The Global Fuel Cell Powertrain Market Size Was Valued At USD 144 Million In 2021. The Market Is Projected To Grow From USD 235.8 Million In 2022 To USD 12,530.3 Million By 2029, Exhibiting A CAGR Of 89.3% During The Forecast Period.

Fuel Cell Powertrain Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. As a result, demand for fuel cell powertrain has been lower than expected in all regions compared to levels before the pandemic. Based on our research, the global market fell by 16.54 percent from 2019 to 2020.

A Fuel Cell Powertrain (FCP) is an electric drive system that uses a fuel cell to turn stored hydrogen energy into electric power. Compared to Internal Combustion Engine (ICE) powertrains, FCPs don't have harmful emissions coming out of the tailpipe. The U.S. Department of Energy (DOE) says that the country's energy security has improved since FCP was put into place. Also, government programs have helped the hydrogen refueling infrastructure grow, and the speed with which technology is improving the efficiency of fuel cell vehicles is a factor in the growth of the fuel cell powertrain market as a whole.

Market Dynamics:

Latest Trends:

Clean energy vehicles like FCEVs and pure Electric Vehicles are becoming more popular because people care more about the environment and the government wants to fight climate change (EVs). Along with the fast growth of electric vehicles, there is also a lot of interest in fuel cell vehicles in the United States, South Korea, and other advanced economies.

South Korea has the most fuel-cell cars and trucks on the road. For example, the International Energy Agency says that in 2020, South Korea will have about 10,093 FCEVs on the road, and the U.S. will have about 9,252 FCEVs on the road. In the same way, there are a lot of FCEVs on the roads in China, Japan, and other economies. With government investments and the expected development of hydrogen infrastructure soon, FCEVs are also likely to be used a lot in developing economies. IEA says that by the end of 2020, there will be about 34,804 FCEVs on the roads around the world, and this number is expected to grow in the years to come.

Driving Factors:

All of the top automakers are working on developing green mobility so that they can help people all over the world get around in the future. So, automakers are putting in a lot of money to make more green transportation options, like electric and fuel cell electric vehicles that need fuel cell powertrains. For example, in September 2021, Hyundai Motor Group said that by 2028, all of its commercial vehicles would come with hydrogen fuel cells. The company said that it would keep making both electric cars and cars that run on hydrogen fuel cells. The company also said that it would start selling new cars with hydrogen fuel cell powertrains in 2023.

In the same way, car companies like BMW, Toyota Motor Corp, Daimler, and others are using hydrogen fuel cell technology to make cars easier to move in the future. Toyota redesigned its fuel cell system for fuel cell powertrain in 2020 to have fewer main parts and changed other parts of its fuel cell vehicle. This cut the company's production costs by two-thirds and increased its production capacity to almost 30,000 units per year. So, the involvement of these key players in developing and ramping up FCEV production will help the market grow over the next few years.

Hydrogen is used as a fuel in Fuel Cell Electric Vehicles (FCEV). FCEVs are more fuel efficient compared to conventional IC engine vehicles. For example, the U.S. Department of Energy Hydrogen Program says that in normal driving conditions, a traditional car's gasoline engine is less than 20% effective at turning the chemical energy in gasoline into power to move the car. FCEVs, on the other hand, use over 50% less fuel than gasoline-powered internal combustion engines (IC engines).

Also, there is a lot of hydrogen on Earth, both as a pure element and in compounds like methane (CH4), water (H2O), and others. So, FCEVs use pure hydrogen (H2) that has been separated from these compounds. The price of hydrogen fuel is likely to go down soon because it is easy to get and doesn't cost much to make. In contrast, the price of traditional fossil fuels like gasoline and diesel is going up quickly because they are hard to get and cost a lot to make.

Also, FCECVs that are made for sale have a range of about 385 to 700 km (240 to 435 miles) on a full tank, which is about the same as regular cars and more than Battery Electric Vehicles (BEVs). The market is expected to grow during the forecast period because FCEVs get good gas mileage and are efficient. Other factors, like the high energy density of hydrogen fuel and the long driving range compared to other fuels, will also help the market grow.

Restraining Factors:

One of the biggest things stopping the growth of markets around the world is the lack of infrastructure for making, storing, moving, and distributing hydrogen. As a fuel, hydrogen is very flammable and hard to store. Hydrogen leakage generates a severe risk of fire hazards.

Also, compared to diesel and gasoline, hydrogen fuel is easier to light. Also, the fact that hydrogen has no smell, no color, and no taste makes it harder to find leaks and sparks. To power a fuel cell's powertrain, there needs to be a well-developed infrastructure for making, storing, and distributing hydrogen fuel. But because FCEVs are still a new technology, there aren't enough places to store and distribute hydrogen fuel in both developed and developing economies. This makes it harder for the market to grow.

Segmentation Analysis:

By Power Output:

In 2021, the market was dominated by the less than 150 kW segment, and this is expected to stay true for the rest of the forecast period. Most fuel cell electric vehicles, especially passenger cars sold around the world, have less than 150kW of power. For example, the Toyota Mirai, which is one of the best-selling fuel cell cars, has a powertrain that puts out 128kW. So, the growth of the segment is likely to be driven in the near future by the growing demand for fuel-cell passenger cars.

The segment with the most growth is the one with more than 250 kW. The more than 250 kW fuel cell electric engine unit was made for use in heavy-duty commercial vehicles. Due to their quick refueling and long range, fuel cell vehicles are becoming more popular in the business world. So, the demand for more than 250kW is likely to go up as the number of heavy-duty commercial vehicles that need fuel cell vehicles with higher power output grows.

Medium-duty heavy goods carriers have powertrains that range from 150 to 250 kW. It is made for small and medium-sized commercial vehicles, like transit buses and utility vehicles. In the near future, this segment is likely to grow because people want commercial FCEVs to have more power.

By Component:

With the highest CAGR over the forecast period, the fuel cell system segment has the biggest share of the market. The fuel cell system is one of the most important and expensive parts of an FCEV. The fuel cell is part of the fuel cell system. The cost of the fuel cell is about 60% of the cost of an FCEV. So, more FCEVs being sold is driving up the demand for fuel cell systems, which is helping the fuel cell system segment grow even more.

The second biggest market share is held by the battery system. In contrast to other electric cars, all Fuel Cell Electric Vehicles (FCEVs) use electricity to power an electric motor. The low-voltage auxiliary battery gives the car power to start and runs accessories in the car. The secondary high-voltage battery stores the energy made by the regenerative braking system and gives the electric traction motor extra power when needed. The growth of this segment is likely to be driven by the rising demand for advanced battery systems with high energy storage capacities and auxiliary batteries that can be used for other purposes in FCEV.

A big part of the market is made up of the drive system segment. The drive system uses the power from the fuel cell and the traction battery pack to run the motor that starts the wheels moving. The growth of the segment is likely to be driven by the growing demand for zero-emission and cost-effective drive systems in FCEVs.

A big part of the market is made up of hydrogen storage. The hydrogen storage system is an important part of a full FCP. The vehicle can go farther because the hydrogen gas is stored under very high pressure. So, more research and development on advanced ways to store hydrogen for vehicle safety is likely to speed up growth in this segment.

The others segment has a good share of the market. The other part is made up of electric motors and power control units, which help the vehicle move more quietly, smoothly, efficiently, and with less wear and tear. FCEV sales are driven by the growing need for green transportation around the world, which is also helping the segment grow.

By Vehicle Type:

By vehicle type, passenger cars were the most popular in 2021, and they are expected to grow at the fastest rate over the next few years. The business of fuel cell-based powertrains is helped a lot by passenger cars. During the forecast period, the segment is expected to grow because of the growing popularity of passenger fuel cell vehicles like the Toyota Mirai, Hyundai NEXO, and others, as well as the automaker's efforts to roll out new passenger vehicles powered by the fuel cell to meet the growing demand for green mobility around the world.

The bus segment is expected to grow the most quickly over the forecast period, with a high CAGR. To meet the transit agency's goals for reliability and durability, manufacturers are putting a lot of money into developing fuel-cell bus technology. But replacing parts, getting enough of them, and paying for hydrogen fuel are still problems for transit agencies that use fuel-cell electric buses. So, these things will affect the growth of this segment over the next few years.

A big chunk of the market is made up of the commercial vehicle segment. A commercial vehicle is a vehicle that needs to be registered and is used to move people and their personal belongings. Some Asia Pacific countries contribute significant shares in commercial fuel cell vehicles. The segment is likely to grow because more and more commercial fuel cell vehicles are being used around the world because they have a long range and can be refueled quickly.

Regional Insights:

Asia Pacific was the biggest part of this market in 2021, and the fastest CAGR suggests that it will stay the biggest part throughout the forecast period. The market is growing because more and more people in countries like South Korea and China are buying fuel-cell cars. South Korea's government is very focused on making the hydrogen infrastructure in the area better. For example, the South Korean government said in December 2021 that 43 hydrogen stations would be built along highways by the end of 2022. Green transportation is a big priority for the government.

In 2021, North America had the second-biggest share. The market is growing because more and more people in California want FCEVs. Chevron USA Inc. and Iwatani Corporation of America (ICA) signed a contract in February 2022 to build 30 hydrogen fueling stations in California. The California Air Resources Board (CARB) thinks there will be more than 176 hydrogen stations in California to support about 250,000 fuel-cell vehicles. In the region in question, the market is growing because infrastructure for hydrogen is getting better and more people want cars that don't put out pollution.

The European market is made up of things like the Fuel Cell & Hydrogen Joint Undertaking (FCH JU), which gives USD 32 million to the JIVE project (Joint Initiative for Hydrogen Vehicles in Europe). By 2023, the JIVE project wants to have 291 fuel cell buses running all over Europe. In the same way, countries like Germany, France, and Spain have set goals for HRS deployment to help FCVs be used for a long time. So, these things cause the market in this area to grow.

During the period of the forecast, the rest of the world is also expected to have good growth rates. Chile, Argentina, and Costa Rica all switched to low-carbon hydrogen, which helped the market grow in that area.

Scope Analysis

Recent Development:

• In June 2022, Bloom Energy partners with Ferrari, a global leader in luxury and automotive for 75 years, to set a new pace for carbon neutrality in manufacturing by 2030. The company announced a 1-megawatt (MW) installation of Bloom's solid oxide. Fuel cells at Ferrari's expanding manufacturing facility with headquarters in Maranello, Italy.
• In April 2022, Nuvera Fuel Cells received a purchase order signing a Memorandum of Understanding (MoU) with Hytech AS, an engineering services company based in Norway. The company will evaluate the use of the E-45 fuel cell engine in vehicle and stationary power applications. Hytech is also exploring the development of hydrogen powered hydraulic pumps and auxiliary power units using Nuvera's fuel cell solutions.
• In March 2022, Nuvera Fuel Cells entered into a strategic relationship with Dayco, a leading manufacturer of engine products and drive systems for the automotive, heavy equipment and industrial market segments, to provide fully integrated fuel cell solutions for commercial vehicles. This partnership will further enhance system performance, durability and reliability with high quality assurance and scalability.
• In January 2022, FEV, a world-leading service provider in vehicle and powertrain development, assisted GCK Motorsport, part of Green Corp Connexion (GCK), to design and develop a high-performance fuel cell system for rally raid vehicles. The company has provided the GCK with a 200kW on-board fuel cell system along with a latest-generation lithium-ion battery with a capacity of 50kWh. The battery powers a new two-speed GCK electric motor with 320 kW (430 hp or 435 PS).
• In May 2022, Ballard Power Systems announced strategic collaborations with Wisdom Motor Company Limited, Temple water Group and Bravo Transport Services Limited to accelerate the adoption of commercial fuel cell electric vehicles (FCEVs) in Hong Kong. These manufacturers will deploy fuel cell systems from Ballard Power Systems.

Market Segmentation

By Power Output:

• Less than 150 kW
• 150 to 250 kW
• More than 250kW
• Others

By Component:

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

By Vehicle Type:

• Passenger Cars
• Commercial Vehicle
• Buses
• Other

By Companies:

• Cummins Inc. (U.S.)
• Robert Bosch GmbH (Germany)
• Denso Corporation (Japan)
• Ballard Power Systems (Canada)
• FEV Group (Canada)
• Nuvera Fuel Cell LLC. (U.S.)
• Plug Power (U.S.)
• SFC Energy (Germany)
• Bloom Energy (U.S.)
• Ceres Power(U.K.)
• Others