Hydrogen Fuel Cell market is forecast to reach $45.34 billion by 2025, after growing at a CAGR of 65.86% during 2020-2025. Increasing Government initiatives and subsidies for manufacture of fuel cell electric vehicles in order to reduce carbon emissions is set to drive hydrogen fuel cell market size. High investment by automotive companies into manufacturing of fuel cell vehicles and growing public interest towards sustainable and environment-friendly products will further enhance the overall market demand for Hydrogen Fuel Cells that transfer chemical potential energy into electrical energy.
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Type – Segment Analysis
Air cooled segment held the largest share in the Hydrogen Fuel Cell market share in 2018. Air cooled type fuel cells offer efficient and cost effective cooling which promote the hydrogen fuel cell growth. High power density, high efficiency, flexibility in system packaging, simple and low cost design compared to water cooled system are the parameters that have been attracting manufacturers and users to opt for air cooled hydrogen fuel cells, thereby driving the market growth.
Application – Segment Analysis
Transportation sector has been the primary market for Hydrogen Fuel Cells. China, Japan and South Korea are expected to be pivotal in advancing the fuel cell electric vehicle technology, as Toyota, Toshiba, Panasonic and Hyundai-Kia claim to become the global leaders in fuel cell technology. Moreover, the government subsidies for fuel cell electric vehicles (FCEVs) in Asian countries such as China, Japan, and South Korea, is expected to create opportunities for private sector investments and start a new era in fuel cell vehicle technology. In October 2019, Doosan mobility had launched hydrogen fuel cell pack for drones that can fly 2hours duration. Innovation of hydrogen fuel cells for various means of transportation sector set to drive the hydrogen fuel cell market share.
Geography – Segment Analysis
APAC dominated the Hydrogen Fuel Cell market with a share of more than 32%, followed by North America and Europe. Favorable government policies in countries such as China, Japan and South Korea are driving the clean energy usage in APAC region. In 2019, an order for 74 fuel cell electric buses (FCEBs) was placed from Zhangjiakou City of China for preparation for the 2022 Winter Olympics. The deployment of fuel cell electric vehicles is likely to grow in other cities in China in near future. In 2019, Tokyo Metropolitan Government’s (TMG’s) has planned to power several operations in 2020 Olympic and Paralympics games, which will be held at Tokyo, using fuel cell technology. This has created ample of business opportunities for hydrogen fuel cell top 10 companies. In 2018, Panasonic Corporation has planned to commercialized hydrogen fuel cell generators by 2021. At present, Japan has approximately 100 fueling stations which are subsidized by the Government with continued operational support from manufacturers like Toyota. The Japan’s Government is planning to build 900 hydrogen fueling stations by 2030 which set to create ample opportunities for hydrogen fuel cells. This create opportunities for hydrogen fuel cells.
Therefore, factors such as supportive government policies and efforts to incorporate fuel cell technology in transportation and other applications are expected to drive the hydrogen fuel cell market size in the region during the forecast period.
Drivers – Hydrogen Fuel Cell Market
Rising demand for fuel cell electric vehicles
Fuel cell electric vehicles are key part of low carbon future and play an important role in achieving global carbon reduction targets. High investments in the technology by many global automotive manufacturers in developing fuel cell electric vehicles is set to drive hydrogen fuel cell market. By 2021, most of the leading automotive manufacturers are expected to have launched fuel cell electric vehicle globally, demonstrating real world application of the technology. Some of the automotive companies such as Hyundai, Toyota, Honda, Daimler, BMW have started developing FCEV with hydrogen fuel cell as this fuel cell releases by products such as water vapor and heat which makes it a truly zero-emission locomotive technology. This has created opportunities for hydrogen fuel cells.
Rising demand for hydrogen fuel cells due to benefits associated with it and Government norms and initiatives for low carbon emissions.
Increasing government norms in order to reduce carbon emissions set to create ample opportunities for hydrogen fuel cells. As hydrogen fuel cells emits byproducts as water vapor and heat, here is high demand for fuel vehicles which creates no harmful gases. The impact of switching from gasoline to a hydrogen fuel cell due to benefits associated with hydrogen fuel cell such as high efficiency compared to gasoline and advantage of reducing emissions are fueling the market growth.
Challenges – Hydrogen Fuel Cell Market
High cost of Hydrogen Fuel Cell
Hydrogen fuel cells are expensive and this hampers the growth of the market. The expenses for hydrogen fuel cells such as transportation and storage costs are higher than gasoline products expenses. The safety concerns associated with hydrogen are more as hydrogen is flammable. Unlike gas, hydrogen has no smell. High usage of gas sensors and gas detectors for hydrogen plants set to hamper the growth of the market.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Hydrogen Fuel Cell market. In 2018, the market of Hydrogen Fuel Cell has been consolidated by the top five players accounting for xx% of the share. Major players in the Hydrogen Fuel Cell Market are Toshiba Corporation, Plug Power Inc, AFC Energy plc, Panasonic Corporation, Ballard Power Systems, Doosan Fuel Cell and among others.
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