons. It always ends in the fact that price will go up significantly, so it does not happen. The money is spent in other more efficient ways to reduce emissions.
2) If you decide to use hydrogen, and not reform another fuel, the issue for fuel cells (and hydrogen fueled vehicles in general) will be the cost, complexity, infrastructure, driving range, and safety issues with storing a gaseous / highly flammable fuel. These are the same reasons why natural gas vehicles are on the way out after more than a decade of development! These sound like simple issues, but they are extreamely significant.
3) Nusance issues like starting time (it takes minutes after the ignition key is turned before you can drive), cold start performance (takes tens of minutes), transient response (of the fuel cell and reformer), etc. A fuel cell car will have many small differences from an IC car. That all plays into the consumer side, who wants a car with these problems when I can buy an IC car.
4) Cost is a big issue, as is the durability and life-cycle of the fuel cells themselves.
You can also burn hydrogen fuel in an IC engine and likely increase the fuel conversion efficiency over gasoline. The only emissions issue is Nox. However, there are ways around that with egr and catalyst technology, which is already developed. Plus you keep the benefits of an IC engine over a fuel cell, such as improved starting times, transient response, etc.
I don't deny my bias, I am an avid fan of combustion and the IC engine. Long live the IC engine!
SAE (
is a very good source on this subject.