Hydrogen Stack Systems Market Report

Market Insights

“The hydrogen stack systems market size was US$ 3.2 billion in 2024 and is likely to grow at an impressive CAGR of 30.2% to reach US$ 59.9 billion in 2035.”

Market Dynamics

Introduction

A stack system is the basic unit in both fuel cells and electrolyzers, facilitating efficient energy conversion and clean hydrogen production. In fuel cells, the stack system consists of several membrane electrode assemblies (MEAs) connected in series, where the electrochemical reaction between hydrogen and oxygen produces electricity, water, and heat. Conversely, electrolyzers employ the same stack structure to dissociate water into hydrogen and oxygen through electrical energy input, making it possible to produce green hydrogen when supplied with renewable energy. The stack structure's efficiency and performance directly impact overall energy efficiency, lifespan, and power output, making the stack structure a vital element in hydrogen technology. Engineered for scalability and versatility, stack systems are custom-tuned to address a broad spectrum of power demands from mobile devices and automotive fuel cell technology to industrial-scale energy solutions. They employ key components such as bipolar plates, gaskets, and current collectors, which act together to provide high electrical conductance, efficient thermal management, and structural stability. As worldwide efforts to cut carbon emissions and shift to renewable energy sources gain momentum, innovation and investment in stack system design and technology are driving growth in the hydrogen economy.

Market Drivers

The hydrogen stack system market is expanding at a rapid rate, driven by several key factors. The most significant among them is the increasing demand for clean energy solutions, particularly in the transportation, industrial, and power generation industries. As the world focuses on reducing carbon emissions, hydrogen fuel cells offer a clean, zero-emission alternative to traditional energy sources, driving the demand for advanced stack systems. In addition, growing applications of hydrogen fuel cell vehicles, including fuel cell electric vehicles (FCEVs), drive demand for high-performance stack systems.

Government policies and incentives favoring green hydrogen technology also aid in supporting market growth. As countries have announced target dates for net-zero emissions, demand for electrolyzers and hydrogen stack system-based fuel cells is picking up speed. Technological advancements in stack system design, like improved efficiency, scalability, and cost savings, are also key drivers. With the development of the hydrogen economy globally, investment in manufacturing capacity and hydrogen-based system infrastructure is poised to increase, in turn driving further growth of the hydrogen stack systems market.

Market Challenges

Despite the growing demand for hydrogen stack systems, several challenges are hampering their large-scale deployment. The primary limitation is the exorbitant cost of production, mainly the cost of materials like platinum and iridium-based catalysts. Second, the lack of adequate infrastructure for hydrogen, i.e., storage and transport infrastructure, limits the development of the market. Lastly, dependence on exotic and costly raw materials leads to supply chain instability issues. Overcoming these issues through material innovation and strong policy support will be the secret to achieving long-term growth in the market for hydrogen stack systems.

Recent Market JVs and Acquisitions:

A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

• In September 2024, BMW and Toyota announced a collaboration to create a hydrogen fuel cell electric vehicle (FCEV), which will be launched in 2028. The collaboration aims to combine Toyota's expertise in hydrogen fuel cell technology with BMW's engineering capabilities to produce a new generation of zero-emission vehicles.
• In September 2024, Plug Power obtained an order for 25 megawatts (MW) of electrolyzer systems from Castellón Green Hydrogen S.L., a bp and Iberdrola joint venture. The electrolyzers will be used to decarbonize operations at BP's Castellón refinery in Valencia, Spain, to lower CO? emissions by about 23,000 tons per year.
• In 2023, EKPO Fuel Cell Technologies GmbH (EKPO) and hydrogen specialist H-TEC SYSTEMS agreed on a development contract for realizing stack components for electrolyzers. As part of the cooperation, EKPO will contribute its know-how in the development and large-scale production of components and scrap reduction through a highly automated level of production. The development of stack components is specially designed for use in electrolyzers in the megawatt range.
• In December 2022, Hyundai Motor Group’s fuel cell system brand HTWO signed a partnership with ENGINIUS to supply fuel cell systems for the mass production of hydrogen-powered commercial trucks. The partnership will provide zero-emission power for waste collection trucks and medium cargo trucks for intra-city goods delivery.

Recent Product Development:

Most recent developments concerning hydrogen stack systems have been around cost reduction to ensure commercial viability and tackle the issues of sustainability and environmental restrictions.

• In October 2024, GreenH Electrolysis inaugurated its maiden 1 MW Hydrogen plant at its factory in Jhajjar, Haryana, India. The electrolyzer can generate nearly 430 kg of hydrogen per day to power India's first hydrogen train under Indian Railways' "Hydrogen for Heritage" program.
• Ballard Power’s “3 by 3” stack cost reduction program is set to enhance the next-generation, thin, flexible graphite bipolar plates to significantly reduce the cost structure while enabling high power density stacks. The graphite bipolar plates offered by Ballard are optimal for the heavy-duty mobility market as they provide long durability, re-usability at stack end-of-life, and high-power density while also offering the lowest plate cost at current and scaled volumes.
• A Pennsylvania state-led team of researchers developed a potentially promising approach to make fuel cells more affordable. The new method reduces the amount of platinum-group metal (PGM) loadings by replicating a process used in computer chip manufacturing.

Segments' Analysis

“Fuel cells have long held a dominant position and currently lead the market; however, the fast-rising electrolyzer category is poised to surpass them and emerge as the new market frontrunner.”

The hydrogen stack systems market is segmented into fuel cells and electrolyzers by stack system type. Fuel cells have long dominated the hydrogen stack systems market, led by their initial commercialization and broad application in transportation and stationary power markets. The fast-growing electrolyzer segment is, however, likely to surpass fuel cells in the next few years. This is driven by the global effort toward the production of green hydrogen as a pillar of decarbonization initiatives. In contrast to fuel cells, which burn hydrogen, electrolyzers make it by cracking water with clean electricity, a critical step to facilitating a clean hydrogen economy. Electrolyzers are comparatively younger as far as massive deployment is concerned, but technical improvements, growing efficiency, and declining costs are speeding up their use. With nations investing significantly in renewable energy infrastructure and making ambitious hydrogen production targets, demand for electrolyzers, and consequently, hydrogen stack systems utilized in them, is increasing. As these systems develop and expand, their market share will significantly increase. Although fuel cells will still be crucial for hydrogen usage, most notably in transportation, the electrolyzer category's aggressive growth path puts it on course to be the market's top driver in hydrogen stack systems during the forecast period.

By Component Type

“MEA dominates the market due to its crucial role in enabling efficient energy conversion in both fuel cells and electrolyzers, providing high performance, durability, and scalability, and it is expected to maintain its leadership in the future as demand for clean hydrogen and fuel cell technologies continues to rise.”

The hydrogen stack systems market is segmented into MEA (Membrane Electrode Assembly), bipolar plates, and other components. MEA is the industry leader in hydrogen stack systems due to its foundational contribution to enabling electrochemical reactions in fuel cells and electrolyzers with high efficiency. As the critical functional component of a stack system, the MEA is where the hydrogen and oxygen are transformed into electricity in fuel cells, and where the water-splitting reaction is triggered in electrolyzers to produce hydrogen. Its performance is directly related to the system's overall efficiency, longevity, and production level. Advanced MEAs, which typically consist of advanced membranes and platinum group metal catalysts, offer enhanced conductivity, chemical stability, and life, important parameters for stable operation over a broad spectrum of applications. Their scalability also makes them suitable for systems ranging from small fuel cell cars to big industrial-scale electrolyzers. As the global shift towards decarbonization gains momentum and demand for clean hydrogen increases, MEAs are expected to remain at the forefront of innovation and production. Ongoing innovation on efficiency and material will also propel them to leadership in the market for hydrogen stack systems throughout the forecast period.

Regional Analysis

“The Asia-Pacific region is set to lead the market during the forecast period, with growth expected to outpace all other regions as it rapidly accelerates its momentum.”

Asia-Pacific will be leading the hydrogen stack systems market during the forecast period, with growth outpacing all other regions. Strong government policies, aggressive clean energy targets, and significant investments in hydrogen infrastructure are leading to a leadership position. China, Japan, and South Korea are leading the way among countries, pushing hydrogen adoption in transportation, power generation, and industrial processes. China is swiftly ramping up fuel cell vehicle deployment and electrolyzer manufacturing. Meanwhile, Japan and South Korea are advancing their hydrogen roadmaps by forging strategic public-private partnerships. With strong production capabilities, increasing renewable energy integration, and intense R&D, Asia-Pacific is building up its momentum and will continue to be the market leader in the global hydrogen stack systems market.

Key Players

The market is fragmented, with multiple players supplying either a particular component or complete stack systems solutions. Most of the major players compete in some of the governing factors, including price, product offerings, regional presence, etc. The following are the key players in the hydrogen stack systems market.

Here is the list of the Top Players (Based on Dominance)

• Longi Green Energy Technologies Co., Ltd.
• Toyota Motor Corporation
• Bloom Energy Corporation
• Thyssenkrupp Nucera AG & Co. KGaA
• Hyundai Mobis
• Plug Power Inc. 
• Cummins Inc. (Hydrogenics)
• Siemens Energy AG
• NEL ASA
• ITM Power plc
• Ballard Power Systems Inc.

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The global hydrogen stack systems market is segmented into the following categories. 

Hydrogen Stack Systems Market by Stack System Type

• Fuel Cell (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Electrolyzer (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Hydrogen Stack Systems Market by Component Type

• MEA (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Bipolar Plates (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Others (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Hydrogen Stack Systems Market by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Hydrogen stack systems market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

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