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Market Summary



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The global Hydrogen Fuel Cell market was valued at USD 10.49 billion in 2019 and is expected to attain a USD 49.52 billion value by the year 2027, at a CAGR of 21.4%. Hydrogen fuel cells can be used in a broad range of applications such as cars, buildings, electronic devices, trucks, and backup power systems. As these cells can be grid-independent, they are an attractive option for critical load functions such as telecommunication towers, data centers, emergency response systems, hospitals, and even military applications for national defense.

Growing adoption of the hydrogen fuel cell refueling stations all over the world is increasing the practicability of the hydrogen fuel cell for alternative automotive propulsion. Germany houses the highest amount of hydrogen fuel stations. High-growing companies like FuelCell Energy, Inc., Bloom Energy, Ballard Power Systems Inc., and Plug Power, among others invest handful amount in the designing, manufacturing, undertaking fuelcell projects, installing, operating and managing high-scale fuel cell systems, servicing, and manual power control to create a strong strategic business model that would increase the applicability of the futuristic hydrogen fuel cell and capable of replacing the conventional source of energies.

Honda Clarity, Toyota Mirai, Hyundai Nexo, and Hyundai KONA, among others, are some of the highest-selling hydrogen fuel cars globally. Apart from the sedan series, the hydrogen fuel SUV has also been widely appreciated and possessing a high demand in the market.

Manufacturers are zeroing-in on the hydrogen economy as the concern for the environment is growing. Hydrogen fuel cells are also scalable. They can be combined to form stacks, which in turn can be combined to form larger systems. These systems vary in sizes and power, from portable systems for smartphone battery recharging, to combustion engine replacements for electric vehicles, to large-scale, multi-megawatt installations providing electricity directly to the utility grid.

A Hydrogen fuel cell is a device that generates electrical power by a chemical reaction via conversion of fuel (hydrogen) into electricity. Although batteries and fuel cells are both considered electrochemical cells and consist of similar structures, fuel cells require a continuous source of oxygen and fuel to run, similar to how an internal combustion engine needs a constant flow of gasoline or diesel.

Growth in demand for electric vehicles is driving the market for hydrogen fuel cells. An increase in carbon emissions has attracted the government’s attention to the usage of electric vehicles. Another factor impacting the market is the growing concern for the environment. The over-exploitation of fossil fuels has created ecological concerns due to harmful gas emissions. The need for reduced dependence on oil and diesel are propelling the demand of the market.

Technology Type Outlook:



Solid Oxide Fuel Cells are used in a range of applications such as from small residential auxiliary power units supplying heat and power to homes, to large-scale stationary power generators for larger buildings and businesses. It is the highest temperature fuel cell operating at about 1800 degrees Fahrenheit.

Phosphoric Acid Fuel Cells run at a higher temperature, allowing the technology to handle a small amount of impurities. They are typically used in cogeneration mode to produce electricity and heat to assist in heating and cooling. They are in high demand from schools, hospitals, processing centers, and manufacturing.

Application Outlook:



By application, the market has been segmented into automotive, stationary, material handling equipment, electricity, and portable power. The stationary end-use application segment is projected to attain the highest hydrogen fuel cell market share during the forecast period and is expected to attain a CAGR of 24.1%. Stationary fuel cells rapidly have been making their way into commercial as well as institutional facilities. As an environmentally friendly source of power, these are reliable, provide a consistent voltage output, run on various fuels, and produce both electricity and heat.

Product Type Outlook:



By product type, the market has been segmented into liquid-cooled type and air-cooled type. The liquid-cooled type was the segment with the most significant market share of the global hydrogen fuel cell market and is expected to attain a CAGR of 24.2%. Liquid-cooled type of cooling provides more cooling for in comparison to the air-cooled type. Condenser cooling allows the stack to function at higher temperatures in comparison to other cooling types.

Regional Outlook:



The Asia Pacific region is quickly adopting hydrogen fuel cell technology. The high population is creating a tremendous rise in energy requirements, and massive scale development across end-use industries such as telecom is boosting the adoption of hydrogen fuel cells.

Japan is trying to promote hydrogen as an emission-free energy source in its 2020 Olympics. The world’s first hydrogen powered-fuel car was also produced by the Japanese manufacturer Toyota.

Europe is taking giant steps towards the adoption of hydrogen fuel cells. The world’s first hydrogen-powered trains are currently operational in northern Germany on a 100km stretch of track. Even though it is costlier than the existing diesel locomotives, the new zero-emissions engines are kinder to the environment.

Market-O-Nomics

Fuel cells do not run down or face the need to recharge, as compared to the batteries. These also reduce carbon dioxide emission by half only if the hydrogen is produced by natural gas. The emission gets reduced by 90% if hydrogen is produced by renewable sources such as wind and solar.

Hydrogen fuel cells have a driving range of more than 300 miles on one tank of hydrogen fuel. As they have no moving parts, they require no change of oil.

Fuel cells are twice as efficient as an internal combustion engine, and a car running on them travels farther on that tank of hydrogen than a traditional car would on gasoline.

Government initiatives have led to 30 public retail hydrogen fueling stations in California, with plans to install another 100 more. These efforts are encouraging the consumption of hydrogen-fueled cars with the access of hydrogen wherever they go within the region.

Hydrogen-fuelled cars are limited as people do not buy these cars if hydrogen refueling stations are not easily accessed, and companies will not build them if they do not have consumers with hydrogen-fuelled vehicles.

Phosphoric Acid Fuel Cells run at a higher temperature, allowing the technology to handle a small amount of impurities. They are typically used in cogeneration mode to produce electricity and heat to assist in heating and cooling. They are in high demand from schools, hospitals, processing centers, and manufacturing.

Solid Oxide Fuel Cells held a significant share of 60.2% in 2019 and are used in a range of applications such as from small residential auxiliary power units supplying heat and power to homes, to large-scale stationary power generators for larger buildings and businesses. It is the highest temperature fuel cell operating at about 1800 degrees Fahrenheit.

Liquid-Cooled Type is a common method of removing waste heat from higher power Polymer Exchange Membrane Fuel Cells. This segment held the largest market share of 83.5% in 2019.

Portable cells are long-lasting, lightweight, portable power sources that prolong the amount of time a device can be used without recharging. Rechargeable batteries are not practical in military electronics applications as they can be heavy and not meet the power requirements.

Hydrogen fuel cells have been used commercially for over twenty years. Stationary fuel cells are used as a primary power source. It can also be used to power those residences that are not connected to a grid or to provide supplemental power. This segment shows a robust growth rate of 24.1% during the forecast period.

Buses have successfully used hydrogen fuel cells for transportation purposes into the commercial market. Buses consume more power and require larger space, as compared to traditional cars. They require more power and get more wear due to the constant starts and stops. Hydrogen can also be stored on-board easily due to its available area.

Companies considered and profiled in this market study



In May 2020, Global energy company SGH2, Washington DC-based Solena Group, announced that they are planning a deal with Lancaster, California, to build a huge green hydrogen production plant. The plant has been planned to be all set to go fully operational by 2023. The plant is being designed to feature SGH2’s technology that makes use of the recycled mixed paper waste and produce green hydrogen.

Toshiba Corporation, Panasonic Corporation, Hyster-Yale Materials Handling Inc., Fuel cell Energy Inc., Intelligent Energy Limited, SFC Energy AG, Ballard Energy Corporation, Plug Power Inc., Bloom Energy Corporation, Hydrogenic Corporation, among others, among others are leading players involved on the global Hydrogen Fuel Cell market.

Start-up Traction



The Hydrogen Fuel Cell Market industry poses significant amount of opportunities for small manufacturers and startups to come up with cost-effective solutions in manufacturing of Hydrogen Fuel Cell. Some of the high-growing start-ups dealing in this market, have been listed in the report with their strategies and comparative studies of their business models. There is a continuous growth in demand from the customers’ end, which can encourage several startups to launch innovative products in this market.

Deals Landscape



In June 2020, Plug Power Inc., a leading provider of hydrogen cell engines and fueling solutions that enabled e-mobility, completed its acquisitions of United Hydrogen Group Inc. and Giner ELX. These two acquisition by the company acquisitions are in line with the vertical integration strategy done by Plug Power in the hydrogen business which was laid out in September 2019, with the plans to have more than 50 percent of the hydrogen used to be green by the year 2024.

In June 2019, Columbus, United States based Cummins Inc. revealed its plans to acquire Toronto-based hydrogen fuel cell maker Hydrogenics Corporation with a price of USD 290 million.

Mergers and Acquisitions are an integral part of this industry. These mergers and acquisitions help us decide the strategic initiatives taken up by the leading players as well as growing companies dealing in this market.

Expert Insights:



Reports and Data forecasts in the Hydrogen Fuel Cell industry having considered the interviews with some of most the prestigious personalities and experts in this market. According to the industry experts, Key market players are today focusing on various strategic activities involving research and development activities to explore the applications of hydrogen fuel cells and also, mergers and acquisitions, facility expansions, and related investments. Conversely, the high initial cost and low volumes with the technology risks and safety considerations may hamper the market growth. Honda Clarity, Toyota Mirai, Hyundai Nexo, and Hyundai KONA, among others are some of the highest selling hydrogen fuel cars globally. Apart from sedan series, the hydrogen fuel SUV has also been widely appreciated and possessing a high demand in the market. High-growing companies like FuelCell Energy, Inc., Bloom Energy, Ballard Power Systems Inc., and Plug Power, among others invest handful amount in the designing, manufacturing, undertaking fuelcell projects, installing, operating and managing high-scale fuel cell systems, servicing, and manual power control to create a strong strategic business model that would increase the applicability of the futuristic hydrogen fuel cell and capable of replacing the conventional source of energies.

Segments covered in the report



This report forecasts revenue growth at a global, regional & country level, and provides an analysis of the market trends in each of the sub-segments from 2020 to 2027. The scope of the report can be defined as:

For the purpose of this report, Reports and Data have segmented into the global Hydrogen Fuel Cell market on the basis of product type, technology type, application, and region:

Product Type Outlook (Revenue, USD Million; Volume in Megawatt, 2017–2027)

Liquid-Cooled Type

Air-Cooled Type

Technology Type Outlook (Revenue, USD Million; Volume in Megawatt, 2017–2027)

Polymer Exchange Membrane Fuel Cells (PEMFC)

Phosphoric Acid Fuel Cells (PAFC)

Solid Oxide Fuel Cells (SOFC)

Direct Methanol Fuel Cells (DMFC)

Molten Carbonate Fuel Cells (MCFC)

Application Outlook (Revenue, USD Million; Volume in Megawatt, 2017–2027)

Automotive

Stationary

Material Handling Equipment

Electricity

Portable Power

Regional Outlook (Revenue, USD Million; Volume in Megawatt, 2017–2027)

North America U.S Canada

Europe Germany U.K France BENELUX Rest of Europe

Asia Pacific China India Japan Rest of APAC

MEA Saudi Arabia UAE Rest of MEA

Latin America Brazil Rest of LATAM

