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The fuel cell market size is estimated to grow at a CAGR of 23.29% between 2022 and 2027. The market size is forecast to increase by USD 13,633.03 million. The growth of the market depends on several factors, including the growing demand for efficient and clean energy sources, the growing government incentives to increase the adoption of fuel cell vehicles, and the environmental benefits.
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The growing embrace of microgrids is a key trend in the fuel cell market. Microgrids are small-scale electricity networks with their own generation and storage resources, often using renewable sources like wind and solar to reduce reliance on fossil fuels. They can operate independently or in coordination with larger grids. Microgrids play a crucial role in ensuring consumer safety during blackouts and enhancing energy security, especially in areas prone to power outages.
Microgrids are gaining traction, especially in industrial and commercial sectors where even brief power interruptions can lead to substantial revenue losses. Recognizing their reliability, utilities are entering the microgrid business to counter their potential impact. By owning and investing in microgrids, utilities can capitalize on their advantages. This expansion allows utilities to enhance energy resilience, provide reliable power, and generate revenue, driving the growth of the global fuel cell market in the forecast period.
The market share growth by the PEMFC segment will be significant during the forecast period. Proton Exchange Membrane Fuel Cells (PEMFC) use a water-based and acidic polymer electrolyte in the form of a thin, permeable sheet. It uses platinum-based electrodes as a catalyst and operates at lower temperatures than other fuel cells. These features make them efficient for use in various applications, such as vehicles and stationary applications, which require power within a short time of being operational.
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PEMFCs are also called polymer electrolyte membrane fuel cells. In these fuel cells, electrons are separated from the protons of the hydrogen fuel on the surface of a platinum-based catalyst at the anode. The electrons then travel in an external circuit to generate the electrical output while the protons pass through the membrane toward the cathode. PEMFCs have various advantages in these fuel cells, which include fast start-up time, low operating temperature, compactness, sustainable operations in high energy density, and low emissions.
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Europe is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The fuel cell market in North America is expected to witness a steady growth rate during the forecast period. The US is the leading contributor to the growth of the market in the region. It accounts for the largest share of shipments globally as well. Clean energy-based technologies are eligible for both state and federal incentives. Fuel cell technology enables companies to remove their dependence on grid power and have a reliable source of energy. In addition, their total carbon footprint is reduced. In mission-critical areas, where continuous power is needed, fuel cells are also being deployed and their energy costs account for a significant part of the cost.
The outbreak of the COVID-19 pandemic in early 2020 negatively impacted the Americas, which led to the shutdown of several industries in the region. However, in 2021, there was a decrease in new cases of COVID-19 as a result of the opening up of large-scale vaccination programs and the elimination of containment, which resulted in the resumption of manufacturing activities leading to the production of fuel cells. The demand for fuel cells has been built up in the market from 2022 onwards, driven by an increase in environmental awareness and greater demands for renewable energy sources in sectors such as motor vehicles and construction. These factors are expected to magnify the growth of the regional fuel cell market during the forecast period.
Key Fuel Cell Market Driver
The growing demand for efficient and clean energy sources is driving growth in the fuel cell market. Fuel cells have emerged as an efficient and reliable alternate technology for electricity generation, heating, and other prime power applications, as they can supply heat and power with high efficiency. Fuel cells are available in various sizes and power output capacities and are scalable in nature, making them highly compatible with providing prime power. Fuel cells do not involve a combustion process in converting fuel into electricity, they generate power by an electrochemical reaction. Emission levels may range between zero and almost zero depending on fuel sources.
Additionally, these emissions are not harmful and they predominantly take the form of water and heat, including neutropoxide or particulate matter. The most dominant source of energy generation in the world is fossil fuels. One of the biggest sources of global CO2 emissions that have a high negative environmental impact is coal. Therefore, the adoption of cleaner and more efficient power sources is increasing to mitigate climate change amid growing environmental concerns which would strengthen the demand for the market in focus during the forecast period.
Major Fuel Cell Market Challenge
One of the main challenges encountered by the fuel cell market is high cost of fuel cell. The high cost of producing hydrogen fuel is due to electrolysis, the process to produce hydrogen from water is expensive and necessitates a large amount of energy. Also, the construction and maintenance costs for hydrogen fueling stations is very high. In addition, lack of infrastructure, complex and expensive materials like platinum catalysts, along with low economies of scale are the contributing factors that are hindering the growth of fuel cell market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Fuel Cell Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ballard Power Systems Inc. - The company offers fuel cells such as Fcgen Lcs Mea and FCveloCity 9SSL Mea.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The fuel cell market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Fuel Cell Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23.29% |
Market growth 2023-2027 |
USD 13633.03 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
22.58 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 33% |
Key countries |
US, Japan, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ballard Power Systems Inc., Bloom Energy Corp., Ceres Power Holdings plc, Doosan Corp., FuelCell Energy Inc., General Motors Co., Honda Motor Co. Ltd., Hyundai Motor Co., Intelligent Energy Ltd., KYOCERA Corp., Mitsubishi Heavy Industries Ltd., Niterra Co. Ltd., Panasonic Holdings Corp., Plug Power Inc., PowerCell Sweden AB, Proton Motor Fuel Cell GmbH, SFC Energy AG, Toshiba Corp., Watt Fuel Cell Corp., and Fuji Electric Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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