Market Trends of Japan Fuel Cell Industry
This section covers the major market trends shaping the Japan Fuel Cell Market according to our research experts:
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 is 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 for fuel cell is expected to grow in forecast period.
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Increased Use of Fuel Cell Based CHP to Supplement the Market Growth
- Japan has dominated the fuel cell based Combined Heat and Power systems sector growth in 2018 and is expected to continue its dominance in the coming years as well. The region is expected to seean unprecedented increase during the forecast period.
- 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 300,000 fuel cell systems by the end of 2019. Japan has added nearly 50,000 units (roughly 35 MW) of residential micro-CHP fuel cell systems in 2018, under the Ene-farm programme.
- Government of Japan have set a target for 1 GW of larger fuel cell based systems by end of 2030. Companies like Hitachi Zosen Corporation have demonstrated various large power systems with over 54% of efficiency in a 4,000 hours continuous operation test conducted in 2017-2018.
- Therefore, the aforementioned factors are expected to drive the market in forecast period, similar to the trend witnessed in recent years.
