Global Automotive Fuel Cell System Market Grows at a Staggering CAGR of 40.73%

Introduction

A fuel cell can be used alone or in combination with a battery or supercapacitor to power the onboard electric motor of a fuel cell vehicle. Fuel cells typically need airborne oxygen and compressed hydrogen to operate. These vehicles are called zero-emission vehicles because fuel cells produce heat and water. The ability to create high-energy cells that can power cars thanks to automotive fuel cell technology is attractive to automakers. The primary energy source for fuel cells is methane or hydrogen.

Market Dynamics

Increasing Adoption of Fuel Cell Systems in Commercial Vehicles Drives the Global Market

In response to growing environmental concerns, governments and environmental organizations are enacting strict emission norms and laws, which are expected to increase the cost of manufacturing fuel-efficient diesel engines. As a result, it is anticipated that the new commercial vehicle diesel engine segment will soon experience slow growth. Trucks, buses, and other conventional commercial vehicles that run on fossil fuels are also to blame for the rise in transportation emissions. Fuel-cell commercial vehicles, regarded as zero-emission or low-emission vehicles, are expected to reduce heavy commercial vehicle emissions. Initiatives by governments around the world to choose green energy mobility to curtail and curb transportation pollution are anticipated to play a significant role in driving the market for fuel-cell commercial vehicles.

Advancements in Fuel Cell Modules Creates Tremendous Opportunities

The need for a perfect and efficient fuel cell system has always been crucial for many auto manufacturers. As a result, the auto industry has continuously improved and added cutting-edge technologies to the current fuel cell vehicle modules to compensate for the earlier models' shortcomings. To align their businesses with the expanding global trend of zero-emission vehicles, many players, from automakers to fuel cell systems and components suppliers, have been working hard and investing in R&D activities to upgrade their fuel cell modules over the past five years. In the global automotive industry, automakers and fuel cell component suppliers have been actively creating joint ventures and expanding their fuel cell businesses.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global automotive fuel cell system market and is expected to grow at a CAGR of 33.15% during the forecast period. South Korea has the region's largest auto market. Like other Asian countries, it invests heavily in hydrogen technology, boosting demand for automotive fuel cell systems. For example, Se'A Mechanics Co. Ltd. (Se'A Mechanics) announced in March 2021 that it would invest KRW 25 billion in constructing a new plant in Gumi, Gyeongsangbuk.

North America is expected to grow at a CAGR of 52.56%, generating USD 14,645 million during the forecast period. Strict emission regulations, technology manufacturers, and tax credits are expanding the fuel cell market. Top automakers and OEMs in the US should also boost fuel-cell commercial vehicle adoption. For Instance, Hyundai wants to build a USD 6.4 billion factory to produce 500,000 fuel cell systems by 2030. Fuel-cell buses in public transportation are expected to expand the market under study.

Europe is expected to grow steadily during the forecast period. Fuel cell electric buses, the main application for fuel cell systems in domestic and foreign markets, are anticipated to rise due to the JIVE program. Several large companies dominate the automotive fuel cell systems market in Germany. For instance, in March 2021, Robert Bosch GmbH announced its intention to develop automotive fuel cell (FC) system components and make them combustible by 2022. The company will produce integrated systems combining essential components for fuel cell vehicles (FCVs), such as the currently being developed FC stacks, air valves, and hydrogen gas injectors. Europe's largest market belongs to the country, which is predicted to continue to rule regionally and internationally during the forecast period.

 

Key Highlights

• The global automotive fuel cell system market was valued at USD 1847.5 million in 2021. It is expected to reach USD 40,001 million by 2030, growing at a CAGR of 40.73% during the forecast period (2022–2030).
• Based on electrolyte type, the global automotive fuel cell system market is bifurcated into polymer electronic membrane fuel cells, direct methanol fuel cells, alkaline fuel cells, and phosphoric acid fuel cells. The polymer electronic membrane fuel cell segment is the highest contributor to the market and is expected to grow at a CAGR of 40.75% during the forecast period.
• Based on vehicle type, the global automotive fuel cell system market is bifurcated into passenger cars and commercial vehicles. The passenger cars segment owns the highest market share and is expected to grow at a CAGR of 40.71% during the forecast period.
• Based on fuel type, the global automotive fuel cell system market is bifurcated into methanol and hydrogen. The methanol segment is the highest contributor to the market and is expected to grow at a CAGR of 40.95% during the forecast period.
• Based on power output, the global automotive fuel cell system market is bifurcated into below 100 kW, 100 to 200 kW, and above 200 kW. The 100 to 200 kW segment owns the highest market share and is expected to grow at a CAGR of 40.74% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global automotive fuel cell system market and is expected to grow at a CAGR of 33.15% during the forecast period.

Competitive Players

1. BorgWarner Inc.
2. Nuvera Fuel Cells LLC
3. Ballard Power Systems Inc.
4. Cummins Inc.
5. Nedstack Fuel Cell Technology BV
6. Oorja Corporation
7. Plug Power Inc.
8. SFC Energy AG
9. Watt Fuel Cell Corporation
10. Doosan Fuel Cell Co. Ltd

Recent Developments

Recent Developments

• October 2022- Union minister Nitin Gadkari launched Japanese car maker Toyota's first-of-its-kind pilot project on a flex fuel-strong hybrid electric vehicle (FFV-SHEV) that can run on 100 percent ethanol.
• September 2022- Bharti Airtel said its subsidiary Nxtra Data Ltd had partnered with Bloom Energy to deploy low environmental impact fuel cell installation at its data center in Karnataka, reducing carbon emissions through a cleaner, hydrogen-ready fuel supply.

Segmentation

1. By Electrolyte Type
   1. Polymer Electronic Membrane Fuel Cell
   2. Direct Methanol Fuel Cell
   3. Alkaline Fuel Cell
   4. Phosphoric Acid Fuel Cell
2. By Vehicle Type
   1. Passenger Cars
   2. Commercial Vehicles
   3. Fuel Type
   4. Hydrogen
   5. Methanol
3. By Power Output
   1. Below 100 KW
   2. 100 to 200 KW
   3. Above 200 KW