Hydrogen shows enormous potential to turn into a decisive part of a more sustainable energy future. Hence, several industries worldwide are working on integrating hydrogen fuel cell technologies in their different applications to reduce carbon emissions. The off-highway sector is one of the significant contributors to carbon emissions, owing to the rigorous use of construction & mining equipment.
Incorporating the hydrogen fuel cell technology in this industry can scale the storage system capacity & reduce refueling time. However, since only a few manufacturers have initiated this development, fuel cell solutions are currently in their growing phase.
Nevertheless, with various government initiatives and public & private investments toward sustainable construction & mining projects, the adoption of hydrogen fuel cell technologies in the off-highway industry can witness substantial growth in the coming years.
According to MarkNtel Advisors, the “Global Off-Highway Fuel Cell Electric Equipment Market” is anticipated to grow at a considerable CAGR during the forecast period, i.e., 2025-30. The growing infrastructure to manufacture hydrogen fuel cell-based off-highway vehicles and the increasing number of hydrogen filling stations are the most prominent factors anticipated to drive the market in the coming years.
A Hydrogen fuel cell is a great alternative to fossil fuels and poses several benefits over conventional combustion-based technologies currently used in many vehicles. It can convert chemical energy to electric energy and provide over 60% efficiencies. In addition, it does not emit any pollutants that can create smog & health problems.
Moreover, with the growing production of hydrogen fuel cells and increasing investments in this technology, off-road equipment manufacturers would integrate fuel cell electric technology in their future earthmoving equipment. Currently, many companies are investing in using hydrogen fuel cell technology in their equipment.
For instance, in 2021, Hyundai announced to invest USD 1.1bn toward setting up two new hydrogen fuel cell plants. Another South Korean company SK Group has agreed to invest USD 1.5bn in a US-based hydrogen fuel cell company Plug Power, i.e., a sizeable investment and would help the company expand its operations. Hence, these aspects are likely to contribute to the overall market growth in the coming years, further states the research report, “Global Off-Highway Fuel Cell Electric Equipment Market Analysis, 2022.”
Impact of Covid-19 on the Global Off-Highway Fuel Cell Electric Equipment Market
The unprecedented rise in the global health emergency has severely impacted the financial conditions of several industries. The Off-Highway Fuel Cell Electric Equipment Market witnessed the decline in investments due to the halt in the R&D activities and unavailability of skilled professionals.
The impact of the pandemic on the global supply chain has adversely affected the development of hydrogen technologies, for which proper supply chain and substantial capital are necessary. Further, the imposition of lockdown caused delays & cancellations of low-carbon production projects, thereby restraining the market growth.
However, the demand for a clean power source that does not emit smog pollutants is increasing to address & resolve respiratory problems. Hence, this aspect is likely to encourage the overall market growth during the forecast period.
Mining & Construction Industries to Acquire Majority Market Share through 2030
With the increasing diesel usage, the construction & mining industry is becoming more carbon-intensive. Stringent regulations enforced to reduce carbon emissions are exponentially surging the demand for sustainable fuel solutions.
Many companies, such as Sany & Hyundai, have started working on the feasibility of fuel cells to use in construction & mining equipment. Hence, the use of off-highway fuel cells is expected to boost astronomically in the coming future since earthmoving equipment manufacturers are increasingly focusing on making advancements to construction & mining industries and products associated with them.
Demand for Fuel Cell-based Excavators to Witness Substantial Growth during 2025-30
The increasing number of construction activities across the residential & commercial sector and a surge in large-scale projects in mining & construction is leading to a boost in the use of excavators. However, the enforcement of stringent regulations to minimize the environmental footprint of the equipment used in construction & mining activities is encouraging equipment manufacturers to launch excavators powered by a hydrogen fuel cell.
With this in place, JCB has developed a 20-ton 220X excavator powered by a hydrogen fuel cell, and it's been under rigorous testing for like a year. This benchmark has made JCB the first construction equipment manufacturer to exhibit the working prototype of a hydrogen fuel-cell-based excavator. Hence, such developments are projected to boom the demand for fuel-cell-based excavators and propel the overall market growth during the forecast period, further reveals MarkNtel Advisors in their research report, “Global Off-Highway Fuel Cell Electric Equipment Market Analysis, 2022.”
Here, North America has a sizeable market for Off-Highway Fuel Cell Electric Equipment due to a considerable share of the construction sector & allied activities that require large-scale deployment of the construction equipment.
The leading regional countries like the US & Canada have mounting concerns about climate change. Hence, the governments of these countries are exceedingly focusing on reducing the existing carbon emissions, which, in turn, is augmenting the demand for fuel cell electric equipment.
In 2021, the US government announced to reduce the country's carbon emissions to 50-52% by 2030 from the year 2005 standards. It’s a significant decline that can coincide with the burgeoning demand for hydrogen-based fuel cells across automotive & off-highway vehicles. Hence, the aspects cited above indicate that the coming years are projected to bring lucrative growth opportunities for the regional market.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Off-Highway Fuel Cell Electric Equipment Market is forecast to grow at a considerable CAGR during 2025-30
A. The Construction & Mining industries are expected to witness the majority market share in the coming years and create lucrative growth opportunities for the leading companies in the market
A. Increasing construction activities coupled with growing concerns regarding carbon-emissions from construction & mining equipment are the key factors propelling the Off-Highway Fuel Cell Electric Equipment Market growth.
A. With the resumption of construction & mining activities worldwide and the burgeoning number of new projects, the Global Off-Highway Fuel Cell Electric Equipment Market is expected to grow steadily in the coming years