Automotive Fuel Cell System Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 5.13 Billion |
| Market Size (2029) | USD 28.27 Billion |
| CAGR (2024 - 2029) | 40.63 % |
| Fastest Growing Market | Europe |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Fuel Cell System Market Analysis
The Automotive Fuel Cell System Market size is estimated at USD 5.13 billion in 2024, and is expected to reach USD 28.27 billion by 2029, growing at a CAGR of 40.63% during the forecast period (2024-2029).
- The COVID-19 pandemic did not impact the market as severely as it had affected other automotive segments. While the demand experienced a decline during the lockdown, it was expected that the market would gain momentum in 2021, with high growth continuing throughout the forecast period.
- With the growing environmental concerns, governments and environmental agencies are enacting stringent emission norms and laws, which are expected to increase the manufacturing cost of fuel-efficient diesel engines in the coming years. As a result, the new commercial vehicle diesel engines segment is expected to register a sluggish growth rate during the short term.
- Additionally, conventional fossil fuel-powered commercial vehicles, especially trucks, and buses, are responsible for increasing transportation emissions. The advent of fuel-cell commercial vehicles, which are considered low or zero-emission vehicles, is anticipated to reduce vehicular emissions emitted by heavy commercial vehicles.
- Moreover, initiatives by government bodies around the world to opt for green energy mobility in order to curtail and curb transportation pollution is a key factor that is projected to drive the fuel cell system market in the near future.
Automotive Fuel Cell System Market Trends
Government Initiatives for Clean Energy is Driving the Hydrogen Fuel Demand
- Government initiatives throughout the world to choose green energy mobility in order to restrict and reduce transportation pollution is a crucial driver that is expected to boost the fuel cell commercial vehicle market in the near future. Several governments are already laying out plans throughout the world to encourage fuel-cell electric vehicles (FCEVs) on the road will also help the automotive fuel-cell industry grow.
- In February 2022, Japan's Ministry of the Environment announced that it would support local governments and companies in the establishment of a hydrogen business consortium. The ministry has been jointly implementing a hydrogen supply chain platform that generates low-carbon hydrogen and utilizes it in the region with certain companies and local governments. It aims to realize the hydrogen supply chain platform after conducting demonstrations across Japan by around 2030.
- In February 2022, the Indian Ministry of New and Renewable Energy announced that it implemented the 'Renewable Energy Research and Technology Development' program to support research in various aspects of renewable energy, including inter-alia hydrogen-based transportation and fuel cell development. The ministry listed some of its major development. The Indian Institute of Science (IISc) established a production plant for high-purity hydrogen generation through biomass gasification. International Advanced Research Centre for Powder Metallurgy and New Materials (ARCI) Center for Fuel Cell Technologies is setting up an integrated automated manufacturing line for producing 20 kW PEM fuel cell stacks.
- In January 2022, the German government announced support for the CryoTRUCK project for hydrogen trucks. The testing specialist IABG and the Technical University of Munich are jointly developing a CRYOGAS hydrogen gas tank with a refueling system for hydrogen trucks in long-distance transport. The three-and-a-half-year CryoTRUCK project, with a total budget of more than EUR 25 million, will develop and validate a first-generation technology for cryogenic compressed hydrogen gas (CRYOGAS) storage and refueling systems in heavy-duty fuel cell trucks.
- Such initiatives are driving the market forward by increasing the adoption of fuel-cell transportation. However, the major obstacle to the introduction of a wide range of fuel cell vehicles in the global market is the lack of hydrogen infrastructure. Factors for fewer hydrogen refueling stations around the world are the involvement of high investment and conventional production methods of hydrogen, which is leading to high emission levels and making it difficult to be in line with the stringent Energy Policy Act.
- Establishing a new hydrogen refueling infrastructure is extremely costly (but not any costlier than establishing a methanol or ethanol infrastructure). Hydrogen that is produced from natural gas can be cheaper than gasoline. Hydrogen produced from water and electricity via hydrolysis is more expensive than gasoline using conventional methods unless low-cost off-peak electricity is used or solar panels are employed.
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Europe Expected to Witness High Growth Rate
- The European Union plans to reduce greenhouse gas (GHG) emissions from the transportation sector significantly. As a result, several countries in Europe have identified the implementation of innovative technologies, such as fuel cells (primarily PEMFC), as a way to meet these objectives. This, in turn, is expected to provide a significant opportunity for the fuel cell manufacturers involved in the market in the near future.
- Europe is home to over 30% of proposed hydrogen investments globally (about USD 76 billion), with nearly 314 project proposals in total and 268 aiming for full or partial commissioning through 2030.
- The European Union (EU) has proposed some of the most stringent emission standards in the world in order to reduce the usage of conventional fuel vehicles and encourage the use of alternative fuel vehicles in the region. These emission standards are projected to push the market and vehicle manufacturers toward zero-emission vehicles.
- Several projects have been initiated to explore and develop acceptable solutions to the problem of automobile emissions. For instance, ongoing EC-supported initiatives include the H2BusEurope scheme that involves the deployment of 1,000 hydrogen buses and infrastructure and the JIVE and JIVE 2 projects that involve putting into operation nearly 300 fuel cell electric buses (FCEBs) in 22 cities across Europe and will be supported in part by a 32 million euro grant from the FCH JU (Fuel Cells and Hydrogen Joint Undertaking) within the European Union's Horizon 2020 framework program for research and innovation. The project consortium consists of 22 members from seven different countries.
- Furthermore, companies operating in the market are adopting strategies such as new product developments, collaborations, contracts, and agreements to sustain their market position. For instance,
- In September 2022, Hyundai Motor Company and Iveco Group at IAA Transportation 2022 in Hannover unveiled the first IVECO eDAILYFuel Cell Electric Vehicle. The two companies announced hydrogen-powered IVECO BUS vehicles with Hyundai's fuel cell system earlier in July. The eDAILYFuel Cell Electric Vehicle (FCEV) exemplifies IVECO's best-selling and longest-running large van's future potential.
- In addition, the development of hydrogen technology in the region will help in the expansion of the market.
- For instance, in March 2022, Cummins Inc. announced the successful operation of its new Hydrogen fuel cell systems production center in Herten, Germany. This significant development is expected to bolster the company's efforts in scaling up alternative power solutions and promote the widespread adoption of hydrogen technologies throughout Europe. The facility boasts an initial production capacity of 10MW per year for fuel cell system engineering and assembly.
- The companies active in the region are constantly working on new materials and new fuel cell technologies. They are also spending on the expansion of their facilities. These trends are expected to continue in the coming years, as some companies have indicated their focus on fuel cell technology by announcing their upcoming investments.
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Automotive Fuel Cell System Industry Overview
- The automotive fuel cell system market is dominated by players such as Ballard Power Systems Inc., Doosan Fuel Cell Co. Ltd, Hydrogenics, and Nedstack Fuel Cell Technology BV. These companies have been expanding their businesses using new and innovative technologies to have an advantage over their competitors.
- In February 2023, Doosan Fuel Cell signed a statement of cooperation with the South Australian government and HyAxiom, a subsidiary of Doosan Corporation. In accordance with the agreement, South Australia and Doosan Fuel Cell committed to "exchange equipment and experience for the production of eco-friendly hydrogen and derivatives, to "create strategies and alliances to achieve worldwide competitiveness in hydrogen exports," and to "share best practices for hydrogen production.
- In July 2022, Iveco Group, through its brand IVECO BUS, announced that it would partner with HTWO to equip its future European hydrogen-powered buses with world-leading fuel cell systems. HTWO, as a fuel cell system-based hydrogen business brand of Hyundai Motor Group, was first released in December 2020 with Hyundai's strong commitment to a hydrogen economy. With its proven fuel cell technology utilized in Hyundai FCEVs, HTWO is expanding the provision of fuel cell technology to other automobile OEMs and non-automobile sectors to make hydrogen available for everything.
Automotive Fuel Cell System Market Leaders
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Ballard Power Systems Inc.
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Doosan Fuel Cell Co Ltd
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Plug Power
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Nuvera Fuel Cells LLC
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Hydrogenics ( Cummins Inc.)
*Disclaimer: Major Players sorted in no particular order
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Automotive Fuel Cell System Market News
- February 2022: The Adani Group signed a non-binding memorandum of understanding ('MoU') with Ballard Power Systems to evaluate a joint investment case for the commercialization of hydrogen fuel cells in various mobility and industrial applications in India. Under the MoU, both parties will examine various options to cooperate, including potential collaboration for fuel cell manufacturing in India.
- March 2021: Nuvera Fuel Cells announced the expansion of its hydrogen fuel cell engine testing capabilities with the commissioning of a large-scale durability test facility in Italy. The new automated facility, located at the SIAD SpA's main plant in Osio, was designed, constructed, and commissioned over a period of three years. The Nuvera Fuel Cell Engine Test Module (ETM) is a fully equipped testing ground for the company's expanding product line. It provides the capability of simultaneously testing up to eight fuel cell engines at different customer-specific load cycles.
- March 2021: Robert Bosch GmbH announced that it was planning to develop automotive fuel cell (FC) system components and commercialize them by 2022. In addition to FC stacks, which are under development, the company stated that it would be developing integrated systems that combine the key components of fuel cell vehicles (FCV), including hydrogen gas injectors and air valves.
- March 2021: Daimler Truck AG and the Volvo Group founded a fuel-cell joint venture. The Volvo Group acquired 50% shares in the existing Daimler Truck Fuel Cell GmbH & Co. KG at a value of around EUR 0.6 billion. The new joint venture, Cellcentric GmbH & Co. KG, is expected to be the world's leading manufacturer of fuel cells.
- February 2021: Plug Power Inc. and SK Group announced the completion of the USD 1.6 billion capital investment to partner in accelerating hydrogen as an alternative energy source in Asian markets. This partnership includes a plan to form a joint venture company in Asia.
Automotive Fuel Cell System Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Government Initiatives to Support The Market Growth
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4.2 Market Restraints
- 4.2.1 Lack of Infrastructure poses a Challenge For The Growth of The Market
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Electrolyte Type
- 5.1.1 Polymer Electronic Membrane Fuel Cell
- 5.1.2 Direct Methanol Fuel Cell
- 5.1.3 Alkaline Fuel Cell
- 5.1.4 Phosphoric Acid Fuel Cell
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5.2 Vehicle Type
- 5.2.1 Passenger Cars
- 5.2.2 Commercial Vehicles
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5.3 Fuel Type
- 5.3.1 Hydrogen
- 5.3.2 Methanol
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5.4 Power Output
- 5.4.1 Below 100 KW
- 5.4.2 100-200 KW
- 5.4.3 Above 200 KW
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5.5 Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Rest of North America
- 5.5.2 Europe
- 5.5.2.1 Germany
- 5.5.2.2 United Kingdom
- 5.5.2.3 France
- 5.5.2.4 Russia
- 5.5.2.5 Spain
- 5.5.2.6 Rest of Europe
- 5.5.3 Asia-Pacific
- 5.5.3.1 India
- 5.5.3.2 China
- 5.5.3.3 Japan
- 5.5.3.4 South Korea
- 5.5.3.5 Rest of Asia-Pacific
- 5.5.4 South America
- 5.5.4.1 Brazil
- 5.5.4.2 Argentina
- 5.5.4.3 Rest of South America
- 5.5.5 Middle-East and Africa
- 5.5.5.1 United Arab Emirates
- 5.5.5.2 Saudi Arabia
- 5.5.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
-
6.2 Company Profiles*
- 6.2.1 BorgWarner Inc.
- 6.2.2 Nuvera Fuel Cells LLC
- 6.2.3 Ballard Power Systems Inc.
- 6.2.4 Hydrogenics (Cummins Inc.)
- 6.2.5 Nedstack Fuel Cell Technology BV
- 6.2.6 Oorja Corporation
- 6.2.7 Plug Power Inc.
- 6.2.8 SFC Energy AG
- 6.2.9 Watt Fuel Cell Corporation
- 6.2.10 Doosan Fuel Cell Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Increasing Renewable Energy Integration
Automotive Fuel Cell System Industry Segmentation
An automotive fuel cell system generates electricity by combining hydrogen and oxygen through an electrochemical process. It powers electric vehicles, emitting only water vapor, making it a promising clean and sustainable transportation technology. Challenges include hydrogen infrastructure, cost, and durability, which are being addressed for wider adoption.
The automotive fuel cell system market is segmented by electrolyte type (polymer electronic membrane fuel cell, direct methanol fuel cell, alkaline fuel cell, and phosphoric acid fuel cell), vehicle type (passenger cars and commercial vehicles), fuel type (hydrogen and methanol), power output (below 100 KW, 100-200 KW, and above 200 KW), and geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).
The report offers the market size and forecasts for automotive fuel cell systems in value (USD) for all the above segments.
| Electrolyte Type | Polymer Electronic Membrane Fuel Cell | |
| Direct Methanol Fuel Cell | ||
| Alkaline Fuel Cell | ||
| Phosphoric Acid Fuel Cell | ||
| Vehicle Type | Passenger Cars | |
| Commercial Vehicles | ||
| Fuel Type | Hydrogen | |
| Methanol | ||
| Power Output | Below 100 KW | |
| 100-200 KW | ||
| Above 200 KW | ||
| Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Russia | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | India |
| China | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | United Arab Emirates |
| Saudi Arabia | ||
| Rest of Middle-East and Africa |
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Automotive Fuel Cell System Market Research FAQs
How big is the Automotive Fuel Cell System Market?
The Automotive Fuel Cell System Market size is expected to reach USD 5.13 billion in 2024 and grow at a CAGR of 40.63% to reach USD 28.27 billion by 2029.
What is the current Automotive Fuel Cell System Market size?
In 2024, the Automotive Fuel Cell System Market size is expected to reach USD 5.13 billion.
Who are the key players in Automotive Fuel Cell System Market?
Ballard Power Systems Inc., Doosan Fuel Cell Co Ltd, Plug Power, Nuvera Fuel Cells LLC and Hydrogenics ( Cummins Inc.) are the major companies operating in the Automotive Fuel Cell System Market.
Which is the fastest growing region in Automotive Fuel Cell System Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Automotive Fuel Cell System Market?
In 2024, the Asia-Pacific accounts for the largest market share in Automotive Fuel Cell System Market.
What years does this Automotive Fuel Cell System Market cover, and what was the market size in 2023?
In 2023, the Automotive Fuel Cell System Market size was estimated at USD 3.05 billion. The report covers the Automotive Fuel Cell System Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automotive Fuel Cell System Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Automotive Fuel Cell System Industry Report
Statistics for the 2024 Automotive Fuel Cell System market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Automotive Fuel Cell System analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Automotive Fuel Cell System Market Report Snapshots
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