Global Fuel Cell Market By Type (Proton Exchange Membrane Fuel Cells,Solid Oxide Fuel Cells), By Application (Automotive Industry,Residential Sector,Healthcare), By Region, And Segment Forecasts, 2023...
Report Id: 44185 | Published Date: May 2024 | No. of Pages: 10 | Base Year for Estimate: May 2024 | Format:
The global fuel cell market is rapidly growing due to increasing demand for clean energy solutions and the need for efficient power generation. The technology is constantly improving, as a result, fuel cells are becoming more appealing for a wide range of applications. Compared to battery-electric vehicles (BEVs), fuel-electric vehicles (FCEVs) have several benefits, including a greater range and faster fueling times. As the cost of FCEVs comes down and the hydrogen infrastructure grows, the market for fuel cell vehicles is expected to boom. Companies operating in the market continuously launch new products in order to pace up with the growing fuel cell technology.
The global fuel cell market was valued at USD 7.36 billion in 2024 and is projected to reach 8.6 billion in 2028, growing at a CAGR of 27.2% from 2024-2028. Growing consumer demand for unconventional energy sources is one of the main market drivers. Although reduced environmental impact and expanding private-public partnerships are anticipated to fuel demand .
Premium Insights:
Fuel cells produce low or zero emissions, aligning with global efforts to combat climate change
Subsidies, tax incentives and favourable regulatory frameworks are promoting the adoption of fuel cell technologies
Fuel cells are used in various applications, including transportation, portable power and stationary power generation, enhancing their market potential.
Global Fuel Cell Market Dynamics:
Drivers: Growing demand for hydrogen infrastructure, stringent emission regulations and focus on EVs and diversification
The development of hydrogen refuelling infrastructure is crucial for the widespread adoption of fuel cell vehicles (FCVs). Government initiatives and private investments are accelerating the development of hydrogen infrastructure, creating a more supportive ecosystem for fuel cell technologies.
Governments are implementing stricter emission regulations for vehicles and industries. Fuel cells offer a promising solution for meeting these regulations and complying with environmental policies.
Fuel cell technology is not limited to hydrogen. Developments in alternative fuels like methanol or ammonia fuel cells are creating new possibilities for diverse applications beyond the traditional hydrogen-powered fuel cell.
Restraints: limited hydrogen infrastructure, competition from BEVs, durability & performance considerations and supply chain constraints & resource availability
The lack of readily available hydrogen refuelling stations poses a significant challenge for FCV adoption. Expanding hydrogen infrastructure is crucial for overcoming this hurdle.
Battery electric vehicles (BEVs) are currently experiencing rapid growth due to advancements in battery technology and falling battery costs. Fuel cell vehicles need to compete effectively with BEVs on factors like range, charging infrastructure, and overall cost of ownership.
While advancements are ongoing, ensuring long-term durability and optimising performance across various operating conditions remain challenges for fuel cell technology.
Certain materials used in fuel cell production can be limited or geographically concentrated. Diversifying supply chains and exploring alternative materials are crucial for long-term market sustainability.
Opportunities: focus on cost reduction & economies of scale, strategic partnerships & collaborations and integration with renewable energy sources
As production volumes increase, economies of scale can contribute to lower manufacturing costs for fuel cells. Additionally, focusing on innovative material development and efficient manufacturing processes can further reduce costs.
Collaboration between fuel cell developers, automotive manufacturers, energy companies, and government agencies can accelerate technological advancements, infrastructure development, and market adoption of fuel cell technologies.
Fuel cells can be a critical component in a clean energy ecosystem. Integrating fuel cell technology with renewable energy sources like solar or wind power offers a sustainable and reliable solution for clean energy generation and storage.
Market By Global Fuel Cell Type:
Based on Type, the market is segmented into solid oxide fuel cell, proton exchange membrane fuel cell, phosphoric acid fuel cell, microbial fuel cell, alkaline fuel cell and direct methanol fuel cell. The solid oxide fuel cell segment is expected to be the largest segment as the compact structure of the solid oxide fuel cell needs a slower startup time, which is crucial in stationary power applications. It is often used due to its simple construction.
Based on application, the market is segmented into stationary, transportation and portable. Among these, the stationary segment accounted for the largest market share due to their convenience of design applicable to both stationary and non-mobile applications. The usage of stationary variants in industrial settings like manufacturing plants, industrial parks and warehouses. In addition, stationary versions support the expansion of the market by providing a number of benefits such as high efficiency, low emissions, modularity and fuel flexibility, which make them appropriate for a variety of stationary applications.
Based on components, the market is segmented into stack and balance of plant. With a market share of over 60.1% worldwide in 2024, the stack segment led the fuel cell industry. The electrochemical process that turns fuel into electricity is carried out by the fuel stack, which is the central component of a fuel cell system. It is the most expensive component, making a substantial contribution to the overall cost due to its complexity and high-quality materials. In addition, the fuel stack market is currently more fragmented than other component markets, such as the balance of plant (BOP). Stacks cost more as a result of this crowded market.
Based on Fuel Type, the market is segmented into hydrogen, ammonia, methanol, ethanol and hydrocarbon. With a share of over 90.1 % in 2024, the hydrocarbon segment held the largest share. This is because hydrocarbons are easily accessible and reasonably priced due to the extensive infrastructure already in place for their production, transportation, and storage. Hydrocarbon utilisation has a bright future due Direct Hydrocarbon Fuel Cells, Solid Oxide Fuel Cells, and Molten Carbonate Fuel Cells. Systems that combine heat and power as well as portable power for distant locations use hydrocarbon fuel.
Based on size, the market is categorised into small-scale and large-scale. The large-scale holds a share of about 70.1% in 2024 of the global fuel cell market. They usually produce more than 100 kW of electricity, which is used in heavy-duty transportation, industrial, and stationary power generation applications. In order to increase their market share, vendors in this segment also introduce novel products.
Market By End-Use Insights:
Based on end-use, the commercial and industrial sector is expected to be the fastest-growing market. It includes hospitals, shopping centre malls, hotels, office buildings, sports centres and other facilities. All types of fuel cells such as solid oxide, phosphoric acid fuel cells etc. are used in this sector for stationary application purposes allowing this sector to curb greenhouse gas emissions.
Market By Region Insights:
Based on regional coverage, the global fuel cell market is segmented into Asia-Pacific, Europe and North America. Asia-Pacific held a significant market share in 2023 primarily due to countries such as India, Japan, China and South Korea- strategies and policies that support fuel cell systems for transportation applications have contributed to the growth of the fuel cell market in the Asia-Pacific region. South Korea is the second-largest fuel cell market in the region after Japan. The high demand for combined heat and power systems in Japan and other countries in the region is expected to increase Fuel cell sales rapidly.
Competitive Scenario:
Major players operating in the market are Ballard Power Systems, Bloom Energy
Ceres Power Holdings PLC, Doosan Fuel Cell America, Inc., Nedstack Fuel Cell Technology B.V.FuelCell Energy, Inc., Hydrogenics Corporation, Nuvera Fuel Cells LLC, Plug Power, Inc.
Scope of Work-Global Fuel Cell Market
Key Market Developments
January 2023- Research into the creation of an electric vessel powered by hydrogen using low-temperature proton exchange membrane technology was started by Cochin Shipyard Limited and Advent Technologies and Alfa Laval worked together to investigate high-temperature proton exchange membrane fuel cells' potential for use in maritime settings.
October 2023- TECO 2030 developed hydrogen fuel cells that enable ships and other heavy-duty applications to become emissions-free. This was possible due to TECO’s world-class fuel system being a technologically advanced clean energy system.
November 2023- During European Hydrogen Week in Brussels, Honda and General Motors unveiled a prototype of their next-generation hydrogen fuel cell system. The business intends to increase the range of fuel cell technologies it offers.
December 2023- Komatsu, a manufacturer of construction equipment in Japan, and General Motors have announced plans to develop a hydrogen fuel cell power module for the 930E electric drive mining truck.
Frequently Asked Questions (FAQs)
What is the current size of the global fuel cell market?
Ans. The global fuel cell market was valued at USD 7.36 billion in 2024 and is projected to reach 8.6 billion in 2028
What are the main drivers of the fuel cell market?
Ans. Key drivers include growing demand for hydrogen infrastructure, stringent emission regulations and a focus on EVs and diversification.
What are the primary challenges faced by the market?
Ans. The challenges include limited hydrogen infrastructure, competition from BEVs, durability & performance considerations and supply chain constraints & resource availability
What opportunities exist in the market?
Ans. Opportunities consist of a focus on cost reduction & economies of scale, strategic partnerships & collaborations and integration with renewable energy sources
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