Hydrogen Fueling Station Market Size, Share & COVID-19 Impact Analysis, By Type (Small Station {Low Pressure and High Pressure}, Medium Station {Low Pressure and High Pressure}, and Large Station {Low Pressure and High Pressure}), and Regional Forecast, 2023-2030

The global hydrogen fueling station market size was valued at USD 711.52 million in 2022. The market is projected to grow from USD 722.73 million in 2023 to USD 3,731.23 million by 2030, exhibiting a CAGR of 26.43% during the forecast period.

A hydrogen fueling station is a specialized infrastructure designed to supply hydrogen gas to Fuel Cell Vehicles (FCVs) and other hydrogen-powered vehicles. These stations play a crucial role in enabling the adoption of hydrogen fuel cell technology as an eco-friendly and sustainable alternative to conventional fossil fuels.

They are essential for promoting the widespread use of fuel-cell vehicles and reducing greenhouse gas emissions in the transportation sector. Developing and expanding hydrogen fueling infrastructure are critical steps toward achieving a more sustainable and environmentally friendly transportation system.

Hydrogen fueling stations are growing due to the increasing interest in hydrogen Fuel Cell Vehicles (FCVs). Governments and organizations worldwide are promoting hydrogen as part of their efforts to decarbonize the transportation sector, further driving the growth of hydrogen fueling infrastructure.

COVID-19 IMPACT

Reduced Industrial Activities during Pandemic Hampered Market Growth

The COVID-19 pandemic had a significant impact on the global market growth. The pandemic caused disruptions in global supply chains, reduced industrial activities, and created economic uncertainties. The pandemic led to delays and postponements in project installations and investments, including hydrogen fueling station projects. Many companies and governments slowdown in new fueling station installations. Restrictions on movement, lockdown measures, and international trade disruptions affected the supply chain for components and materials. Delays in the delivery of critical components and constraints in raw material availability impacted the manufacturing and production of these stations. However, as countries recover from the pandemic, the demand for renewable fuels, such as green hydrogen and new installation of fuel stations, is expected to increase, which could stabilize the global market. Additionally, the growth of hydrogen in industrial use is expected to increase in the coming years, providing opportunities for hydrogen fueling station market growth.

LATEST TRENDS

Rising Government Initiatives to Adopt FCEVs to Drive Market Growth

The growing preference of customers toward adopting zero-emission vehicles is an emerging outlook for the hydrogen fueling market. Automotive manufacturers are pumping huge investments to develop efficient and high-power vehicles to achieve the global targets for FCEVs to suffice the demand for clean fuel vehicles across the globe.

Increasing government initiatives play a vital role in empowering the growth of FCEVs. According to a March 2022 study by DOE’s National Renewable Energy Laboratory, continued improvements with zero-emission vehicle and fuel technologies will make clean trucks cheaper and more readily available over the next decade. Increased use of Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs) within the trucking industry will support the carbon neutrality of the U.S.’s transportation sector and advance to accelerate the adoption of electric vehicles, address the climate crisis, and bolster domestic manufacturing. Many regional governments have announced subsidies and other financial incentive programs promising customers to replace their fleets with energy-efficient fuel cell vehicles. The industry is developing new technologies. For instance, McPhy has created an augmented mcfilling hydrogen fueling station, an innovative, registered, and patented architecture incorporating software intelligence that makes the hydrogen station dynamically reconfigurable.

Automotive manufacturers are also initiating various projects to focus on adopting fuel cell electric vehicles.

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DRIVING FACTORS

Growing Need to Reduce Carbon Emission Stimulate Hydrogen Fueling Station Demand

Around half of the global population is surviving with air pollution levels that negatively impact their health and environment. Gasoline and diesel vehicle emissions, such as hydrocarbons, nitrogen oxides, and particulate matter, are a key source of pollution. The government is taking initiatives and focusing on technologies and sources with low or zero emissions, such as solar, wind, fossil fuels, and nuclear energy, with advanced emission controls and carbon sequestration. Hydrogen fuel is increasingly being used as a reliable fuel source for several applications, including transportation, stationary power generation, and mobile applications. Hydrogen can be produced from various resources with the possibility of zero greenhouse gas emissions. Once the production is complete, hydrogen generates electrical power in a fuel cell while emitting water vapor and warm air. It has promising growth in the transportation and energy sectors.

A fuel cell is a device that operates on readily available hydrogen, which helps reduce reliance on fossil fuels and decrease their economic impact. Fuel cells do not produce harmful emissions, such as CO, SOx, CO2, NOx, and other pollutants commonly emitted by fossil fuel units. Hydrogen, as the fuel source, offers a clean, dependable, and highly energy-efficient solution to meet the ever-increasing demand for power. As a result, the market is expected to witness substantial growth during the forecasted period due to the pursuit of improved fuel efficiency and the adoption of zero-emission systems. Major companies along the hydrogen value chain are making significant investments and taking constant initiatives, further driving the demand for hydrogen fueling stations over the years. These stations play a crucial role in successfully implementing and operating green hydrogen and renewable energy projects, thus boosting their demand in this market.

Government Initiatives for Awareness of Hydrogen to Promote Market Growth

Hydrogen can be produced from fossil, nuclear, and renewable resources, encouraging diversity in the nation’s energy supplies. Thus, the government and other governmental partners globally are working to promote and support hydrogen usage and acceptance. The US Department of Energy and Department of Transportation have outlined the HFI (hydrogen fuel initiative), which will accelerate the research, development, and demonstration of hydrogen fuel cell technologies for use in transportation, electricity generation, and power applications. The ultimate goal is for hydrogen to be affordably produced and delivered utilizing several feedstocks, processing methods, and delivery options at various scales ranging from large central production to small local production, depending on the level of market demand.

RESTRAINING FACTORS

Increasing Initial Capital Costs along with Difficulty in Managing Bulk Hydrogen Stations Hinder Market Growth

The requirement of considerable capital expenditure to include high-grade equipment and machinery in establishing various scale hydrogen stations may hinder market growth. The cost of producing and delivering hydrogen fuel to service stations is high at low volumes, along with the complex management of bulk fueling stations that might obstruct market growth. Additionally, the planning and construction of new stations require huge investments dependent on multiple factors affecting market dynamics.

Consequently, the demand for electric vehicles, which include battery electric vehicles and plug-in hybrid electric vehicles, is increasing at a significant rate owing to their various advantages such as higher efficiency, high commercialization, no polluting byproducts, cost-efficient, and energy security, which may hamper industry growth. The cost of installing a hydrogen fueling station is currently greater, with a slight decline in the sales of FCEVs. This may take a good turn as there are advancements in technology. However, currently, this cost is a blockade to extensive use of hydrogen even though it is more proficient once produced. This expense will also impact costs further, such as the price of hydrogen-operated vehicles, making the adoption unlikely.

SEGMENTATION

By Type Analysis

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Small Stations is Set to Dominate Market Due to Growing Adaptation of Hydrogen Vehicles

Based on type, the market is segmented into 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). Small-station (less than 1 t/d of H2) segment is leading due to their cost efficiency, flexibility, and ability to provide diverse applications. They are more affordable to build and operate, making them suitable for regions with lower demand or limited space. These stations also support various uses beyond vehicles, such as forklifts and backup power systems. Advancements in technology are making small-scale hydrogen production more efficient, allowing for easier deployment and scalability to meet increasing demand.

These fueling stations for vehicles are comparatively small. The utilization of cryogenic storage at stations offers the advantage of using less expensive equipment, primarily by eliminating the need for tube trailers and compressors, especially when considering the cost per kilogram of hydrogen. Larger stations necessitate multiple daily transports of hydrogen, while smaller stations prove to be more convenient and efficient. As a result, the segment is anticipated to stabilize the industry.

REGIONAL INSIGHTS

The market is segmented into North America, Europe, Asia Pacific, and the rest of the world.

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Asia Pacific holds the largest global hydrogen fueling station market share and is expected to maintain a steady growth rate. Asia Pacific has been investing heavily in developing hydrogen technology and infrastructure, leading to the establishment of high installations across the region. This has led to an increased demand for these fueling stations for the operation. Emerging economies, such as China, Japan, and South Korea, have set massive targets to deploy hydrogen fuel cell vehicles and heavy-duty vehicles, which are set to supply the regional passenger vehicles and bus demand. For instance, In January 2019, the Korean government unveiled its vision to achieve global leadership in hydrogen vehicles and fuel cells by 2040. They announced an aspiring roadmap with the objective of manufacturing 6.2 million fuel cell vehicles and establishing a minimum of 1,200 hydrogen stations by 2040.

Europe’s market growth is attributed to increasing investments in the hydrogen infrastructure. The European Commission proposed targets for the deployment of hydrogen refueling stations (HRS) in cities and along highways in its proposed revision of the regulation on the deployment of the alternative fuels infrastructure. The deployment of refueling infrastructure is comparatively less developed than BEVs, with 178 HRS deployed in the EU, U.K., Norway, Switzerland, and Iceland combined. These policies have created a supportive environment for the hydrogen technology industry, encouraging investment and innovation.

Tax benefit policies favor North America, owing to the 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 by constructing 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.

KEY INDUSTRY PLAYERS

Key Players’ Focus on New Collaboration Initiatives to Fortify Market Position and New Project Development

Companies such as Air Liquide, FirstElement Fuel and Cummins Inc. are currently pursuing developing new hydrogen fueling station projects by collaborating. The increasing deployment of hydrogen fuel stations drives this shift in focus. For instance, in March 2023, FirstElement Fuel and Hyundai Motor Company joined a venture to fuel and conduct testing on Hyundai's Xcient fuel cell heavy-duty trucks. In this partnership, FirstElement Fuel is utilizing its True Zero network of hydrogen refueling stations to supply hydrogen at full 700 bar pressure, effectively fueling three XCIENT Fuel Cell prototypes.

List of Key Companies Profiled:

• Air Liquide (France)


• Air Products and Chemicals, Inc. (U.S.)


• China Petrochemical Corporation (China)


• FirstElement Fuel Inc. (U.S.)


• FuelCell Energy, Inc. (U.S.)


• Cummins Inc. (U.S.)


• Linde Group (Ireland)


• Nel Hydrogen (Norway)


• Nuvera Fuel Cells (U.S.)


• Praxair (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2023 – Air Liquide and Total Energies collaborated to develop a network of hydrogen stations focused on heavy-duty vehicles on major European roads. This inventiveness will help enable access to hydrogen, allowing the development of its use for transportation and further solidifying the hydrogen sector.


• February 2023 – China Petroleum & Chemical Corporation successfully inaugurated China's first methanol-to-hydrogen and hydrogen refueling service station in Dalian, China. This station represents a significant advancement over the previous facility, which provided fueling options for oil, gas, hydrogen, and electric charging services. The newly upgraded complex can produce 1000 kg of hydrogen daily with an impressive purity level of 99.99%.


• April 2021 – Air Products announced the inauguration of a hydrogen fueling station at one of the industrial gas facilities in South Korea. This station is the first privately owned station in South Korea, established under the South Korean government's subsidy program for hydrogen infrastructure.


• February 2021 – FirstElement Fuel, Inc. has launched its new hydrogen fueling station in Sunnyvale, California. The capacity of Sunnyvale True Zero hydrogen fueling station is 16,000 Kg with four fueling positions and five nozzles.


• June 2019 – Air Products and Saudi Aramco inaugurate Saudi Arabia’s first hydrogen fueling station at Air Products technology center in Dhahran Techno Valley Science Park. This station is likely to fuel a fleet of six Toyota Mirai fuel-cell electric vehicles with highly pure compressed hydrogen.

REPORT COVERAGE

The report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, type of hydrogen fuel station, and installation of fuel station across the region. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

An Infographic Representation of Hydrogen Fueling Station Market

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