The hydrogen fuel cells market is expected to grow from USD 6.042 billion in 2025 to USD 16.594 billion in 2030, at a CAGR of 22.39%.
Hydrogen is the main component of the hydrogen fuel cell along with the requirement of oxygen for the chemical reaction to take place. These cells produce electricity due to the reaction between hydrogen and oxygen. This form of energy generation produces very little pollution as water is the only resultant by-product in this process. Cells that make use of pure hydrogen are completely carbon-free. The increasing demand for generating clean power with less or no emission is one of the key factors in the growth of this market. According to the International Energy Agency, in 2022, the global demand for hydrogen was 94 Mt and is said to reach 179.9 Mt in 2030.
Leaders across the globe are trying to find solutions to reduce carbon footprints in their respective countries. For instance, the Paris agreement which was signed on 12 December 2014 and brought into force on 4 November 2016 demands countries across the globe reduce their pollution levels by switching to clean sources of energy to tackle global warming. The goal of this agreement is to reduce global warming to well below 2 (1.5 preferably) degrees Celsius, compared to pre-industrial levels. The Net Zero Emissions by 2050 Scenario is a pathway given by IEA for achieving net zero CO2 emissions by the global energy sector. These initiatives taken by governments across the globe lead to the demand for clean energy sources to increase tremendously which ultimately leads to the growth of the hydrogen fuel cells market.
Hydrogen has been used primarily for the production of ammonia, methanol, and petroleum refining. However, it has now also emerged as a source of producing clean energy through hydrogen fuel cells. Countries have started implementing advanced technologies in the production of hydrogen fuel cells as the demand for clean energy increases day by day. In February 2019, Toyota announced using a new technology for producing hydrogen from humid air. They have partnered with the Dutch Institute of Fundamental Energy research and have also announced that with improvements and enhanced scalability, this new form of energy production may be able to power homes or cars. In September 2020, China claimed to achieve carbon neutrality before 2060. This claim could help in changing the source of hydrogen production from fossil fuels to renewable sources of energy.
According to the Fuel Cell and Hydrogen Energy Association, China proposed its first official hydrogen plan for the country in July 2022. This plan includes a process to improve the usage proportion of clean hydrogen across the country by 2035. The government has set targets such as the production of 200,000 tonnes of clean hydrogen along with deploying 50,000 hydrogen-fuelled vehicles by 2025. This will lead to a huge demand for hydrogen fuel cells in the country.
The National Hydrogen Mission was launched on 15 August 2021 to tackle climate change and make India the hub for green hydrogen production. The New South Wales government announced its NSW Hydrogen Policy in October 2021. This policy aims to provide incentives of up to $ 3 billion for the commercialization of hydrogen supply chains and also reduce the cost of clean hydrogen.
According to the International Energy Agency, there has been an increase of about 67.21% in the total supply of energy by hydrogen sources between 2010 and 2020. This proves that the hydrogen fuel cell market will see an even greater rise in the future.
Segmentation