Global Fuel Cell Market Size, Share, Growth Analysis, By Product(Proton Exchange Membrane Fuel Cell, Phosphoric Acid Fuel Cell), By Application(Stationary, Transportation) - Industry Forecast 2022-2028

Global Fuel Cell Market is segmented based on product, application, and region. Based on the product, the market is segmented into proton exchange membrane fuel cell, phosphoric acid fuel cell, solid oxide fuel cell, molten carbonate fuel cell, and others. Based on application, the market is segmented into stationary, transportation, portable. Based on the region it is categorized into North America, Europe, Asia-Pacific, South America, and MEA.

Analysis by Product

Based on product, the market is segregated into proton exchange membrane fuel cell, phosphoric acid fuel cell, solid oxide fuel cell, molten carbonate fuel cell, and others. The proton exchange membrane fuel cell sector dominates the fuel cell market with a significant share in 2021. The wide usage of proton exchange membrane fuel cells in fixed, transit, and portable applications has contributed to their significant market share. In 2021, the solid oxide fuel cell segment is projected to be one of the fastest growing segments of the fuel cell market. This is attributed to solid oxide fuel cells can operate at high temperatures, they do not require expensive catalysts such as ruthenium. The majority of solid oxide fuel cells are employed in stationary applications.

Analysis by Application

Based on application, the market is segmented into stationary, transportation, portable. The stationary segment dominated the fuel cell market. The stationary segment is predicted to become the most popular application during the projection period. Because of characteristics such as high efficiency and the ability to use a variety of fuels, the stationary application segment is expected to grow. The transportation sector, on the other hand, is expected to grow at the fastest rate in the coming years. The transportation application category is expected to develop at the fastest rate throughout the projected period due to rising demand for fuel cell autos and fuel cell powered forklifts. Furthermore, the industry is predicted to expand as a result of increased research and development activity in established and developing countries to build hydrogen-powered hybrid vehicles.

Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, and MEA. The Asia Pacific accounted for the largest market share and is expected to remain the leading consumer of Fuel Cell in the coming years. The regional growth of the market is attributed to rising demand for additional electricity, less reliance on fossil fuels, and increased acceptance of green energy technologies, the Asia Pacific fuel cell industry has grown at an astounding rate. Furthermore, rising development in this region is expected to increase demand for fuel cells dramatically.

The growth of the market is also attributed to Japan's ENE-FARM programme, which has encouraged the usage of PEMFCs and SOFCs for micro-CHP applications in the country. Furthermore, laws and initiatives to promote fuel cell systems for transportation applications in China and South Korea have propelled the region's fuel cell market expansion.

The market in North America will grow as a result of significant investments in the research and development of cutting-edge FC systems and the widespread implementation of existing technologies. Countries like the U.S. and Canada have made significant investments in boosting the infrastructure for hydrogen refueling and have given out a variety of tax breaks to encourage technological adoption. For instance, the California Air Resources Board (CARB) informed in December 2020 that as of August 2020, it had provided FCEV owners with over 7,530 refunds through its Clean Vehicle Rebate Project (CVRP). The cumulative value of this financing, according to CARB, topped USD 38.49 million during the same time period for the deployment of clean vehicles on the state's highways.

Driver

Increasing Installments of Fuel Cell System

• More and more FC systems are being installed to generate combined heat and power (CHP) for small homes and commercial buildings like hotels, hospitals, educational facilities, and public buildings. In order to encourage the integration of the devices in many applications, several state and federal authorities have developed favourable legislative frameworks and subsidy schemes. As an illustration, the New Jersey state government has modified its financial incentives for FC CHP installations made on or after October 1, 2020. With financial assistance of up to USD 3 million per project to the producers, its CHP-FC Program structure is made to encourage new manufacturers.

Growing Need to Reduce Greenhouse Gas (GHG) Emissions

• The growing need to reduce greenhouse gas (GHG) emissions from many sources and considerable efforts to create a society free of carbon are projected to be positive factors for the expansion of the global fuel cell industry. Additionally, the growing need for hydrogen fuel cell vehicles in order to meet the strict government goals for accelerating the deployment of clean energy is projected to accelerate the adoption of battery cell systems across a variety of areas. For instance, in January 2019, South Korean government declared its goals to promote FCEVs and increase the number of FCEVs on the road to over 1.8 million by 2030.

Restraint

• Bipolar plates, catalysts, membrane electrode assemblies (MEAs), gaskets, and many other parts are needed for the production of FC systems. Because of this, these goods are quite expensive, and manufacturing a limited number of FC systems could result in unaffordable high expenses for the businesses involved. Additionally, the business prospects may be hampered by the restricted availability of highly technical hydrogen infrastructure in a number of countries. To close the gap and give businesses and consumers access to zero-emission technologies, government agencies like the U.S. Department of Energy (DOE) are regularly taking action.

The prominent players operating in the market are constantly adopting various growth strategies in order to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D in order to supply industries with the most efficient and cost-effective solutions.

Top Players' Company Profiles

• Mitsubishi Heavy Industries (Japan)

• ElringKlinger (Germany)

• Hydrogenics (Canada)

• SOLIDpower Italia (Italy)

• Ceres Power (UK)

• Ballard Power Systems (Canada)

• AVL (Austria)

• Bosch (Germany)

• Pragma Industries (France)

• W. L. Gore & Associates (US)

• Nedstack Fuel Cell Technology (Netherlands)

• Proton Motor Fuel Cell GmbH (Germany)

• Bloom Energy (US)

• AISIN (Japan)

• Convion (Finland)

• ITM Power (UK)

• Plug Power (US)

• Nuvera Fuel Cells, LLC (US)

Recent Developments

• In July 2021, Ballard Power Systems received an order for 15 of its 70 kW FCmoveTM-HD fuel cell systems to power Tata Motors' zero-emission Fuel Cell Electric Buses (FCEBs). Ballard hopes to finish the order by 2022 in order to comply with Tata Motor's ambitions to investigate the viability of using FCEBs in Faridabad, a city located inside the nation's National Capital Region.

• In July 2021, With the assistance of SK ecoplant in Donghae City, South Korea, Bloom Energy announced the deployment of a 4.2 MW solid oxide fuel cell system for the utility-scale combined heat and power (CHP) effort. The next-generation plant will have a thermal energy capture capacity of 4 million mega calories through the SK ecoplant and Power Tower's heat recovery system, and it will produce roughly 35,000 MWh of clean electricity annually.

• Due to their rapid start and high-power densities, FC systems are commonly used to power hydrogen vehicles. A number of businesses that operate at various points along the value chain have also made significant attempts to collaborate and broaden the scope of their functional domains. For instance, in January 2021, General Motors, Navistar Inc., and OneH2 announced they would collaborate to develop comprehensive solutions for long-distance transportation systems with minimal emissions. The organizations’ joint efforts are expected to strengthen the truck ecosystem for hydrogen fuel. They will make the unique technology available through J.B. Hunt Transport Services, Inc., a company based in the United States.

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 robust Secondary Desk research.

As per our analysis, based on the product, the most established technology, PEMFC, is anticipated to dominate both the volume and value of the market over the forecast period. Based on the application, transportation segment is projected to dominate the market. Due to significant government investment and fleet targets for large FCEVs, the transportation sector is anticipated to account for the majority 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.