APAC Fuel Cell Technology Market

Asia Pacific Fuel Cell Market Analysis

The Asia-Pacific Fuel Cell Market is expected to register a CAGR of greater than 17% during the forecast period.

• Transportation sector is expected to witness significant growth during the forecast period, owing to various factors such as increase in investments in hydrogen cars, and a rising number of fuel cell-based vehicles in the region.
• The increasing demand for electrical energy to sustain global development requires consistent heavy investments in energy efficient and clean energy sources. This has helped the market for the fuel cell to grow significantly in recent and is expected to do so in the forecast period.
• Japan is expected to dominate the market growth with majority of the demand coming from the residential and transportation sector, owing to the factors like economic growth rising focus on reducing greenhouse gases emissions, and rising fuel cell based vehicles.

Asia Pacific Fuel Cell Market Trends

Transportation Sector to Dominate the Market

• Transportation sector has accounted for more than half of the market share in 2018 and is expected to continue its dominance in the coming years. The focus on clean energy usage in the transportation sector is creating increased opportunities for fuel cell business
• Japan and South Korea are expected to be pivotal in advancing the fuel cell electric vehicle technology, as Toyota and Hyundai-Kia claim to become the global leaders in fuel cell technology. Moreover, the phasing out of BEV incentives globally, from 2020, paralleled by government subsidies for fuel cell electric vehicles (FCEVs) in Asian countries, including China, Japan, and South Korea, is expected to open the floodgates to private sector investments and herald the start of a new era in fuel cell vehicle technology.
• There have been a massive increase in research and pilot testing of usage of fuel cells in transportation sector in order to increase efficiency and sustainability of fuel cell usage in vehicles.
• Japan had over 2800 fuel cell vehicles on road by end of 2018, the country has set a target of 40,000 fuel cell vehicles on road by 2020 and 80,000 by 2030.
• Therefore, with increase in fuel cell based vehicles, and phasing out of conventional fuel based vehicles, the market is expected to grow in forecast period.

Japan to Dominate the Market

• Japan has dominated the fuel cell market growth in 2018 and is expected to continue its dominance in the coming years as well. The region is expected to see an unprecedented increase during the forecast period.
• The country is leading in the region with vast applications of fuel cells, ranging from backup services for datacenters, combined heat and power for homes, automobile sector and many more. This is expected to provide a significant market growth for fuel cell market in the country.
• Japan had implemented one of the most successful fuel cell commercialization programs, Ene-farm programme, in 2015. The program led to the deployment of over 120,000 residential fuel cell systems. Japan has added nearly 50,000 units (roughly 35 MW) of residential micro-CHP fuel cell systems in 2018, under the Ene-farm programme.
• Tokyo Metropolitan Government's (TMG's) plan to power several operations in 2020 Olympic and Paralympics games, which will be held at Tokyo, using fuel cell technology has created ample business opportunity for fuel cell companies. Toyota is planning to sell 100 fuel cell powered buses, including PEM type before the game starts. Also, the Tokyo government has created a reserve of USD 350 million to subsidize hydrogen-based fuel cell cars and refuelling stations for the same.
• Therefore, the aforementioned factors are expected to drive the market in forecast period, similar to the trend witnessed in recent years.

Asia Pacific Fuel Cell Industry Overview

The Asia-Pacific fuel cell market is partially fragmented with a number of small and big players. Some of the major companies are Ballard Power Systems Inc., Toshiba Fuel Cell Power Systems Corporation, FuelCell Energy Inc., Mitsubishi Hitachi Power Systems Ltd, Fuji Electric Co Ltd among others.

Asia Pacific Fuel Cell Market Leaders