Global Hydrogen Fuel Cell Market Set to Thrive—Projected to Grow at a CAGR of 28.6% by 2027
Published | 07 October 2021
Global hydrogen fuel cell market is growing at an impressive CAGR. The market anticipated to grow during the forecast period due to the rising adoption of hydrogen fuel cells by automotive manufactures for manufacturing electric vehicles (EV)...
A study recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global hydrogen fuel cell market was worth USD 2,485.0 million in 2020 and is further projected to reach USD 12,577.0 million by 2027, at a CAGR of 28.6% during the forecast period (2021-2027). Since hydrogen has the potential to produce lower CO2 emissions than other conventional forms of energy, it has been receiving increasing attention over the past few years. At present, roughly 70-90% of hydrogen is obtained by burning fossil fuels. Nevertheless, the popularity of green hydrogen, its alternative, has grown rapidly over the last couple of years. In the future, it is expected to serve as a green energy carrier, overtaking the consumption levels of fossil fuels in various applications, like electricity generation, refineries, chemical production, etc. These are some of the factors driving the growth of the global hydrogen fuel cell market.
Growing Emphasis on Un-Conventional Energy Sources Driving Market Growth
Historically, fossil fuel has been the primary source of energy for combustible engines, which is also responsible for a significant amount of carbon dioxide emissions. Almost 19% of greenhouse gas emissions in 2019 were attributed to the transportation sector, according to the US Environmental Protection Agency. Another major source of greenhouse gas emission has been industrial production, which burns fossil fuels to generate enough energy to produce raw materials. On the other hand, hydrogen fuel cells are considered one of the safest and cleanest elements, emitting little to no emissions and reducing the carbon footprint of the energy used in the production of electric vehicles, power plants, and other applications. Furthermore, the increased focus on climate change and greenhouse gas emissions has prompted many of the world's biggest organizations to band together in the battle against climate change, bringing their goals to the forefront to demonstrate their countries' carbon-neutral potential.
Growth of The Electric Vehicle Industry Powering Global Hydrogen Fuel Cell Market
Currently, the majority of electric vehicles are powered by batteries. However, there has been a shift toward hydrogen fuel cells in the production of electricity. The reduction of carbon emissions may increase by 12,600 pounds per year if the conventional vehicles are replaced by fuel cell vehicles. Despite the fact that battery electric vehicles are gaining popularity, hydrogen fuel cell vehicles outperform them in terms of fuel efficiency and carbon emissions. According to one estimate from the Fuel Cell and Hydrogen Energy Association, hydrogen fuel vehicles emit lower greenhouse gas emissions per mile than battery electric vehicles. Additionally, hydrogen from biogas tri-generation technology has become one of the emerging technologies in vehicle production, emitting lower energy than battery electric vehicles. It showcases that hydrogen fuel cell vehicles are growing faster than battery electric vehicles, thereby driving the growth of the global hydrogen fuel cell market.
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Water Cooled Segment Holds the Largest Market Share Based on Types
Based on types, the global hydrogen fuel cell market is grouped into air-cooled and water-cooled. The water-cooled segment held the larger share in the market in 2020. The air-cooled method is generally applied to those areas where the convective heat transfer takes place for removing the excess heat generated from PEM fuel cells stacks with the power of more than 5kW.
Though the water-cooled hydrogen fuel cells may prove expensive at first, they happen to be the most economical source of producing the hydrogen and transporting large volumes of hydrogen to the end-applications, which is not achievable in the case of the air-cooled type of method.
Impact of COVID-19 on Global Hydrogen Fuel Cell Market
COVID-19 has affected almost all industries, and the global hydrogen fuel cells market is no exception. The pandemic has had a significant impact on operations and market parameters for industry players. Furthermore, COVID-19 has also hindered the demand for the hydrogen fuel cell market. During the nationwide lockdown, 96% of the German automotive industry put their workforces on short-term leave, declining market growth. Nevertheless, the growing investments and initiatives for hydrogen fuel integration across North America, Asia-Pacific, Europe, Latin America, the Middle East, and Africa suggest that the market is on track to achieve rapid growth in the coming year.
Global Hydrogen Fuel Cell Market: Regional Insights
Based on regions, the global hydrogen fuel cell market is segmented into North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. Among all the regions, the Asia Pacific accounted for the largest share in the global hydrogen fuel cell market in 2020. In light of the increasing carbon emissions, it has become increasingly important for developed and developing nations alike to consider their countries’ footprint on the planet. Growing investment in the development of hydrogen infrastructure and green-hydrogen is expected to drive the growth of the hydrogen fuel cell vehicles in the region during the forecast period.
The key players in the global hydrogen fuel cell market are Panasonic, Plug Power, Toshiba ESS, Ballard, SinoHytec, Hydrogenics, Honda, Hyundai Mobis, Toyota Denso, Bosch/Powercell, Symbio and other key manufacturers. These players put emphasis on campaigns and product launches in order to improve their market presence. Additionally, the market is dominated by top global players, who account for more than half of the market share. Partnerships, mergers, and acquisitions are among the competitive strategies that businesses use in order to gain a competitive edge.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global hydrogen fuel cell market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the hydrogen fuel cell market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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