South America Middle East & Africa Automotive Fuel Cell Market Outlook 2027

The demand for renewable energy is rapidly increasing across nations, with the vision of an inevitable and clean disruption. With the global shift to renewable energy, the characteristics of hydrogen make it a more core energy source for the future. In the last decade, hydrogen as a transportation fuel has gained a lot of traction due to its emission-free property, including in South America and the Middle East and Africa region. The fuel cell market in South America is emerging and developing at a significant pace, and it is projected to flourish with moderate growth during the forecast period. As for the Middle East and Africa, the market is witnessing prominent market growth due to increasing investments in the development of hydrogen infrastructure across the region. Also, the growing demand for alternative energy sources and efficient and clean technologies for transportation in emerging economies is expected to drive the need for fuel cells. The active participation of both government and private organizations in the research, development, production, and implementation of fuel cells across diverse industrial sectors is credited with the growth of the technology. The momentum of low-carbon hydrogen is growing across the region, with many countries currently developing long-term hydrogen strategies and a project pipeline of more than 25 initiatives. These factors are expected to drive the market growth for South America, the Middle East, and Africa's automotive fuel cell markets.

According to the research report, "South America, Middle East & Africa Automotive Fuel Cell Market Outlook, 2027," the automotive fuel cell market is projected to grow at a rapid CAGR of 41.57% during the forecast period. The growing hydrogen fuelling stations and awareness about harmful tailpipe carbon emissions are expected to increase the deployment of effective and eco-friendly fuel cell vehicles in many developing countries across the region. The Middle East and Africa are anticipated to lead the market with more than 70% of the market share during the forecast period. The automotive fuel cell market in the United Arab Emirates (UAE) is growing rapidly due to increasing research on the utilization of hydrogen as an alternative fuel. The country is aiming to transform the transport sector into a hydrogen-fueled industry. While Turkey is witnessing various government-funded projects to spread awareness about fuel cell technology, In addition to that, government initiatives such as research grants and subsidies are propelling the market growth in the South African fuel cell market. However, the market is in an emerging phase in Saudi Arabia and has the potential to use fuel cells in transportation, domestic and industrial sectors.

Furthermore, in the South American automotive fuel cell market, Brazil is the major consumer of fuel cells owing to its progressive automotive industry. Due to the vast geographical area, Brazil is exploring the use of fuel cells in power generation plants. In addition to that, growing demand for hydrogen-powered vehicles (hydrogen fuel cell buses and other local transportation vehicles) has accelerated the market growth in Brazil. Other developing economies such as Argentina and Columbia are in the initial phase of the automotive fuel cell market and they are expected to witness higher market growth during the forecast period. The market is segmented into two types based on the fuel type: hydrogen fuel and methanol fuel. The hydrogen fuel segment is projected to lead the market with more than 95% market share during the forecast period. The efficient factors of hydrogen-based fuel cells and lower carbon emissions are driving the demand for hydrogen fuel cells across the region.

According to the report, the South American, Middle East, and African automotive fuel cell markets are segmented into three electrolyte types, including proton exchange membrane fuel cell (PEMFC), direct methanol fuel cell (DMFC), alkaline fuel cell (AFC), and phosphoric acid fuel cell (PAFC). Among these types, the PEMFC segment is projected to acquire a larger portion of the market share during the forecast period. The higher efficiency provided by this segment and its easily adaptable quality is expected to drive the demand for the PEMFC segment across the region. Further, based on the power output, the below 100 KW segment is leading the market with more than 50% due to the higher adoption of passenger vehicles across the region.

Impact of Covid-19 on South America, Middle East & Africa Automotive Fuel Cell Market:

The COVID-19 outbreak heavily affected the South American and Middle East & Africa regions. Due to the pandemic, many manufacturers and developers had their production halted. Various industries and companies remained closed due to strict government regulations as well as a lack of a labor force. In addition to that, the supply chain for fuel cells and raw materials was also disrupted. However, a decline in the number of Covid-19 cases by the first quarter of 2021 and a rapid vaccination drive across the region have boosted the market growth for automotive fuel cells across the region.

Major Companies present in the market:

Ballard Power Systems Inc, Doosan Fuel Cell Co. Ltd, Plug Power Inc., Hydrogenics (Cummins Inc.), Nuvera Fuel Cells, LLC, SFC Energy AG, Elringklinger AG, Ceres Power Holdings plc, Powercell Sweden AB, ITM Power PLC, Nedstack Fuel Cell Technology BV, Intelligent Energy Limited, Horizon Fuel Cell Technology (Hong Kong) Limited, AVL List GmbH, Proton Motor Fuel Cell GmbH, Wuhan Tiger Fuel Cell Co., Limited., Toshiba India Pvt. Ltd. , Toyota Motor Sales Inc. American, Honda Motor Co., Inc., Hyundai Motor Company, Daimler AG, Nissan, BorgWarner Inc., Oorja Corporation, Watt Fuel Cell Corporation

Considered in this report

• Geography: South America, Middle East & Africa
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report

• South America, Middle East & Africa Automotive Fuel Cell market with its value and forecast along with its segments
• Country-wise automotive fuel cell market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

• South America
• Middle East and Africa

Types of Electrolyte in the report

• Proton Exchange Membrane Fuel Cell
• Direct Methanol Fuel Cell

Type of Fuel in the report

• Hydrogen Fuel
• Methanol Fuel

By Power Output:

• Below 100KW
• 100KW to 200KW
• Above 200KW

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to fuel cell industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.