Hydrogen Fuel Cell Market Size (USA)
The hydrogen fuel cells market in the U.S. was investigated. Below you can find the findings of our research, regarding the size of the market, the segmentation of market size by application, as well as some insights and drivers that will shape the future of the industry.
The Hydrogen Fuel Cells Market in the US
- According to a research published by Market.US, the global hydrogen fuel cells market accounted for $6.4 billion in 2018.
- The report published by Allied Market Research states that North America accounted for the largest market share in terms of revenue in 2018, holding nearly 40% of the global market.
- Based on information published by the Canadian Hydrogen and Fuel Cell Association, hydrogen fuel cell market size in 2017 in Canada was $207 million. Considering the above data, the market size for Hydrogen Fuel Cells in the U.S. is estimated at $2.4 billion in 2018.
- The biggest states for hydrogen and fuel cells in the U.S are California, Connecticut and New York. The northeast hydrogen fuel cell industry had $1.4 billion in revenues in 2016.
Segmentation By Application Of Hydrogen Fuel Cell Usage
- According to data published by U.S. International Trade Commission, U.S stationary fuel cell market generated $1 billion in goods and services revenue in 2018.
- According to a FCHEA’s survey, as of January 2020 there are more than 550 megawatts of stationary fuel cells installed in the U.S. providing power to households across the country.
- The estimated value of the global stationary fuel cell market was $1.8 billion in 2018. Korea was the largest market in 2018 (measured by MW), followed by the U.S. and Japan. The U.S. was the largest global manufacturer of fuel cells (by MW) in 2018. Manufacturers that are based in the U.S. are likely to benefit from continued global market growth, though there is significant foreign competition and many firms are not yet profitable.
- Stationary fuel cell accounted for an overall market share of 70% in terms of volume, in 2019. The other 30% is divided between transportation and portable power.
Hydrogen Fuel Vehicles In The U.S.
- In 2018, 6,500 hydrogen fuel cell cars were sold worldwide. Half of them were sold in the U.S. and more specifically in California.
- Based on information provided by Information Trends, Toyota delivered 76% of all hydrogen fuel cell cars globally. Honda delivered 13% and Hyundai 11%. By 2021, a total of 11 automakers are expected to offer fuel cell vehicles.
- In the U.S. Toyota dominates the domestic hydrogen fuel cell car market. Toyota held the 67.5% of the market (number of cars sold) in 2017, Honda held 19.9% and Hyundai 12.6%. Fuel cell vehicles are only offered by those three manufacturers and until 2016 were only available in California. This was because the necessary fueling infrastructure was only available in the state of California.
- In 2016 Toyota Japan and Servco Pacific brought six production Mirai vehicles to Hawaii, making it the second state after California to receive hydrogen fuel cell cars.
- According to IHS Markit light-duty vehicle registrations data, hydrogen fuel cell vehicles have just 0.01% share of alternative fuel vehicles (AFVs) registered in the United States as of December 31, 2017.
- The sales statistics provided by the California Fuel Cell Partnership for the year 2019 show a 12% decline comparing to 2018 sales. In the U.S. were sold 2,089 fuel cell vehicles in 2019.
- The Federal Transit Administration funded the National Fuel Cell Bus Program with $90 million in 2018. The goal was to have 40 new buses in operation by the end of that year.
- In March 2020, the California fuel cell partnership reported 42 fuel cell buses in operation, while 7 were in development along with 4 fuel cell shuttles.
- California Air Resources Board aims to have in total 13,400 fuel cell vehicles in California by 2020 and 37,400 by 2023. In addition, the Board has as a goal 94 refueling stations by the end of 2023, while 12 to 25 refueling stations are planned to be created in the Northeast region of the country.
- Nikola Motor Company was awarded a $1.7 million grant from the U.S. Department of Energy in August 2019. The company will manufacture more than 14,000 trucks. The trucks will be manufactured in Arizona and after the first tests are done, full production is expected in 2022. Nikola Motors also announced its plan for 700 fueling stations across the country.
Insights Into The U.S. Hydrogen Fuel Cells Market
- The federal tax credit is considered to be very important for the expansion of the hydrogen fuel cell vehicles market in the U.S. The incentive that was given from the government has been considered very useful for many households across the country. The credit was a performance-based consumer incentive of up to $8,000 per vehicle and expired at the end of 2017, but the Fuel Cell & Hydrogen Association managed to reinstate it.
- Currently, in the state of California, fuel cell vehicles are eligible for a $4,500 rebate from the state and a federal tax credit of up to $8,000, depending on the annual income of the potential car owner. Industry experts believe that more awareness should be raised in order for consumers to understand the benefits of these vehicles, especially as they have to sacrifice performance or modify their driving habits.
- Another important aspect that is expected to boost sales both for commercial vehicles and public buses, is the falling cost of hydrogen fuel cell vehicles. Even with small productions, the price of fuel cell vehicles was reduced by 65% over the past 10 years (2009-2019). Based on reports published by Deloitte-Ballard and the McKinsey, a fuel cell vehicle will be less expensive than a battery or diesel vehicle in the following 10 years.
- FedEx and UPS have already started using hydrogen fuel cell-powered delivery trucks in California and New York since 2018. In February 2020, Plug Power announced its collaboration with Colorado-based Lightning Systems. The two companies aim to manufacture the first electric, fuel-cell-powered Class 6 trucks (up to 12.5 tons) for middle-mile delivery logistics between warehouses and distribution centers.
- There is a great potential for hydrogen use in aircraft. The energy per weight advantage that hydrogen has can be a better solution comparing to other, alternative sources of energy like jet fuel or batteries. Two barriers for this technology, would be the high cost of fuel cells per watt of output and the backup system that an aircraft needs.
- The port of Long Beach, aims in becoming a port powered by fuel cells and hydrogen energy. In 2018, Toyota started operating two prototype fuel cell semi-trucks to transport products from the port of Long Beach to the port of Los Angeles. Similarly, the port of Los Angeles was awarded $41 million for different hydrogen fuel cell freight transportation projects. It is expected that this kind of investments related to transportation will increase in the future.
- The new era will be characterized by rapid commercialization and advanced infrastructure. The University of Connecticut and the Colorado School of Mines are collaborating with Pajarito Powder and Forge Nano, as well as the U.S. Department of Energy to speed up the development of the volume of components that will facilitate new sustainable and zero-emission energy generation technologies. This collaboration has as a goal to develop the tools, which will further increase commercialization of this technology.
The U.S. market size for Hydrogen Fuel Cells was not publicly available. We managed to calculate the size through the available data about the North American market share and the market size of Canada ($6.4 billion x 0.4 - $207 million). We found limited information on hydrogen fuel cell segments. While there was information published for the stationary power segment, which is the largest segment, there was no much information about transportation and portable power. We accessed the data provided by the U.S. Department of transportation, but there were no available statistics regarding the number of hydrogen vehicles on the road by class. However, we managed to find data on trade press, but also through the Fuel Cell & Hydrogen Energy Association. In addition, some data was also published by the Office of Energy Efficiency and Renewable Energy.