Status : Published Published On : Aug, 2021 Report Code : VRAT4001 Industry : Automotive & Transportation Available Format : Page : 238

Global Automotive Fuel Cell Market – Size, Share, Trends, Analysis and Forecast (2021-2027)

Industry Insights by Electrolyte Type (PEMFC and PAFC), by Component Type (Fuel Stack, Power Conditioner and Fuel Processor), by Power Output (<100 kW, >200 kW and 100–200 kW), by Fuel Type (Hydrogen and Methanol), and by Vehicle Type (Trucks, Passenger Car, Buses and Light Commercial Vehicle)

Industry Overview

The global automotive fuel cell market was valued at USD 1.9 billion in 2020 and is anticipated to reach USD 10.6 billion by 2027, thus registering a CAGR of 44.61% during the forecast period 2021-2027. An automotive fuel cell refers to a fuel cell used in electric vehicles in the combination with a battery or instead of a battery and is powered by hydrogen fuel for the propulsion of automotive. The global automotive fuel cell market is growing at a substantial rate, due to the mandatory norms for carbon emissions, rising adoption of electric vehicles in developing economies, reduced oil dependency, rising need for better fuel efficiency, longer drive range offered by the vehicles, and decreasing the amount of greenhouse gas. The various type of electrolytes has contributed to the automotive fuel cell market size. The market has witnessed high demand for Proton Exchange Membrane Fuel Cell (PEMFC) in the coming years due to its small size, high power density, high efficiency, lightweight, and appropriate operating temperature.

The COVID-19 pandemic is anticipated to have an adverse effect on the automotive fuel cell market as there was a shortage of financial liquidity among small players, production and sale of FCEVs had come to a halt. Nevertheless, the hydrogen sector is expected to have a moderate influence during the coronavirus pandemic. Moreover, the constant deployment of FCEVs post the pandemic have increased and people are conscious of using low-carbon emission from vehicles across the globe. This has resulted in an increase in the growth of the automotive fuel cells market.

Market Segmentation

Insight by Electrolyte Type

On the basis of electrolyte type, the global automotive fuel cell market is segmented into Proton Exchange Membrane Fuel Cell (PEMFC) and Phosphoric Acid Fuel Cell (PAFC). Among both electrolyte types, Proton Exchange Membrane Fuel Cell (PEMFC) accounts for the larger share and it is also anticipated to grow at a faster pace during the forecast period due to small size, ease of installation, highly portable, high-power density, high efficiency, lightweight, and appropriate operating temperature. Moreover, PEMFC produces nearly zero emissions and thus limiting the greenhouse gases significantly.

Insight by Component Type

On the basis of component type, the global automotive fuel cell market is divided into fuel stack, power conditioner, air compressor, humidifier, and fuel processor. Among all the component types, the fuel stack segment accounts for the largest share in the market. In addition, the power conditioner segment is anticipated to grow at a faster pace in the automotive fuel cell market due to the rising implementation of electronic systems in vehicles and constant power generation capacity.

Insight by Power Output

On the basis of power output, the global automotive fuel cell market is segregated into below 100 kW, 100 to 200 kW, and above 200kW. Among all the power output, the 100–200 kW power output segment accounts for the largest share in the automotive fuel cell market due to the rising demand for passenger vehicles, improved performance, and upsurge driving range, thus providing high output at a given cost. In addition, the above 200 kW power output segment is anticipated to grow at a faster pace in the automotive fuel cell market owing to the bulk implementation of fuel cell commercial vehicles.

Insight by Fuel Type

Based on fuel type, the global automotive fuel cell market is bifurcated into hydrogen and methanol. The hydrogen-powered cells are anticipated to grow faster as it generates high power, and are small in size.

Insight by Vehicle Type

On the basis of vehicle type, the global automotive fuel cell market is segmented into trucks, passenger cars (PC), buses, and light commercial vehicles (LCV). Among all the vehicle types, the passenger cars are anticipated to be the largest market during the forecast period due to easiness of application of fuel cell technology, cost-efficacy, augmented driving range, high demand for passenger cars, strict emission norms, and elevated emphasis on OEMs to employ fuel cell technology in passenger cars. Moreover, the rise in adoption and increasing demand for personal mobility will drive the fuel-cell passenger car market during the forecast period. Moreover, the truck and bus segment are expected to be the fastest-growing segment owing to its high efficiency, longer driving range, and the rising need to reduce greenhouse gas emissions, thus propelling the growth of the automotive fuel cell market.

Industry Dynamics

Industry Trends

The decline in the price of the fuel cells, fuel cells for heavy load transportation, hydrogen production process, plug-in hybrid fuel cell vehicles, and powertrain costs of FCEVs and BEVs at several electric energy capacity levels are the trends in the automotive fuel cell industry.

Growth Drivers

The reducing oil dependency, improved fuel productivity, mounting driving range, increase in demand for fuel cells in the automotive sector and the transport sector, rising consumer awareness, and rapid refueling of the fuel cells are the important growth drivers for the automotive fuel cell market.

Moreover, the rising requirement of efficient vehicles having zero or low carbon emissions, the decreased amount of greenhouse gases, mandatory emission norms, and rising concern about environmental pollution are also promoting the market growth for the automotive fuel cell market. For example, according to the World Health Organization (WHO), global exposure to ambient air pollution results in 4.2 million deaths each year. In addition, 91% of the world's population lives in places where air quality exceeds WHO guidelines limits.

Government initiatives regarding hydrogen infrastructure and the increasing government proposals for the advancement in fuel cell technology also promote the growth of automotive fuel cell markets.

Challenges

The high vehicle cost, high cost involved in initial investment, extremely flammable, and difficulty to identify hydrogen leakages are the key challenges for the growth of the automotive fuel cell market. In addition, the rising demand for BEVs and HEVs, inadequate hydrogen infrastructure, and low presence of hydrogen fueling stations are also hindering the growth of the market.

Opportunities

There is an increase in demand for fuel cell vehicles in automotive and transportation as it offers a high driving range, noiseless operation, fast refueling, and zero emissions of greenhouse gases and air pollutants. The fuel cells are versatile and have easy scalability of electricity, thus used in large applications in transportation such as LCVs, material handling, buses, cars, defense vehicles, and trains. Moreover, the rising demand for the fuel cell as a greener alternative to the traditional cells is providing promising opportunities for the fuel cells in the automotive and transportation sector.

Industry Ecosystem

Globally the market players are leveraging market growth by product launch. Moreover, the high capital investment act as a barrier to the entry of new players. Thus provides an edge to the established players in the industry competition.

Geographic Overview

Geographically, Asia-Pacific is the largest automotive fuel cell market owing to the rising production, initiatives by the government, and commercialization of fuel cell vehicles. Green environment initiatives, investment in hydrogen infrastructure, and high recognition of electric vehicles are also up surging growth of the Asia-Pacific automotive fuel cell market. North America is anticipated to be the fastest-growing during the forecast period owing to increased research and development in fuel cell technology.

Competitive Insight

Key players in the automotive fuel cell market are maintaining their position by collaborations, strategic partnerships, product launches, mergers, facility expansion, and investing in technologically advanced automotive fuel cells across the globe.

Ballard Power System collaborated with MAHLE to commercialize a zero-emission fuel cell system for heavy and medium-duty trucks.

Toyota began sales of its 2nd generation Mirai FCEV in the market. It is a rear wheel drive and uses a 1.2 KWh Lithium-ion battery.   It can run 600+ Kms on a single full tank of hydrogen.

Toshiba, ITM Power, Toyota, Nedstack, Ballard Power Systems, Ceres Power, Hydrogenics, Plug Power and Delphi are the key players offering automotive fuel cell.

Automotive Fuel Cell Market Size

Source: VynZ Research

Automotive Fuel Cell Market Analysis

Source: VynZ Research

Frequently Asked Questions

Elevated vehicle cost, extremely flammable and difficult to identify hydrogen leakages are the major challenges for the growth of automotive fuel cell market. In addition, mounting need for BEVs and HEVs and inadequate hydrogen infrastructure are also hindering the growth of the market.
Decreased oil dependency, improved fuel productivity, upsurge driving range, escalating need for fuel cell vehicles in the automotive and transportation sectors and speedy refueling of fuel cell are the primary growth drivers for automotive fuel cell market.
Toshiba, ITM Power, Nedstack, Ballard Power Systems, Ceres Power, Hydrogenics, Plug Power and Delphi are the key players offering automotive fuel cell.
The market has witnessed high demand for Proton Exchange Membrane Fuel Cell (PEMFC) in the coming years due to small size, high-power density, high efficiency, light weight, and appropriate operating temperature.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Automotive Fuel Cell Market