North America Automotive Fuel Cell Market Outlook 2027

A fuel cell is a device that generates electricity through electrochemical reactions. A fuel cell utilizes the chemical energy of hydrogen or other fuels to efficiently and effectively produce electricity. Moreover, if hydrogen is used as a fuel, the byproducts are electricity, water, and heat. Fuel cells can be used in various sectors/applications, including transportation, industrial/commercial/residential buildings, and long-term energy storage systems. In North America, encouraging government policies and mandates to reduce harmful carbon emissions will increase the demand for an efficient transportation system. Demands for fuel cells in North America are attributed to diverse factors such as higher purchasing power, better transportation infrastructure, technological advancements, and easy access to hydrogen fuelling stations. In addition to that, governments in many developing countries are encouraging their citizens to adopt such vehicles that operate on alternate energy. According to an International Energy Agency analysis, in North America, the distribution of fuel cell vehicles was 9380 units at the end of 2020. Increasing investments from the private and public sectors in supplying efficient energy and deploying clean electricity across the region is expected to boost the demand for fuel cells in North America. Also, by the end of 2020, the distribution of fuel cell electric vehicle passenger cars across the North American region was calculated to be 9316 units.

According to the research report, "North America Automotive Fuel Cell Market Outlook, 2027," the automotive fuel cell market is projected to grow at a rapid CAGR of 37.95% for 2022-2027. As for the global automotive fuel cell market, the North American region contributes more than 25% of the market share. Rapid urbanization and industrialization, along with the expansion of fuel cell networks across the region, will propel the market's growth. In addition to that, consumer focus towards the adoption of clear power solutions is anticipated to create higher demand for fuel cells in North America. Further, the North American automotive fuel cell market is segmented into two prominent countries, including the United States of America and Canada. The USA is anticipated to lead the overall market during the forecast period.

According to International Energy Agency analysis, at the end of 2020, the USA had 9252 fuel cell vehicles present across the country, whereas Canada accounted for the remaining 128 vehicles. Further, according to the US Department of Energy, ARPA-E granted more than USD 35 million for the optimization of ion-conducting solids. This program has introduced 16 new projects that are working to overcome the limitations of conventional fuel cell technology. Also, the USA is aiming for a nationwide 100% clean energy economy with net-zero emissions by 2050. Also, the California Fuel Cell Partnership in the USA is pursuing an HRS infrastructure with the vision of 1,000 stations and a million fuel cell electric vehicles by 2030. On the other hand, in December 2020, Canada revealed a long-term vision for operating more than 5 million fuel cell electric vehicles across the country by 2050 as part of the Hydrogen Strategy for Canada. Also, Canada has set targets for the share of eco-friendly vehicles, including battery electric vehicles, hybrid vehicles, and fuel cell electric vehicles.

According to the report, the North American automotive fuel cell market is 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 has acquired the largest market share in the automotive fuel cell market. PEMFC can be used as a power source for several applications, including transportation, both stationary and mobile. This segment presents much more efficiency with higher productivity compared to other segments. Furthermore, the North American market is segmented into two fuel types, including hydrogen fuel and methanol fuel. Among them, hydrogen fuel is anticipated to acquire more than 99% of the market share due to a higher adoption rate across the continent. Based on power output, the segment below 100 KW leads the overall market because it is applicable in light duty vehicles. Moreover, light-duty vehicles are highly adopted in the North American region. On the other hand, the 100 KW-200 KW segment is anticipated to grow with a higher CAGR during the forecast period.

Impact of Covid-19 on North America Automotive Fuel Cell Market:

The COVID-19 pandemic has affected the automotive as well as the fuel cell markets, leading to a reduction in sales. This effect was attributed to the delay of various projects along with limited investments by market players. In addition to that, industry operations remained shut down owing to strict government regulations and a limited workforce. Also, the supply chain for fuel cells was also disrupted. However, a considerable slowdown in the COVID-19 cases followed by a vaccination drive has positively accelerated the industry's growth across the North American 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: North America
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report

• North America 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

• USA
• Canada

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.