Fuel Cell Powertrain market

The projected growth of the global Fuel Cell Powertrain Market is significant, with an expected increase from $512 million in 2023 to $3,629 million by 2030, representing a CAGR of 47.9%. This growth can be attributed to the rising demand for low-emission vehicles and the need for increased vehicle range. The fuel cell powertrain market has experienced rapid development worldwide over the past few decades, with various countries focusing on its growth.

The market has been driven by advancements in technology, leading to a decrease in the cost of fuel cells, as well as the increasing prices of petrol and diesel. Governments across the globe have recognized the importance of developing infrastructure for fuel cell powertrain vehicles and have collaborated with original equipment manufacturers (OEMs) to expand the market for low-emission fuel vehicles.

The market is expected to be boosted by the growing demand for efficient, long-range, and low-emission vehicles, as countries worldwide make efforts to reduce emissions from vehicles in the coming years. Fuel cell electric vehicles (FCEVs) offer a greater range on a single fill compared to other electric vehicles and provide the convenience of easy refueling.

However, a major obstacle to the growth of the market is the lack of hydrogen fueling infrastructure in various regions. Addressing this challenge is crucial to enable the continued growth of the market and ensure the widespread adoption of fuel cell powertrain vehicles.

Market Dynamics:

Driver: Enhanced fuel efficiency and increased driving range

Fuel cell electric vehicles (FCEVs) offer superior fuel economy compared to internal combustion engine (ICE) vehicles. According to the US Department of Energy, FCEVs have a fuel economy of around 63 miles per gallon gasoline equivalent (MPGge) on highways, while ICE vehicles achieve only 29 MPGge. Hybridization can further improve the fuel economy of FCEVs by up to 3.2%. In urban settings, FCEVs achieve approximately 55 MPGge compared to the 20 MPGge of ICE vehicles. Moreover, the energy density of hydrogen, at approximately 120 MJ/kg, is about three times higher than that of diesel or gasoline, which further contributes to better fuel efficiency. Additionally, FCEVs offer significantly longer driving ranges, with some models like the Honda Clarity reaching up to 366 miles on a single fill. These enhanced fuel efficiency and extended driving ranges are expected to drive the demand for FCEVs, thereby fueling the growth of the fuel cell powertrain market.

Restraint: High flammability and hydrogen leakage detection challenges

One of the main challenges associated with fuel cells is the high flammability of hydrogen, which poses safety concerns. While fuel cells produce electricity without combustion, there are electronic and electrical components in FCEVs that can generate heat or sparks, increasing the risk of fire. Moreover, hydrogen fuel stations also face a high risk of fire. Additionally, hydrogen gas is odorless and lightweight, making it difficult to detect leaks promptly. This can result in wasted gas or potential combustion risks. The need to address these safety concerns and develop effective hydrogen leakage detection methods is crucial for the growth of fuel cell powertrain infrastructure. Consumer hesitation to invest in FCEVs due to these concerns acts as a restraint on the market's growth.

Opportunity: Government initiatives for hydrogen infrastructure

Governments worldwide are increasingly investing in alternative energy sources, including fuel cells, to combat pollution and reduce greenhouse gas emissions. The transportation sector, which contributes significantly to greenhouse gas emissions, has become a focus for governments. They are implementing initiatives, making investments, and promoting the use of fuel cells. For example, the Indian Ministry of Petroleum and Natural Gas has announced plans to set up solar hydrogen refueling stations at tourist sites in India. These initiatives, along with the development of fuel cell technology, present an opportunity to create a robust hydrogen infrastructure that supports the growth of hydrogen-powered transportation.

Challenge: Growing demand for battery and hybrid electric vehicles (BEVs and HEVs)

The increasing popularity of battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) poses a challenge to the growth of fuel cell vehicles, including the fuel cell powertrain market. BEVs and HEVs offer a wide range of models at lower costs compared to FCEVs. Customers have more options to choose from, and the availability of hydrogen refueling stations is limited. Furthermore, prominent automotive manufacturers are focusing more on the development of BEVs, leading to increased competition in the electric vehicle market. The higher cost of FCEVs and the fuel itself compared to BEVs also pose hurdles to the growth of FCEV sales. However, efforts are being made to decrease the cost of fuel cells through initiatives and research and development. Government bodies and manufacturers are investing in the development of the hydrogen fuel cell vehicle ecosystem to overcome this challenge.

Fuel cell systems to drive the fuel cell powertrain market

The fuel cell system, which includes components like the fuel cell stack, humidifier, air compressor, and fuel processor, is the core of a fuel cell powertrain system. It converts hydrogen and oxygen into electricity to power the electric motor.

The Asia Oceania region is expected to dominate the fuel cell powertrain market by 2030, holding the largest market share. This can be attributed to the increasing demand for passenger cars and fuel-efficient vehicles in this region. Notably, Asia Oceania is home to key players in the fuel cell powertrain market, including Denso Corporation, Shanghai Fuel Cell Vehicle Power System Co., Ltd, and Doosan Corporation. Despite having fewer companies in the market compared to North America and Europe, Asia Oceania has witnessed the highest number of fuel cell vehicle sales. Popular models like the Hyundai NEXO and Toyota Mirai have performed well in this region, with 8,900 and 17,940 units sold in 2021, respectively. South Korea accounted for around 92% of Hyundai NEXO sales, while the majority of Toyota Mirai sales were in Japan.

Major players such as Ballard Power Systems (Canada), Cummins Inc. (US), Denso Corporation (Japan), Robert Bosch GmbH (Germany), and FEV (Germany) dominate the global fuel cell powertrain market. These companies provide a diverse range of automotive motors that serve all essential functions in a vehicle. To maintain their market position, these companies employ key strategies including new product developments, expansions, mergers and acquisitions, as well as partnerships and collaborations.

This research report categorizes the fuel cell powertrain market based on component, drive type, vehicle type, power output, h2 fuel station, and region.

Based on the component:

• Fuel Cell System
• Battery System
• Drive System
• Hydrogen Storage System
• Others

Based on the Drive Type:

• Rear-Wheel Drive (RWD)
• Front-Wheel Drive (FWD)
• All-Wheel Drive (AWD)

Based on the vehicle type:

• Passenger Cars
• Light Commercial Vehicle (LCV)
• Buses
• Trucks

Based on the power output:

• <150 kW
• 150-250 kW
• >250kW

Based on the H2 fuel station:

• Asia Oceania
• Europe
• North Amercia

Based on the region:

• Asia Pacific
  • China
  • Japan
  • Australia
  • South Korea
• North America
  • US
  • Canada
  • Mexico
• Europe
  • Belgium
  • Denmark
  • France
  • Germany
  • Italy
  • Netherlands
  • Norway
  • Spain
  • Sweden
  • Switzerland
  • United Kingdom

Recent Developments

• Cummins Inc. announced in May 2023 that they will supply Scania with PEM fuel cell systems for use in 20 fuel cell electric heavy vehicles.
• In April 2023, Cummins Inc. revealed its involvement in the HyTruck project, where they are developing fuel cells by leveraging PEM fuel cell systems.
• Plug Power and Olin Corporation announced a joint venture in April 2023 to produce and market green hydrogen, supporting the increasing demand for fuel cells in the global hydrogen economy. The first production plant in St. Gabriel, Louisiana, will have a capacity of producing 15 tons per day (tpd) of green hydrogen.
• Nuvera Fuel Cells received a purchase order and signed a memorandum of understanding with Hytech AS in April 2023. The agreement involves the use of Nuvera® E-45 Fuel Cell Engines for stationary power applications.
• Ballard Power Systems introduced the new FCmove™-HD+ in September 2021. With a power output of 100kW, it is smaller, lighter, more efficient, and lower cost compared to previous generations. The design of this fuel cell powertrain aims to enhance ease of vehicle integration, offering flexibility for both engine bay and rooftop configurations, suitable for various truck and bus applications.