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The fuel cells for automotive industry market size is forecast to increase by USD 8.57 billion at a CAGR of 35.28% between 2024 and 2028. The fuel cells market for automotive applications is experiencing significant growth due to the increasing demand for efficient and cleaner fuel sources. Governments worldwide are offering incentives to promote the adoption of fuel cell vehicles as part of their efforts to reduce greenhouse gas emissions and improve air quality. Hydrogen fuel cell vehicles offer several advantages over traditional internal combustion engine vehicles. They produce only water as a byproduct, making them zero-emission vehicles. Additionally, hydrogen fuel cells offer faster refueling times compared to battery electric vehicles, making them an attractive option for long-distance travel. The fuel cells market for automotive applications is expected to continue growing as technology advances and infrastructure for hydrogen refueling stations expands.
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The market for the Automotive Industry is experiencing significant growth, driven by advancements in fuel cell technology and the increasing adoption of alternative energy sources. Hydrogen plays a pivotal role in powering fuel cell electric vehicles (FCEVs), offering a clean and efficient energy solution. State and federal authorities are supporting the development of hydrogen infrastructure, promoting the establishment of clean hydrogen hubs. This fosters the growth of FCEV adoption rates and electric vehicle sales while reducing vehicle emissions and greenhouse gas emissions. Companies like Plug Power and Ballard Power Systems are leading innovators in fuel cell technology, providing stack and balance of plant components for FCEVs. With a focus on reducing carbon emissions and promoting sustainability, the fuel cells market is driving transformation in the transportation sector towards cleaner and greener energy solutions. Battery are crucial for energy storage. Solid oxide fuel cells (SOFC) are efficient energy converters. Tri-gen systems produce electricity, heat, and hydrogen. Fuel cell electric vehicles are eco-friendly. Air compressors and power conditioners support energy systems.
The advantage of hydrogen fuel cell vehicles is the key factor driving the growth of the market size. Globally, there is growing interest in reducing greenhouse gas emissions, of which the transportation sector makes a significant contribution, leading governments around the world to impose strict regulations. Fuel cell vehicles are more efficient than gasoline vehicles because it is the main source of energy and in the process of releasing energy it only releases water vapor and carbon dioxide, hot air into the atmosphere from the exhaust pipe.
Moreover, fuel cell electric vehicles offer benefits similar to those associated with using an electric vehicle in terms of range and emissions control without sacrificing the convenience of easy refueling. The advantages of fuel cell vehicles over conventional internal combustion engines and electric vehicles have driven the adoption and development of these vehicles, which is expected to drive the growth of the market during the forecast period.
An increase in R&D investment and activities is the primary trend shaping the growth of the market growth. Fuel cell companies are investing heavily in R&D, which is leading to a reduction in the size of components, such as fuel cells and tanks, making them suitable for compact spaces. A number of universities and government agencies as well as industry stakeholders participate in research and demonstration projects to introduce new technologies to industry.
Over the years, demonstration projects, field trials, and R&D activities have helped reduce fuel cell costs, with suppliers using various low-cost metals to reduce fuel cell costs. Fuel cell suppliers are working to find alternatives to platinum. Additionally, innovative concepts help to improve efficiency and reduce the costs of hydrogen vehicle refueling facilities, thereby driving the growth of the market during the forecast period.
The high cost of installation is a challenge that affects the growth of the market. The cost of installing a hydrogen gas station at an existing gas station is nearly USD 0.8 million, while the cost of building a new hydrogen gas station is estimated to be nearly three times the cost of installing a hydrogen gas station. High construction costs give electric vehicle charging stations a competitive advantage. Additionally, the construction of electric vehicle charging stations is subsidized by the government in most countries.
Additionally, without government support, building FCEV refueling stations remains a major challenge because the costs of creating entirely new hydrogen production and distribution infrastructure are enormous. For natural gas stations, the main product is readily available, while electric charging facilities are growing rapidly. Therefore, this will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
This segment is estimated to witness significant growth during the forecast period. These cells generate electricity through an electrochemical process that merges hydrogen and oxygen to create water and release energy. This energy is used to power the electric motor that drives the vehicle. The fuel cell adoption has risen in recent times due to benefits such as zero emissions, fast refueling, long-range, and reduced dependence.
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The hydrogen segment was the largest segment and was valued at USD 663.50 million in 2018. Automakers such as Toyota, Honda, Hyundai, and Mercedes-Benz have raised fuel cell vehicles into the auto market, but they are often offered in limited quantities and in specific regions. Commercial vehicles such as buses and trucks are also being researched to incorporate fuel cells. Integration of fuel cells in commercial and non-commercial applications is expected to drive the growth of the global automotive fuel cell system market during the forecast period.
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APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The automotive fuel cell market in APAC is expected to witness steady growth driven by the need to reduce energy consumption in the transportation sector. Countries such as Japan, China, and India in the APAC region are working to develop emissions regulations that meet European standards.
Furthermore, Japan is promoting fuel cell vehicle adoption in the region through capital subsidies and domestic fuel cell vehicle promotion targets. Besides Japan, efforts to deploy fuel cells in the automotive sector are also growing in countries such as China and India, which have the potential to become the world's largest fuel cell markets. Thus, such factors will drive the growth of the automotive fuel cell system market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Fuel Cells for Marine Vessels Market: Fuel Cells for Marine Vessels Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast
Fuel Cells Market For Industrial and Military Applications: Fuel Cells Market For Industrial and Military Applications Analysis APAC, North America, Europe, South America, Middle East and Africa - US, Japan, South Korea, China, Germany - Size and Forecast
North America - Fuel Cell Market: North America - Fuel Cell Market by Application and Product - Forecast and Analysis
The Market is witnessing rapid growth driven by escalating concerns over vehicle emissions and the increasing adoption of alternative energy sources. Electric vehicle sales are surging amidst high fuel prices and purchase costs, propelling demand for environment-friendly solutions like hydrogen-based fuel cells. Key players like Bloom Energy are leading innovations in fuel cell technology, catering to diverse sectors including residential, data centers, and utilities. Fuel cell applications extend to the military, hospitals, hotels, shopping malls, and office buildings, offering incentives for renewable energy use. With a focus on clean hydrogen hubs and combined heat and power systems, fuel cells play a crucial role in reducing greenhouse gases and carbon emissions. From small-scale to large-scale applications, fuel cells offer a versatile solution for addressing transportation and energy challenges in the automotive sector.
Moreover, the market for the Automotive Industry is experiencing steady growth driven by factors such as the adoption rate of fuel cell technology and the demand for environmentally friendly transportation solutions. Despite challenges such as high purchase prices and the need for infrastructure development like hydrogen refueling stations, advancements in hydrogen storage and fuel cell technology address concerns about weight, volume, safety, and durability. Proton Exchange Membrane (PEM) fuel cells play a significant role, with innovations in water management, reactant diffusion, and catalyst sites enhancing efficiency. Key considerations include component materials and design for optimal performance. Prominent companies are investing in fuel cell technology for various applications, including data centers, military vehicles, and public transportation hubs like shopping centers and sports centers, driving the market forward.
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Industry Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 35.28% |
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Market growth 2024-2028 |
USD 8572.6 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
28.37 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 50% |
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Key countries |
US, Japan, South Korea, China, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, Market Forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Fuel Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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