GAS DIFFUSION LAYER MARKET ANALYSIS

Market Challenges And Opportunities

Market Restraints

High cost associated with gas diffusion layer has negatively affected the gas diffusion layer market. The major base material in gas diffused layers is polyacrylonitrile (PAN). Since, the cost of PAN is higher (~US$ 15-20 per kg) as compared to other natural fibers such as cotton or bamboo fiber, the demand for gas infused layers is expected to get hampered to some extent. Moreover, the raw material used in the gas diffusion layer such as PAN or carbon cloth or paper should have high graphitization temperatures (~1700°C) for attaining higher conductivity and post-carbonization treatment, which further adds up to additional costs. These factors are projected to hinder the demand for gas infused layers to some extent.

Drivers

One of the key factors expected to stimulate market growth during the forecast period is the increasing awareness regarding harmful effects of greenhouse gases. Lack of clean energy policies has resulted in an increase in CO2 emissions across the globe. For instance, as per the article published by IEA (International Energy Agency) on March 2, 2021, the global CO2 emission rose by 2% or 60 million tons from December 2019 to December 2020. The gas diffusion layer distributes all of the gases to the membrane on which catalysts are applied which are called as catalyst coated membrane (CCM). This membrane assists in the separation of oxygen and hydrogen, thereby, transmitting positively charged protons from the anode side to the cathode side. As more gas flows homogenously across the entire cross-sectional area, more electricity is produced, which in turn increases the power density of the fuel cell.

The COVID-19 impact across industries varies. The outbreak has impacted growth switch in every sector of the economy, and power generation sector, is no exception. The increasing spread of COVID-19 has also mandated the gas diffusion layer manufacturers to deploy precautionary measures in their facilities including labors and plant controllers screening and monitoring and sanitizing the facilities. This has further increased the plant operational costs, which has indirectly increased the prices of these high value-added carbon paper. However, unlocking and reopening of industries coupled with shifting focus on production and sustainable development is expected to boost the growth of the energy sector over the post-pandemic period.  For instance, as per the article by The International Energy Agency (IEA) on March 2, 2021, the global energy demand gained momentum in December 2020, after showing a dip of around 6% in April 2020.