The Fuel Cell Market is forecasted to grow at a high rate owing to implementation of favorable policies and initiatives for the adoption of fuel cell technology
The Global Fuel Cell Market was estimated at USD 4.6 Bn in 2020 and is expected to grow with CAGR of 24.8% during the forecast period.
The fuel cell market is majorly growing owing to the rising environmental concerns regarding emissions from the use of conventional fuel sources. Owing to this, many governments across the globe have designed favourable policies and initiatives that feed the growth of the fuel cell industry. For instance, in South Korea, the government has planned to replace 26000 buses which are currently run on CNG with fuel cell buses by the year 2030. Additionally, the South Korean government is also planning to phase out incentives and subsidies on Battery Electric Vehicles and channelizing those too towards providing government subsidies on fuel cell vehicles. These favourable initiatives from the governments are further driving the growth of the fuel cell market in the region.
Moreover, increasing awareness regarding the benefits of fuel cells and rapid expansion of fuel cell facilities is also expected to prominently drive the fuel cell industry. For instance, in the USA, the state of California now has 39 hydrogen refuelling stations, with an additional 25 stations also under development. Similarly, the French Government has targeted to increase the number of refuelling stations across the country from 20 to 100 by the year 2023. In addition to this, multinational corporations and companies are significantly funding R&D projects in the fuel cell market. This can be seen in the case of Universal Hydrogen, a Los Angeles-based start-up that is in process of fuelling passenger jets using hydrogen and is expected to start testing in 2022. The company has received a high volume of investments from large-scale investors like Tencent and GE Aviation to fund their projects. Such collaborations are opening up lucrative growth opportunities in the fuel cell market.
Global Fuel Cell Market by Region Outlook (Revenue, USD Million, 2021-2027)
Based on region, the Asia-Pacific region held the dominant share in the fuel cell market and is expected to show a similar trend in the forecast period. This high share is majorly attributed to the favorable government policies implemented by countries, such as Japan, South Korea, and China, that are focussing on the use of clean energy. Among these, the ENE-FARM program launched by Japan has prominently driven the use of PEMFCs for micro-CHP applications. This program resulted in the deployment of more than 120,000 residential fuel cell systems in the country and added approximately 50,000 units of residential micro-CHP fuel cell systems in the year 2018. Moreover, China has shifted its focus towards finding ways to make use of clean energy technology and switch to a low-carbon economy, thus providing growth opportunities in the market. Moreover, a large number of government incentives and subsidies provided at national and provincial levels have encouraged the use of hydrogen vehicles to reduce pollution and thereby further fuelling the fuel cell industry.
The Global Fuel Cell Industry Segmentation:
Global Fuel Cell Market by Application Outlook (Revenue, USD Million, 2021-2027)
Global Fuel Cell Market by Type Outlook (Revenue, USD Million, 2021-2027)
Key Findings:
Company Profiles and Competitive Intelligence
The key players operating in the Fuel Cell market are:
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