Increase in Retrofitting of Fuel Cells in Aircraft to Drive the Market
The global aircraft fuel cell market is expected to grow from USD 1.6 billion at a CAGR of 10.8% during the forecast period, reaching USD 5.7 billion by 2035. Market expansion is likely to be driven by factors such as stringent environmental regulations, growing sustainability initiatives, increasing emphasis on reducing operational costs, advancements in fuel cell technology, and the need for enhanced energy efficiency and range in aircraft operations.
Stringent Environment Regulations and need for sustainable aviation practices to increase the adoption of fuel cells
Increasingly stringent environmental regulations, such as emission standards set by international bodies like the International Civil Aviation Organization (ICAO), are driving the market expansion of aircraft fuel cells. These regulations aim to reduce carbon emissions and address climate change concerns. Fuel cells, with their low or zero emissions profile, enable compliance with these regulations, making them an attractive choice for airlines and aircraft operators striving to meet environmental targets. The aviation industry's growing focus on sustainability and corporate social responsibility is a significant factor driving the expansion of the aircraft fuel cells market. Airlines and aviation stakeholders are actively adopting sustainable practices to minimize their environmental impact.
Fuel cells offer a clean and green energy solution, aligning with sustainability initiatives and enhancing the industry's reputation for responsible and eco-friendly operations. This growing emphasis on sustainability drives the demand for aircraft fuel cells and contributes to their market expansion. Airlines and aircraft operators are increasingly focused on reducing operational costs to enhance profitability. Fuel is a significant expense for the aviation industry, and rising fuel prices impact operational budgets. Fuel cells, with their higher energy efficiency compared to traditional combustion engines, offer cost-saving potential. By reducing fuel consumption and dependency on conventional fuels, fuel cells can help airlines achieve operational cost savings, making them an attractive investment and driving market expansion.
Based on Fuel Type, the Hydrogen Fuel Cell segment accounts for the largest market size during the forecast period
Based on fuel type, the aircraft fuel cell market has been segmented into hydrogen fuel cells, hydrocarbon fuel cells, and others. The hydrogen fuel cell segment is expected to dominate the aircraft fuel cell market for several significant reasons. Firstly, hydrogen fuel cells offer a clean and sustainable energy source, aligning with the aviation industry's increasing focus on reducing carbon emissions and achieving environmental sustainability targets. By utilizing hydrogen as a fuel, fuel cells generate electricity without producing harmful emissions, supporting compliance with stringent emission regulations. Moreover, continuous advancements in hydrogen infrastructure and storage technologies have facilitated the integration of hydrogen fuel cells in aircraft, driving their market dominance. These factors make hydrogen fuel cells an attractive solution for aircraft propulsion, contributing to their leading position in the market.
Based on the Power Output, the 0-100 kW segment is projected to hold the highest market share during the forecast period
Based on power output, the aircraft fuel cell market has been segmented into 0-100 kW, 100 kW- 1 MW, and 1 MW & above. The 0-100kW segment is poised to hold a greater market share in the aircraft fuel cell market in the upcoming years, driven by several key factors. Firstly, the rising demand for smaller aircraft and unmanned aerial vehicles (UAVs) across various industries is fueling the need for compact and lightweight power solutions. The 0-100kW segment perfectly aligns with the power requirements of these aircraft, offering an optimal balance between power output and size. Moreover, advancements in fuel cell technology have improved the efficiency and performance of fuel cells within this power range, making them a reliable and cost-effective choice for auxiliary power units (APUs), emergency power systems, and other essential aircraft operations. As the market for smaller aircraft and UAVs continues to grow, the 0-100kW segment is expected to capture a larger market share in the aircraft fuel cell industry.
Asia-Pacific is projected to grow at the highest CAGR during the forecast period
The APAC region is estimated to account for a larger share aircraft fuel cell market in 2023. In this region, the aircraft fuel cell market has been studied for China, India, Japan, Australia, South Korea, and the Rest of APAC. Countries in the Asia-Pacific region are upgrading their capabilities by undergoing developments in the field of aircraft fuel cells. The APAC region is also one of the fastest-growing regions in the world for air travel. As the number of air passengers increases, so too will the demand for fuel-efficient aircraft.
Fuel cells offer a significant advantage in terms of fuel efficiency, and as a result, they are seen as a promising technology for the future of air travel. The APAC region also has a strong manufacturing base that is capable of producing fuel cells at a competitive cost. This is another important factor, as the cost of fuel cells is a key factor in their adoption by the aviation industry. APAC is home to some of the world's fastest-growing aviation markets, with increasing air travel demand and a rising number of commercial aircraft. This growth presents a substantial opportunity for the adoption of aircraft fuel cells. The governments in APAC countries are actively investing in clean energy technologies and sustainable aviation initiatives. These initiatives include the development of hydrogen infrastructure, research and development programs, and supportive policies for the deployment of fuel cell technology.
Breakup of Primaries
The break-up of the profile of primary participants in the ultralight and light aircraft market:
- By Company Type: Tier 1 - 49%, Tier 2 - 37%, and Tier 3 - 14%
- By Designation: C Level - 55%, Director Level - 27%, and Others - 18%
- By Region: North America - 45%, Europe - 26%, Asia-Pacific - 16%, and Rest of the World - 13%
Major players operating in the aircraft fuel cell market are ZeroAvia Inc. (US), Intelligent Energy Limited (UK), Piasecki Aircraft Corporation (US), Doosan Mobility Innovation (South Korea), and H3 Dynamics (Singapore), among others.
Research Coverage
This research report categorizes the aircraft fuel cell market basis on Fuel Type (hydrogen fuel cells, hydrocarbon fuel cells, and others), By Power Output (0-100 kW, 100 kW - 1 MW, 1 MW & Above), Aircraft Type (Fixed Wing, Rotary Wing, UAVs, AAM), in these segments have been mapped across major Regions (North America, Europe, Asia-Pacific, and Rest of the World). The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the aircraft fuel cell market. A detailed analysis of the key industry players has been done to provide insights into their business overviews; solutions and services; key strategies; agreements, collaborations, new product launches, contracts, expansion, acquisitions, and partnerships associated with the aircraft fuel cell market. Competitive analysis of upcoming startups in the aircraft fuel cell market ecosystem is covered in this report.
Reasons to Buy This Report
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall aircraft fuel cell market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
- Market Penetration: Comprehensive information on aircraft fuel cells offered by the top players in the market
- Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the aircraft fuel cell market
- Market Development: Comprehensive information about lucrative markets - the report analyzes the aircraft fuel cell market across varied regions
- Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the aircraft fuel cell market
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players in the aircraft fuel cell market
Table of Contents
Executive Summary
Companies Mentioned
- Accelera
- AeroDelft
- AeroVironment, Inc.
- Airbus
- Alaka’i Technologies
- Alaska Airlines
- Apus Group
- Avio Aero
- Boeing
- Doosan Mobility Innovation
- Embraer
- Flyka
- Fuel Cell Store
- GKN Aerospace Services Limited
- H3 Dynamics
- Honeywell International Inc.
- Hypoint Inc.
- Intelligent Energy Limited
- Piasecki Aircraft Corporation
- Pipistrel D.O.O.
- Plug Power Inc.
- PowerCell Sweden AB
- SFC Energy AG
- Shanghai Pearl Hydrogen Energy Technology Co. Ltd.
- Universal Hydrogen Co.
- Urban Aeronautics Ltd.
- ZeroAvia, Inc.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 203 |
| Published | July 2023 |
| Forecast Period | 2023 - 2035 |
| Estimated Market Value ( USD | $ 1.6 Billion |
| Forecasted Market Value ( USD | $ 5.7 Billion |
| Compound Annual Growth Rate | 10.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 27 |
