Automotive Fuel Cell Growth Will Ramp up to Large Market by End of the Decade, according to the latest Allied Business Intelligence AFC Report.

Business Editors

OYSTER BAY, N.Y.--(BUSINESS WIRE)--July 18, 2001

Growth in the automotive fuel cell vehicle market will still be strong by the end of the decade, although product available in 2003 and 2004 will be less than Allied Business Intelligence (ABI) originally expected, according to new ABI findings.

According to the latest ABI automotive fuel cell study, global automotive fuel cell market penetration will begin with thousands of units in the US and in Japan in 2003 and 2004, with a large ramp up occurring globally in 2007 and 2008.

"It is not the same industry it was even a year ago," said Atakan Ozbek, ABI VP of Energy Research and study author. "The dynamics that are driving the fuel cell industry have been evolving rapidly and are setting the stage for a large market; however, certain technical and economical challenges still have to be met by the industry players across the board," said Ozbek.

If the regulatory incentives and key technical challenges are overcome by the active players sooner rather than later in the forecast period, ABI expects 2.4 million vehicles running on fuel cells, or 4.3% of all autos produced, in 2011.

Important early markets will be seen in bus fleets, and in state and federal government fleets. Where necessary, central hydrogen fueling facilities are easier to build and maintain than passenger cars fueling stations across the US. Main technological issues still standing in the way of fuel cell developers and the automakers include fuel cell fuel distribution and simplifying fuel cell processing. Also, AFC units will be too expensive until a total of approximately 100,000 have been manufactured. "Despite all of this, almost all automotive manufacturers, even the once conservative GM, is now investing in the potential hydrogen economy," said Ozbek.

The new ABI study, "US and Global Automotive Fuel Cell Markets: Markets, Technologies and Applications," analyze market opportunities for automotive fuel cells from passenger cars to buses and trucks. Niche market opportunities from fleet applications to airport ground support vehicles are also studied. The report also details the technical challenges and opportunities from both market economics and environmental perspectives. The major players in the industry are delineated, along with the status of their technologies and the most likely applications from 2001 to 2011.

Allied Business Intelligence Inc is an Oyster Bay, NY-based technology research think tank publishing strategic research on emerging industries. Details can be found at www.alliedworld.com. or by calling 516/624-3113.