Delhi, India, Sept. 22, 2021 (GLOBE NEWSWIRE) -- The global fuel cells market is growing at a high CAGR due to the increasing demand for portable devices and expanding production capacities of hydrogen fuel cell vehicles in developing countries.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global fuel cells market was worth USD 264.2 million in 2020. It is estimated to grow at a CAGR of 26.2%, earning revenue of around USD 1,341.9 million by the end of 2027. Increasing demand for portable devices and expanding production capacity of hydrogen fuel cell vehicles in developing countries are driving the global fuel cell market upwards. Furthermore, stringent government regulations in controlling the carbon emission in their respective countries and developing unconventional energy sources infrastructure also propel the demand for fuel cells in the market.However, fuel cells require higher initial investments than their counterparts and have certain limitations, such as less durability, which could hamper their growth.
Growing Emphasis on Unconventional Energy Sources is Expectedto Drive the Global Fuel Cells Market Growth
Fossil fuels have been the conventional sources of energy for combustible engines, which have also been a significant contributor to carbon emissions. According to the United States Environmental Protection Agency, in 2019, transportation-related greenhouse gas emissions accounted for around 29% of total U.S. greenhouse gas emissions, making it the country's largest contributor of greenhouse gas emissions.In contrast to this, electricity production, which leverages coal and natural gas, is responsible for more than 25% of carbon emissions. The third major contributor to greenhouse gas emissions has been industrial production which burns fossil fuels to generate enough energy to produce raw materials.
Alternatively, hydrogen fuel cells are considered one of the cleanest and safest elements on earth, emitting little pollution and reducing the impact of energy used to produce electric vehicles, power plants, and other applications. A hydrogen fuel cell only produces heat and water as byproducts, making it one of the most sustainable forms of energy. It also aids in the elimination of costs associated with managing dangerous materials such as battery acid and diesel fuels. All of these considerations demonstrate the utility of unusual energy sources like hydrogen in fuel cell operation. These factors have been contributing to the growth of the global fuel cell market.
Market growth is projected to be driven by the growth of the electric vehicle industry
The majority of the EV market is presently dependent on batteries for producing electricity for vehicles. However, in recent years, there has been a shift toward hydrogen fuel cells in electricity production. If conventional automobiles are replaced by fuel cell vehicles, carbon emissions might be reduced by 12,600 pounds per year. Although battery-powered electric vehicles are gaining popularity, hydrogen fuel cell vehicles outperform the former in terms of fuel efficiency and carbon emissions.
A study by the Fuel Cell and Hydrogen Energy Association found that hydrogen fuel vehicles emit fewer greenhouse gas emissions per mile than battery electric vehicles. Additionally, hydrogen from biogas tri-generation technology, which emits lower energy than battery-powered vehicles, is becoming one of the emerging technologies in vehicle production. This demonstrates that hydrogen fuel cell vehicles are growing at a faster pace than battery electric vehicles, thereby driving the growth of the global fuel cell market.
Global Fuel Cells Market - By Application
Based on applications, the global fuel cells market iscategorized intoFCV (fuel cell vehicle), FC Ships, FC battery, Chemicals, Heating, Renewable energy, Power generation, and others. The FCV (fuel cell vehicle) segment accounted for the largest share in the market in 2020. The number of fuel cell operating vehicles has been witnessing a rise over the past few years due to the growing acceptance rate of hydrogen as a fuel for electric vehicles, increasing concerns about climate change, and growing demand for fuel-cell vehicles around the globe.According to the International Energy Agency’s (IEA) Advanced Fuel Cells Technology Collaboration Program (AFC TCP), there were more than 22,736 fuel cell vehicles in the Asia-Pacific at the end of 2020. Additionally, growing investments from companies like Bosch, Toshiba, Toyota in the fuel cell vehicles segment is expected to drive the growth of the segment during the forecast period.
Global Fuel Cells Market - Regional Insights
The report by BlueWeave Consulting analyzes the global fuel cells market for five regions: North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Among these regions, the Asia-Pacific dominated the market in 2020 due to growing sales of fuel cell vehicles (FCVs) in the region. The Asia-Pacific region had the world’s largest fuel cell vehicle fleet in 2020, according to a survey conducted by IEA’s Technology Collaboration Program for Fuel Cells.The presence of the world’s largest automaker market, China, and emerging economies like Japan, India, South Korea, and global leaders in fuel cell markets like Toyota, Panasonic, Toshiba have further supported the growth of the fuel cell market in the region.
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Impact of COVID-19 on Global Fuel Cell Market
The sudden outbreak of COVID-19 has negatively affected the global fuel cell market. The lockdown imposed by different countries crippled several manufacturing and production industries. The demand for fuel cells plunged sharply after the transport, portable, and stationary production operations were temporarily restricted. The power generation industry was also affected as demand for electricity went down in 2020. According to the International Energy Agency (IEA), electricity demand dropped by 2.5% in the first quarter of 2020 with demand dropping as much as 15% in some of the countries. During June and July of 2020, demand remained 10-15% below what it was in 2019. Furthermore, in October-November 2020, the second wave of the COVID-19 in European countries stalled the revival of demand. The exponential drop in the sales of HFC (hydrogen fuel cell) vehicles further affected the global fuel cell market in 2020. With rising electricity consumption and increased government investment in developing hydrogen infrastructure, the industry is likely to rebound quickly in the next few years.
Competitive Landscape
The leadingglobal fuel cells market players are Ballard Power Systems Inc., Cummins Inc., Horizon Fuel Cell Technologies Pte. Ltd, Mitsubishi Power Ltd, Toshiba Fuel Cell Power Systems Corporation, SFC Energy AG, FuelCell Energy Inc., Intelligent Energy Limited, Plug Power Inc., Nuvera Fuel Cells LLC, Proton Power Systems PLC, ITM Power Plc, United Technologies, Hydrogenics, Fuji Electric India Pvt. Ltd., AFC Energy Plc, Nedstack Fuel Cell Technology B.V., Doosan Fuel Cell America, Inc., Ceres Power Holdings PLC, and other prominent players.
Players in the market compete with each-others in terms of products launches, integration of new technology, mergers & acquisitions, collaboration with other players and organizations. The companies operating in the fuel cell market are looking to commercialize the technology as soon as possible to capture more market share.
Recent Developments
In September 2021, Nikola and the Bosch Group inked an agreement allowing Nikola to use fuel-cell power modules based on Bosch technology. The company signed agreements for Nikola Class 7 and 8 fuel-cell electric vehicles (FCEV). The partnership will enable Nikola to build the Bosch fuel-cell power modules at its Coolidge, Arizona facility.
In August 2021, American Automobile Association (AAA) Colorado, the largest not-for-profit organization in the state, announced that it has joined with New Day Hydrogen (NDH) to lead the way in bringing hydrogen-powered trucks and consumer vehicles to Colorado.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global fuel cells market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global fuel cells market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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