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The global hydrogen fueling station market size was valued at USD 0.35 billion in 2021. The market is projected to grow from USD 0.54 billion in 2022 to USD 2.66 billion in 2029, exhibiting a CAGR of 25.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with hydrogen fueling station experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a slower growth of 54.6% in 2020 as compared to 2019.
Hydrogen (H2) is one of the most used industrial gases and is significantly available in different chemical compositions. Several hydrogen generation methods are readily adopted across the industry to produce and market H2 gas for various purposes. A Hydrogen Refueling Station (HRS) is constructed with a wide range of compressors and accumulators to effectively store and fill liquefied or gaseous hydrogen. The chemical substance is widely utilized by Fuel Cell Electric Vehicles (FCEVs). The H2 fuel produces only heat and water vapors as a byproduct and is a direct alternative to fossil fuel-powered automobiles. It operates light and heavy-duty vehicles and drives trains, aircraft, maritime vessels, and different-sized passenger cars
Declining FCEV Sales amid COVID-19 to Decelerate Market Growth
COVID-19 has left many countries facing economic mayhem. Due to supply chain disruptions and lower disposable income across customers, the disruptions in activities across industrial facilities have affected various industries. The closedown of trade routes and nationwide lockdowns further affected the financial scenarios in industries.
Subsequently, the growth of this market has also been greatly impacted by the sudden spread of the pandemic. Additionally, a slight decline in the sales of Fuel Cell Electric Vehicles (FCEVs) by the customers has moderately impacted the demand for H2 fueling stations. However, the positive outlook by governments to embark upon the utilization of low carbon technologies and boost decarbonization initiatives is anticipated to stabilize the hydrogen fueling station demand in the post COVID-19 world.
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Increasing Investments in the Development of Advanced Components to Positively Shape Industry Outlook
The setup of a new hydrogen fueling station requires a wide range of handling and processing equipment to dispense at the required rates effectively. Various scale component manufacturers have unveiled significant efforts to boost their manufacturing capabilities and introduce innovative systems that will pave new opportunities for the global hydrogen fueling station market growth. For instance, in May 2022, Lotte Chemical and Air Liquide Korea entered into a joint venture to expand the hydrogen supply chain for vehicles in South Korea. The companies will invest in the development of large-scale hydrogen fueling centers in Ulsan and Daesan.
Encouraging Administrative Policy Framework to Boost Industry Growth
Rising carbon emission levels have led various countries to introduce stringent regulations to check GHG discharges in the short, medium, and long terms. The huge targets by the national and regional governments across the globe have increased the focus on deploying low-carbon technologies complementing the need for FCEVs and propelling the global market size. For example, in April 2021, the former Prime Minister of Japan, Yoshihide Suga, pledged to accomplish 46% reduction in greenhouse gas emissions by 2030 as compared to 2013 levels. Similarly, on 22nd October 2021, Japan’s Prime Minister, Fumio Kishida, accepted Japan's Sixth Strategic Energy Plan, which memorialized the 2050 carbon neutrality pledge, and included targets for energy produced from hydrogen sources at 1% of Japan's total power generation by 2030.
Rapidly Growing Demand for Hydrogen-Powered Automotive to Propel Growth
The mounting inclination of consumers toward deploying various types of zero-emission vehicles provides new prospects for the global market. Different small and large-scale automotive manufacturers have introduced new ventures to augment FCEV placement and support the transition toward decarbonization of the automotive sector. According to a March 2022 study by DOE’s National Renewable Energy Laboratory, continuous enhancements with zero-emission vehicles and fuel technologies will make green trucks cheaper and more readily available over the next decade. Increased use of fuel cell electric vehicles within the trucking industry will support the decarbonization of the U.S.’s transportation sector and advance to accelerate the adoption of electric vehicles, address the climate crisis, and bolster domestic manufacturing.
Paradigm Shift Toward Adoption of Low Carbon Technologies to Augment Industry Expansion
Various administrations have introduced huge renewable energy deployment targets to cut down on carbon discharges to cater to the rapidly increasing energy demand from different sectors. The U.S., Western European nations, China, Japan, and many others strive to abide by stern carbon reduction goals over the long term. For example, Germany has ambitious goals to curb pollution to achieve emission targets with a broad approach to renewable energy, including wind, solar, and other renewable sources. The recent German government coalition agreed on the terms to reduce the carbon emission and increase the renewable energy target to 65%.
Significant Initial Expenditure May Limit Market Growth
The construction of HRS facilities requires different cryogenic and non-cryogenic components to handle highly flammable hydrogen fuel incurring substantial costs. Consequently, considerable capital costs to set up new projects and the complex management of bulk capacity stations handling and delivering a large amount of H2 may obstruct the hydrogen fueling station market outlook.
As per Hydrogen Review, 2021 by the International Energy Agency (IEA), a key obstacle for low-carbon hydrogen is the price gap with hydrogen from fossil fuels. Currently, manufacturing hydrogen from fossil fuels is inexpensive in most parts of the world. Reliant on regional gas prices, the levelized cost of hydrogen creation from natural gas ranges from USD 0.5 to USD 1.7 per kilogram (kg). Using CCUS technologies to decrease the CO2 emissions from hydrogen creation surges the levelized cost of creation to around USD 1 to USD 2 per kg. However, using renewable energy to produce hydrogen costs around USD 3 to 8 per kg.
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Small Stations are Set to Account for Significant Share over the Forecast Period owing to Increase in Hydrogen-Powered Passenger Vehicles
Based on type, the market is broadly categorized into three divisions, small stations (less than 1 t/d of H2), medium stations (1-4 t/d of H2), and large stations (more than 4 t/d of H2). Subsequently, the market is bifurcated based on pressure ratings into low pressure (350 bar) and high pressure (700 bar).
The small segment is witnessing a substantial rise due to exponential increase in hydrogen-powered passenger and light commercial vehicles.
The growing initiatives to transform the public transportation fleet with low carbon technologies are likely to boost the growth of the medium station segment.
The trends for large hydrogen fueling retail stations in 2021 are governed by large-scale industrial facilities that can produce, transport, and utilize H2 fuel in large amounts.
Asia Pacific Hydrogen Fueling Station Market Size, 2021 (USD Billion)
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The market has been analyzed geographically across four key regions, including North America, Europe, Asia Pacific, and the rest of the world.
Asia Pacific is projected to hold the largest global hydrogen fueling station market share in the forthcoming years. The region was valued at USD 0.22 billion in 2021. China, Japan, and South Korea are among the leading nations that have introduced enormous hydrogen fuel cell vehicle deployment targets and a positive roadmap for establishing HRS facilities. Japan is among the fastest-growing countries worldwide, owing to a massive rise in the number of hydrogen fueling stations.
Carbon reduction policies by the European Union, national renewable targets, and decarbonization of bus fleets are some key factors promoting market growth in the region. Besides, various regional organizations are also investing significantly to propel the uptake of hydrogen fuel across customers. For instance, in March 2021, OrangeGas, a fueling station company in the Netherlands, announced the inauguration of a maiden hydrogen fueling station in Amsterdam. The hydrogen fueling station is set to provide green hydrogen and will have a dual pressure design with 350 bars and 750 bars for a wide range of vehicles
North America is favored by tax benefit policies, availability of various scale companies, technological advancements, and dedicated research & development initiatives. Furthermore, nations including the U.S. and Canada have also observed a considerable increase in HRS count with the construction of new facilities due to favorable policies. For instance, in July 2020, the Australian Hydrogen Council (AHC) and the Canadian Hydrogen and Fuel Cell Association (CHFCA) inked a Memorandum of Understanding (MOU) to propel the placement of zero-emission hydrogen and fuel cell technologies in the two countries.
Various countries across the rest of the world, such as South Africa, Saudi Arabia, the United Arab Emirates (UAE), Brazil, and many others, have unveiled concrete plans to transform the hydrogen fueling infrastructure. For instance, in January 2021, Abu Dhabi National Oil Company (ADNOC), ADQ, and Mubadala Investment Company announced a Memorandum of Understanding (MOU) to establish a clean energy organization known as Abu Dhabi Hydrogen Alliance. This MOU aims to develop a green hydrogen economy in the UAE and detail a roadmap to augment the country’s adoption of H2 across different verticals with the help of national and global players.
New Collaboration Initiatives to Fortify Market Position of Air Liquide
The global market is significantly competitive, with several players operating across different supply chain levels. The industry participants further emphasize launching new components, such as tanks and compressors, for vehicles and HRS facilities to enhance customer reach. Furthermore, the organizations are also concentrating on entering into different joint operation programs to expand their technological horizons.
In December 2021, Air Liquide and IVECO, the commercial vehicles brand of CNH Industrial, signed an MoU to improve hydrogen for mobility in Europe. The partnership will add to materialize clean mobility by leveraging the two companies’ complementary capabilities, such as Air Liquide’s unique proficiency across the entire hydrogen value chain from creation and storing to supply, and IVECO’s legacy as a supplier of advanced, clean, sustainable transport solutions.
An Infographic Representation of Hydrogen Fueling Station Market
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The market report offers an in-depth analysis of the industry. It further details the adoption of these types of stations across several regions. Information on trends, drivers, opportunities, threats, and restraints of the market can further help stakeholders gain valuable insights into the market. The report offers a detailed competitive landscape by presenting information on key players along with their strategies in the market.
Volume (Units) and Value (USD Billion)
By Type and Region
Fortune Business Insights says that the global market size was USD 0.35 billion in 2021 and is projected to reach USD 2.66 billion by 2029.
In 2021, the region stood at USD 0.22 billion.
Registering a CAGR of 25.6%, the market is projected to exhibit staggering growth during the forecast period (2022-2029).
The small station segment is projected to be the leading share in the market during the forecast period.
The growing inclination toward hydrogen fuel cell vehicles, increasing measures to curb harmful carbon emissions, and shifting trends toward installing low carbon technologies are major factors driving the market growth.
Air Liquide, Linde, Air Products, Hydrogenics, and Nel are among the key players operating in the market.
Asia Pacific dominated the market in terms of share in 2021.
A fuel cell vehicle is designed to be integrated with a fuel cell system, electric motors, and many other components. The fuel cells are powered using hydrogen fuel, and the placement of FCEVs in distant places requires a robust network of fueling stations to cater to the continuous needs of customers.
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