Hydrogen Fuel Cell market is projected to reach USD 52.71 Billion by the year 2027, to grow at a CAGR of 31.4% from 2020 - 2027 (forecast period).
Increasing government initiatives and subsidies for the manufacture of fuel cell electric vehicles with a goal of reducing carbon emissions are expected to raise the hydrogen fuel cells market size. High investment by automotive companies in the manufacturing of fuel cell vehicles and an increasing public interest in sustainable and environmentally friendly products will further boost the overall consumer demand for hydrogen fuel cells that transfer chemical potential energy into electrical energy.
The COVID-19 pandemic has had a substantial effect on the hydrogen fuel cell industry. Market players had to make short-term decisions while understanding their long-term consequences. Plug Power, a major provider of hydrogen engines and fueling solutions for e-mobility, has built and successfully deployed the AR Smart Glasses Remote Training and Onboard Program using the Vuzix M400 Smart Glasses powered by Ubimax Frontline, a fully integrated productivity solution platform.
The emergence of COVID-19 raised new challenges for Plug Power operations to train and help their field technicians and their increasing customer footprint. In a couple of weeks, Plug Power was able to adapt its in-person training and onboarding programs into AR virtual smart glasses-based training programs. The AR support program provides Plug Power technicians with a package consisting of Vuzix Smart Glasses preloaded with Ubimax Frontline software, which not only allowed technicians to capture and review hands-free on-the-job training with a remote trainer but also substituted the need for more expensive on-the-job training events and gatherings.
In June 2020, Plug Power Inc., a major provider of hydrogen cell engines and fueling solutions that enabled e-mobility, finalised its acquisitions of United Hydrogen Group Inc. and Giner ELX. These acquisitions are in line with the vertical integration strategy of Plug Power in the hydrogen business set out in September 2019.
Rising demand for fuel cell electric vehicles to propel market growth
Fuel cell electric vehicles are a crucial part of the low-carbon future and play a significant role in achieving global carbon reduction goals. High technology investment by several global automotive manufacturers in the development of fuel cell electric vehicles is expected to propel the hydrogen fuel cell market. By 2021, most of the world's leading automotive manufacturers are estimated to have introduced fuel cell electric vehicles worldwide, demonstrating the real-world application of the technology. Some automotive companies like Hyundai, Toyota, Honda, Daimler have begun developing FCEV with a hydrogen fuel cell as this fuel cell releases products such as water vapor and heat, making it a truly zero-emission locomotive technology. This has given rise to opportunities for hydrogen fuel cells.
Increasing demand for the benefits of hydrogen fuel cells and government norms and initiatives for low carbon emissions to spur market growth
Increasing government standards to minimize carbon emissions set to create sufficient opportunities for hydrogen fuel cells. As hydrogen fuel cells emit by-products such as water vapor and heat, there is a strong demand for fuel vehicles that do not generate harmful gases. The effect of switching from gasoline to hydrogen fuel cells due to the advantages associated with hydrogen fuel cells, such as high performance compared to gasoline and the benefit of reducing emissions, is fueling the market growth.
The high cost of hydrogen fuel cell
Hydrogen fuel cells are costly, and this impedes the growth of the market. The expenses for hydrogen fuel cells, like transport and storage, are higher than the cost of gasoline products. The safety issues associated with hydrogen are more as hydrogen is flammable. Unlike gas, hydrogen has no smell. The high use of gas sensors and gas detectors for hydrogen plants impedes the growth of the market.
Global Hydrogen Fuel Cells Industry has been segmented into Type and Application.
Based on type, the global market has been segmented into air-cooled type and water-cooled type.
Based on application, the global market has been segmented into stationery, transport, and portable.
Global Hydrogen Fuel Cells Market has been segmented by prominent regions such as the Americas, Europe, Asia Pacific, and the Middle East & Africa.
Americas to lead the global market
Americas was the first biggest market in 2016, estimated at USD 753.1 million. American countries, more specifically North American countries, fuel cell deployments have been promoted by federal research and development (R&D) and demonstration programs and backed by federal tax incentives for FCVs, hydrogen infrastructure and fuel cell generation, funding, and expenditure by state governments that have impelled the use of fuel cell and hydrogen technologies in specific parts of the country. As a result, America's hydrogen fuel cell industry is expected to expand at a CAGR of 24.72%.
APAC to hold the second spot
The Asia Pacific is another significant region for hydrogen fuel cells. In 2016, it had a market share of 28.47% with a market value of USD 461.7 million. The increasing population and growing disposable income in the region are driving energy demand. Moreover, these rapidly rising economies in the region are also the world's top polluters. Hydrogen fuel cells are identified as the best substitute for other conventional fossil fuel energy sources to minimize carbon emissions by meeting energy needs efficiently. As a result, Asia Pacific is projected to rise at a CAGR of 27.09% during the forecast period.
Global Market for hydrogen fuel cells is consolidated with just a few companies operating in the market. However, due to the competitiveness of the market, the number of new companies to enter the market is expected to rise in the near future. Leading companies are investing in research and development in order to succeed in the market and come up with innovations.
The report is an in-depth review of the key factors influencing the global market for hydrogen fuel cells, covering both driving and limiting factors. The report is compiled by analysts after analyzing the historical and present size and state of the market, which is then used to assess possible market growth prospects. The demand for hydrogen fuel cells has been studied at both the regional and global levels. Trending facets of the market have been discussed, and potential opportunities in the future are determined.
|Market Size||2027: USD 52.71 Billion|
|CAGR||31.4% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Panasonic Corporation (Japan), Intelligent Energy Holdings plc (U.K.), FuelCell Energy Inc. (U.S.), Plug Power Inc. (U.S.), Hyster-Yale Group (U.S.), Doosan Fuel Cell (U.S.), Ballard Power Systems. (Canada), Nedstack fuel cell technology BV. (Netherlands), Pearl Hydrogen (China), Hydrogenics Corporation (Canada), Horizon Fuel Cell Technologies (Singapore)|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global hydrogen fuel cells industry is expected to register a 31.4% CAGR across the review period.
The Americas is set to hold the largest market share.
The rising demand for unconventional energy sources and growing concern for the environment to drive market growth .
Hydrogen can be used in fuel cells to generate power using a chemical reaction rather than combustion, producing only water and heat as byproducts.