PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1064156
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1064156
According to Stratistics MRC, the Global Fuel Cells Market is accounted for $413.54 million in 2022 and is expected to reach $1,532.66 million by 2028 growing at a CAGR of 24.4% during the forecast period. A fuel cell is a device that generates electricity by a chemical reaction. Every fuel cell has two electrodes called, respectively, the anode and cathode. The reactions that produce electricity take place at the electrodes.
Passenger cars are the most numerous road vehicle type using the hydrogen fuel cell technology. As of 2020, there were 25,932 such vehicles registered. Coming in second, but by a wide margin, were buses, with 5,648 of them being fueled by hydrogen. Electric vehicles will prevail in the future of the passenger vehicle industry. Hydrogen fuel cells, in this case, allow an alternative means of electricity generation when the hydrogen stored in the vehicle comes into contact with an electrochemical cell. Fuel cell electric vehicles produce tailpipe emissions consisting only of water, making them an attractive option for the future of the industry.
Increasing research activities
The majority of the global R&D activities are focused on the development of and advances in fuel cell-powered vehicles, which is expected to fuel the market. In recent years, research and product development activities pertaining to utilities and UAVs for the defense sector, along with portable power generation units, have also increased at a significant pace. The high focus of the governments worldwide on the utilization of clean energy sources has led to an increase in the overall investments in generating electricity using fuel cells. Thus, the increase in investments boosts the growth of the advances in fuel cells market at present, as well as in the near future.
Lack of supporting infrastructure
Fuel cell operations depend highly on hydrogen. Hydrogen infrastructure includes hydrogen production, storage, transportation, and distribution. Once hydrogen is produced, it needs to be distributed. It can be sent to point-of-use either through pipelines or through different means of transportation. The commercial roll-out of hydrogen fuel cell vehicles depends on the availability of hydrogen fuel pumps. Most parts of the world lack the infrastructure necessary for the delivery of hydrogen. According to industry experts, the number of hydrogen filling stations for vehicles in these regions would increase over a decade. The limited infrastructure of hydrogen fueling can impact the future demand for hydrogen generation by fuel cell-powered vehicles. Heavy investment and intensive support by public and private entities would be required to develop hydrogen fueling stations. Thus, the absence of supporting infrastructure hinders the growth of the hydrogen-based fuel cells technology market at present.
Fuel cells generate energy from fuels such as methanol and natural gas and produce heat and water. The type of fuel required for operations depends not only on the type of the membrane but also on the type of catalyst used in the fuel cell. Some fuel cells based on the proton-exchange membrane (PEM) require pure hydrogen for operations, while others are fuel-flexible, thereby providing ease of operation to users. For instance, phosphoric acid fuel cells (PAFCs), solid oxide fuel cells (SOFCs), alkaline fuel cells (AFCs), and direct methanol fuel cells (DMFCs) can operate properly without the availability of pure hydrogen. Fuel flexibility refers to the operational capability of these fuel cells that are widely and easily available in conventional or non-conventional fuels. This is projected to present lucrative opportunities for manufacturers in the advances in fuel cell technology market and encourage advancements even when there is a lack of availability of pure hydrogen.
Decreasing cost of batteries
As novel technologies are gaining momentum for power generation, the use of batteries has also increased for providing off-grid and grid energy storage, which is supported by the decreasing cost of batteries. All these factors collectively pose challenges for key players in the advances in fuel cell technology market.
Quick refilling and range are superior to battery-powered electric vehicles but given the current cost differences and a dramatic economic downturn due to COVID-19, timeline setbacks for large-scale adoption of hydrogen fuel cell consumer vehicles are likely. The same may not be the case for fleet vehicles, though. While automotive manufacturers closely watch for changes to emissions regulations, the pandemic presents both challenges and opportunities
The transport segment is expected to be the largest during the forecast period
The transport segment is growing significantly because of the widespread usage of fuel cell technology in heavy-duty operations such as public transport in regions such as Asia Pacific, which is likely to boost demand for the transport segment of the advances in fuel cell technology market during the forecast period. Increasing research & development activities in Europe to develop hybrid vehicles powered by hydrogen are likely to drive the growth of the segment.
The fuel cell vehicles segment is expected to have the highest CAGR during the forecast period
The growing demand for reducing carbon emissions has given an excellent opportunity to fuel cell-powered vehicles, which is likely to boost the advances in fuel cell technology market.
Region with largest share:
Asia Pacific is projected to hold the largest market share owing to the ENE-FARM program in Japan, which has driven the use of PEMFCs and SOFCs for micro-CHP applications in the country. Moreover, supporting policies and plans for fuel cell systems for transportation application in China and South Korea have fueled the growth of the fuel cell market in the region. Growing funding programs from government and private institutions including Credit Suisse, DOE, among others along with surging deployment of FCEVs will significantly boost the fuel cell market growth. For instance, the South Korean government introduced a policy, Fuel Cell Vehicle 10 Percent Era to achieve its 2030 target, wherein 10% of the total new car sales should be FCEVs.
Region with highest CAGR:
North America is projected to have the highest CAGR due to the presence of supporting policies to limit carbon footprint in the region coupled with the availability of funds for the research & development related to fuel cells. Furthermore, the presence of vendors such as Bloom Energy has driven the installation of fuel cells for stationary applications in the U.S. in sectors such as data centers, sports stadiums, and commercial buildings.
Key players in the market
Some of the key players profiled in the Fuel Cells Market include Toshiba Energy Systems & Solutions Corporation, Mitsubishi Hitachi Power System, Cummins, Bloom Energy, Fuelcell Energy, Ballard Power Systems, Aisin Seiki Energy, Doosan Fuel Cell America, AFC Energy, SFC Energy, Plug Power, Nuvera, Intelligent Energy, Horizon Fuel Cell, and Hydrogenics.
In October 2019: SFC Energy signed a contract with Aurorahut, a Finnish company. Under the agreement, AuroraHut integrates the EFOY fuel cell into its new all-season igloo houseboats for highly personalized vacations. The fuel cell is a fully automatic, silent, and environmentally friendly power source in all igloos.
In October 2019: Ballard Power signed a contract with Berlin-based BEHALA. Under the contract, Ballard Power will be supplying three FCveloCity 100 kilowatt (kW) fuel cell modules. The fuel cells would be installed on the world's first zero-emission push boat, named Elektra. The push boat will be used primarily to transport goods between Berlin and Hamburg and within Berlin.
In March 2019: Plug Power launched a new product to enhance its line-up for hydrogen-based fuel cells. ProGen 30kW engine provides a cost-effective solution to meet the needs of today's electric vehicle (EV) use-case, including high utilization, extended runtimes, and reliable performance in harsh environments, rapid fueling, and zero emissions. ProGen industry-leading products make it simple for original equipment manufacturers (OEMs) to adopt sustainable fuel cell power.
In October 2018: Hydrogenics opened a new facility in Carlsbad, California. The facility would majorly aim at the integration of hydrogen fuel cell systems into heavy-duty truck and bus platforms for customers in California. The inception of this manufacturing facility helped Hydrogenics in strengthening its position in the US market.
End Users Covered:
What our report offers:
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.