USD 2.03 billion
Report ID:
SQMIG10B2034 |
Region:
Global |
Published Date: July, 2024
Pages:
242
|Tables:
65
|Figures:
75
Fuel Cell Market size was valued at USD 2.90 Billion in 2022 and is poised to grow from USD 3.69 Billion in 2023 to USD 25.10 Billion by 2031, at a CAGR of 27.1% during the forecast period (2024-2031).
Fuel cells are electrochemical devices that convert the chemical energy of a fuel into electricity through reaction with an oxidizing agent. They are composed mainly of an electrolyte that facilitates the movement of charged particles between a pair of electrodes—one positive, one negative. There are different types of fuel cells, but they all work on the same principle. In general, a fuel cell uses hydrogen for fuel—although alternatives like methanol and natural gas exist—that is ionized at the anode. The ions free up electrons which flow through an external electrical circuit, producing electricity. The hydrogen ions flow through the electrolyte to the cathode where they combine with oxygen from the air to form water, to complete the electrochemical circuit.
Fuel cells are, therefore, much more efficient at converting fuel into electricity, with little wasted heat, and they produce no noxious emissions. In addition, their quiet operation and steady output make them well-suited for many applications—from transport to backup power to portable energy.
The continuous technological advancements, driven by novel materials and designs, are enhancing fuel cell efficiency and performance, further driving the market growth. Among the various sectors, transportation emerges as a significant market for fuel cells, particularly with the rise of fuel cell electric vehicles. As the cost of FCEVs declines and the hydrogen infrastructure expands, the market for fuel cell vehicles is poised for substantial growth.
Though promising, fuel cells have some challenges. High production costs and specialized infrastructure are required both for fueling and maintenance. Hydrogen, the primary fuel, is difficult to store and transport, which has prevented mass adoption. Despite these limitations, fuel cells are an exciting emerging technology that is bound to play a major role in the transition to a low-carbon economy.
US Fuel Cell Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 2.03 billion
Largest Segment
Proton exchange membrane fuel cell
Fastest Growth
Proton exchange membrane fuel cell
Growth Rate
16.67% CAGR
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Fuel Cell Market is segmented by Type, Size, Fuel, Component, Application, and region. Based on Type, the market can be segmented into Proton Exchange Membrane Fuel Cell, Solid Oxide Fuel Cell, Phosphoric Acid Fuel Cell, Alkaline Fuel Cell, Microbial Fuel Cell, Direct Methanol Fuel Cell, Others. Based on Size, the market can be segmented into Large Scale, Small Scale. Based on Application, the market can be segmented into Automotive, Non-Automotive, Power, Others. Based on Fuel, the market is segmented into Hydrogen, Ammonia, Methanol, Others. Based on Component, the market is segmented into Stack [Cells, Interconnects, End Plates, Sealants, Others], Balance of plant (BOP) [Heat Transfer Components, Power Electronics & Control Systems, Instruments & Sensors, Fuel Reformers/Desulfurizers, Others]. Based on region, the market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Fuel Cell Market Analysis By Size
Based on the size the market is segmented into small scale and large scale.
In the annum 2023, the dominion of the large-scale segment within the global fuel cell market was unmistakable, commanding an impressive share of roughly 70%. These formidable systems, capable of generating electricity over 100 kW, cater to stationary power generation, heavy-duty transportation, and industrial applications. Corporations in this arena persistently introduce groundbreaking products to enhance their market presence and address the ever-evolving demands of their clientele. This prevailing dominance highlights the essential role that large-scale fuel cell systems play in delivering reliable and sustainable energy solutions across a multitude of sectors, thereby driving the segment’s significant market share. For example, in November 2023, Kohler Energy unveiled a 100-kW hydrogen fuel cell power system, designed for off-highway equipment and standby and prime power applications for residential and industrial purposes.
In contrast, small fuel-cell systems producing electricity at less than 100 kW are serving lightweight, portable applications in small-scale transportation, residential backup power, and material handling equipment. In general, demand for such small-scale fuel cells is expected to continue to grow steadily through improvements in miniaturization and decrease in costs. In October 2023, the materials handling vehicles manufacturer Toyota Industries announced commercial development of a 50kW fuel cell module for lift trucks and other vehicles, along with the example use in agricultural and construction. This technology has become increasingly accessible and cost-effective, and it is used more and more by various end-user groups. Small-scale fuel cells are thus set to play a significant role in the demand for ever more increased implementations of clean and efficient energy systems in the coming years.
Fuel Cell Market Analysis By Fuel Type
Based on fuel type the market is segmented into hydrogen, methanol, ammonia and other fuel type.
Among the fuel types in the fuel cell market, the hydrogen segment is both the dominant and the fastest growing one. The hydrocarbon segment dominated the fuel cell market in 2023, capturing over 90% of the market share, propelled by the existence of strong infrastructure able to manufacture, transport, and store hydrocarbons, which duly attests to their accessibility and affordability. However, the hydrogen segment is projected to be the fastest-growing type, powered by the increasing investments toward the production, storage, and infrastructure of hydrogen. In addition, its growing demand for fuel cell vehicles, stationary power generation, and industrial applications is projected to further propel market growth.
Methanol is regarded as the second highest growing segment after hydrogen. Methanol fuel cells are increasingly coming to the forefront in many applications, ranging from portable electronic devices, backup power systems to motive power. Methanol, on the other hand, is easily available, can be easily transported, and has a good energy density, making it a very good fuel for fuel cells. Meanwhile, current research and development push the envelope with the advent of advancements in methanol fuel cell technology.
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The Asia Pacific fuel cell market dominated with over 65% of the revenue share in 2023, and it is expected to grow at the fastest rate during the forecast period. This dominance is mainly driven by strategic policies adopted by emerging economies in the region to promote the adoption of fuel cell systems for transportation applications, particularly in countries such as China, India, South Korea, and Japan. Japan is leading the market in the region on the back of strong government backing and focused market approaches, becoming the first country to commercialize residential fuel cell systems back in 2009. Similarly, the fuel cell market in India has gained momentum on the back of growing concerns for clean energy and efforts by the government in measures to push towards a low carbon scenario. The Indian market is still embryonic; however, it has a huge potential in various segments, backed strongly by policies favoring research, development, and deployment of fuel cell technologies.
North America is expected to be the fastest growing market in the fuel cell industry. High investments in R&D initiatives to develop advanced fuel cell technologies and the large-scale deployment of products drive regional market growth. The United States and Canada are at the forefront, making significant investments in developing the infrastructure for the refueling of hydrogen and offering several tax incentives to drive the adoption of technologies. For example, the Clean Vehicle Rebate Project in California has provided healthy rebates to fuel cell electric vehicle owners, thus boosting market demand. Moreover, the funding of the Solid-State Energy Conversion Alliance managed by DOE's Office of Fossil Energy greatly boosts innovation in fuel cell technology. This deployment initiative, both at the country and state levels across North America, supported and aimed at reducing greenhouse gas emissions as well as increasing the use of renewable energy, is expected to drive huge market growth in the region.
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Fuel Cell Market Driver
Increasing Demand for EVs Due to Widespread Effective Campaigns by Various Institutions
Growing Reliance on Renewable Energies to Ensure a Reduction in Greenhouse Gas Emissions
Fuel Cell Market Restraint
High Initial Capital Investment and Infrastructure Challenges
Growing Preference of Battery Electric Vehicles over Hydrogen Vehicles
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Different technology experts, innovative competencies, and strategic alliances are continuously aimed at their business expansion and market-revenue generation by significant competitors in the fuel cell market. Companies like Ballard Power Systems, Plug Power, and Bloom Energy are dominating the fuel cell market altogether with their extensive product portfolios and global footprints. These market dominators follow innovations through consistent investments in research and development for the introduction of fuel cell technologies, fostering innovation to remain competitive. Moreover, to shape the competitive dynamics, collaboration partners with other stakeholders in the industry, including government agencies, research institutions, and automotive manufacturers, have a major role to play. Elevating demand for clean and sustainable energy solutions allows new entrants and emerging players to increase the level of competition and therefore forces further innovation in the fuel cell market.
Fuel Cell Market Top Players' Company Profiles
Fuel Cell Market Recent Developments
In December 2023, General Motors and Komatsu announced to develop a hydrogen fuel cell power module for the Japanese construction machinery maker's 930E electric drive mining truck.
In November 2023, Honda in association with General Motors displayed a prototype of its next-generation hydrogen fuel cell system at European Hydrogen Week in Brussels. The company is planning to expand its portfolio in fuel cell technology.
In October 2023, TECO 2030 developed hydrogen fuel cells that enable ships and other heavy-duty applications to become emissions-free. TECO 2030’s world-class fuel cell system is a technologically advanced clean energy generation system. The attributes of the modular 400kW fuel cell system include industry leading energy efficiency, inherent safety concept, leading dimensions and component design, lifetime, and rapid dynamic load response.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, the fuel cell market exhibits a dynamic landscape shaped by various segments and factors. Across fuel types, such as hydrogen, methanol, and others, technological advancements and increasing investment in research and development drive innovation and market growth. Similarly, the market's diverse type segments, components, applications, and end-users, ranging from transportation to stationary power generation, offer ample opportunities for market expansion. Furthermore, regional insights highlight the significance of regions like Asia Pacific, North America, and Europe, each contributing to the market's growth trajectory through strategic initiatives and infrastructure development. Due to significant government investment and fleet targets for large FCEVs, the transportation sector is expected to account for most of the fuel cell industry. The segment outlook will be further boosted by customers' growing propensity to replace their conventional fleet with clean fuel vehicles and a government subsidy to facilitate this transition. Moreover, the competitive landscape underscores the dominance of key players like Ballard Power Systems and Plug Power, alongside the emergence of new entrants, fostering competition and innovation in the market. As the global focus on clean and sustainable energy solutions intensifies, the fuel cell market is poised for continued growth and evolution, propelled by technological innovation, regulatory support, and increasing adoption across diverse industries.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 2.90 Billion |
Market size value in 2031 | USD 25.10 Billion |
Growth Rate | 27.1% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Fuel Cell Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Fuel Cell Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Fuel Cell Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Report ID: SQMIG10B2034