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The global hydrogen fueling station market size was USD 0.37 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with hydrogen fueling stations witnessing a negative demand shock across all regions amid the pandemic. By the end of 2020, there were more than 584 hydrogen stations deployed across the globe. Based on our analysis, the global market exhibited a lower growth of about 28.9% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 0.41 billion in 2021 to USD 2.67 billion in 2028 at a CAGR of 30.8% during the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Hydrogen is one of the most used industrial gases and is significantly available in different chemical compositions. Several hydrogen generation methods are being readily adopted across the industry to produce and market H2 gas for various purposes. A hydrogen fueling station (HRS) is constructed with a wide range of compressors and accumulators to store and fill liquefied or gaseous hydrogen effectively. 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 is utilized to operate light and heavy-duty vehicles and drive trains, aircraft, and maritime vessels, in addition to the different sized passenger cars.
Cash Deficits Among Customers & Industry Players amid COVID-19 to Decelerate Market Growth
The rapid spread of novel coronavirus has left various industries and countries in economic turmoil. The business frameworks have been significantly disrupted by the disturbances in the supply chains, the shutdown of industrial facilities, and the unavailability of ample funds across customers. Furthermore, various administrations have also imposed stern actions, including social distancing guidelines, state & national level lockdowns, and constrained global interactions to limit the spread of the virus, adversely impacting the financial health of organizations.
Consequently, the growth of the market for hydrogen fueling has also been stumbled by the sudden spread of the pandemic. Additionally, a slight decline in the sales of new 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 HRS demand in the post-COVID world.
For instance, in June 2021, the Government of Queensland, Australia, announced to invest AUD 2 billion or about USD 1.5 billion under its COVID-19 Economic Recovery Plan to boost the infrastructure & jobs across hydrogen and renewable industries. The fiscal support is set to help the territory develop new projects and deliver cost-effective & clean energy output in line with the state’s target to include a 50% renewable energy target by 2030.
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Increasing Investment in Developing Advanced Components to Positively Shape Industry Trends
The setup of a new HRS requires a wide range of handling and processing equipment to effectively dispense at required rates. Various scale component manufacturers have unveiled significant efforts to boost their manufacturing capabilities and introduce innovative systems that are likely to pave new opportunities for the global hydrogen fueling station market growth. For instance, in February 2021, an engineering company in the UK, Howden, declared to deliver advanced H2 compressor solutions to a Denmark-based company named Everfuel. The solutions are designed to be installed with Everfuel’s proprietary facility called HySynergy, a green hydrogen production unit in Fredericia, Denmark.
Encouraging Administrative Policy Framework to Boost Industry Growth
Continuously rising carbon emission levels has 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 propel the global market size. For example, in December 2020, the U.S. Department of Energy (DoE) presented a new funding opportunity announcement (FOA) worth USD 33 million to boost the hydrogen fueling infrastructure supply chain development, H2 and FC research & development, and cost analysis initiatives. The initiative is also set to substantiate H2 fueling models and fabricate advanced components to support high output fueling for HRS dedicated towards heavy-duty applications.
Rapidly Growing Demand for Hydrogen-Powered Automotive to Propel Growth
The mounting inclination of consumers towards deploying various types of zero-emission vehicles provides new prospects for the global hydrogen fueling stations market. Different small and large-scale automotive manufacturers have introduced new ventures to augment FCEV placement and support the transition towards decarbonization of the automotive sector. For instance, in May 2019, Hyundai Motors announced the construction of its new hydrogen fueling station located in Seoul, South Korea. The HRS facility is anticipated to be the first station that will be established in a parliamentary complex across the National Assembly area of the country.
Paradigm Shift Towards 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. Countries such as the United States, Western European nations, China, Japan, and many others are continuously striving to abide by stern carbon reduction goals over long-term. For example, as per the U.S. Energy Information Administration (EIA), the total renewable energy consumption in the country equaled about 11.41 quadrillion British thermal units (BTU) in 2018, rising from over 9.72 quadrillions BTU in 2015 observing an increase of around 17.4%.
Significant Initial Expenditure May Limit the Market Growth
The construction of HRS facilities requires different cryogenic and non-cryogenic components to handle highly inflammable hydrogen fuel incurring substantial costs. Consequently, the need for considerable capital costs to set up new projects coupled with the complex management of bulk capacity stations handling and delivering a large amount of H2 may obstruct the hydrogen fueling station market outlook.
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Small Stations are set to Account for Significant Share over the Forecast Period
Based on type, the industry is broadly categorized into three divisions, including 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 further 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 the exponential increase in hydrogen-powered passenger vehicles and light commercial vehicles across different regions.
The growing initiatives to transform the public transportation fleet with low carbon technologies are likely to boost and to driving the growth of the medium station segment.
The trends for the large hydrogen fueling stations in 2021 are governed by the setup of large-scale industrial facilities that can produce, transport, and utilize H2 fuel in large amounts.
Asia Pacific Hydrogen Fueling Station Market Size, 2020 (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 0.23 billion in 2020. Regional countries such as China, Japan, and South Korea are among the leading nations that have introduced enormous hydrogen fuel cell vehicle deployment targets, along with a positive roadmap of establishing HRS facilities. As per our analysis, Japan had close to 150 hydrogen stations by the end of 2020, enabling it to be among the fastest-growing countries across the world.
Carbon reduction policies by the European Union, national renewable targets, and decarbonization of bus fleets are some of the key factors promoting the growth of the market in the region. Besides, various regional organizations are also investing significantly to propel the uptake of hydrogen fuel across the 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 HRS 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 the 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 owing to the 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 Rest of the World, such as South Africa, Saudi Arabia, the United Arab Emirates (UAE), Brazil, and many others, have unveiled substantial plans to transform the hydrogen mobility 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.
Nel Announces New Collaboration Initiatives to Fortify its Market Position
The global market is significantly competitive, with several players actively operating across different levels in the supply chain. 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 concentrated on entering different term joint operation programs to expand their technological horizons.
Nel Hydrogen, a Norwegian hydrogen fueling solutions provider, also emphasizes adopting different methods to foster its reach in HRS infrastructure. For instance, in June 2019, Nel ASA founded a new partnership program called H2Bus Consortium in collaboration with Hexagon Composites, Ballard Power Systems, Everfuel Europe, and Ryse Hydrogen. The program is anticipated to increase the count of commercial fuel cell electric buses to abide by the zero-emission objectives.
An Infographic Representation of Hydrogen Fueling Station Market
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The hydrogen fueling station market report offers an in-depth analysis of the industry. It further provides details on 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 By Region
Fortune Business Insights says that the global market size was USD 0.37 billion in 2020 and is projected to reach USD 2.67 billion by 2028.
In 2020, the region stood at USD 0.23 billion.
Registering a CAGR of 30.8%, the market is projected to exhibit staggering growth during the forecast period (2021-2028).
The small station segment is projected to account for the leading share in this market during the forecast period.
The growing inclination towards hydrogen fuel cell vehicles, increasing measures to curb harmful carbon emissions, and shifting trends towards installing low carbon technologies are major factors driving the market growth.
Air Liquide, Linde, Nel Hydrogen ASA, Hydrogenics, and Praxair are among the key players operating across the industry.
Asia Pacific dominated the market in terms of share in 2020.
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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