Global demand for light FCEVs expected to grow at 25% CAGR during 2021–34

In fuel-cell stack development, certain subcomponents, such as the membrane electrode assemblies (MEA), are expected to have a high level of in-house manufacturing. Whereas for components such as bipolar plates, S&P Global expects manufacturers to continue to depend on external suppliers for the majority of requirements.

Currently, although battery-electric vehicles (BEVs) are the frontrunners in the race of alternative propulsion methods, they also come with their own set of challenges ranging from issues related to range anxiety and longer battery-recharging time, to raw materials needed for batteries. Hydrogen as a fuel holds immense promise with its clean burning, high-energy density (gravimetric energy density of hydrogen when stored under high pressure or liquid form is about 120 MJ/kg, which is approximately three times that of diesel and liquified natural gas) and efficiency (thermal efficiency of hydrogen fuel cells is 50-60%, whereas for an internal combustion engine [ICE], the figure is just about 30-35%).