The hydrogen fuel cells market is growing at a CAGR of 60.1% in the timeframe 2022 to 2030. Hydrogen fuel cells are utilized in the creation of power from hydrogen. The increasing regulatory rules to reduce carbon emissions are expected to expand the market for hydrogen fuel cells.
To function, hydrogen fuel cells require a constant supply of oxygen and fuel. A fuel cell is a device that uses a chemical process to assist in the generation of electrical power.
The term fuel cell refers to a device that converts chemical potential energy into electrical energy. Fuel cells are used to generate power from a variety of consumer fuels. It is made up of renewable energy and hydrogen. This is anticipated to provide electricity for a wide range of applications, including buses, cars, and commercial constructions. The overall consumer demand for hydrogen fuel cells will be boosted further by increased investment by automotive companies in the manufacturing of fuel cell automobiles and a growing public interest in ecologically sustainable products.
The global hydrogen fuel cells market size is expected to be worth around US$ 131.06 billion by 2030 from at US$ 1.91 billion in 2021, growing at a CAGR of 60.1% during the forecast period 2022 to 2030.
- In terms of product, the proton exchange membrane fuel cells segment dominated the global hydrogen fuel cells market in 2020, accounting for the majority of the market share. Rising demand for renewable energy generation, as well as reliance on proton exchange membrane fuel cell-based public transportation systems in developed countries, are driving segment expansion.
- In terms of application, the stationary segment dominated the global hydrogen fuel cells market in 2020, accounting for the largest share of the market. The growing demand for fixed backup power generators for remote sites, as well as the increasing number of power generation plants being built around the world, encourages technology adoption, which propels the segment growth.
- North America is the largest segment for hydrogen fuel cells market in terms of region.The improved transportation infrastructure, higher purchasing power, access to hydrogen fueling stations, and technology developments are all elements that are contributing towards the growth of the hydrogen fuel cells market in North America region.
- Asia-Pacific region is the fastest growing region in the hydrogen fuel cells market.The hydrogen fuel cells market in the Asia-Pacific is predicted to grow even faster as the region's population grows and disposable income rises.
Drivers: Rising use of fuel-efficient vehicles
As gasoline is a fossil fuel, it is not a renewable source of energy and will eventually run out. To support sustainable growth, it is critical to develop and utilize alternative fuel sources. This entails the use of hydrogen fuel cell automobiles, as well as electric vehicles that do not require gasoline and are more cost effective than traditional vehicles. The hydrogen fuel cell vehicles are more efficient than internal combustion engines and hybrid vehicles, with 60-70% efficiency advantage over the other two. Due to the increase in price of diesel and gasoline, the demand for fuel efficient automobiles has surged. This is also related to the depletion of fossil fuel reserves and an increase in firm's desire to maximize profits from these reserves. Thus, rising use of fuel-efficient vehicles is propelling the expansion of the hydrogen fuel cells market during the forecast period.
Restraints: High initial investment
The hydrogen fuel cells technology allows propulsion systems that do not produce greenhouse gases or other hazardous pollutants like nitrogen oxides or particulate matter from the output system. This characteristic encourages market players to use the technology. However, the high cost of raw materials such as platinum in the fuel cell anode and carbon fiber to manufacture hydrogen fuel tanks and other components needed to construct hydrogen infrastructure is projected to stymie the growth of the global hydrogen fuel cells market during the forecast period.
Opportunities: Growing government initiatives
The increasing regulatory rules to reduce carbon emissions are expected to expand the market for hydrogen fuel cells. Due to the byproducts of hydrogen fuel cells, there is a high demand for fuel automobiles that do not produce toxic pollutants. The hydrogen fuel cells market expansion is being fueled by the effect of switching from gasoline to hydrogen fuel cells due to the benefits associated with hydrogen fuel cells, such as superior performance compared to gasoline and the benefit of lowering emissions. As a result, the growing government initiatives are creating lucrative opportunities for the growth of the hydrogen fuel cells market.
Challenges: High cost of hydrogen fuel cells
The high cost of hydrogen fuel cells stifles the hydrogen fuel cells market's expansion. The hydrogen fuel cells market's growth is hampered by the widespread usage of gas sensors and gas detectors in hydrogen plants. Thus, this factor is a challenge for the market growth for hydrogen fuel cells.
Key Players - Audi AG, BMW Group, Daimler AG, General Motors Company, Honda Motor Co. Ltd, MAN SE, Hyundai Motor Group, Ballard Power Systems Inc., Volvo Group, Toyota Motor Corporation
By Technology - Proton Exchange Membrane Fuel cells, Phosphoric Acid Fuel Cells, Solid Oxide Fuel Cells, Polymer Exchange Membrane Fuel Cells (PEMFC), Direct Methanol Fuel Cells (DMFC), Molten Carbonate Fuel Cells, Others
By Application - Stationary, Transportation, Portable
By End User - Fuel Cell Vehicles, Utilities, Defense
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