Fuel cell is an electrochemical cell which converts chemical energy into electricity with the help of an oxidizing agent. Fuel cells are comparatively different from batteries in need of fuel and oxygen. Fuel cells can generate electricity constantly till they get fuel and oxygen.
Statistics:
The fuel cell market was valued at US$ 3563.33 Bn in 2021 and is forecast to reach a value of US$ 10803.20 Bn by 2030 at a CAGR of 12.9% between 2022 and 2030.
Figure 1: Fuel Cell Market Value (US$ Bn) Analysis and Forecast, 2017 - 2030
Key Developments:
In February 2021, Ballard Power System and the Chart industries have made an agreement for a non-binding MoU to partner on the growth of the integrated systems solutions for the transportation industry. This agreement aims on the heavy-duty usage such as buses, trucks and marine vials that comprise a fuel cell engine with the onboard liquid hydrogen.
In February 2021, Ballard power system and the Global energy ventures signed a memorandum, to make the carbon hydrogen, a new fuel cell-powered ship. The ship is made to convey or import and export the compressed hydrogen gas. It received the orders for purchase of 10 Ballards FCmove fuel cell modules from the Solaris Bus.
Figure 2: Fuel Cell Market Share (%), By Region, 2021
Market Drivers:
Driver 1:
The introduction of government initiatives in key markets and rising investment support from the private sector have led to a significant growth in the fuel cells which is expected to boost the growth of the global fuel cell market. For instance, California Energy Commission's Alternative and Renewable Fuel and Vehicle Technology Program, a government initiative, in 2013 introduced long-term authority to co- fund the first 100 retail hydrogen stations.
Driver 2:
PEM fuel cells' energy density is higher than the Li-ion battery, hence making PEM fuel cells suitable for heavily loaded vehicles and long-haul transport. Furthermore, the PEM cells is the most popular one and is expected to play a vital role in Europe's target for fuel cell deployment which is expected to propel the growth of the global fuel cell market.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 3563.33 Bn |
| Historical Data for: | 2017 to 2020 | Forecast Period: | 2022 to 2030 |
| Forecast Period 2022 to 2030 CAGR: | 12.9 % | 2030 Value Projection: | US$ 10803.20 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Fuel Cell Energy Inc., Cummins Inc., Ballard Power Systems Inc., Plug Power Inc., SFC Energy AG, Horizon Fuel Cell Technologies Pte Ltd., Mitsubishi Hitachi Power Systems Ltd., Toshiba Energy Systems & Solutions Corporation, Intelligent Energy Limited and Nuvera Fuel Cells LLC |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Restraint:
Restraint 1:
The high cost of fuel cell systems subsequently in the high cost of FCEV may challenge the market growth. Furthermore, investment risks such as capital and operational costs and under-utilization of various facilities pertaining to FCEV are mostly expected to hinder the growth of global fuel cell market.
Restraint 2:
The reducing price of lithium-ion batteries is among the significant factors influencing the rapid increase in LIB technology adoption in various sectors, such as renewable, automobiles, energy storage, etc. The rising adoption of LIB technology is expected to hamper the growth of the global fuel cell market.
Market Opportunities:
Opportunity 1:
Several nations and companies have established long-term targets for the growth of fuel cell industries. Such initiatives are likely to create significant market opportunities in the future. For instance, in December 2018, Hyundai Motor Group announced its long-term roadmap ‘FCEV Vision 2030’ plan. Under FCEV Vision 2030, it is going to boost its annual fuel-cell systems production capacity to 700,000 units by 2030.
Opportunity 2:
Several companies are also looking to explore new business opportunities to supply fuel-cell systems to other transportation manufacturers of automobiles, drones, vessels, rolling stocks, and forklifts which is anticipated to boost the growth of global fuel cell market. For instance, the Group plans to secure 500,000 units per year FCEV production capacity by 2030, comprising passenger vehicles and commercial vehicles.
Market Key Takeaways/Trends:
Trend 1:
The Chinese government plans to deploy a million fuel cell vehicles on the roads by 2030. For this, the country is also offering significant subsidies in different parts of the country which is expected to propel the growth of global fuel cell market. For instance, by 2025 there would be 50,000 FCEVs, while, after-2025, it aims for robust growth in Fuel Cell vehicles registrations, with 950,000 vehicles during 2026-2030.
Trend 2:
Japan is currently one of the leading manufacturers of the hydrogen fuel cell globally, with leading manufacturers such as Toyota, Panasonic which are likely to create lucrative opportunities in the growth of the global fuel cell market. For instance, the amount of fuel cells shipped in 2019 was 45,000 of the 70,000 units in 2019. The Japanese government is focusing to sell 800,000 FCV by 2030.
Competitive Landscape:
Major companies operating in the global fuel cell market are Fuel Cell Energy Inc., Cummins Inc., Ballard Power Systems Inc., Plug Power Inc., SFC Energy AG, Horizon Fuel Cell Technologies Pte Ltd., Mitsubishi Hitachi Power Systems Ltd., Toshiba Energy Systems & Solutions Corporation, Intelligent Energy Limited and Nuvera Fuel Cells LLC.
There are various parts of the fuel cells, an anode, cathode and an electrolyte. The cells that allow the ions are positively charged hydrogen ions, which make a movement in between the two sides of the fuel cell. At the anode the catalyst leads the fuel to undergo the oxidation reaction that produces ions.
Market Dynamics:
Many businesses have currently increased their investments in the R&D of fuel cells. One such efforts is to improve fuel cell technology. This situation shows potential growth for the global fuel cell market in the forecast period. Fuel cell market is expected to generate huge opportunities over the next few years. It is due to the increasing use of fuel cells in a variety of applications such as combined heat and power systems, submarines, vehicles, electric appliances, uninterrupted power supply systems, military power units, etc.
On Contrary, investment risks such as capital and operational costs and under-use of several facilities relating to FCEV are likely expected to hinder the growth of global fuel cell market.
Key features of the study:
Detailed Segmentation:
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