Overview of the Report
The global fuel cell market was valued at USD 4.1 billion in 2020, with a compound annual growth rate (CAGR) of 23.2 percent projected from 2020 to 2028. One of the primary reasons driving market expansion is rising demand for unconventional energy sources. Other factors expected to drive demand include growing private-public collaborations and lower environmental impact. Governments around the world are expected to assist the developments by providing funding for research and appropriate finance initiatives, among other things. The development of a strong regulatory and policy framework is especially crucial since government firms must create an investment-friendly environment.
From an anticipated value of USD 263 million in 2020, the worldwide fuel cells market is expected to reach USD 848 million by 2025, rising at a CAGR of 26.4 percent over the forecast period. The market was studied with a particular focus on advances in fuel cell technologies such as PEMFC, PAFC, AFC, and MFC. The increase can be ascribed to expanding demand for clean energy generation in developed nations, increased use of fuel cell-based vehicles, a burgeoning power sector, and increased worldwide power generation capacity.
Impact of Covid-19 on the Fuel Cell Market:
The COVID-19 dilemma, according to the IEA, has had a considerable influence on the addition of renewable power capacity. According to IEA forecasts, due to the unprecedented COVID-19 global crisis, the number of new renewable power projects is expected to decline in 2020. Since 2000, yearly renewable energy capacity expansion has been on the decline for the first time in 20 years. In 2020, the net increase of renewable power capacity is expected to fall by 13% compared to 2019.
The impact of the outbreak on global supply chains will have an influence on hydrogen-based technologies, which require a well-coordinated supply chain and a large amount of cash to demonstrate. The COVID-19 epidemic has impacted current hydrogen consumption from oil refining, steel manufacturing, and the chemicals sector, according to the IEA. According to the International Energy Agency, gasoline consumption will fall by 9%, diesel by 6%, and jet fuel by 26% by 2020, while demand for critical hydrogen-based chemicals (such as methanol) would fall by 7%. Sales of hydrogen-based fuel-cell vehicles increased in 2019, and it was predicted that early 2020 would set a new sales record. Overall, the global pandemic has had a significant influence on the fuel cell sector.
STAKEHOLDERS’ PRIMARY BENEFITS:
The market research report includes comprehensive information on the primary drivers, restraints, and opportunities that will influence industry growth over the forecast period.
The research goes on to break down data volume by components, end consumers, and demographics.
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The analysis not only looks at market dynamics, but also at the growth rate and the structure of the industrial chain.
The research also considers the major market participants and their business strategies for maintaining their dominance.
The paper also includes an analysis of the upstream and downstream markets.
News from the Industry
Hyundai Motor Group, the world’s largest automaker, plans to become a hydrogen energy player by 2040, providing hydrogen-based mobility solutions for the industrial and automotive sectors as well as launching a range of hydrogen fuel cell electric vehicles.
The global fuel cell market is expected to grow due to a growing emphasis on non-conventional energy sources.
Combustible engines have traditionally relied on fossil fuels for energy, which have also contributed significantly to carbon emissions. Transportation-related greenhouse gas emissions accounted for roughly 29 percent of total U.S. greenhouse gas emissions in 2019, according to the US Environmental Protection Agency, making it the country’s greatest provider of greenhouse gas emissions. In contrast, power generation, which relies on coal and natural gas, accounts for more than a quarter of all carbon emissions. Industrial production, which burns fossil fuels to provide enough energy to produce raw materials, is the third main source of greenhouse gas emissions.
Hydrogen fuel cells, on the other hand, are one of the cleanest and safest components on the planet, releasing less pollution and reducing the amount of energy used to manufacture electric vehicles, power plants, and other uses. A hydrogen fuel cell produces only heat and water as waste, making it one of the most environmentally friendly energy sources. It also assists in the reduction of costs connected with the management of hazardous materials like battery acid and diesel fuels. All of these factors point to the value of unconventional energy sources like hydrogen in fuel cell operation. These reasons have contributed to the global fuel cell market’s expansion.
The rise of the electric vehicle industry is expected to boost market growth.
For the time being, the majority of the EV market is reliant on batteries to power automobiles. However, in recent years, there has been a change in electricity production toward hydrogen fuel cells. Carbon emissions may be decreased by 12,600 pounds per year if conventional autos were substituted with fuel cell vehicles. Despite the fact that battery-powered electric vehicles are becoming more popular, hydrogen fuel cell vehicles exceed them in terms of fuel efficiency and CO2 emissions.
According to a study conducted by the Fuel Cell and Hydrogen Energy Association, hydrogen fuel vehicles release less greenhouse gas per mile than battery electric vehicles. Furthermore, hydrogen from biogas tri-generation technology, which emits less energy than battery-powered vehicles, is emerging as a vehicle manufacturing technology. As a result, hydrogen fuel cell vehicles are developing at a quicker rate than battery electric vehicles, propelling the global fuel cell market forward.