Global hydrogen fuel cell market to reach US$22.34 billion by 2026, growing at a CAGR of 41.5%

Global hydrogen fuel cell market to reach US$22.34 billion by 2026, 

growing at a CAGR of 41.5%

The global hydrogen fuel cell market is expected to grow from $3.85 billion in 2021 to $5.58 billion by 2022, at a compound annual growth rate (CAGR) of 44.7%.

This change in growth is mainly due to stable volumes after meeting the exponential growth in demand during the COVID-19 pandemic in 2021. The market is expected to reach US$22.34 billion in 2026, representing a CAGR of 41.5%.

The hydrogen fuel cell market involves the sale of hydrogen fuel cells that use the chemical energy of hydrogen to generate electricity. A hydrogen fuel cell is a device that converts hydrogen into clean energy and electricity through a chemical reaction, the by-product reactions of which are electricity, water and heat. Hydrogen fuel cells can be used in a wide range of applications such as automobiles, buildings, electronic devices, trucks and backup power systems.

The main product types of hydrogen fuel cells are polymer exchange membrane fuel cells, direct methanol fuel cells and solid oxide fuel cells. A polymer exchange membrane fuel cell is a type of hydrogen fuel cell that converts the chemical energy of a fuel into hydrogen into electrical energy.

The growing global demand for fuel cell electric vehicles is driving the growth of the hydrogen fuel cell market. The surge in demand for hydrogen-powered fuel cell electric vehicles (FCEVs) has led to an increase in demand for hydrogen fuel cells, such as the sales of 27,500 hydrogen fuel cell vehicles in 2020, including 8,500 passenger vehicles, the highest ever, according to the Passenger Cars Hydrogen Fuel Cell Vehicles report.

The growth in sales of fuel cell electric vehicles indicates the growing demand for fuel cell electric vehicles, thus contributing to the growth of the hydrogen fuel cell market. In terms of regional distribution of the market, Asia Pacific is the largest region for the hydrogen fuel cell market in 2021. North America is the second largest market for the hydrogen fuel cell market.

The key players in the hydrogen fuel cell market are Panasonic, Intelligent Energy Holdings, FuelCell Energy, Plug Power, Hyster-Yale, Doosan Fuel Cells, Ballard Power Systems, Nedstack Fuel Cell Technologies, Pearl Hydrogen, and Hydrogenics.

Companies in the hydrogen fuel cell market are developing new technologies to reduce the weight, manufacturing costs and component requirements of hydrogen fuel cells. Technological advances have improved the efficiency of hydrogen fuel cells. For example, in July 2021, US-based manufacturer of commercial vehicles powered by zero-emission hydrogen fuel cells, Hyzon Motors Inc. announced a new commercial vehicle that reduces the weight and manufacturing costs of commercial vehicles powered by Hyzon's hydrogen fuel; in this revolutionary technology, the metal structure of the system is combined with lightweight composite materials.

In April 2021, France-based Alstom, which is committed to developing and marketing mobility solutions that provide a sustainable basis for the future of transport, acquired Helion Hydrogen Power for an undisclosed sum. With this acquisition, Alstom expands its portfolio of innovative and competitive solution offerings and strengthens its expertise in sustainable smart mobility. Helion Hydrogen Power is a France-based company dedicated to the design and manufacture of hydrogen fuel cell modules for rail and marine applications.