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New York, January 29, 2021 – The global hydrogen tube trailers market is expected to witness major growth, thanks to growing adoption of fuel-cell technology, increased investments in hydrogen infrastructure, like hydrogen fuelling stations for heavy-trucks. The market will likely grow at 10.0% CAGR during 20202-2026, as hydrogen’s properties as a natural energy carrier, lowering costs of renewable energy, and growing energy demand in emerging nations promises to provide a major boost to growth.
Growing Demand for Electric Vehicles to Drive Growth for FCEVs in the US
On January 29th, 2021, President Biden passed an executive order stating that he will convert the entire federal fleet of vehicles into electric vehicles. According to the General Services Adminstration Report, the US federal government owns a 645,000 vehicle fleet. Moreover, only 4,500 of these are electric vehicles. Furthermore, the US department owns more than 225,000 postal trucks, and 170,000 military vehicles. Both of these constitute heavy-vehicle demand, and require immediate fuelling services for uninterrupted services. The current electric vehicle infrastructure cannot meet these requirements, as cars like Tesla can require over 6 to 12 hours for a full charge. On the other hand, electric fuel cells powered by hydrogen can be refuelled within 15 minutes. Fuel cells also promise a clean, efficient, and quiet operation, another necessary benchmark for military, and postal service operation. Fuel cells also promise scalability, and durability for long-term operations, which is essential for growth of public transport, private vehicles, and growing demand for long-term use. The recent order by the US administration, and growing drive to meet clean energy targets for renewable energy will provide major growth for the global hydrogen tube trailers market in the near future.
International Energy Agency States ‘Now is the Time’ To Invest in Clean Hydrogen Energy
According to the International Energy Agency’s (IEA) 2019 forecast, thanks to expansion of favourable policies, and hydrogen projects, the time has come for businesses to scale up technologies, and bring down costs to make hydrogen energy a widespread reality. According to the report, the hydrogen supplying operation for industrial uses has expanded three hold since 1975, and continues to rise. Moreover, there is major scope for revamping in this operation, as almost all the current hydrogen production comes from fossil fuels. According to the IEA, 31.5 Mt of hydrogen is used for ammonia production, while 38.2 Mt is used for refining applications. Moreover, the IEA estimates that there are over 50 mandates, targets, and policies in place that directly support production of hydrogen. These promises to solve challenges like cost of production.
According to the IEA estimates, fuel costs account for over 45% to 75% of hydrogen production costs. Moreover, the low costs of fuels in North America, Middle East, and Russia provide tremendous momentum for production of hydrogen energy. Furthermore, the rising demand for energy in emerging countries like India, and China, and their dependence on gas imports make hydrogen energy production a key driver for growth in the global hydrogen tube trailers market.
Growing Investments From Vehicle Manufacturers in Commercial Transport to Provide Impetus for Growth
General Motors announced in 2021 that it will deliver its fuel-cell system for Nikola’s class 7 and 8 commercial semi-trucks. Moreover, as hydrogen fuel-cell technology provides advantages over the next-gen electric vehicles in refuelling, greater range, and potentially cleaner source of fuel, the GM announcement is just the tip of the iceberg for its potential growth. For example, GM, Daimler, Hyundai, Toyota, Daimler, GM, and Volkswagen are all in the process of competing with electric vehicles with hydrogen-fuel cell technology. Most of these companies will launch heavy-trucks fuelled by hydrogen fuels by the end of 2021.
Moreover, governments around the world continue to take keen interest in growth of the hydrogen fuel technology, thanks to its potential as clean energy alternative. For example, the State of California funds over 100 hydrogen fuelling stations through its AB 8 program. Moreover, the US Department of Energy estimates that the demand for hydrogen fuel will rise to 22-41 million metric tons/year by 2050. The department also predicts that hydrogen energy will open up new opportunities for growth with new applications such as synthetic fuels, steelmaking, energy storage, fuel cell vehicles, and injection into the natural gas system. This will likely double growth of hydrogen-based energy, thanks to strong demand for hydrogen energy in conventional applications like fertilizer manufacturing, oil refining, and chemical production.
Hydrogen Tube Trailer Promise Potential for Growth as Clean Energy Production Costs Set to Decline
Electric fuel for energy continues to remain a dominant driver of clean energy worldwide. However, the expansion of this energy is limited in key sectors like residential, transport, and industry. In 2016, these sectors accounted for 49% of CO2 emissions in the EU. On the other hand, hydrogen fuel promises to achieve zero-emission goals for key industries like the power sector. In 2016, the government in Netherland explored a possibility of converting a 440MW gas turbine to operate on hydrogen. This resulted in net decrease of over 1.3 Mt CO2 per year. Furthermore, parts of the UK have adapted low-carbon hydrogen grids to provide heating for residential areas. The grids promise a potential of saving 120 Mt CO2, and 8 billion euros for the country.
IEA estimates that hydrogen is the leading contender for storing renewable energy. Moreover, it can be used in gas turbines to increase power system flexibility. The fuel can also be used in coal-fired power plants to reduce emissions, and transit to a cleaner energy. Furthermore, the IEA also projects there is scope for integration of hydrogen energy into existing natural gas networks. These can power tomorrow’s fuel cells, and boilers, meeting an invaluable demand in dense cities for commercial application.
IEA estimates state that the costs of renewable energy will fall by 30% by 2030. The scaling of hydrogen production, advancement in fuel cell technology, and growing public, and private investments remain key drivers for growth. This anticipated decline in costs, and rising demand for clean energy in countries like India, and China remain a major momentum for growth as refuelling equipment, fuel cells, and electrolysers will all benefit from mass manufacturing.
The Hydrogen Tube Trailers Market Report is Segmented as Below:
By Product: Modular Tube Trailer, Intermediate Trailer, Jumbo Tube Trailer
By Application: Hydrogen Station, Transport
By Region: North America(United States, Canada, Mexico), Asia-Pacific(China, India, Japan, South Korea, Australia, Indonesia, Singapore, Rest of Asia-Pacific), Europe(Germany, France, UK, Italy, Spain, Russia, Rest of Europe), Central & South America(Brazil, Argentina, Rest of South America), Middle East & Africa(Saudi Arabia, Turkey, Rest of Middle East & Africa)
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