The ongoing COVID-19 outbreak has effectively projected its shadow on different industries, with the fuel cell market being no special case. The lockdowns forced by the government authority across the globe prompted a worldwide monetary crisis that has lamentably pushed the auto industry to a condition that is near collapse, emptying showrooms and shutting down factories.
This pandemic has significantly affected the automotive industry. The top players are in the initial levels of committing to electrification. Associations are confronting tremendous income misfortunes as well as the slowdown in commercial car and passenger car production owing to the unavailability of workers. Supply chain disruptions coupled with the halt in the distribution, release, and final assembly of fuel cells for cars have hindered the global market size. The ban on raw material supply from China led to a demand-supply gap. Further, a delay in the electrolyzers deployment has caused a loss in revenue, thus impacting the market growth. Likewise, the current demand for hydrogen from the chemical compounds, steel manufacturing, and oil refining sector has additionally been influenced by the pandemic.
The worldwide fuel cell market size is projected to arrive at USD 848 million by 2025 from an expected worth of USD 263 million out of 2020, developing at a CAGR of 26.4% during the forecast time frame. The market has been investigated with the key spotlight on headways in fuel cell innovations like PEMFC, PAFC, AFC, and MFC. The development is ascribed to the rising interest in clean energy generation in developed regions, expanded utilization of fuel cell-based vehicles, booming power sector, and increased power generation limits all around the world.
Furthermore, government laws for decreasing environmental pollution are empowering the reception of fuel cells in the automotive industry. The nations are focusing on R&D and investing resources into fuel cell technology to improve their public transportation while reducing harmful emissions. For instance, the South Korean government is wanting to replace around 26,000 CNG transports with energy unit transports by 2030.
In March 2021, Toyota Motor Corporation and Beijing SinoHytec announced a joint venture for the production of hydrogen fuel cell vehicles for the Chinese market. According to the joint statement, the two companies are expected to invest a total of USD 72 million into Huafeng Fuel Cell Co. Ltd. The company’s first car will be modeled after Toyota’s hydrogen fuel cell vehicle MIRAI and is slated to begin production in 2023
The key players profiled in the global fuel cell technology market report include Ceres Power Holdings PLC (UK), Acal Energy Ltd (UK), SFC Energy (Germany), Ceramic Fuel Cells Limited (Australia), Kyocera (Japan), AFC Energy (UK), Doosan Fuel Cell (US), Toshiba Corporation (Japan), Intelligent Energy Holdings PLC (UK), Hydrogenics Corporation (US), Ballard Power Systems (Canada), Plug Power Inc (US), FuelCell Energy, Inc (US), and Panasonic Corporation (Japan).
Nations, such as Germany, the UK, the US, Japan, and China are among a couple of significant investors in fuel cell technology and its progressions. The US Department of Energy reported a venture of USD 39 million in fuel cell innovation in 2018. Essentially, in Europe, 23 nations worked together on the HyLAW EU Project, which pointed toward distinguishing and eliminating legal and administrative boundaries for the deployment of hydrogen fuel cells and hydrogen applications.