Hydrogen Fuel Cell Excavator Market

Hydrogen Fuel Cell Excavator Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2022-2031

Hydrogen Fuel Cell Excavator Market: Introduction

Demand for excavators is rising rapidly due to a rise in mining and civil construction projects across the world. Increase in government spending on infrastructure and undertaking of major international infrastructure projects, such as One Belt One Road (OBOR) and Belt and Road Initiative (BRI) as well Trans Asian Highway in Asia Pacific, Seine Scheldt Project and Brenner Base Tunnel in Europe and California High Speed railway and Sound Transit 3 in North America, is leading to the massive growth in the demand for earthmoving and construction equipment including excavators. These factors are estimated to boost the hydrogen fuel cell excavator market during the forecast period.
Hydrogen fuel cell excavators are powered by an electric motor which is driven by fuel cells placed on board the excavator
Mostly hydrogen fuel cell excavators are usually of 20 ton capacity and used in urban construction projects within city limits
The prevalent trend in the hydrogen fuel cell excavator industry, currently, is to use crawler excavators of capacity of 20 ton powered by proton membrane exchange fuel cell technology

Key Drivers of Hydrogen Fuel Cell Excavator Market

Infrastructure spending and construction activities are growing at a significant pace, worldwide, leading to a healthy rise in the sales of construction equipment such as excavators. This is also estimated to boost the hydrogen fuel cell excavator market, globally.
Adoption of stringent emission norms is adversely affecting the feasibility of diesel engines in the automotive industry, as incorporation of sophisticated emission control technologies, such as selective catalyst reduction, pushes the price of diesel engines significantly rendering them uncompetitive from the point of view of manufacturing costs. All the earthmoving equipment including excavators are powered by diesel engines, therefore manufacturers of construction equipment are increasingly looking for alternative powertrains to power construction and earthmoving equipment. Hydrogen is increasingly emerging as a cost-effective zero emissions automotive fuel, triggering significant interest from both manufacturers and regulatory bodies in exploring its usage as a major automotive fuel even for heavy duty construction equipment. These factors are also expected to boost the global hydrogen fuel cell excavator.
Electric batteries are too expensive and heavy to be used in large construction and earthmoving equipment. Moreover, most of the large construction and earthmoving equipment functions in remote locations where no charging infrastructure is present. These factors make application of electric powertrains difficult in construction and heavy earthmoving equipment, thereby limiting their usage to compact and light duty construction equipment only. Hydrogen being a credible alternative to electric powertrains is increasingly being witnessed as the fuel of future for the construction equipment by major OEMs. This is also boosting the hydrogen fuel cell excavator market.
Fuel costs constitute a major chunk of the operating costs of any construction and earthmoving equipment. Thus owners and operators of construction and earthmoving equipment fleets always consider various ways to reduce their fuel costs. Hydrogen powertrains are proving to be an attractive alternative to diesel powertrains. This is also anticipated to considerably drive the hydrogen fuel cell excavator market.

Challenges in Hydrogen Fuel Cell Excavator Market

Hydrogen excavators are still to be launched commercially. Manufacturers are conducting pre-launch trials of hydrogen excavators for their clients. Thus, hydrogen fuel cell excavator market is yet to be realize, commercially, putting strong limitations on its growth.
Naturally occurring hydrogen is unstable and hence cannot be stored for long. Thus production and storage of hydrogen on board a vehicle is still one of the major technical challenges facing hydrogen vehicles, including buses.
Lack of hydrogen refueling network and potential competition from electric excavators in the compact excavator segment are hurting the long-term prospects of the global hydrogen fuel cell excavator market

Opportunities in Hydrogen Fuel Cell Excavator Market

Major earthmoving equipment manufacturers such as JCB, Hyundai Construction Equipment, and Sany Heavy Industry Co. Ltd. are investing significantly in the development and production of hydrogen powered equipment including excavators. This is fuelling the hydrogen fuel cell excavator market.
Adoption of stringent emission norms and rising fuel costs are prompting manufacturers and owners of excavators to look for alternative powertrains including hydrogen. This is also predicted to boost the hydrogen fuel cell excavator market.
Rising government spending on big ticket infrastructure projects worldwide is also projected to propel the excavator market including market for hydrogen powered excavators, because excavators are one of the most commonly used pieces of earthmoving equipment in construction works.
Lack of commercial production and only the delivery of prototypes to interested clients is hampering the hydrogen fuel cell excavator market in the short term.
Technical difficulties in producing and storing hydrogen on board the excavators are also limiting the hydrogen fuel cell excavator market in the mid to long term outlook.

Hydrogen Fuel Cell Excavator Market in Europe to Expand Significantly

Europe is predicted to be a dominant market for hydrogen fuel cell excavator due to presence of OEMs such as JCB who have developed the first working prototype of hydrogen excavator in the world and the adoption of stringent emission norms rendering diesel engines non feasible even for heavy duty applications such as earthmoving equipment.
Asia Pacific is estimated to follow Europe, in terms of share of the global market owing to the large undertaking of infrastructure projects in countries such as China, India, and ASEAN and the presence of major OEMs for construction equipment, such as Komatsu and Sany, as well as enactment of stringent emission norms to reduce carbon emission from the transportation sector in the region
North America is also anticipated to be a major market for hydrogen fuel excavators because of the existence of major OEMs such as Caterpillar Inc., widespread usage of fuel cell technology, presence of the U.S., which is the second largest market for excavators in the world, and introduction of strict vehicular emissions norms in the region

Key Players Operating in Hydrogen Fuel Cell Excavator Market

The hydrogen fuel cell excavator market is moderately consolidated. A few of the key players operating in the global hydrogen fuel cell excavator market are: