The global automotive fuel cell market size was valued at USD 0.74 billion in 2019 and is projected to reach USD 24.81 billion by 2027, exhibiting a CAGR of 56.7% during the forecast period.

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Fuel cell electric vehicles (FCEVs) are identified as the leading alternatives to the widely used internal combustion (IC) engine automobiles. The units utilize hydrogen and air to propel the vehicles in an environmentally viable manner, only leaving heat and water vapors as discharges. FCEVs hold a tremendous potential due to their ability to replace high carbon generation fleet with its zero tailpipe emission design. They are also equipped with a fuel cell along with a hydrogen storage tank that is filled with pure H 2 to trigger an electrochemical reaction generating power to drive vehicles.

COVID-19 Pandemic Is Set to Introduce New Financial Problems For Small Industry Players

The COVID-19 pandemic has affected several commercial and industrial sectors bringing a halt to new investments across many verticals. Regardless of the unique crisis with the outbreak of this global health problem, the hydrogen sector is anticipated to be moderately influenced by pandemic situation. One of the major short-term difficulties is the significant shortage of liquidity among small players owing to the economic slowdown. This deficiency may result in a decline in revenues and working professionals, along with the absence of small scale technology providers for a short period of time.

However, COVID-19 pandemic may affect the achievability of the government targets due to cash deficits among customers, but environmental and climate challenges continue to be the key threat to the planet in long-terms. The spread of this disease has certainly helped to bring a green-wave across the world with substantial declines in harmful emissions from various actions. Furthermore, constant deployment of FCEVs will enable the governments to positively utilize this adverse situation and carry forward this low carbon technology utilization movement to combat the harmful climate problems. Consequently, the demand for fuel cell technology is likely to take a positive upturn following this coronavirus infection.

LATEST TRENDS

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Innovations in Development of Medium and Heavy-Duty Vehicles is Set to Drive the Market Growth

Globally, numerous companies are striving to perform research & development activities to fabricate more advanced breakthroughs to fuel and propel fuel cell vehicles. Currently, there are a large number of key players integrating the technology across their vehicle fleet to enhance its power output efficacy. For instance, in October 2019, Ballard Power Systems announced to receive a purchase order from South Africa based Anglo American mining company. Ballard declared to deliver nine units of its FCveloCity®-HD 100 kilowatts (kW) FC modules for the receiver’s ultra-heavy duty mining trucks deployed in the headquartered country.

Focus on Improving Hydrogen Infrastructures is Likely to Augment the Industry Pace

Hydrogen infrastructure plays a vital role in the placement of FCEVs on the roads handling its refueling needs. Besides this, many companies are also concentrating on producing clean hydrogen fuel and build new hydrogen fueling stations to support the expansion of FCEVs. For example, in July 2020, Air Liquide announced to construct the maiden high-pressure (about 700 bar) H 2 refueling station in France, Europe, to provide around 20 refuelings per day for long-haul hydrogen trucks at 1,000 kg/day.

DRIVING FACTORS

Huge Government Targets Coupled With Encouraging Policies is likely to Fuel Demand for Fuel Cell Vehicles

Different administrations across the globe have introduced massive targets to introduce an exponential number of FCEVs on the roads in near, middle, and long-term durations. To achieve these big objectives, regional governments have also provided several funding and tax-benefit policies to support this huge leap forward. For instance, in March 2019, the Government of Japan announced its target to deploy about 800,000 fuel cell vehicles along with about 900 new hydrogen refueling stations by 2030.

Positive Outlook to Curb the Overall Carbon Emissions is Projected to Add to Market Growth

Stringent measures taken to keep a check on the harmful discharges from various sources is set to have a positive impact on this market. Supporting resolutions among the countries to diminish the greenhouse gas releases will thereby increase customer inclination towards zero-emission vehicles (ZEVs). For example, in 2018, the European Union revised its objectives to mitigate GHG discharges minimum by 40% by 2030 as compared to 1990 levels.

RESTRAINING FACTORS

High Initial Cost Along With Presence of Battery Electric Vehicle Alternatives May Obstruct the Technology Adoption

Ease of availability, as well as comprehensive large-scale manufacturing capabilities of battery electric vehicles (BEVs), may hinder the automotive fuel cell market growth. Additionally, high manufacturing costs associated with the fuel cell vehicles might act as a limitation to its adoption across different countries. However, numerous public and private enterprises are continuously engaging in efforts to bridge the gap between these shortcomings.

SEGMENTATION

By Type Analysis

Proton Exchange Membrane Fuel Cell (PEMFC) Segment is Likely to Lead the Industry Size during the Forecast Period

Based on type, the market can be primarily segregated into Phosphoric Acid Fuel Cell (PAFC), Proton Exchange Membrane Fuel Cell (PEMFC), and others. PEMFC is anticipated to account for the lion’s share across the industry in terms of revenue as well as volume. Various features, such as high power density, less start-up time, lower working temperatures, among others, are set to favor the segment outlook. PAFC is also likely to be a probable choice for transport applications owing to significant impurity tolerance, high stability, high power outputs, and many more.

By Power Rating Analysis

100 – 200 kW Segment is Projected to Observe Significant Growth Over the Forecast Timeframe

Based on the power rating, the market for automotive fuel cell can be majorly divided into three sections, including below 100 kW, 100 – 200 kW, and above 200 kW. FC systems rated between 100 – 200 kW are anticipated to observe considerable growth owing to the transforming public transit infrastructures with zero-emission alternatives. Additionally, the below 100 kW segment is also set to hold substantial share across the globe due to the development of new and advanced fuel cell-powered vehicles with low manufacturing costs for customers. Furthermore, the growing adoption of FC technology in a heavy and ultra-heavy fleet like mining trucks is set to augment the demand for systems with power ratings of above 200 kW.

By Vehicles Analysis

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Passenger Vehicles to Register a High CAGR during the Forecast Period

In terms of vehicles, the market is categorized into the bus, light commercial vehicles (LCVs), passenger vehicles, and trucks. The passenger vehicle segment is projected to hold the dominant position across the industry volume and size owing to the colossal targets introduced by different governments. Additionally, the growing preference of different companies, as well as city transit operators to embrace FCEVs in their daily operations, is set to augment the light commercial vehicles demand.

Furthermore, fuel cell buses (FCEBs) are set to observe multi-fold increase its deployment owing to dedicated objectives by the governments coupled with replacement programs for existing public transport fleet with low carbon technologies. Increasing research & development (R&D) programs by industry players as well as administrations to mitigate production costs along with the introduction of new high-density vehicles is set to propel the demand for fuel cell trucks positively.

REGIONAL INSIGHTS

Asia Pacific Automotive Fuel Cell Market Size, 2019 (USD Billion)

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Asia Pacific is projected to hold a major Automotive Fuel Cell Market share due to encouraging fuel cell electric vehicle (FCEV) deployment targets coupled with increasing investments in hydrogen fueling infrastructure. Additionally, high fuel cell manufacturing capacities owing to the presence of various large scale FC passenger car manufacturers will also add to the regional landscape.

Ambitious targets for the setup of new hydrogen fueling stations coupled with favorable policies to diminish carbon discharges are set to propel the European market for automotive fuel cell at a significant CAGR. Regional administrations and organizations like the European Union have enforced numerous norms mandating the member countries to abide by carbon reduction targets by different years.

The growth of the North America fuel cell vehicle market size is majorly attributed by the increasing research & development investments by various players along with significant allotment of federal R&D budget for this technologies. Furthermore, the state and national governances across the U.S. have put forward their plans to deploy a large number of personal and commercial vehicles on roads.

KEY INDUSTRY PLAYERS

Ballard Power Systems is Increasingly Focusing on Industry Partnerships Coupled With Securing High Power Module Contracts

The market has observed significant number of players delivering a wide range of products to serve automotive fuel cell applications at global and regional levels. Key companies operating in the industry like Ballard Power Systems, Hyundai Motor Company, Plug Power, Air Liquide, and many others are shaping the competitive landscape. Ballard is continuously leaning towards collaborating with other industry participants to propel the development of fuel cells for different applications.

For instance, in May 2020, Ballard Power Systems inked a Memorandum of Understanding (MoU) with ITM Power, Linde, Palisade Investment Partners, and Transit Systems to integrate FCEBs in Australian public transit. The consortium has taken place to launch the concept development phase of the H2OzBus Project, aiming to assimilate about 100 hydrogen-powered FCEBs among its central hub locations.

LIST OF KEY COMPANIES PROFILED:



Ballard Power Systems (Canada)



Hyundai Motor Company (South Korea)



Plug Power (U.S.)



Hydrogenics (Canada)



AVL (Austria)



Air Liquide (France)



Umicore (Belgium)



PowerCell Sweden AB (Sweden)



Horizon Fuel Cell Technologies (Singapore)



Nuvera Fuel Cells, LLC (U.S.)



Nedstack Fuel Cell Technology (Netherlands)



ElringKlinger (Germany)



Valmet Automotive (Finland)



Pragma Industries (France)



Intelligent Energy (England)



KEY INDUSTRY DEVELOPMENTS:



July 2020 – U.S. based Hyzon Motors launched a new unit centered in the Netherlands, Europe, aimed at manufacturing hydrogen fuel cell-powered trucks by the end of 2021.

U.S. based Hyzon Motors launched a new unit centered in the Netherlands, Europe, aimed at manufacturing hydrogen fuel cell-powered trucks by the end of 2021.

March 2020 – Ballard declared to receive an order to deliver about twenty-five units of its 70 kW heavy-duty FCmove™-HD FC modules for a new FCEB fleet owned and operated by Solaris Bus & Coach S.A.



REPORT COVERAGE

The automotive fuel cell market research report provides a detailed analysis of the key market and focuses on key aspects such as leading companies, technology types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the industry growth over the recent years.

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Report Scope & Segmentation