Hydrogen Fuel Cells Market Size, Share, Industry, Forecast and outlook (2024-2031)

Hydrogen Fuel Cells Market Size

Global Hydrogen Fuel Cells Market reached US$ 3.1 billion in 2022 and is expected to reach US$ 5.9 billion by 2030 growing with a CAGR of 8.3% during the forecast period 2024-2031.

Hydrogen Fuel cells are key solutions for the production of power and clean energy resources, hence driven by increasing demand for various sectors such as transportation and power generation. Fuel cells are more efficient rather than combustion engines. Fuel cells independently function in the grid so they can be used in military fields and disaster zones. 

The global hydrogen fuel cell market is vital in generating energy with the growth of unconventional resources. Hydrogen fuel cells can generate electricity without emitting greenhouse gases which acts as a major asset for market growth. Asia-Pacific is expected to share more than 55.2% of the global hydrogen fuel cell market.

India has shown the highest growth in the region due to rising government funding and key players’ investments in the market. Indian companies such as Reliance have planned to launch zero carbon firms up to 2035, Indian PSU Gail also has plans for generating green Hydrogen which can be used in fertilizer units. Also, they have started testing and trails a combination of hydrogen with natural gas.

Market Scope

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Market Dynamics

Growing Investments in the Adoption of Hydrogen Fuel Cell Technology

Recent advancements in hydrogen fuel cells are broadly focusing on transportation sectors due to their advantages over other fuels like gasoline, and diesel. Hydrogen fuel cell vehicles have zero emission and low maintenance. It works like batteries so the refueling time is less than other fuels, its average time is 4 mins.

Companies such as Ballard power systems and global carbon reduction announce their first 60 hydrogen fuel module and 35 modules up to 2023. Ballard power system and First Mode announced the partnership in which Ballard supply 60 hydrogen fuel modules to First Mode. A combination of technology and fuel cell provides a good alternative to diesel and petrol with zero emissions. NuGen is a solution in which fuel cells were integrated with First Mode which is used in ultra haul trucks.

Growing Shift Towards Clean and Sustainable Energy Solutions

The second most focused domain is the field of power generation since it offered a clean and sustainable way of generating power. Sustainable solutions are more efficient in utilizing the energy in a useful way by simultaneously generating electricity as well as utilizing the waste heat for different heating and cooling purpose. It offers the advantages of low emissions, and high efficiency which increases the demand for hydrogen fuel cells. The combination of hydrogen fuel cells and renewable energy provides a stable and reliable power supply. 

For the growth of the fuel cell market, Bloom Energy stepped into the green hydrogen market and offers electrolyzes and fuel cells that are powered by hydrogen. Bloom Energy uses biogas and natural gas for producing fuels. In collaboration with SK E and C, it already sells 120 MW cells to South Korea which deployed in 2022. At the end of this financial year fuel cell vendors imports a 100 KW pilot called a hydrogen server.

High Investment in Infrastructure

One of the major restraints in the hydrogen fuel cell market is the production cost and development of infrastructure. Fuel cell technology requires a large number of investment in manufacturing and facilities for hydrogen refueling stations. Building a huge hydrogen network storage and production which require a huge investment in this sector. This factor limits the adoption and availability of hydrogen fuel cells. 

The storage of hydrogen and production is still under development when compared to gasoline and diesel infrastructure. The construction and development of fuel stations require huge investments depending upon many other market factors. Limited fuel stations are major restraints in fuel sectors. Complex management for the production of hydrogen obstructs the market and it’s a major drawback factor in the fuel cell sector. 

Market Segmentation Analysis

The global hydrogen fuel cell market is segmented based on type, application and region.

Rising Demand For Lower Temperature And Durability Cells in the Automotive And Telecommunication Sector

Proton exchange membrane fuel cells (PEMFC) are a core segment in fuel cells. It has a large-scale application and production in the transportation sector. The advantage of PEMFC it has low temperatures which range from 50 degrees to 100 degrees and a polymer electron membrane which is set them unique compared to others. Due to its lower temperature warm-up, it increases the durability of cells. 

PEMFC sustainable fuel where the by-product of fuel is water. It is an alternative to conventional fuels which makes them feasible for countries that adopts hydrogen fuel cells and reduce carbon emissions. Telecommunication, primary system, and automobile sectors were PEMFC majorly used. The power source for zero-emission vehicles was proposed by PEMFC. 

Market Geographical Share

Asia-Pacific Rising Investment In Adopting Green Technology

In the world, the largest market for green technologies is Asia-Pacific. Kyoto Protocol is being used in this region of renewable energy resources. China, Japan, India, and Australia are the most growing countries and production of fuel cells is at its peak in these countries. These countries are investing heavily in adopting fuel cells for various applications and transportation remained to be the fastest-growing segment for the market growth.

Furthermore, in East Asia, Japan targets to reduce greenhouse emissions and set zero carbon by 2050 which is declared by the new prime minister. To achieve this target government declares policies for the growth and development of energy for japans future. The fuel market in Japan holds the sixth highest share which being declared by IEA reports. The government of Japan introduces hydrogen road maps and labels with the aim of commercialization in household energy.

Market Major Players

The major global players in the market include Ballard Energy Resources, Bloom Energy, FuelCell Energy, Inc., Hydrogenic Corporation, Plug Power Inc, SFC Energy AG, NedStack Fuel Cell Technology B.V., Doosan Fuel Cell America, Inc, Nuver Fuel Cells LLC and Ceres Power Holdings PLC.

COVID-19 Impact

The COVID pandemic affected supply chain management which cause delays and shortages due to transportation. The growth of hydrogen fuel cells impacted majorly in COVID. Forecast report from IEA in which chemical production by using hydrogen dropped by 7%. In early 2019 fuel-cell vehicle growth increases but after 2020 the growth downfall because of the storage of resources and less carbon production.

COVID also affected hydrogen infrastructure such as fuel stations. The construction projects were delayed due to lockdowns which affect the growth and demands of hydrogen fuel cells in the transportation sector. Operations were suspended in many organizations due to restrictions on traveling norms. During the pandemic, many projects got delayed which affects fuel cell markets.

Russia-Ukraine War Impact 

Russia-Ukraine conflicts, majorly affect the global energy market. As per IEA reports the market was affected due to a shortage of supply, increased prices, and security concerns. Russia is the largest supplier of energy resources and its goal is to supply 0.2 million tons by 2024. But during the war, Russia lost the trust of other countries which impacted the European and Russian markets.

Due to the war, the energy price fluctuated and the euro energy area sector was affected most. When Russia’s invasion of Ukraine affects majorly geographical areas. As per the Rystad energy reports the production of green hydrogen has a lower production rate cost of US$ 4kg, which shows the impact of Russia’s Ukraine war.

Scope

By Type

• Proton Exchange Membrane Fuel Cells (PEMFC)
• Phosphoric Acid Fuel Cells (PAFC)
• Solid Oxide Fuel Cells (SOFC)
• Molten Carbonate Fuel Cells (MCFC)
• Others

By Application

• Transportation
• Stationary
• Portable

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On March 2019 Japan announce a new strategy for the development of hydrogen and fuel maps with a goal of 800,000 fuel cell vehicles by 2030.
• On 3 January 2023, the Indian PSU sector such as NTPC plans to open its first hydrogen fuel cell station in Leh and Ladakh which increases the demand for fuel cells by 2032 February.
• On 21 August 2022 21 Union Minister of State, Science & Technology along with other ministers launched India’s first truly indigenously developed Hydrogen Fuel Cell Bus developed by KPIT-CSIR in Pune.

Why Purchase the Report?

• To visualize the global hydrogen fuel cell market segmentation based on the type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of hydrogen fuel cell market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global hydrogen fuel cell market report would provide approximately 50 tables, 49 figures, and 195 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies