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The fuel cells market for industrial and military applications size is estimated to grow by USD 1.16 billion at a CAGR of 14.11% between 2023 and 2028. The market is driven by several factors. These include the increasing demand for cleaner and more efficient technologies, expanding applications of fuel cell products, and growing utilization of fuel cells in military applications. As the need for sustainable energy solutions rises, fuel cells have emerged as a promising technology due to their low environmental impact and high efficiency. This trend is further fueled by the growing awareness of environmental issues and the push for greener alternatives across various industries. Additionally, advancements in fuel cell technology have expanded their applications, leading to increased adoption in both commercial and military sectors. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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This market for industrial and military applications report extensively covers market segmentation by end-user (industrial and military), product (PEMFC, PAFC, SOFC, and others), and geography (APAC, North America, Europe, South America, and the Middle East and Africa).
The industrial segment is estimated to witness significant growth during the forecast period. Prime/backup power and CHP applications are the main applications of fuel cells in the industrial sector. Uninterrupted power is crucial in industries as it has an impact on the production process, which has led to industries adopting distributed energy. In addition, distributed generation technologies can include fuel cells, hybrid solar systems, biomass boilers, microturbines, and wind turbines.
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The industrial segment was the largest segment and was valued at USD 807.53 million in 2018. Moreover, distributed generation resources provide benefits that cannot be offered by the centralized grid. In addition, the power is generated at the source, which leads to no transmission and distribution (T&D) losses and offers higher reliability. Furthermore, the need for reliable power and the ability to stack fuel cells to create a power station are the primary growth drivers used in the industry sector. Fuel cells, specifically solid oxide fuel cells, are highly efficient devices that generate electricity through the electrochemical conversion of fuel. Moreover, they have lower emissions compared with their fossil fuel alternatives, which is also helping to reduce harmful emissions. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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APAC is estimated to contribute 40% 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. Some of the main factors that are significantly contributing to the growth of the market in APAC include the increase in investment in these devices and advances in technology. Moreover, the increasing need for reducing energy consumption across various sectors will also fuel the growth of the market in the region.
Some of the key countries that are significantly contributing to the market growth in APAC are Japan, South Korea, and China. Furthermore, the market for industrial and military applications in South Korea and Japan is fuelled by the increased focus of the governments to shift from nuclear and fossil fuel power sources to renewable sources. Hence, such factors drive the market growth in APAC during the forecast period.
The market is crucial for reducing vehicle emissions and Greenhouse gas emissions. Fuel cell vehicles (FCVs) are gaining traction due to lower CO2 emissions compared to traditional vehicles, but face Storage issues and Vehicular constraints. In the Transport sector, fuel cells offer sustainable solutions, while in Military and defense applications, they power critical systems. The Aerospace market is also exploring fuel cells, particularly in aerospace, powering UAVs and enhancing Non-conventional energy resources. Advances in Digital technology are improving Electrochemical systems, and converting Chemical energy into Electrical energy through Redox reactions. These innovations have potential for Commercial use in satellites and space capsules, reducing reliance on traditional power sources. Digital technology advances are driving the development of electrochemical system that leverage non conventional energy resources and oxidizing agent like oxygen, revolutionizing energy production and storage Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the growing demand for fuel cells for military applications. One of the prominent areas for application is the military sector. The most common type used in portable applications is DMFC as it provides high energy density. In addition, conventional batteries have been used to power soldiers' equipment, but they alone cannot meet the full requirement during long assignments.
Moreover, DMFC has an exceptionally high theoretical specific energy density that exceeds more than 48 times that of Li-ion batteries, which lessens the need for additional batteries on a multi-day mission, enabling it to be extensively used in military missions. Furthermore, the defense industry's need for lightweight, portable power solutions to reduce the weight that is borne by soldiers is fuelling the adoption of these is portable power. Hence, such factors drive the market growth during the forecast period.
A key factor shaping the market growth is the rise in distributed power generation. The increasing need for uninterrupted and reliable power supplies in developed countries, while it is used in developing countries to increase the electrification rate, fuels the adoption of distributed energy generation. The instances of natural calamities disrupting the continuous flow of power have resulted in customers seeking increased reliability and resiliency.
Moreover, large companies including Apple, Procter and Gamble, IBM, Verizon, AT and T, and Google have widely accepted distributed energy generation in their facilities, data centers, and warehouses for power, heating, or sometimes cooling requirements. Several factors such as improved efficiency and greater control over the power generation resources are fuelling the adoption. Hence, such factors drive the market growth during the forecast period.
Issues associated with fuel cells are one of the key challenges hindering market growth. Minimizing costs and enhancing durability are the two major challenges in the market for industrial and military applications. In addition, the production of hydrogen is expensive and is not available widely.
Moreover, hydrogen is hard to find in the atmosphere, as opposed to other gases. Therefore, for its production, it is essential to use processes such as the electrolysis of water. Therefore, this process costs a lot of money and time. Furthermore, the lack of infrastructure to support the distribution of hydrogen is expected to negatively impact the market growth. Hence, such factors hinder the market growth 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 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.
Acumentrics Inc: The company offers fuel cells such as Solid Oxide fuel cells and Ruggedized UPS and power supplies
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments
The market is rapidly evolving with the rise of Fuel cell electric vehicles and their use in various sectors including Commercial and industrial, Transportation, Residential, Data center, and Utilities. Technologies such as Proton exchange membrane fuel and Polymer membrane are enhancing Water management and enabling efficient Reactant diffusion and Catalyst sites in Fuel cell stacks. Factors like Temperature, Reactant flow rates, and Pressures are critical for optimal performance, along with proper Humidification and Cell design. Fuel cells like Solid oxide fuel cell, Phosphoric acid fuel cell, and Alkaline fuel cell are finding applications in various industries, aiding in Decarbonization efforts.
Furthermore, in the aerospace sector, fuel cells are revolutionizing Air Transport by reducing Carbon emissions and reliance on traditional Turbofan and Turboprop engines. Companies like TotalEnergies are investing in sustainable solutions like Hydrogen fuel cells and Sustainable aircraft fuels (SAF). Military applications, including Military drones and Heavy-duty cargo drones, benefit from fuel cell technology's reliability and long Lifespan, reducing dependency on traditional fuel sources and improving Environmental pollutants and Noise levels. This market's growth is driven by advancements in Fuel cell systems and Fuel cell stack technology, addressing challenges in Hydrogen production and GHG emissions.
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.11% |
Market Growth 2024-2028 |
USD 1.16 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.67 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, Japan, South Korea, China, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acumentrics Inc., Advent Technologies Holdings Inc., Air Liquide SA, AISIN CORP., Altergy Systems, Australian Fuel Cells Pty Ltd., Ballard Power Systems Inc., Bloom Energy Corp., Doosan Corp., Elevator World LLC, FuelCell Energy Inc., GenCell Ltd., Hyster Yale Materials Handling Inc., Intelligent Energy Ltd., Nedstack Fuel Cell Technology BV, Plug Power Inc., Redox Power Systems LLC, SFC Energy AG, Toshiba Corp., and TW Horizon Fuel Cell Technologies |
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, and Market condition analysis for the market 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 End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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