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Global Hydrogen Fuel Cells Market Soars to $8.23 Billion in 2023, Predicted to Reach $32.65 Billion by 2027

18 Sept 2023

The global hydrogen fuel cells market is on an extraordinary growth trajectory, surging from $5.64 billion in 2022 to a staggering $8.23 billion in 2023, representing an impressive compound annual growth rate (CAGR) of 45.8%. This growth trend is set to continue, with forecasts projecting the market size to reach an astonishing $32.65 billion by 2027, driven by a robust CAGR of 41.1%.

Electric Vehicle Demand Fuels Hydrogen Fuel Cells Market Growth

The rising demand for electric vehicles (EVs) has emerged as a key driver behind the remarkable expansion of the hydrogen fuel cells market. EVs, known for their environmental advantages and reduced dependence on fossil fuels, have gained significant popularity. Fuel cell electric vehicles (FCEVs), powered by fuel cell stacks that convert gaseous hydrogen into electricity, have positioned themselves as zero-emission vehicles (ZEVs). Notably, in 2022, battery-powered electric car (BEV) and plug-in hybrid electric vehicle (PHEV) sales surged significantly, with a 75% year-on-year increase in BEVs and a 37% increase in PHEVs in the first half of the year. Leading this electric vehicle revolution is China, projected to have 40% of its cars sold as electric by 2030, making it the largest electric vehicle market globally.

Innovations Drive Market Advancements

Major players in the hydrogen fuel cells market are at the forefront of innovation, continuously developing novel product solutions to strengthen their market presence. In May 2023, the Tokyo Tech InfoSyEnergy Research and Education Consortium and the Tokyo Tech Academy of Energy and Informatics unveiled a groundbreaking fuel cell capable of generating electricity from both hydrogen and waste plastic hydrogen, offering heat to industrial facilities. This innovative system, designed for commercial and industrial use, boasts a remarkable 100 kW capacity.

Asia Pacific Leads, North America Follows

In 2022, Asia Pacific claimed the top spot in the hydrogen fuel cells market, representing 46.3% of the global market share, closely followed by North America. Looking ahead, the Asia Pacific and North America regions are expected to be the fastest-growing in the hydrogen fuel cells market. Asia Pacific benefits from increasing hydrogen fuel cell demand and robust government initiatives aimed at reducing greenhouse gas emissions. An excellent example is South Korea's Green New Deal, unveiled in July 2020, which commits £13 billion ($16.54 billion) in fiscal investment by 2025 to support green mobility, including hydrogen vehicles. South Korea aims to produce approximately 500,000 hydrogen fuel cell vehicles for both domestic and international markets by 2030, further propelling market growth.

Hydrogen Fuel Cells Market Segmentation and Opportunities

The global hydrogen fuel cells market is segmented into four categories:

  1. Type: Includes Polymer Exchange Membrane Fuel Cells (PEMFC), Direct Methanol Fuel Cells (DMFC), Solid Oxide Fuel Cells (SOFC), and Other Types.

  2. Application: Comprises Stationary, Transport, and Portable.

  3. End User: Encompasses Fuel Cell Vehicles, Utilities, and Defense.

Notably, the proton exchange membrane segment presents significant opportunities, with projected global annual sales of $13,086 million by 2027.

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