Market Synopsis

The global Hydrogen fuel cell market size was USD 14.72 Billion in 2021, and is expected to register a revenue CAGR of 21.2% during the forecast period. Rising government and private investments in the development and establishment of hydrogen fuel cell producing facilities in order to meet the rise in demand for Fuel Cell Electric Vehicles (FCEVs) are among some of the major factors expected to drive market revenue growth during the forecast period. Moreover, governments of various countries across the globe have implemented a variety of strategies to address environmental concerns. According to the State of California in the U.S. on 15 November 2021, the government committed funding for creation of 100 hydrogen filling stations in order to fulfill its goal of 1.5 million zero-emission vehicles by 2025.

hydrogen-fuel-cell-market-synopsis

Download the report summary now! Download Summary

Companies such as Fuel Cell Energy, Inc., Bloom Energy, Ballard Power Systems Inc., and Plug Power are investing significantly in designing, manufacturing, execution of fuel cell projects followed by installations, operations, and management of large-scale fuel cell systems to build a robust strategic business model, which is expected to increase applicability of futuristic hydrogen fuel cell so as to enable replacement of conventional sources of energy. Some of the most popular hydrogen fuel cars in the market include Honda Clarity, Toyota Mirai, Hyundai Nexo, and Hyundai Kona, among others. Alstom, which is a France-based company focused on creating and selling mobility technologies, purchased Helion Hydrogen Power for an unknown sum in April 2021. Through this purchase, Alstom increases its range of innovative and competitive solutions and strengthens its expertise in sustainable intelligent mobility.

Furthermore, revenue growth of the market is expected to continue to gain traction in parallel with rising demand for FCEVs. Rising popularity of electric vehicles has drawn attention of various governments to the possibilities of reducing carbon emissions and carbon footprint. Another aspect supporting revenue growth of the market is that manufacturers are focusing on the hydrogen economy as environmental concerns continue to rise. Scalability is another advantage of hydrogen fuel cells, which can be used to create fuel cell stacks, which can then be used to create larger systems. Portable systems for smartphone Battery recharging, combustion engine replacement, electric cars, and large-scale, multi-megawatt installations producing energy straight to the utility grid are all examples of these systems. On 22 July 2021, for instance, Hyzon Motor’s Inc. announced the launch of a new commercial vehicle powered by hydrogen fuel cells with zero emissions. The system has reduced weight and manufacturing costs, which can be attributed to the system’s metal structure which is an integration of lightweight composite materials. Product rollout has been hampered due to high fuel cell prices, insufficient infrastructure, and storage and hydration issues.

Market Dynamics:

Driver: Rapid R&D and adoption of hydrogen as a clean fuel

Benefits of hydrogen fuel cells in the automobile sector have been widely publicized. However, cost of splitting water molecules into Oxygen and hydrogen is a barrier to hydrogen fuel cell vehicle adoption. Scientists have been working on development of a low-cost technique for producing hydrogen energy. According to a study published on 06 May 2022, by Nature Communications, scientists from the Swinburne University of Technology and Griffith University were able to capture hydrogen by splitting it from water molecules with the use of low-cost metals such as iron and nickel as catalysts. Usage of these metals improves the chemical process while lowering the amount of energy required. Moreover, on 6 January 2022, Toyota, which is a pioneer in the automobile sector, revealed ambitious ideas for a hydrogen-fueled city in the future. The city, according to the firm, would be constructed at the foot of Mount Fuji in Japan, and residents would include employees and their families, as well as researchers and scientists. Woven City is the name of the city, and it will have a connected environment. Toyota also collaborated with Paccar Inc. on 22 January 2019, for development of 10 Class 8 fuel cell trucks for use in Southern California, U.S. Major developments in this direction are expected to continue to support demand for hydrogen fuel cell vehicles. In addition, increasing focus on reducing manufacturing costs and innovations are expected to open up new and lucrative revenue opportunities, as a new era of fuel technology in transportation emerges.

Restraint: Volatility of raw materials costs for hydrogen fuel cells

High cost of hydrogen fuel cells is a major factor expected to restrain revenue growth of the hydrogen fuel cell market. Hydrogen fuel cell technology is used in power trains that do not produce greenhouse gases or other harmful pollutants such as Nitrogen oxides or particulate matter from the tailpipe. This feature encourages vendors to implement the technology. However, high raw material and production costs of hydrogen fuel cells is projected to restrain the market revenue growth to a major extent. For example, in the U.S., the 2019 Toyota Mirai costs over USD 58,500; whereas the 2019 Tesla Model 3 costs USD 36,000. The significant price disparity between battery electric and fuel cell vehicles is a fundamental barrier to increase in sales of FCEV.

COVID-19 Analysis:

COVID-19 had a minimal impact on the hydrogen fuel cell sector owing to presence of major players operating as 'critical enterprises.' COVID-19 has had a negative impact on economic health of most countries and regions, resulting in economic decline. Several production and exploration activities have been delayed as a result of curfews and lockdowns, leading to an increase in gasoline costs. Furthermore, rising consumer awareness regarding need to cut Greenhouse Gas (GHG) emissions and a greater focus on sustainable energy is expected to drive demand for fuel cells. In addition, workforce shortages, facility shutdowns, a scarcity of medium voltage gear suppliers, lower contractor/subcontractor productivity, and other factors have all harmed installation and maintenance operations. For instance, studies conducted by International Energy Agency (IEA) in November 2021, indicate that global energy storage devices demand is rebounding in various regions, and is led by countries such as China, some major countries in Europe, and the U.S. in North America respectively. In addition, recently Electric Vehicle (EV) battery manufacturers have begun focusing on reducing upfront costs and increasing the range of vehicles by developing more efficient power sources.

Key Takeaways

Product Type Outlook:                                                           

Based on product type, the global hydrogen fuel cell market has been segmented into air-cooled type and liquid-cooled type. Liquid-cooled type segment is expected to register a significantly robust revenue growth rate during the forecast period. Liquid-cooled type of cooling offers more cooling in comparison to air-cooled type. Condenser cooling allows fuel cell stack to function at higher temperatures in comparison to other cooling types. According to research published in April 2020, Proton Exchange Membrane Fuel Cell (PEMFC) is being considered an efficient source of energy for transportation in the future. This can be obtained through implication of PEMFC in the transportation sector whose efficiency can be extracted through liquid cooling optimization of PEMFC stacks.

hydrogen-fuel-cell-market-product-type-outlook

Ensure everything is in line with your specific requirements here Inquire Before Buying

Application Outlook:

Based on application, the global hydrogen fuel cell market has been segmented into automotive, stationary, material handling equipment, and others. The automotive segment is expected to account for the majority of revenue share over the forecast period. Demand for hydrogen fuel cells from the automotive sector was significantly high in 2020, as Toyota and Hyundai-Kia are among the global leaders in fuel cell technology. Furthermore, China, Japan, and South Korea are expected to play major role in a rapidly expanding fuel cell electric car technology industry. Furthermore, government subsidies for fuel cell electric cars in Asia-Pacific, including China, Japan, and South Korea, are projected to attract injection of private sector investment and support advancements in FCEV technology. In October 2019, for instance, Doosan Mobility launched a hydrogen fuel cell pack for drones, and the flying time is two hours. Further development of hydrogen fuel cells for various vehicles is expected to continue to drive the market revenue growth.

The stationary segment is also expected to register the fastest revenue growth rate over the forecast period. Popularity of stationary fuel cells has been fast gaining traction in both commercial and institutional settings. These types of fuel cells are highly dependable, have consistent voltage output, run on various fuels, and create both electricity and heat as an environmentally benign source of power.

End-Use Outlook:

Based on end-use, the global hydrogen fuel cell market has been segmented into public and private. The public segment is expected to account for a larger revenue share over the forecast period. This can be attributed to increasing adoption of technologies and solutions in the public domain and sector to reduce GHG emissions. For example, at Toyota Motor Corporation's Honsha Plant, Toshiba Energy Systems & Solutions Corporation (Japan) deployed its pure hydrogen fuel cell technology, dubbed ‘H2Rex’. This system was placed in the Hydrogen Power Generation Park, which is a demonstration site within the plant's on-site energy generation facility. Furthermore, according to the U.S. Environmental Protection Agency, auto manufacturers are more inclined towards leasing and/or selling ECVs in California, Boston, and Michigan markets where hydrogen fueling stations are already available.

The private segment is projected to register a steady revenue growth rate between 2022 and 2030 as stringent regulations that continue to minimize carbon emissions was increasingly deployed. In addition, conversion from gasoline to hydrogen fuel cells in private vehicles has been gaining traction among various Original Equipment Manufacturers (OEMs) which is expected to drive revenue growth of the segment. As a result, expanding governmental organizations are opening up attractive potential for conversion to hydrogen fuel cells.

Regional Outlook:

Asia-Pacific accounted for largest revenue share in the global hydrogen fuel cell market in 2021, pertaining to government initiatives in countries such as China, Japan, and South Korea encouraging the use of clean energy throughout APAC. In 2019, Zhangjiakou City in China placed an order for 74 Fuel Cell Electric Buses (FCEBs) in preparation for the 2022 Winter Olympics. Fuel cell electric car adoption is expected to increase in other Chinese cities in the near future. The Tokyo Metropolitan Government (TMG) plans to use fuel cell technology to power several operations during the 2020 Olympic and Paralympic Games, which will be held in Tokyo. This has opened up a number of business options for the top ten hydrogen fuel cell firms. In addition to it, Japan has about 100 filling stations that are funded by the government and get ongoing operating assistance from companies such as Toyota. By 2030, the Japanese government plans to develop 900 hydrogen filling stations, providing sufficient chances for hydrogen fuel cells.

Market in Europe is projected to register a steady revenue growth between 2022 and 2030, which is attributable to increasing user base and quick commercialization of FCEVs is expected to drive the market revenue growth. The market is expected to grow faster if both public and commercial organizations make significant investments in expanding and developing hydrogen refueling networks. Furthermore, the fuel cell business is expected to be driven by adoption of strict rules and pollution reduction objectives. In 2021, for example, the German Government adopted an Energy Act amendment containing additional clauses aimed at the development of hydrogen networks. This is expected to drive the market revenue growth in the region.

North America accounted for a moderate market revenue share in hydrogen fuel cell market attributed to fact that presence of market players in the region coupled with rise in Research and Development (R&D) related to fuel cells, which are expected to drive the market revenue growth in the region. According to research conducted by the U.S. Department of Energy's Vehicle Technologies Office, California is leading the country in building hydrogen fueling stations for FCEVs. As of mid-2021, 47 retail hydrogen stations were open to the public in California, as well as one in Hawaii, and 55 more were in various stages of construction or planning in California. These stations are serving over 8,000 FCEVs. Apart from this, California continues to provide funding for building hydrogen infrastructure through its Clean Transportation Program. The California Energy Commission is authorized to allocate up to USD 20 million per year through 2023 and is investing in an initial 100 public stations to support and encourage these zero-emission vehicles. In addition, 14 retail stations are planned for the Northeastern states, with some of those already serving fleet customers.

Speak with our experts to clarify all your doubts Speak to Analyst

Competitive Landscape:

Competitive landscape of global hydrogen fuel cell market is moderately fragmented with several key companies operating at global and regional levels. Major companies are engaged in research and development initiatives and testing and entering into alliances to develop and introduce more novel and innovative products.

Some of the major companies included in the global market report are Fuel Cell Energy Inc., Cummins Inc., Ballard Power Systems, Plug Power Inc., Bloom Energy, AFC Energy Plc., Dossan Fuel Cell Co. Ltd., Toshiba International Corporation Limited, Hyster-Yale Materials Handling Inc., Panasonic Holding Corporation., Intelligent Energy Limited, and Pearl Hydrogen.

  • On 20 January 2022, Doosan Fuel Cell Co., Ltd. and Korea Hydro & Nuclear Power (KHNP) signed an agreement for strengthening Hydrogen Fuel Cell Operation and maintenance capabilities. The two companies will work together to produce a roadmap for hydrogen fuel cell operation and maintenance technical training, as well as a local green hydrogen fuel cell project for distributed power, under the terms of the agreement.
  • On 03 June 2021, Renault Group and Plug Power Inc. entered into a joint venture with the formation of HYVIA to work on low-carbon mobility and hydrogen fuel cells. This joint venture integrates entire hydrogen mobility ecosystem from the vehicle to infrastructure and turnkey services for customers. The development of this cutting-edge technology will enable in strengthening industrial base and set up new value-generating activities in France.

Segments Covered in the report

This report offers historical data and forecasts revenue growth at a global, regional, and country-level, and provides analysis of market trends in each of segments from 2019 to 2030. for the purpose of this report, reports and data have segmented the global hydrogen fuel cell market based on product type, vehicle type, technology type, application, end-use, and region:

Hydrogen Fuel Cell Market Report Scope

PARAMETERS DETAILS
The market size value in 2021 USD 14.72 Billion
CAGR (2021 - 2030) 21.2%
The Revenue forecast in 2030

USD 80.48 Billion

Base year for estimation 2021
Historical data 2019-2020
Forecast period 2022-2030
Quantitative units
  • Revenue in USD Billion

  • CAGR from 2021 to 2030

Report coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered By Product Type Outlook, Vehicle Type Outlook, Technology Type Outlook, Application Outlook, End-Use Outlook, Regional Outlook
By Product Type Outlook  
  • Liquid-Cooled Type
  • Air-Cooled Type
By Vehicle Type Outlook  
  • Passenger Cars
  • Buses & Coaches
  • Other Commercial Vehicles
By Technology Type Outlook  
  • Polymer Exchange Membrane Fuel Cells (PEMFC)
  • Phosphoric Acid Fuel Cells (PAFC)
  • Solid Oxide Fuel Cells (SOFC)
  • Direct Methanol Fuel Cells (DMFC)
  • Molten Carbonate Fuel Cells (MCFC)
  • Others
By Application Outlook
  • Automotive
  • Stationery
  • Material Handling Equipment
  • Others
By End-Use Outlook
  • Public
  • Private
Regional scope North America; Europe; Asia Pacific; Latin America ; Middle East & Africa
Country scope U.S.; Canada; U.K.; Germany; France; BENELUX; China; India; Japan; South Korea; Brazil; Saudi Arabia; UAE; Turkey
Key companies profiled Fuel Cell Energy Inc., Cummins Inc., Ballard Power Systems, Plug Power Inc., Bloom Energy, AFC Energy Plc., Dossan Fuel Cell Co. Ltd., Toshiba International Corporation Limited, Hyster-Yale Materials Handling Inc., Panasonic Holding Corporation., Intelligent Energy Limited, and Pearl Hydrogen.
Customization scope 10 hrs of free customization and expert consultation

REQUEST SAMPLE REPORT

Get Free Sample Report

REQUEST SAMPLE REPORT

REQUEST FOR CUSTOMIZATION

Tailor-make Your Research

REQUEST CUSTOMIZATION

Key questions answered by the report