NEW
YORK, July 10, 2024 /PRNewswire/ -- The global
fuel cells for automotive industry is poised for substantial
growth, with an estimated USD 8.57
billion increase from 2024 to 2028, driven by a robust CAGR
of 35.28%. Increasing demand for efficient and cleaner fuel
solutions is a primary growth driver, alongside efforts to reduce
the cost of fuel cell systems. However, challenges such as
inadequate refueling infrastructure for FCEVs persist. Key
technological advancements in fuel cell components include
innovations in membrane electrode assembly (MEA), catalyst
materials, and stack design optimization, enabling enhanced
efficiency and durability. Leading market players include
Acumentrics Inc., Ballard Power Systems Inc., Hyundai Motor Co.,
and others at the forefront of advancing these technologies.
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Fuel Cells for
Automotive Industry Market Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
35.28%
|
Market growth
2024-2028
|
USD 8572.6
million
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
28.37
|
Regional
analysis
|
APAC, North America,
Europe, South America, and Middle East and Africa
|
Performing market
contribution
|
APAC at 50%
|
Key
countries
|
US, Japan, South Korea,
China, and Germany
|
Key companies
profiled
|
Acumentrics Inc.,
Ballard Power Systems Inc., BorgWarner Inc., Ceres Power Holdings
plc, Cummins Inc., ElringKlinger AG, Hyster Yale Materials Handling
Inc., Hyundai Motor Co., Intelligent Energy Ltd., ITM Power PLC,
Nedstack Fuel Cell Technology BV, Nel ASA, PowerCell Sweden AB,
PRAGMA INDUSTRIES, Proton Motor Fuel Cell GmbH, The Symbio SAS, TW
Horizon Fuel Cell Technologies, Valmet Automotive Group, and W. L.
Gore and Associates Inc.
|
Market Driver
Fuel cell technology has experienced significant advancements,
leading to cost reductions in manufacturing. Initially, fuel cell
vehicles were considered expensive, with Honda's FCX Clarity sedan
costing millions of dollars. However, automakers are making strides
to decrease production costs, such as reducing the platinum content
in fuel cells. Hyundai, for instance, has lowered the price of its
FCEV by 70% over the past decade. This cost reduction will
positively impact the market by making fuel cell vehicles more
affordable, thereby driving market growth during the forecast
period.
The automotive industry is seeing a shift towards cleaner and
more sustainable energy sources, with hydrogen-based fuel gaining
significant attention. Fuel cell technology, which converts
hydrogen into electricity through a chemical reaction, is becoming
increasingly popular in the transportation sector. Leading
companies like Ballard Power Systems and Plug Power are at the
forefront of this trend, developing SOFC (Solid Oxide Fuel Cell)
technology for both small-scale fuel cells for vehicles and
large-scale fuel cells for clean hydrogen hubs. The tri-gen system,
which generates hydrogen on-site from natural gas or renewable
sources, is another promising development. However, high purchase
prices and the need for hydrogen refueling infrastructure remain
challenges. The adoption rate of fuel cell vehicles is expected to
grow as governments push for reducing carbon emissions and electric
vehicle sales. The global energy review indicates that hydrogen, as
an alternative energy source, will play a crucial role in reducing
vehicle emissions and greenhouse gas emissions in the transport
segment. The transportation sector, including garbage trucks, is
also exploring the use of fuel cell technology for
environment-friendly operations. Despite high fuel prices, the
benefits of fuel cells, such as zero emissions and the ability to
generate electricity, make them an attractive option for businesses
looking to reduce their carbon footprint. Air compressors, power
conditioners, and other balance of plant components are essential
for the efficient operation of fuel cell systems. Hydrocarbon-based
fuels will continue to be used in the short term, but the future
lies in clean, renewable hydrogen.
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Market Challenges
- The fuel cells market for automotive industry faces significant
challenges in achieving large-scale commercial adoption due to the
limited number of hydrogen filling stations globally. This issue is
exacerbated by the fact that hydrogen stations are outnumbered by
natural gas refueling stations and charging stations for electric
vehicles (EVs). EVs have gained popularity due to advancements in
battery technology, which has lowered production costs and
increased range, making them a competitive option for consumers.
Additionally, the recent decline in oil prices has narrowed the
economic gap between diesel vehicles and alternative fuel vehicles,
potentially leading to the prolonged use of less efficient
vehicles. Constructing hydrogen filling stations presents
significant challenges, including user needs, access and
installation, and site parameters, which can vary greatly from
country to country. For instance, in Japan, hydrogen stations must be manned and
cannot be self-service, and fuel dispensers must be at least eight
meters away from the nearest street, posing challenges in densely
populated areas and potentially hindering market growth during the
forecast period.
- The automotive industry is exploring fuel cells as a viable
alternative to traditional internal combustion engines for
zero-emission vehicles. However, challenges persist in implementing
fuel cells for mass market adoption. Hydrogen storage poses a
significant challenge due to its low energy density, requiring
large volumes and weights. Efficiency, safety, and cost are also
critical factors. PEM fuel cells generate water as a byproduct,
requiring effective water management. Proton conductivity,
activation potential, flooding, and drying out are technical
considerations. Hydrogen's high reactant flow rates and pressures
necessitate robust cell designs with efficient gas channels and
current density management. Key players like Bloom Energy are
leading the way in fuel cell innovation for residential, data
centers, utilities, military and defense, hospitals, hotels,
shopping center malls, office buildings, and sports centers.
Government incentives and renewable energy use are driving fuel
cell adoption. Challenges include optimizing component materials,
water management, and addressing hydrogen storage, weight, volume,
and cost concerns.
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Segment Overview
This fuel cells for automotive industry market report
extensively covers market segmentation by
- Fuel Type
- 1.1 Hydrogen
- 1.2 Methanol
- Application
- 2.1 Light-duty vehicles
- 2.2 Heavy-duty vehicles
- 2.3 Others
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Hydrogen- The automotive fuel cell market is
experiencing significant growth due to increasing demand for clean
energy solutions. Major automakers, such as Toyota and Hyundai,
have already launched hydrogen-powered vehicles. Government
initiatives and incentives are also boosting the market. Fuel cell
technology offers several advantages, including long range and
quick refueling times. As the cost of production decreases, fuel
cells are expected to become more competitive with traditional
internal combustion engines. The market is projected to reach
USD100 billion by 2027.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data
(2017-2021) - Download a Sample Report
Research Analysis
The fuel cell market for the automotive industry is gaining
momentum as a viable alternative to traditional internal combustion
engines for reducing vehicle emissions and greenhouse gas (GHG)
outputs. Fuel cell vehicles (FCVs) use hydrogen-based fuel to
generate electricity that powers an electric motor, emitting only
water as a byproduct. With increasing concerns over electric
vehicle (EV) battery production's carbon footprint and limited
charging infrastructure, hydrogen fuel cells offer a promising
solution. The adoption rate of FCVs is growing slowly but steadily,
with key factors including the availability of clean hydrogen hubs
and advancements in fuel cell technology, such as Solid Oxide Fuel
Cells (SOFC). The global energy review projects significant growth
in the fuel cell market, driven by the transportation sector's need
to reduce carbon emissions. The tri-gen system, which generates
hydrogen on-site, further enhances the appeal of FCVs. Ballard
Power Systems and Plug Power are leading companies in the fuel cell
industry, focusing on stack development and balance of plant
components, such as air compressors and power conditioners.
Market Research Overview
Fuel cells are an emerging technology in the automotive
industry, offering a viable solution for reducing vehicle emissions
and reliance on traditional fossil fuels. Fuel cell vehicles (FCVs)
use hydrogen as an alternative energy source, converting it into
electricity through a chemical reaction with oxygen in the air.
This electricity powers an electric motor, resulting in zero
greenhouse gas emissions at the tailpipe. Despite the environmental
benefits, the adoption rate of FCVs is still relatively low due to
high purchase prices and limited hydrogen refueling infrastructure.
However, with increasing concerns over high fuel prices and the
need to reduce carbon emissions, the market for fuel cells in the
automotive industry is expected to grow. Fuel cells are also
finding applications in other sectors, such as garbage trucks and
data centers, where heavy energy demands require a reliable and
efficient power source. PEM fuel cells are the most common type
used in transportation applications due to their high efficiency,
quick response time, and ability to generate water as a byproduct.
The design of fuel cells involves careful consideration of factors
such as weight, volume, efficiency, safety, cost, durability, and
water management. Key components include the polymer membrane,
catalyst sites, gas diffusion backings, gas channels, and current
density. Prominent companies in the fuel cell industry include
Bloom Energy, Ballard Power Systems, and Plug Power, among others.
They are active in various sectors, from residential and data
centers to utilities, military and defense, hospitals, hotels,
shopping center malls, office buildings, sports centers, and
transportation. The future of fuel cells in the automotive industry
looks promising, with incentives for renewable energy use and the
development of clean hydrogen hubs to reduce carbon emissions.
However, challenges remain, such as the need for hydrogen storage,
hydrogen refueling infrastructure, and the high cost of fuel cells
compared to batteries. In the transportation sector, FCVs face
competition from battery electric vehicles (BEVs), which have seen
a surge in sales in recent years. However, fuel cells offer
advantages such as longer range, faster refueling times, and the
ability to generate electricity on the go. The global fuel cell
market is expected to grow significantly in the coming years,
driven by advancements in technology and increasing demand for
clean energy solutions. SOFCs (Solid Oxide Fuel Cells) are also
gaining attention for their potential in stationary applications,
such as power generation for homes and businesses. In conclusion,
fuel cells offer a promising solution for reducing greenhouse gas
emissions in the transportation sector and other applications.
While challenges remain, the potential benefits and advances in
technology make fuel cells an exciting area to watch in the energy
industry.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Fuel Type
-
- Application
-
- Light-duty Vehicles
- Heavy-duty Vehicles
- Others
- Geography
-
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
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