Science and Technology

Dynamic Growth Forecast for Automotive Fuel Cells Market Through 2027

NEW YORK, May 15, 2024 /PRNewswire/ — In an era of technological breakthroughs and sustainable solutions, the automotive industry is witnessing a significant stride in clean energy propulsion systems. Technavio, a leading global technology research, and advisory company, has recently announced their meticulous analysis which projects an expansive growth in the global fuel cells market for the automotive industry. The market size is estimated to surge by USD 4382.26 million from 2023 to 2027, flourishing at an impressive Compound Annual Growth Rate (CAGR) of almost 26.7% during the forecast period.

For enthusiasts and stakeholders longing for comprehensive insights, a free sample report is available for download, offering analysis that spans from 2017 to the expected trajectory till 2027.

Technavio's latest title emphasizes the Global Fuel Cells Market for the Automotive Industry from 2023-2027.

Market Scope and Analysis

This forward-looking report extends a precise understanding that lays out the vibrant dynamics of the market while highlighting the forecast period from 2023 to 2027. The core periods of significance also include the base year of consideration, 2022, and a historic review from 2017 to 2021.

The extensive report broadly encompasses the segmentation of the market with respect to fuel type (hydrogen and methanol), application (light-duty vehicles, heavy-duty vehicles, and others), and geography (Asia-Pacific, North America, Europe, South America, and the Middle East and Africa).

Furthermore, prominent companies that are pioneering in the field have been profiled. These key players include Acumentrics Inc, Ballard Power Systems Inc., BorgWarner Inc., and several others, forging significant advancements in the fuel cell arena.

Industry Trends Bolstering Market Growth

The report identifies critical trends generating momentum in the fuel cell sector. One striking observation is that fuel cells have experienced a price decline of up to 30% since 2008, marking an era of affordability and access. Originally manufactured at approximately USD 280/kW in 2014, the costs are projected to fall to an economical USD 55/kW, courtesy of increased production volumes and improved resources. The subsequent decrease in hydrogen production from natural gas further fuels optimism for costs potentially dwindling to USD 30-USD 40 per kW by 2020.

The market trends underscore the relevance of hydrogen-based fuel, battery technologies, and the development of clean hydrogen hubs as pivotal elements in curbing greenhouse gas emissions within the transportation sector.

Fuel cells present an eco-friendly alternative to the conventional vehicular systems, enabling diminishment in emissions from both mobile and stationary applications. This is augmented by small-scale and large-scale fuel cell applications in vehicles and tri-gen systems, contributing to vehicular and environmental emission reductions.

The adoption spike of electric vehicles, fueled by these cost optimizations, confronts the hurdle of traditionally high fuel and purchase prices, potentially transforming the widespread acceptance of fuel cells.

From garbage trucks to hydrogen refueling stations, several industries stand to gain from the twin advantages of environmental benignity and cost efficiencies harbored by fuel cell technology.

Navigating Market Challenges

On the flip side, the fuel cell market faces significant headwinds due to the relative scarcity of hydrogen refilling stations. With a mere 458 stations in 2020, compared to 7.3 million electric vehicle charging outlets, the ratio is indicative of an infrastructural lag. Despite the hindrance, fuel cells boast superior features such as high efficiency, zero emissions, and expedited refueling times.

The report details the incorporation of proton exchange membrane (PEM) technology in fuel cells, which ensures water is the only byproduct. The storage and delivery of hydrogen, alongside the discerning design of the cell and its component materials, remain critical factors influencing fuel cell efficiency, safety, and longevity. Applications extend across various sectors, including utilities, military, healthcare, hospitality, retail, commercial buildings, and sports complexes. Companies like Bloom Energy stand at the forefront, pushing the boundaries in residential and data center fuel cells, with a supportive backdrop of renewable energy assimilation and incentives.

Delineating Market Segmentation

The report provides a detailed breakdown of the market segments, spotlighting the types of fuel such as hydrogen and methanol, applications that range from light to heavy-duty vehicles, and other categories, as well as geographical segmentation covering regions like Asia-Pacific, North America, Europe, South America, and the Middle East and Africa.

The Hydrogen Factor

The hydrogen segment, in particular, encounters a thorough segmentation analysis. Critical to this breakdown is hydrogen storage, pivotal in aspects of weight, volume, and efficiency considerations. Safety, cost, and durability play additional roles. For instance, PEM fuel cells witness heightened demand, especially relevant in data centers, due to their high-efficiency levels and capability to generate water.

Key aspects such as balance of water and proton conductivity, cell design, and activation potential along with challenges related to flooding and drying out, command significant research investments. The qualitative aspects of water content, coupled with the character of the polymer membrane, influence the reactant diffusion and the overall efficacy of the catalyst sites. Operational parameters including temperature, reactant flow rates, pressures, and humidification, are elemental in maintaining optimal fuel cell functionality.

Recognized applications of hydrogen fuel cells encompass data centers, utilities, the defense sector, healthcare facilities, hotels, shopping centers, corporate offices, and sports arenas. Market adoption is swayed by the lure of incentives and the burgeoning reliance on renewable energy.

Technavio’s detailed sample report provides an expansive analysis on the market segmentation and its geographical distribution, enriched with both forecast and historic data.

Insightful Research Analysis

The report proudly acknowledges the robust ascension of the fuel cells market within the automotive industry, as fuel cell vehicles (FCVs) emerge as a worthy alternative to gasoline-powered cars. FCVs distinguish themselves by only emitting water vapor, making them a particularly eco-friendly option for cutting down vehicle-related emissions, including harmful greenhouse gases.

Hydrogen-based fuel cells are particularly relevant, serving as a clean energy reservoir for vehicles and emitting nothing but water and heat. Notably, the annual global energy review underscores the projected viability of hydrogen as an alternative energy vector within the transport domain.

Advancements continue in fuel cell technology, including solid oxide fuel cells (SOFCs), with innovation streaming through stack configurations, plant component enhancements, and tri-gen system integration. EVs augmented with fuel cell range extenders also make headway, combining the best of electric mechanics and hydrogen fuel cell efficiencies. The trajectory of clean and sustainable transportation continues to pivot on these advanced technologies.

Market Research Overview

The report encapsulates the vibrant potential of the Fuel Cells market within the Automotive Industry. It marks the transformative landscape of vehicles as fuel cells forge ahead, converting chemical energies into electrical impulses. With only water as a byproduct, they represent a dynamic shift from conventional combustion engine mechanisms.

The uptake of fuel cells across buses, trucks, and passenger vehicles is a testimony to this evolution. A considerable acceleration in market growth is anticipated, fueled by titans of industry and governmental resolve to stem emissions, coupled with the progressive deployment of hydrogen refueling infrastructures. The prospects for fuel cells in automotive frameworks are both luminous and promising, reflecting a tech-centric future rooted in efficiency and eco-consciousness.

Concluding Insights

About Technavio

Technavio asserts its position as a preeminent global technology research and advisory firm. They boast a comprehensive repository of over 17,000 reports, which span across 800 technologies and touch 50 nations. Technavio's massive client base, inclusive of Fortune 500 enterprises, depends on their extensive coverage, in-depth research, and action-driven market insights to navigate the ebb and flow of market dynamics to secure a competitive edge within evolving market landscapes.

For more details or any media and marketing inquiries, one can reach out to Jesse Maida, the Media & Marketing Executive at Technavio, through [email protected], or visit their official website at www.technavio.com/.

Acknowledgments

SOURCE Technavio