Hydrogen Fuel Cell Market Expected to Reach $5.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Hydrogen Fuel Cell Market". The global hydrogen fuel cell market size was valued at $2.7 billion in 2021, and projected to reach $5.7 billion by 2031, with a CAGR of 8.1% from 2022 to 2031.  

A fuel cell is a type of device consisting of a cathode and an anode immersed in an electrolyte medium to effectively conduct and generate electricity. The system works on the basic electromechanical mechanism to convert chemical energy into electrical energy. As the fuel is broken up into protons and electrons at the anode and oxygen is available at the cathode, hydrogen is formed. These electrons complete a circuit between the electrodes, meanwhile the protons travel through the electrolyte medium. After completing this chemical reaction, all the negative and positive ions and oxygen combine at the cathode to generate electricity as the final product, coupled with water and heat as byproducts.  

The automobile sector has experienced remarkable expansion as a result of rising vehicle demand. However, in recent years, there has been a growing awareness and issue about the negative environmental impact of fossil fuel engines, which produce considerable amounts of greenhouse gases. Over the projected period, this is expected to assist the expansion of hydrogen fuel cells market. Other factors such as technical improvements, higher performance, rising petroleum prices, reduced noise, and stringent government regulations regarding environmental conservation are also predicted to contribute to the hydrogen fuel cells market’s growth during the forecast period.

For instance, on June 23, 2022, Toshiba Energy Systems and Solutions Corp. (Toshiba EES) announced its partnership with Echandia to develop pure hydrogen fuel cell systems for ships. These newly developed pure hydrogen fuel cells could be used for continuous marine operation applications. By integrating these next-generation pure hydrogen fuel cells, the electric propulsion systems for ships are expected to last approximately 200% longer.  

The hydrogen fuel cell market forecast is segmented on the basis of type, application, end user, and region. On the basis of type, it is fragmented into proton exchange membrane fuel cells, phosphoric acid fuel cells, solid oxide fuel cells, molten carbonate fuel cells and others. The proton exchange membrane fuel cells segment was the highest revenue contributor to the market.The integration of proton exchange membrane fuel cell into present vehicle technology and modernizing energy systems are technical difficulties for transportation.

There is potential for PEMFCs to be used for stationary power generation, where they provide 5 kW at 30% efficiency; however, they run into competition with other types of fuel cells, mainly SOFCs and MCFCs. Other fuel cell types can run on methane and are therefore more flexible systems, although PEMFCs typically require high purity hydrogen for operation. The integration of the hydrogen source is a technical difficulty, especially without a convenient place to store it within the device, however, PEMFCs have the potential to replace batteries for portable electronics.

On the basis of application, the market is classified into stationary, transportation and portable.The transportation segment was the highest revenue contributor to the market.Global transportation has compelling reasons for reducing fuel usage, due to carbon dioxide emissions, and noise pollution. Transitions to alternative transportation technologies such as electric vehicles (EVs) have gained increased attention from the automotive industries.

On the basis of end user, the global hydrogen fuel cell market is categorized into fuel cell vehicles, utilities and defense.The fuel cell vehicles segment was the highest revenue contributor to the market. Hydrogen fuel cell has a wide scope in heavy commercial vehicles. For instance, a major global player in zero-emission hydrogen fuel cell-based commercial vehicles- Hyzon Motors Inc. announced the development of the hydrogen storage system technology which can decrease the manufacturing cost and weight of the commercial vehicle.

The major companies profiled in hydrogen fuel cell market analysis include AFC Energy plc, Ballard Power Systems, Bloom Energy, Ceres, Doosan Fuel Cell Co. Ltd, FuelCell Energy, Inc., Intelligent Energy, Nedstack Fuel Cell Technology, Plug Power Inc and SFC Energy AG.  

Moreover, rising hydrogen fuel cell market industry applications in heating and power generation solutions in residential and commercial sectors increase market sales. Various associations and governments have reformed their energy policies to fulfill the growing demand for power due to surge in population. Hydrogen fuel cells have more applicability and reliability than other alternative energy sources such as wind and solar power. 

For instance, Plug Power, (NASDAQ: PLUG) (Plug), a leading provider of turnkey hydrogen solutions for the global green hydrogen economy, and Johnson Matthey (JM), a global leader in sustainable technologies, announced a long-term strategic partnership to accelerate the green hydrogen economy.In addition, substantial investments in green energy development substantiate the hydrogen fuel cell market growth in upcoming years.

Key findings of the study 

• Asia-Pacific is expected to exhibit CAGR of 8.7% during 2021-2031. 

• By type, proton exchange membrane fuel cell is expected to exhibit CAGR of 8.4% during 2021-2031. 

• By application, transportation segment accounted for the largest hydrogen fuel cell market share in 2021. 

• By end user, fuel cell vehicles had the largest market share in 2021.