The Global Fuel Cell Market was valued at USD 4.6 Bn in 2020 and is expected to reach USD 21.7 Bn by 2027, with a growing CAGR of 24.8% during the forecast period.
A fuel cell is an electrochemical cell that helps in generating electrical energy from fuel through an electrochemical reaction. These cells need a continuous input of an oxidizing agent and fuel to go through the reactions which generate electricity. Owing to this, these cells could continuously produce electricity till the supply of oxygen and fuel is cut off. When compared with battery, these cells have to the ability to supply electrical energy for a much longer time and thus has been used in satellites, manned spacecraft, and space probes.
The fuel cell market is accounted to boost at a significant pace in the forecast period. The market is majorly experiencing traction owing to growing environmental concerns, such as low air quality and climate change. The deteriorating environmental conditions are the result of the high consumption of fossil fuels and the rapid growth of the transportation sector. The data released by United Nations (UN) shows that over 130 countries across the globe have already implemented or are planning to set a goal of reducing emissions to net-zero by 2050. In addition, according to World Economic Forum, countries including Sweden, UK, and Norway have implemented laws for fulfilling net-zero goals while countries such as Bhutan and Suriname are already below net zero. Such favourable government initiatives are creating a need for cleaner energy sources and are expected to boost the market growth. A fuel cell primarily uses methanol or hydrogen in generating electrical energy, thus optimizes energy security and reduces the economic dependence on oil and gas. As a result, the fuel cell market has been experiencing high market demand across the globe.
Moreover, many major countries have shifted their emphasis towards investment in advancing fuel cell technology which is also a prominent factor in driving the fuel cell market. For instance, in the year 2017, 23 countries in Europe came together for the HyLAW EU Project. The major objective of the HyLAW EU project is to smoothen the process of deploying hydrogen applications and hydrogen fuel cells by identifying and eliminating administrative and legal barriers involved. Major countries like the UK, France, Germany, Spain, Netherlands, and others are all part of the HyLAW project, highlighting the growing prominence of the fuel cell market across Europe. Similarly, in the USA, the Department of Energy committed investments worth USD 39 Million in 2018 towards advancing fuel technology. The French Government has also planned to increase the number of hydrogen fuel cell vehicles in the country from 260 to 5200 by the year 2023. Investments like these by nations are improving the focus on the fuel cell market and leading to market growth across the globe.
The unique insights provided by this report also include the following:
Based on type, the Proton exchange membrane fuel cell (PEMFC) held the largest share in the fuel cell industry in the year 2020 due to increasing application of PEMFC in transportation, portable, and stationary applications
Based on the type, the fuel cell market is segmented as PEMFC, PAFC, AFC, MFC, and Others. Among these, Proton exchange membrane fuel cell (PEMFC) held the largest share in the fuel cell industry in the year 2020. This share is attributed to the extensive utilization of PEMFC in transportation, portable, and stationary applications. PEMFC needs pure oxygen, water, and hydrogen to function. It is a more durable product in comparison to other types as it works at a lower temperature at around 80°C, which makes it suitable for a quick start and less exposed to the wear and tear of system components. As a result, PEMFC is considered more durable than other product types. Additionally, it also offers benefits such as low volume and weight than other fuel cell types. Owing to these advantages, PEMFC is experiencing high demand in several applications which is thereby driving the fuel cell industry growth.
Based on application, the transport segment is projected to be the fastest-growing segment in the fuel cell market due to increasing R&D activities to develop hydrogen-powered hybrid vehicles
Based on application, the fuel cell industry is fragmented into portable, stationary, and transport applications. Among these, the transport segment is projected to be the most lucrative and fastest-growing segment in the fuel cell industry. This is primarily due to the growing use of fuel cells in fuel cell vehicles and fuel cell forklifts. In addition, increasing R&D activities in the region such as Europe by several major players to make hybrid vehicles that will be powered by hydrogen are expected to positively drive transportation segment growth in the fuel cell market. Many automotive companies such as BMW, in June 2021, have begun the testing of its hydrogen-powered car prototype “BMW i Hydrogen Next” on the European roads to check the safety, efficiency, and reliability of these vehicles. The company expects that these cars have a high potential to supplement battery-electric vehicles. Other automotive giants such as Honda and Toyota too have entered the hydrogen fuel cell industry.
The report also provides an in-depth analysis of fuel cell market dynamics such as drivers, restraints opportunities, and challenges
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report.
The Covid-19 pandemic outbreak has severely influenced the fuel cell market on a global level. Project delays, supply chain disruptions, and limited financial assistance towards R&D activities have severely hindered the growth of the market. According to estimates from IEA, the Covid-19 pandemic has significantly impacted the installation of new renewable power capacities across the globe. For the first time since the year 2000, the renewable energy facility installations expansion experienced a decline of nearly 13% as against the previous year due to the pandemic. The fuel cell market which is majorly based on hydrogen-based technologies requires substantial investments and a precisely coordinated supply chain. The Covid-19 outbreak impacted the global supply chains along with the supply chain for hydrogen-based technologies, thereby severely impacting the growth of the market. Reports from IEA indicate that the demand for hydrogen from various sectors such as steel manufacturing and oil refining has reduced due to the Covid-19 pandemic and the demand for those key chemicals that are produced using hydrogen has also reduced by 7%. All these factors have severely affected the growth of the otherwise fast-growing fuel cell market.
The report also provides an in-depth analysis of key trends in Fuel Cell market
The report also provides in-depth analysis of recent news developments and investments of the market
Company Profiles and Competitive Intelligence
The key players operating in the Fuel Cell industry are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.