Europe Automotive Fuel Cell Market Outlook 2027

The European Union (EU) has played an important role in the production and development of hydrogen and fuel cell technology across the European region. Over the past decade, funding opportunities and EU initiatives have majorly contributed to the emerging market for hydrogen across diverse sectors. For instance, in March 2018, the EU introduced a five-year-duration project to replace backup diesel generators with hydrogen fuel cells across Europe. The EVERYWH2ERE project brought twelve European countries together to develop fuel cells for temporary and easily portable power for the urban environment. In addition to that, the European Alternative Fuels Observatory (EAFO) is the European Commission’s key reference portal for alternative fuels, infrastructure, and vehicles. The green data adopted by the commission sets a clear objective that by 2050, transport emissions will have to be reduced by 90%. The distribution of all fuel vehicles on the European continent was estimated to be 2677 units by the end of 2020. Across the European region, Germany contributed to 1083 fuel cell vehicles, the UK had 193 units, France had 396 vehicles, the Netherlands had 342 units, and Norway accounted for 164 units by the end of 2020. On the other hand, the total distribution of passenger vehicles was calculated to be 2465 units in 2020. From this data, Germany participated with 1016 vehicles, France had 375 units, and the UK had 168 vehicles, whereas the Netherlands and Norway accounted for more than 470 units.

According to the research report, "Europe Automotive Fuel Cell Market Outlook, 2027," the automotive fuel cell market is anticipated to grow at a 52.69% CAGR during the forecast period. The European region has witnessed an upscale deployment of fuel cell based systems in various sectors, in which the transportation sector (from cars, trucks, and heavy duty vehicles) accounts for a larger portion. In addition to that, projections from the data obtained indicate that the number of fuel cell vehicles in the European region will exceed four million units by 2027. The European automotive fuel cell market is segmented into five prominent countries, including Germany, the United Kingdom, France, Norway, and the Netherlands. Among these countries, Germany holds the largest market share in 2021. Also in the same year, Germany held the highest share in the number of FCEVs (fuel cell electric vehicles) registered. The German government has come up with concrete plans to transform the country into a hydrogen-based economy in the coming years. The Federal Ministry of Economics and the Federal Ministry of Transport, both of which are present in the country, have announced plans to invest more than USD 8 billion in the development of new large-scale hydrogen products. By 2021, Europe had 228 hydrogen stations, 101 of which are in Germany. France is second with 41 operating stations; the UK has 19 stations, Switzerland with 12 and the Netherlands with 11 stations. In addition to that, BMW (one of the several major automotive firms) has started European road tests for hydrogen-fueled cars to explore the potential for hydrogen.

According to the report, the European market is segregated into three electrolyte types, including proton exchange membrane fuel cells, direct methanol fuel cells, alkaline fuel cells, and phosphoric acid fuel cells. Among these types, the proton exchange membrane fuel cell segment is projected to lead the market with more than 95% market share during the forecast period. PEMFC is the fuel cell predilection technology for automotive applications with a large deployment horizon during the forecast period. Also, the increasing use of fuel cell electric vehicles in Europe is expected to boost the demand for efficient and effective proton exchange membrane fuel cells. Further, based on the fuel type, the European automotive fuel cell market is categorized into hydrogen fuel and methanol fuel. Among these types, hydrogen fuel is projected to grow at a higher compound annual growth rate for 2022-2027. Growing research and development in hydrogen plants across the region, coupled with increasing infrastructure for hydrogen refilling machines, has propelled the market growth for hydrogen fuel cells across the region. On the basis of power output, the below 100 KW and 100 KW-200 KW segments are expected to account for more than 85% of the market share in the European automotive fuel cell market.

Impact of Covid-19 on Europe Automotive Fuel Cell Market:

The COVID-19 outbreak has impacted the European region heavily, especially in the automotive sector. The demand experienced a decline during the pandemic due to lockdown situations. However, due to the change in consumer behavior and the need for enhanced technology, the market is expected to gain momentum by 2022. The labor force was also reduced as a result of social distancing norms and work-from-home scenarios. By the end of 2020, European manufacturers and developers will have regained their production at a higher pace to remain in the competition.

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: Europe
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report

• Europe 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

Countries covered in the report

• Germany
• UK
• France
• Norway
• Netherlands

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.