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The fuel cell market size is estimated to increase by USD 13.63 billion and grow at a CAGR of 23.29% between 2022 and 2027. Market expansion hinges on various factors, such as the rising demand for effective and eco-friendly energy sources, increasing government incentives aimed at boosting the utilization of fuel cell vehicles, and the associated environmental advantages. Challenges include the steep expense of fuel cells, difficulties related to the establishment of hydrogen refueling infrastructure, and competition from alternative technologies. Overcoming these obstacles necessitates innovative approaches to reduce fuel cell costs, streamline the development of hydrogen refueling facilities, and differentiate fuel cell technology from competing alternatives. By addressing these challenges effectively, the market can capitalize on its growth drivers and establish a resilient position in the rapidly evolving energy landscape, contributing to sustainable and environmentally friendly transportation solutions.
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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 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 market is thriving with advancements in PEM fuel cell, DMFCs, and SOFCs, supported by a robust regulatory framework and initiatives like the EV campaign. Companies like Equinix are investing in water management to enhance efficiency, reducing carbon emissions and the carbon footprint. Fuel cell vehicles and FCEVs are gaining momentum, bolstered by organizations such as the IEA and UPS. Innovations like Tri-gen systems and bloom energy servers are driving the adoption of hydrogen-powered fuel, contributing to the growth of the fuel cell market and promoting clean energy technologies. Initiatives like the Ene-Farm program and collaborations between Ceres/Bosch are further propelling the utilization of PEMFCs in various sectors, including data centers, emphasizing the importance of reducing environmental impact and advancing sustainable solutions.
Key Market Driver
The growing demand for efficient and clean energy sources is driving growth in the 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. They are available in various sizes and power output capacities and are scalable in nature, making them highly compatible with providing prime power. They do not involve a combustion process in converting fuel into electricity, and 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 Market Challenge
One of the main challenges encountered by the 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 are 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 the 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.
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 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.
The market is witnessing significant growth, driven by increasing demand for efficient and clean energy sources like PEM fuel cells and SOFCs. Initiatives such as the EV campaign and adoption of FCEVs are bolstering market expansion, supported by organizations like the IEA. Companies like Equinix are investing in fuel cell technology for data centers to reduce GHG emissions and achieve zero emissions. The market sees innovations in various fuel cell types, like solid oxide fuel cells and microbial fuel cells, catering to diverse sectors, including residential and transportation. Government incentives such as subsidies and tax breaks incentivize adoption, while startups bring fresh perspectives, enhancing public awareness and accelerating the transition to clean energy technologies.
The market is experiencing significant advancements, driven by various technologies such as PEM fuel cells, solid oxide fuel cells, and microbial fuel cells. Fuel cell manufacturers are focusing on innovations in water management to enhance efficiency and sustainability. Connecticut and other regions are witnessing a surge in contracts and expansions, leading to reduced environmental impact and lower carbon emissions. Companies like Bloom Energy are pioneering the development of bloom energy servers and Tri-gen systems, utilizing hydrogen-powered fuel to cater to the transportation sector. The market is witnessing increased adoption of Fuel Cell Electric Vehicles alongside battery-electric vehicles, supported by initiatives like the Ene-Farm program and projects led by Ceres/Bosch. With ongoing regulatory frameworks and support from organizations like FCH JU, the fuel cell market is poised for substantial growth in the era of Combined Heat and Power and clean energy technologies.
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 13.63 billion |
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 forecasting, 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 Market forecast 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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