Fuel Cell Powertrain Market Size, Share, and COVID-19 Impact Analysis, by Vehicle Type (Passenger Cars, Commercial Vehicle, and Buses), By Drive Type (Rear-Wheel Drive (RWD), Front-Wheel Drive (FWD), and All-Wheel Drive (AWD)), By Components (Fuel Cell System, Battery System, Drive System, Hydrogen Storage System, and Others), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Analysis and Forecast 2022-2028
KEY MARKET INSIGHTS
The Fuel Cell Powertrain Market is projected to grow from USD 103.6 million in 2021 to USD 3040.1 million in 2028 at a CAGR of 62.1% during the forecast period. Fuel Cell Powertrain (FCP) is an electrically driven system in which energy stored as hydrogen gets converted into electric power using a fuel cell. Unlike internal combustion engine powertrain system, fuel cell power train is highly efficient and eco-friendly, FCPs do not emit harmful emissions. Fuel cell powertrains are used in several vehicles including buses, passenger cars, LCVs, trucks, and industrial vehicles due to various advantages such as energy efficiency, eco-friendliness, zero-emission, no noise pollution, and longer life span. According to the US Department of Energy, the adoption of fuel cell powertrain helps enhance the country's energy security. Government initiatives influencing the growth of the hydrogen refueling infrastructure are projected to boost the growth of the market.
The governments of several countries across the globe implemented nationwide lockdowns as part of measures to control the spread of the COVID-19. During the pandemic, sale and manufacturing facilities of new vehicles came to a halt across the globe. Lower vehicle production would lead to lesser demand for fuel cell powertrains. Hence, major manufacturers of fuel cell powertrain such as Continental, Bosch, Denso, Delphi, and Panasonic have announced either adjustments or suspensions of production owing to the supply chain bottlenecks, reduced demand, and to ensure the safety of their employees in Europe, North America, and the Asia Pacific during the COVID-19 pandemic. Moreover, original equipment manufacturers have restricted investments in innovative systems. Hence, the growth of the Fuel Cell Powertrain Market is expected to be low in 2020 and 2021
Government Initiatives for Clean Energy Is Open Multiple Opportunities
Government initiatives across the globe to choose green energy mobility in order to restrict and reduce transportation pollution is a crucial driver that is projected to propel the fuel cell powertrain market during the forecast period. Governments of several countries are already laying out plans throughout the world to encourage fuel cell electric vehicles (FCEV) on the road will also help the market growth. In February 2022, Japan’s Ministry of the Environment announced that it will support local governments and companies for the establishment of a hydrogen business consortium. As well as the government has been implementing a platform of the hydrogen supply chain, wherein produces low-carbon hydrogen and used it in certain companies and local governments.
Rising Awareness Related to The Increasing Greenhouse Gas Emission is Boosting the Market Growth
The consumption of fossil fuel has been rising significantly across the globe. The transportation sector is the largest consumer of fossil fuel. The increasing consumption of fossil fuel has led to a rising concentration level of greenhouse gas emissions. In order to reduce greenhouse gas emissions, various low polluting fuels and vehicles have been introduced such as hybrid electric vehicles, battery-powered electric vehicles, fuel cell vehicles, Compression Ignition (CI) engines, and advanced Internal Combustion Engine (ICE) to improve environmental conditions. Fuel cell vehicles utilize hydrogen to the propulsion of vehicles and offer lower emissions than other alternatives. These factor has led to support the market growth during the forecast period.
The rising research and development activities in the market for making hydrogen-powered vehicles eco-friendly, safe, and affordable are also anticipated to propel the market in the coming years.
High flammability and challenges in detection of hydrogen leakage
Fuel Cell Powertrain (FCP) utilizes oxygen and hydrogen to produce electricity through a chemical reaction. Hydrogen is a highly flammable gas, while oxygen helps other substances burn at lower temperatures. If not handled with care, the fuel can catch fire. Hence, these factors are expected to restrain the growth of the market.
The global Fuel Cell Powertrain Market is segmented by Vehicle Type, Drive Type, Components, and Region. Based on the Vehicle Type, the market is categorized into Passenger Cars, Commercial Vehicles, and Buses. Based on Drive Type, the market is categorized into Rear-Wheel Drive (RWD), Front-Wheel Drive (FWD), and All-Wheel Drive (AWD). Based on Components, the market is categorized into Fuel Cell System, Battery systems, Drive systems, Hydrogen Storage Systems, and Others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.
The Fuel Cell Powertrain Market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.
North America is the largest market for fuel cell powertrain due to the increasing demand for passenger cars, particularly in the US. The rising research and development activity for the increasing number of hydrogen refueling stations in the region is expected to grow adoption and boost market sales.
The Asia Pacific is the secound-largest market for fuel cell powertrain due to increasing government initiatives and characterized policies in this region especially China, Japan, and South Korea. For instance, according to the International Energy Agency (IEA), vehicle sales in China and South Korea increased from 4100 in 2017 to 4400 in 2019. Moreover, rising awareness related to the increasing greenhouse gas emission and government focus on clean energy is anticipated to influence the market growth during the forecast period.
LIST OF KEY COMPANIES PROFILED:
- Robert Bosch GmbH, (Columbus, Indiana, US)
- Denso Corporation (Aichi, Japan)
- Cummins Inc. (Columbus, Indiana, US)
- Ballard Power Systems (Burnaby, Canada)
- FEV Europe GmbH (Aachen, Germany)
- Doosan Fuel Cell Co., Ltd. (Seoul, South Korea)
- Arcola Energy Limited (Hackney, UK)
KEY INDUSTRY DEVELOPMENTS:
April 2020- Ballard announces a follow-on order from Solaris for 20 fuel cell modules to power buses in the Netherlands. The 70Kw heavy-duty fuel cell from Ballard will be used to power the Solaris Urbino 12 Hydrogen buses, deployment of which is being planned in South Holland, Germany.
October 2020- DENSO Corporation has begun mass production of its latest model of booster power module*1 equipped with high-quality silicon carbide (SiC) power semiconductors, as part of its efforts to achieve a low-carbon society. This product is used in Toyota’s new Mirai model, which entered the market on December 2020.
July 2021- Cummins Inc. has begun testing a hydrogen-fueled internal combustion engine. The proof-of-concept test is building on Cummins’ existing technology leadership in gaseous-fuel applications and powertrain leadership to create new power solutions that help customers meet the energy and environmental needs of the future.
By Vehicle Type
- Passenger Cars
- Commercial Vehicle
By Drive Type
- Rear-Wheel Drive (RWD)
- Front-Wheel Drive (FWD)
- All-Wheel Drive (AWD)
- Fuel Cell System
- Battery System
- Drive System
- Hydrogen Storage System
- North America- U.S., Mexico, Canada
- Europe- UK, France, Germany, Italy, Spain, Rest of Europe
- Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
- South America- Brazil, Argentina, Colombia, Rest of South America
- The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa