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The fuel cells market for industrial and military applications size is estimated to grow at a CAGR of 14.11% between 2023 and 2028. The market size is forecast to increase by USD 1,166.49 million. The growth of the market depends on several factors such as the growing demand for efficient and cleaner technologies, the rising applications of fuel cell products, and the growing demand for fuel cells from military applications.
This fuel cells 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). 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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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 fuel cells market for industrial and military applications growth is the growing demand for fuel cells for military applications. One of the prominent areas for fuel cell application is the military sector. The most common type of fuel cell 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 fuel cells for portable power. Hence, such factors drive the market growth during the forecast period.
A key factor shaping the fuel cells market for industrial and military applications 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 the fuel cells market for industrial and military applications growth. Minimizing costs and enhancing durability are the two major challenges in the fuel cell 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 Fuel Cells Market For Industrial and Military Applications 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 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 for fuel cells used in the industry sector. Moreover, fuel cells 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 fuel cell 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 fuel cell 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.
In 2020, during the COVID-19 pandemic, the growth of the global fuel cells market for industrial and military applications witnessed a significant slowdown due to delays in fuel cell power projects in APAC. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of activities in manufacturing hubs. Such factors are expected to drive the market during the forecast period
The fuel cells market for industrial and military applications report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Fuel Cells Market For Industrial And Military Applications 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 1,166.49 million |
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 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 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. |
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