Fuel Cells Market for Automotive Industry Market size is set to grow by USD 4382.26 mn from 2023-2027, increased demand for efficient and cleaner fuel to boost the market growth, Technavio

NEW YORK, May 15, 2024 /PRNewswire/ -- The global fuel cells market for automotive industry size is estimated to grow by USD 4382.26 mn from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of almost 26.7% during the forecast period.

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Key Market Trends Fueling Growth

• Fuel cells, a key technology in the automotive industry, have experienced significant cost reductions due to advancements in manufacturing techniques and the decrease in platinum usage.
• Since 2008, costs have dropped by up to 30%. In 2014, fuel cells were produced at approximately USD280/kW. With increased production volume and advanced resources, costs are projected to reach around USD55/kW. Furthermore, the cost of producing hydrogen from natural gas is improving, leading to expectations of a further decline to USD30-USD40 per kW by 2020.
• Hydrogen-based fuel, batteries, and clean hydrogen hubs are essential components in reducing greenhouse gas emissions in the transportation sector.
• Fuel cells offer an environment-friendly alternative to traditional hydrocarbon-based systems in vehicles and stationary applications.
• Small-scale and large-scale fuel cells, including those in fuel cell vehicles and tri-gen systems, contribute to the reduction of vehicle and greenhouse gas emissions.
• Electric vehicles, an integral part of the adoption of alternative energy sources, are expected to benefit from these cost reductions. High fuel prices and purchase prices have hindered the widespread adoption of fuel cells, but the declining costs may change this trend.
• Garbage trucks and hydrogen refueling stations are among the industries that can benefit from the environmental and cost advantages of fuel cell technology.

Market Challenges

• The fuel cell market for the automotive industry faces significant challenges due to the limited availability of hydrogen filling stations. In 2020, there were approximately 458 hydrogen filling stations worldwide, significantly fewer than the 7.3 million chargers for electric vehicles (EVs) in residences and workplaces. Fuel cells offer advantages such as high efficiency, zero emissions, and quick refueling. They use proton exchange membrane (PEM) technology, which generates water as a byproduct. Hydrogen storage and transportation, as well as cell design and component materials, are crucial considerations for improving fuel cell efficiency, safety, and durability. Applications include utilities, military and defense, hospitals, hotels, shopping centers, office buildings, and sports centers. Renewable energy integration and incentives are essential for fuel cell adoption. Companies like Bloom Energy are pioneering advancements in residential and data center fuel cells.

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Segment Overview

This fuel cells market for automotive industry market report extensively covers market segmentation by

1. Fuel Type
• 1.1 Hydrogen
• 1.2 Methanol
2. Application
• 2.1 Light-duty vehicles
• 2.2 Heavy-duty vehicles
• 2.3 Others
3. Geography
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Hydrogen- The hydrogen fuel cell market in the automotive industry undergoes segmentation based on fuel type. Hydrogen storage is a crucial factor in this segmentation, with considerations given to weight, volume, and efficiency. Safety, cost, and durability are additional key factors. In the context of data centers, PEM fuel cells are prominent due to their high efficiency and water generation capabilities. Balance of water and proton conductivity, activation potential, flooding, and drying out are essential aspects of PEM fuel cell design. Water content and polymer membrane quality significantly impact reactant diffusion and catalyst sites' performance. Flooding of electrodes, gas diffusion backings, gas channels, and current density are also critical design considerations. Temperature, reactant flow rates, pressures, and humidification are essential operating parameters. Cell design and component materials are crucial for ensuring water management and overall system efficiency. Notable applications of hydrogen fuel cells include data centers, utilities, military and defense, hospitals, hotels, shopping center malls, office buildings, and sports centers. Fuel cell adoption is influenced by incentives and the increasing use of renewable energy.

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Research Analysis

The fuel cells market for the automotive industry is experiencing significant growth due to the increasing adoption of fuel cell vehicles (FCVs) as an alternative to traditional internal combustion engine vehicles. FCVs produce only water as a byproduct, making them an attractive option for reducing vehicle emissions, including greenhouse gases. Hydrogen-based fuel cells, specifically, offer a clean energy source for transportation, emitting only water and heat. The global energy review highlights the potential of hydrogen as a viable alternative energy source for the transportation sector. Fuel cell technology, including Solid Oxide Fuel Cells (SOFCs), is advancing with innovations in the stack design, balance of plant components such as air compressors and power conditioners, and the integration of tri-gen systems. Electric vehicles (EVs) with fuel cell range extenders are also gaining traction, offering the benefits of both electric motor technology and hydrogen-based fuel cells. The future of clean and sustainable transportation lies in the continued development and adoption of these technologies.

Market Research Overview

The Fuel Cells market holds significant potential in the Automotive Industry due to the increasing demand for sustainable and efficient energy solutions. Fuel cells convert chemical energy into electrical energy through a reaction between hydrogen and oxygen, producing only water as a byproduct. This makes fuel cells an attractive alternative to traditional internal combustion engines. The technology is currently being adopted in various applications, including buses, trucks, and passenger cars. The global market for fuel cells in the automotive sector is expected to grow steadily, driven by government initiatives to reduce emissions and the increasing availability of hydrogen refueling stations. The future of fuel cells in the automotive industry looks promising, with advancements in technology leading to improved efficiency and cost-effectiveness.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Fuel Type
• Hydrogen
• Methanol
• Application
• Light-duty Vehicles
• Heavy-duty Vehicles
• Others
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio