21 Sept 2023
The hydrogen fuel cells market is on a remarkable growth trajectory, with fuel cell electric vehicles (FCEVs) leading the charge towards a greener future. As FCEVs gain popularity, the global hydrogen fuel cells market is set to witness unprecedented expansion.
Zero-Emission Vehicles (ZEVs) Take the Spotlight
Fuel cell electric vehicles (FCEVs) are at the forefront of the zero-emission vehicle (ZEV) movement. These vehicles utilize fuel cell stacks to convert gaseous hydrogen into electricity, providing an eco-friendly and sustainable mode of transportation. The surge in demand for electric vehicles (EVs) is a significant catalyst for the rapid growth of the hydrogen fuel cells market.
Impressive Market Growth
According to The Business Research Company's Hydrogen Fuel Cells Global Market Report 2023, the hydrogen fuel cells market has experienced extraordinary growth, expanding from $5.64 billion in 2022 to $8.23 billion in 2023, reflecting a remarkable CAGR of 45.8%. This growth trend is projected to continue, with the market poised to reach an estimated size of $32.65 billion by 2027, growing at a CAGR of 41.1%.
EVs Driving Market Expansion
Electric vehicles (EVs) have gained immense popularity due to their environmental advantages and reduced reliance on fossil fuels. FCEVs, in particular, have positioned themselves as ZEVs, contributing to the market's growth. Notably, in 2022, the World Economic Forum reported substantial increases in sales of battery-powered electric cars (BEVs) and plug-in hybrid electric vehicles (PHEVs), further emphasizing the global shift towards clean transportation. China, a leading auto market, is expected to spearhead the EV revolution, with projections indicating that 40% of cars sold in China by 2030 will be electric.
Innovation Fuels Progress
Key players in the hydrogen fuel cell market are driving innovation by continuously developing new product solutions. In May 2023, the Tokyo Tech InfoSyEnergy Research and Education Consortium, in collaboration with the Tokyo Tech Academy of Energy and Informatics, unveiled a groundbreaking fuel cell capable of generating electricity from hydrogen and waste plastic hydrogen while providing heat to industrial buildings. This innovative system, designed for commercial and industrial applications, boasts a 100 kW capacity, illustrating the sector's commitment to sustainable solutions.
Asia Pacific Leads the Way
In 2022, Asia Pacific secured the top position in the hydrogen fuel cells market, accounting for 46.3% of the global market share, closely followed by North America. The report predicts that Asia Pacific and North America will continue to be the fastest-growing regions in the hydrogen fuel cells market.
Asia Pacific's growth is driven by rising demand for hydrogen fuel cells and robust government initiatives aimed at reducing greenhouse gas emissions. South Korea's Green New Deal, launched in July 2020, is a prime example, with the government pledging £13 billion ($16.54 billion) in fiscal investment by 2025 to support green mobility, including hydrogen vehicles. The country's ambitious goal is to manufacture around 500,000 hydrogen fuel cell vehicles for domestic and international markets by 2030, further propelling market expansion.