Automotive Fuel Cells Market Size, Share, Growth, and Industry Analysis, By Type (Hydrogen Fuel Cell, Other Fuel Cell), By Application (Passenger Vehicle, Commercial Vehicle) and Regional Forecast to 2032

Updated On: 02 September 2024

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AUTOMOTIVE FUEL CELLS MARKET REPORT OVERVIEW

The global Automotive Fuel Cells Market size was USD 30.76 million in 2023 and the market is projected to touch USD 132.34 million by 2032, exhibiting a CAGR of 15.71% during the forecast period.

As carbon emission is increasing day by day, which bound the manufacturers to put their emphasis on solar panels, electric vehicles or other products through which less or no carbon emission will be produced. It is well known that an oxidant and a source fuel react chemically to form an electrical device called a fuel cell which are technically specialized containers. There are fuel stacks for these fuel cells available for a range of vehicles, such as buses, lorries, cars, and recreational vehicles. During the forecast period, the automotive fuel cell market is anticipated to grow at a rate of highest CAGR. Thus, during the course of the projected period, more demand for high efficiency and more expansion projects are anticipated to propel market growth.

In summary, because of its varied function in fostering the expansion of industries, automotive fuel cell plays a significant role in the automotive sector. The course of the rapidly evolving automotive fuel cell market is being influenced by several notable developments such as increasing demand for high-performance and energy-efficient solutions has led to advancements in material technology. Leading market players and manufacturers are developing new innovations and adopting collaboration to reach new heights in the sector. The region which will dominate the sector due to advanced innovation is the North America. The demand for automobiles that run on alternative energy sources has grown globally in recent years due to worries about reducing greenhouse gas emissions as a way to mitigate global warming. This unique property has gained popularity due to which many companies are putting their focus on product innovation and development to fulfill changing consumer wants and preferences hence promoting fuel market growth. Manufacturers are adopting business strategies such as alliance and collaborations with other organizations to enhance their economy and rising their production to fuel market growth. Fuel cell vehicles are becoming more and more popular among other new needs because of their benefits, which include short refill times, a large range, and low greenhouse gas emissions when commuting.

COVID-19 Impact: Sharp Decline In Demand Due To Lockdown Restriction Leads To Negative Affect On Market

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic delayed non-emergency procedures, leading to fewer automotive fuel cells market. As the government-imposed restrictions on social gatherings and restricted travel and transport. The manufacturing and supply chain disruptions hurt market manufacturing of components. The COVID-19 pandemic had a major effect on the expansion of the automotive fuel cells network. The automotive fuel cells sector encountered unique difficulties throughout the pandemic. The COVID-19 pandemic had a profound influence on the commerce sector and industry. Manufacturers are developing methods to recover from the current circumstances, such as reorganizing their sales channels and product innovation. The duration of the viral spread continues to be an important component in determining the pandemic's overall impact.  Many small and large sized businesses got reduction in their economic growth due to hindered financial meetings and hindered supply chains. The relaxation of lockdown limitations led to an increase in medical appointments. The COVID-19 pandemic promoted adoption of consumers and business to utilize modern technologies like virtual reality and virtual tours technology for product promotion. Restrictions imposed by the government in almost every country to avoid virus spread was a major step to cure the disease spread but also halted movements across the globe which majorly affected the business. Covid lockdown Although, covid has affected many businesses and organization but for automotive fuel cells market growth was majorly affected by covid lockdown crisis as due to covid pandemic most of the flight got cancelled and passenger were not allowed to travel due to government regulations of lockdown which shifted the dynamics of automotive fuel cells market. During the pandemic, real estate owners promoted their properties on a virtual reality 360-degree platform. Major top industry players want to provide customized virtual reality systems for the real estate, tourism, automobile, and hospitality industries.

LATEST TRENDS

"Development Of Medium- And Heavy-Duty Vehicles Through Innovations and Fuel cell technology advancements as well as partnerships and collaborations To Spur Market Growth"

Many businesses worldwide are working to do R&D in order to bring forth cutting-edge developments in fuel cell car technologies. Many players are currently integrating technology throughout their fleets to improve the cars' power output efficiency. For instance, in December 2020, Ballard Power Systems received a follow-up order from Van Hool, a Belgian business, to power FCEBs (fuel cell electric buses) that Van was going to install in Emmen, the Netherlands. Ballard will supply ten more FC modules for A330 buses, which have a 350–400 km operational range and 74 passenger capacity. The constant research and development of fuel cell vehicles is resulting in continual technological advancements. This entails improving the energy efficiency, durability, and affordability of fuel cells. Solid oxide fuel cells (SOFC) and proton exchange membrane fuel cells (PEMFC) are examples of new technology that is gaining traction. They're playing a part in shifting the market. In order to address issues in the fuel cell industry, automakers, fuel cell manufacturers, and energy companies are collaborating more frequently. As generation keeps to evolve, the market is expected to grow in addition, with new and advanced answers continually emerging. In this manner this factor ended in automotive fuel cell market growth. Cooperation and teamwork facilitate knowledge exchange, reduce manufacturing costs for fuel cell vehicles, and hasten their introduction into the market.

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AUTOMOTIVE FUEL CELLS MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Hydrogen Fuel Cell, Other Fuel Cell.

Hydrogen Fuel Cell: This segment includes hydrogen fuel cell in which hydrogen act as a fuel to provide electric power to the motor installed with them.

Other Fuel Cell: This segment includes other type of fuel cell such electric, automotive which can be optimized through electricity. Electric fuel cell are in demand due to rapidly growing demand for electric vehicles for environment protection and conservation.

By Application

Based on application the global market can be categorized into Passenger Vehicle, Commercial Vehicle.

Passenger Vehicle: This segment includes passenger vehicle in which fuel cells are equipped to provide lower supply to run motor.

Commercial Vehicle: This segment includes commercial vehicle which are equipped with fuel cell to provide electric supply to run the vehicle.

DRIVING FACTORS

"Good Prospects To Reduce Total Carbon Emissions Are Expected To Boost Market Growth"

The primary trend propelling the market is the growing use of products in large electric vehicle industries. Strict measures to limit harmful waste from many sources will benefit this market. People will be more interested in zero-emission vehicles if countries agree to reduce their greenhouse gas emissions. For instance, the Climate Target Plan for 2032 was created by the European Union (EU). They will be able to establish more ambitious targets to reduce local greenhouse gas emissions as a result. By 2032, the group aims to reduce GHG emissions by at least 55%. By 2050, it wants to be free of climate-related effects. Furthermore, R&D expenditures are essential for developing technology and raising the caliber of products. Furthermore, the market has bright futures because of the growing adoption of digitalization and contemporary technology, which should open up new opportunities for development and innovation.

"Increasing adoption of fuel cells leading reduction in carbon emissions will Expand the Market growth"

Another factor propelling market growth is the reduction in carbon emissions due to adoption of fuel cells. As electric vehicle launch in the market is gaining consumer attention rapidly which is also supporting environment in a positive manner by reducing carbon emissions. In order to effectively reduce carbon emissions, there has been a trend towards clean fuels and green technologies due to the rapid increase in pollution levels caused by population growth. This breakthrough has led to a major growth in the need for fuel cell vehicles in recent years. The transition from traditional gasoline-powered automobiles to more eco-friendly substitutes has resulted in a sharp rise in demand for fuel cell vehicles. Furthermore, factors including stringent environmental regulations, financial aid and subsidies for clean fuels, and the car emissions from combustion engines are all predicted to contribute to the market's growth over the forecast period. Increased market development has also been facilitated by manufacturers' development of alternative powertrain technologies in response to growing consumer awareness of car emissions.

RESTRAINING FACTORS

"Fuel Cell Vehicle Costs Are High and Infrastructure Difficulties, Which Could Limit Market Expansion"

Compared to fuels like diesel and petroleum, the establishment costs of hydrogen fuel stations and accompanying infrastructure are quite costly. As a result, compared to other alternative fuels, the infrastructure for hydrogen fueling has grown more slowly globally. This is a result of the costly equipment needed to use this fuel as well as the safety precautions and safeguards that must be taken because hydrogen burns easily. A hydrogen fuel station may end up costing between USD 1-2 million in total, compared to the around USD 200,000 cost of a gasoline fuel station, USD 150,000 for a CNG fuel station, and USD 200,000 for diesel and electric fuel stations. Compared to conventional internal combustion engines or even battery electric vehicles, the initial expenditure needed for developing and integrating fuel cell systems into automobiles is frequently much larger. The market for automotive fuel cell is limited by the high initial cost of implementation, which includes the purchase, installation, and linking of equipment with existing systems. For businesses without the necessary internal resources or experience, this procedure can be difficult and complex. For businesses without the necessary internal resources or experience, this procedure can be difficult and complex. The overall cost and complexity of fuel cell vehicles are further increased by issues with the robustness and dependability of fuel cell components as well as the complexity of system integration. When compared to alternative engine technologies, these constraints together significantly limit the growth of the automobile fuel cell market.

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AUTOMOTIVE FUEL CELLS MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America Dominating the Market Due To Growing Demand For Fuel-Cell-Based Automobiles"

Countries like US and Canada are easily accessible, it is anticipated that North America will lead the largest revenue of automotive fuel cells market share during projection period. The automotive fuel cells market is dominated by the North American area, and this trend of dominance is expected to persist during the projected period. Rapid urbanization trends will further bolster the market overall. Because of the growing demand for fuel-cell-based automobiles, North America now holds a dominant position in the automotive fuel cell market. Moreover, throughout the forecast period, the industry's increasing R&D and innovative efforts will support the expansion of the automotive fuel cell market in the area. The presence of major important players in the automotive fuel cell market is expected to contribute to a substantial amount of growth in Europe. Furthermore, the region's market domination is said to have been aided by favorable trade regulations and economic stability. Furthermore, North American producers frequently export their goods abroad, which strengthens their position in the market for automotive fuel cell worldwide. In addition, it is projected that the increasing ubiquity of high-end and luxurious cars across several nations would further stimulate the automotive fuel cell market's expansion in the upcoming years.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The automotive fuel cells market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. These industrial titans also consistently fund R&D, bringing cutting-edge designs, materials, and clever features to meet the changing demands and tastes of consumers. These big businesses' combined efforts have a big impact on the market's future direction and level of competition.

List of Market Players Profiled

• Toyota (Japan)
• Ballard (Canada)
• Nedstack (Netherland)
• Honda (Japan)
• Hyundai (U.S.)

INDUSTRIAL DEVELOPMENT

December 2023: At the Amazon Fulfillment Center, DEN8, Plug Power, successfully installed a one-megawatt proton exchange membrane electrolyzer. This significant achievement marks the beginning of Amazon's low-carbon hydrogen production program, which will feed more than 225 hydrogen fuel cell-powered forklift trucks at the plant.

REPORT COVERAGE

The report includes a thorough SWOT analysis and offers predictions for market growth in the future. It explores a broad range of market categories and possible applications that might have an impact on the market's trajectory in the upcoming years, as well as key aspects that contribute to the market's growth. The research provides a comprehensive overview of the market's components and identifies possible growth opportunities by taking into account both historical turning points and present trends.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.