Hydrogen Fuel Cell Market Size (USA)

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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.

Research Strategy

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.
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Quotes
  • "Hydrogen fuel cell cars are far from mainstream as less than 6,500 were sold globally since 2013 (through the end of 2017). According to Information Trends, the counter stopped at 6,475 at the end of 2017 and more than half were registered in California, which puts the U.S. (53%) at the forefront for FCV adoption. Japan takes second place with 38%, while Europe is at 9%. On the manufacturer side, Toyota delivered more than 75% of all hydrogen fuel cell cars ever made with a small 13% and 11% accompaniment from Honda and Hyundai. By 2021, a total of 11 automakers are expected to offer FCVs."
Quotes
  • "Hydrogen Fuel Cell market is forecast to reach $45.34 billion by 2025, after growing at a CAGR of 65.86% during 2020-2025. Increasing Government initiatives and subsidies for manufacture of fuel cell electric vehicles in order to reduce carbon emissions is set to drive hydrogen fuel cell market size. "
  • "APAC dominated the Hydrogen Fuel Cell market with a share of more than 32%, followed by North America and Europe. Favorable government policies in countries such as China, Japan and South Korea are driving the clean energy usage in APAC region"
Quotes
  • "The major players operating in the global hydrogen and fuel cells market are Panasonic Corporation (Japan), FuelCell Energy, Inc. (U.S.), Plug Power Inc. (U.S.), Intelligent Energy Holdings plc (U.K.), and Hyster-Yale Group (U.S.). Other major players are Ballard Power Systems. (Canada), Doosan Fuel Cell (U.S.), Nedstack fuel cell technology BV. (Netherlands), Hydrogenics Corporation (Canada), Pearl Hydrogen (China), and Horizon Fuel Cell Technologies (Singapore)."
Quotes
  • "MarketsandMarkets forecasts the global fuel cells market size to reach USD 1,059 million by 2024 from an estimated market size of USD 342 million in 2019, at a compounded annual growth rate CAGR of 25.4% during the forecast period. North America CAGR 2019-2024 22.4%"
Quotes
  • "Geographically, the hydrogen and fuel cells market spans across Europe, America, Asia Pacific, and the Middle East & Africa. Considering the global scenario, America commanded the largest share and surpassed a valuation of USD 753.1 million in 2016"
  • "The market in America is predicted to expand at a CAGR of 24.72% by the end of 2025."
Quotes
  • "The global hydrogen and fuel cells market is segmented by prominent regions such as, Americas, Europe, Asia Pacific and Middle East & Africa. Americas was the first-largest market in 2016, & valued at USD 753.1 million."
  • "The American countries, more precisely north American countries fuel cell deployments have been encouraged by federal research and development (R&D) and demonstration programs, and supported by federal tax incentives for FCVs, hydrogen infrastructure, and fuel cell stationary power generation, it is the support and investment by state governments that have propelled the use of fuel cell and hydrogen technologies in certain parts of the country. Hence, Americas hydrogen and fuel cells market is projected to grow at a CAGR of 24.72%. "
Quotes
  • "Several policies have been deployed by the different governments to cater with environment conditions. For instance, the state of California in the U.S. committed funds for the development of 100 hydrogen refueling stations to meet its target of 1.5 million zero-emission vehicles by 2025 which is driving the growth of the hydrogen fuel cell vehicle market. "
Quotes
  • "The U.S. stationary fuel cell industry generated around $1 billion in goods and services revenue in 2018, including more than $600 million from fuel cell product sales. 4 The U.S. stationary fuel cell manufacturing industry comprises a diverse group of companies, including subsidiaries of large multinationals, publicly traded firms, and small start-up companies"
Quotes
  • "US Department of Energy funding for hydrogen and fuel cells has ranged from approximately $100 million to $280 million per year over the last decade, with approximately $150 million per year since 2017"
Quotes
  • "The global Hydrogen Fuel Cells market is valued at 1686 million US$ in 2020. Japan was the largest consumer market with a market share of 27.31% in 2011 and 30.12% in 2015 with an increase of 10.28%. North America and Other ranked the second and third markets with the market share of 25.34% and 20.16% in 2015."
Quotes
  • "In 2017, survey respondents from the Canadian hydrogen and fuel cell sector reported the following*: Revenue of $207 million"
  • "Survey respondents reported that 86% of facilities were located in Canada, 4% in Germany, 3% in the United States, 3% in China, and 2% in South Korea. The remaining 2% were in the United Kingdom, Japan, India, Belgium and Sweden"
Quotes
  • "As of the end of October 2019, there were about 80 fuel cell power plants operating in the United States with a total of about 190 megawatts (MW) of (net summer) electric generation capacity. The largest is the Red Lion Energy Center in Delaware with 27 MW capacity, which uses hydrogen produced from landfill gas to operate the fuel cells"
Quotes
  • "Nowadays, the top three companies make up more than 30.76% market share of the Hydrogen and Fuel Cells market in 2016, and the world's large enterprises are mainly concentrated in North America and Japan. The top three manufacturers are Fuel Cell Energy, Panasonic and Plug Power. They respectively with global production market share as 10.88%, 10.02%, and 9.86% in 2016."
Quotes
  • "650 U.S. hydrogen and fuel cell PATENTS have been enabled by FCTO funds"
Quotes
  • "The U.S. Department of Energy report, released Thursday, noted several projects in the works in Hawaii dealing with this industry. Toyota Japan and Servco Pacific brought six production Mirai vehicles to the state in January, making it the second state after California to receive the hydrogen fuel cell-fueled car. Other top states for hydrogen and fuel cells include California, Connecticut and New York."
Quotes
  • "According to the report published by Allied Market Research, the global hydrogen fuel cell vehicle market generated $651.9 million in 2018. Based on region, North America accounted for the largest market share in terms of revenue, holding nearly two-fifths of the market in 2018, and is estimated to maintain its lead position throughout the forecast period."
Quotes
  • "According to Information Trends, the counter stopped at 6,475 at the end of 2017 and more than half were registered in California, which puts the U.S. (53%) at the forefront for FCV adoption."
Quotes
  • "842 Hydrogen Fuel Cell Vehicles sold in the US in 2017 Toyota 67.5% Honda 19.9% Hyundai 12.6%"
  • "Fuel cell vehicles are only offered by Honda, Toyota, and Hyundai and only available in California. This is because the necessary fueling infrastructure is only available there. Hyundai sales are negligible as they prepare for a new model known as the Nexo, which is likely to appear at the end of this year"
Quotes
  • "Quarterly FCEV sales include 253 Toyota Mirai, 101 Honda Clarity and 70 Hyundai Nexo. Cumulatively, 2,006 FCEVs have been sold in 2019. In total, 8,250 FCEVs have been sold since 2014."
Quotes
  • "Population breakdown of alternative fuel vehicles (AFVs) registered in the United States as of Dec. 31, 2017 Hydrogen Fuel Cell 0.01%"
Quotes
  • "47 private and public Hydrogen Fueling Station Locations, all in california 41 public, 6 private"
Quotes
  • "The number of fuel cell vehicles available to consumers and on the road continues to grow as exhibited by sales and lease volumes. As of February 2019, there were 6,558 fuel cell vehicles on the road. It must be noted that fuel cell vehicle sales (including leases) are currently only offered in select areas that have hydrogen refueling infrastructure."
Quotes
  • "The Hydrogen Fuel Cells Market was valued at USD 6410.4 Mn in 2018 and is estimated to reach a value of USD 43457.6 Mn by 2028 at a CAGR of 21.1%."
Quotes
  • "Northeast hydrogen, fuel cell industry had $1.4B in revenues"
Quotes
  • "According to FCHEA’s tracking and surveys, as of January 2020 there are more than 550 megawatts (MW) of stationary fuel cells installed in the United States providing clean, reliable, distributed power to customers across the country."
Quotes
  • "The USA has supported FCEBs in one form or another for two decades, both Federally and through State initiatives. The Federal Transit Administration funds the US$90m National Fuel Cell Bus Program, and other sources including the LoNo (Low or No Emission Deployment) programme, used to support FCEBs in several States. A dozen or so FCEBs are expected to enter service in 2018, bringing the number of vehicles in service to more than 40 by the year end. "
Quotes
  • "Stationary fuel cell accounted for an overall market share of 70% in terms of volume, in 2019. Factors such as flexibility to use different fuels, high efficiency, and utilization of direct current are the key factors expected to propel the demand for stationary fuel cells over the forecast period."
Quotes
  • "The Port of Long Beach, one of the world’s busiest marine commerce facilities, is leading the way in the transition to a port powered by fuel cells and hydrogen energy. FCHEA member Toyota currently operates two prototype fuel cell semi-trucks – code-named “Project Portal” to transport goods between the Port of Long Beach and the Port of Los Angeles. "
  • "The neighboring Port of Los Angeles isn’t sitting out on the zero-emissions action though: last month, they preliminarily awarded $41 million for a variety of hydrogen fuel cell freight transportation projects, including ten new heavy-duty trucks and two hydrogen refueling stations to support them. "
Quotes
  • "Unfortunately, just as these first vehicles are coming to market, the federal tax credits for FCV purchases expired on December 31st, 2016. The lack of a federal tax credit to reduce the cost of vehicle purchases puts the FCV market at a great disadvantage compared to other alternative vehicles, such as battery electric vehicles (BEV), which have a federal tax credit of up to $7,500 per vehicle purchase. This is an issue that the fuel cell and hydrogen industry is striving to overcome through advocacy efforts with the administration and Congress."
Quotes
  • "5000 FCEVs on the road +4,200 Mirai sold or leased 35 H2 stations open in California Targeting 59 by the end of 2019 Stations coming on line in Northeast Targeting NE vehicle deployment in 2019"
Quotes
  • "Several policies have been deployed by the different governments to cater with environment conditions. For instance, the state of California in the U.S. committed funds for the development of 100 hydrogen refueling stations to meet its target of 1.5 million zero-emission vehicles by 2025 which is driving the growth of the hydrogen fuel cell vehicle market. "
  • "The hydrogen fuel cell vehicles are more efficient over IC engine vehicles and hybrid vehicles and has efficiency of 60-70% over the other two. The demand for fuel-efficient vehicles has increased recently owing to rise in price of petrol and diesel. This has also resulted due to depleting fossil fuel reserves and growth in tendency of companies to gain maximum profit from these oil reserves. Thus, these factors boost the need for advanced fuel-efficient technologies, leading to surge in demand for hydrogen fuel cell vehicles for travel."
Quotes
  • "California fuel cell partnership reported 42 fuel cell buses in operation, while 7 were in development along with 4 fuel cell shuttles"
Quotes
  • "California Air Resources Board projects a total of 13,400 FCEVs in California by 2020 and 37,400 by 2023 • 94 refueling stations are anticipated by the end of 2023 in California, 200 stations by 2025 • California Fuel Cell Partnership 2030 vision: 1,000,000 vehicles, 1,000 refueling stations • 12-25 refueling stations are planned in the Northeast"
Quotes
  • "There are currently more than 14,000 Nikola class 8 trucks on order. The Nikola trucks feature up to 1,000 horsepower and 2,000 ft-lbs of torque. Nikola recently announced a battery-electric vehicle option for the urban, short haul trucking market. Nikola’s trucks will be manufactured in Coolidge, Ariz. Testing will begin on Arizona roads this year with full production expected in late 2022."
  • "the U.S. Department of Energy has awarded the Phoenix company a $1.7 million grant to advance its research into fuel cell membrane electrode assembly (MEA)."
Quotes
  • "The company also launched a daring roadmap for 700 fuelling stations across the USA and secured an 800-vehicle partnership with Anheuser-Busch to help decarbonise its freight fleet."
Quotes
  • "Congress has provided consumer incentives for the purchase of electric vehicles through two different incentives: the Section 30B Fuel Cell Electric Vehicle Credit, and the Section 30D Plug-In Electric Drive Motor Vehicle Credit. The 30B Fuel Cell Vehicle Credit was a performance-based consumer incentive of up to $8,000 per vehicle. The credit expired at the end of 2017, along with the 30C Hydrogen Refueling Property Credit, well before any meaningful number of hydrogen stations and vehicles were available. This is supported by a "
Quotes
  • "FCEVs are eligible for a $4,500 California rebate and a federal tax credit of $8,000"
Quotes
  • "UConn assistant professor of materials science and engineering, Jasna Jankovic and Svitlana Pylypenko, assistant professor of chemistry from the Colorado School of Mines (Mines) are teaming with industrial partners Pajarito Powder and Forge Nano, the U.S Department of Energy’s National Renewable Energy Laboratory (NREL), and Fraunhofer Institute for Solar Energy Systems in Germany (ISE) to accelerate the development of high volume fabrication of components to facilitate the development of sustainable and zero-emission energy generation technologies"
  • "The team will compare the impact of various processes for scale-up of electrolyzer and fuel cell electrodes on electrode morphology and performance, based on innovative and state-of-the-art catalysts. With the Partnership for Innovations grant from the National Science Foundation, Jankovic and Pylypenko will provide a common platform for advanced and sophisticated characterization for the developed products and establish process-properties-performance correlations. This will make it possible for other industrial partners to develop the tools and replicate this process, which will further increase commercialization of this technology."
Quotes
  • "the real potential for hydrogen in transportation is in aircraft. Here, the fantastic energy per weight advantage of hydrogen comes into its own, as long as you can make lightweight tanks. As noted, it’s much better than jet fuel, and can be converted to spinning propellers at higher efficiency too. Batteries are just to heavy for anything but short range aircraft at present, and worse, no major breakthrough is sitting on the horizon to give great hope this will be solved."
  • "Standing in the way of hydrogen-electric aircraft is the high cost of fuel cells per watt of output."
Quotes
  • "FedEx and UPS are beginning to integrate fuel cell-powered delivery trucks into service routes in California and New York."
Quotes
  • "Plug Power Inc. is partnering with Colorado-based Lightning Systems, a global developer of zero-emission drivetrains. This collaboration enables both companies to offer the first electric, fuel-cell-powered Class 6 trucks (up to 12.5 tons) capable of supporting middle-mile delivery logistics between warehouses and distribution centers. "