The China fuel cell market is expected to grow at a CAGR of more than 11.2% over the period of 2020-2025. The increase in fuel cell vehicles and government policies has been driving the demand for the fuel cell market in China. However, the market is restrained due to insufficient hydrogen fuel infrastructure, the complexity of the design, high manufacturing and maintenance cost, and the lack of capability to match the performance of electric vehicles.
- The transportation sector is anticipated to dominate China's fuel cell market. For instance, In China order for 74 fuel cell, electric buses (FCEB's) was placed for Zhangjiakou city for the 2022 winter Olympics.
- The FCEB's is likely to augment growth in several cities of China. With the development of the fuel cell industry, China aims to achieve the cost of the fuel cell system to 4,000 yuan per kilowatt by 2025.
- The Chinese government policies entice FCV's to increase the overall number of zero-emission vehicles on the road since fuel cell vehicles have several advantages over purely battery-electric vehicles.
Key Market Trends
Transportation Sector to Dominate the Market
- China has great potential in the fuel cell market as the government is increasingly focusing on ways to utilize clean energy technology in order to switch to a low-carbon economy.
- In 2018, Hyundai Motor and Beijing-Tsinghua Industrial R&D Institute (BTIRDI), signed a memorandum of understanding (MOU), to establish a Hydrogen Energy Fund worth USD 100 million, to support the adoption of fuel cell vehicle in China in coming years.
- In addition, under the 13th Five-Year Plan, the country is expected to promote research and development of fuel cells, step up building hydrogen stations, and achieve the mass production of fuel cell vehicles by 2020.
- Further, the decreasing price of lithium-ion batteries (LIB) is among the major factors influencing the rapid increase in LIB technology adoption in multiple sectors, such as renewable, automobiles, and others. The increasing adoption of LIB technology is expected to remain a restraining factor for growth of fuel cell market until the technology itself becomes cost-competitive.
China's Ambitious Targets to Drive the Market
- China's aim of having a million units on the road by 2030, achieving this level of penetration will require a steep adoption curve.
- So, the Chinese policymakers expect the market to grow to 5,000 vehicles by the end of 2020 and to 50,000 by 2025.
- China, the world's biggest car market, is putting its manufacturing and policy might behind hydrogen fuel cells, just as it has with battery-electric vehicles.
- China's generous subsidies for fuel-cell subsidies had attracted the attention of major automakers. Last month, Toyota unveiled plans to sell fuel-cell vehicles into the Chinese market via existing partnerships with Guangzhou Automobile Group and FAW Group.
The China fuel cell market industry is moderately fragmented. Some of the key players in this market include Ballard Power System Inc, Toshiba Fuel Cell Power System Corporation, Fuelcell Energy Inc, Plug Power Inc, and Horizon Fuel Cell Technologies Pte Ltd.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support