Hydrogen Fuel Cells Market Report 2025

The hydrogen fuel cells market size has grown exponentially in recent years. It will grow from $11.43 billion in 2024 to $16.19 billion in 2025 at a compound annual growth rate (CAGR) of 41.7%. The growth in the historic period can be attributed to strong economic growth in emerging markets and a rise in demand for fuel-cell electric vehicles (FCEVs).

The hydrogen fuel cells market size is expected to see exponential growth in the next few years. It will grow to $59.03 billion in 2029 at a compound annual growth rate (CAGR) of 38.2%. The growth in the forecast period can be attributed to government support, rising demand for electric vehicles, and increasing awareness to reduce greenhouse gas emissions will drive the growth. Major trends in the forecast period include a focus on product innovations, facility expansion, collaborations and acquisitions, and increasing investments to improve financial strength and product portfolio.

The growth of the hydrogen fuel cells market is anticipated to be fueled by the increasing demand for electric vehicles (EVs). The environmental benefits and reduced reliance on fossil fuels have driven the popularity of EVs. Fuel-cell electric vehicles utilize fuel cell stacks to convert gaseous hydrogen into electricity, stored in batteries to power the vehicle's electric motor. The World Economic Forum reported that nearly 4.3 million battery-powered electric cars (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold globally in the first half of 2022. With a 75% yearly increase in BEV sales and a 37% increase in PHEV sales, the rising demand for electric vehicles, which are predominantly powered by hydrogen, is expected to propel the hydrogen fuel cells market. In addition, projections indicate that by 2030, 40% of cars sold in China, the largest global auto market, will be electric.

Government support is poised to be a significant driver for the growth of the hydrogen fuel cells market. Various countries are providing support to the manufacturing sector to develop new solutions for industry needs. As an example, the Japanese government announced plans in June 2023 to invest JPY15 trillion ($107 billion) in hydrogen supply, aiming to increase its use and accelerate decarbonization. Similarly, the Italian government allocated up to €103.5 million ($111.4 million) for the construction of 36 new hydrogen refueling stations by 2026. This funding initiative, with a total of €230 million ($250.08 million), targets the establishment of at least 40 hydrogen filling stations for both light and heavy vehicles by June 2026. Such governmental backing is expected to boost demand for the hydrogen fuel cells market.

Major companies in the hydrogen fuel cells market are concentrating on developing innovative products, such as hydrogen fuel cell generators, to enhance their market position. A hydrogen fuel cell generator is a device that converts hydrogen fuel into electricity through a chemical reaction between hydrogen and oxygen, producing only water and heat as byproducts, making it an environmentally friendly power source. For instance, in April 2024, Panasonic, a Japan-based company, launched H2 KIBOU. This demonstration facility showcases renewable energy solutions, generating 100% of its power from pure hydrogen fuel cell generators and photovoltaic systems. The facility aims to promote the use of hydrogen derived from renewable sources, supporting Panasonic's goal of achieving RE100 status and contributing to a decarbonized society.

Prominent players in the hydrogen fuel cells market are directing their efforts toward product innovation and the development of novel solutions to bolster their market standing. In May 2023, the Tokyo Tech InfoSyEnergy Research and Education Consortium, in collaboration with the Tokyo Tech Academy of Energy and Informatics, introduced a cutting-edge fuel cell. This innovative technology has the capability to generate electricity from both hydrogen and waste plastic hydrogen, serving the dual purpose of powering an industrial building and providing heat. Specifically designed for commercial and industrial applications, the new system boasts an impressive capacity of 100 kW.

In March 2023, Cummins Inc., a US-based global power technology leader, acquired Meritor Inc. for an undisclosed amount. This acquisition reinforces Cummins’ commitment to providing zero-emission solutions by expanding its electric drivetrain capabilities and accelerating the development of next-generation technologies for commercial vehicles. Meritor’s ePowertrain and electric axle technology complement Cummins’ electrified power portfolio, enhancing the performance of its battery-electric and hydrogen-fuel-cell-powered vehicles. Meritor Inc. is a US-based manufacturing company specializing in the development of hydrogen fuel cell technology.

Major companies operating in the hydrogen fuel cells market include Plug Power, Toshiba Corporation, Doosan Fuel Cell, Bloom Energy, Ballard Power, SFC Energy AG, Cummins Inc, FuelCell Energy, Panasonic Holdings Corporation, Horizon Fuel Cell Technologies, Reliance Industries, GAIL, National Thermal Power Corporation Limited (NTPC), Indian Oil Corporation, Larsen and Toubro, Adani Green Energy, Tianneng, Corun, Narada, Sinohytec-U, Furuise, Huachang Chemical, Zhongding Group, ITM Power, Ceres Power Holdings, AFC Energy, Proton Motor Power Systems, Hydrogenone Capital Growth, Clean Power Hydrogen, TMH-Energy Solutions, APT spol. s r.o., Grupa Lotos SA, Gdansk-based refiner, Gazprom, Rosatom, Capital Power Corporation, ENMAX (Shepard Energy Centre), Federated Co-operatives Limited (FCL), Strathcona Resources Ltd, Lafarge Canada Inc, ArcelorMittal Mining Canada G.P, Suncor ATCO Heartland Hydrogen Hub, Alberta Power (2000) Ltd. (Heartland Generation), Stelco Inc., Dow Chemical Canada ULC, Bravo Motor, Great Wall Motor, Hyundai Motor Company, Cummins Brazil, Fortescue Rio Negro Hydrogen Complex, H2Pro, Masdar, NEOM Green Hydrogen Company, Car4future, HyPlat, Chem Energy SA, HySA Systems, Mitsubishi Power Egypt.

Asia-Pacific was the largest region in the hydrogen fuel cell market in 2024. North America was the second-largest market in the hydrogen fuel cell market. The regions covered in the hydrogen fuel cells market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hydrogen fuel cells market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

A hydrogen fuel cell is a device designed to convert hydrogen into clean energy and electricity through a chemical reaction. The by-products of this chemical process are electricity, water, and heat. Hydrogen fuel cells find applications across a broad spectrum, including in cars, buildings, electronic devices, trucks, and backup power systems.

The primary product categories within hydrogen fuel cells comprise proton exchange membrane, direct methanol, solid oxide, alkaline membrane, phosphoric acid, and molten carbonate. A proton exchange membrane (PEM), also referred to as a polymer electrolyte membrane, serves as a crucial component in proton exchange membrane fuel cells (PEMFCs) and other electrochemical devices. These hydrogen fuel cells cater to diverse end users, including fuel cell vehicles, utilities, and defense.

The hydrogen fuel cell market research report is one of a series of new reports that provides hydrogen fuel cell market statistics, including hydrogen fuel cell industry global market size, regional shares, competitors with a hydrogen fuel cell market share, detailed hydrogen fuel cell market segments, market trends and opportunities, and any further data you may need to thrive in the hydrogen fuel cell industry. This hydrogen fuel cell market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The hydrogen fuel cell market consists of sales of direct methanol fuel cells, polymer exchange membrane fuel cells, and other hydrogen fuel cells. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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