Fuel Cell Market Report: By Technology (Polymer Electrolyte Membrane Fuel Cells, Solid Oxide Fuel Cells, Alkaline Fuel Cells, Phosphoric Acid Fuel Cells), Application (Stationary Power, Transport, Portable Power) – Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global fuel cell market size was about $1,799.9 million in 2021, and it is expected to advance at a CAGR of 33.2% during 2021–2030. Major factors driving the industry include the stimulus packages and economic benefits to boost green technology infrastructure, rising carbon emissions from power stations and industries, and low total cost of ownership of hydrogen fuel cell vehicles. Benefits of the fuel cell technology include low-to-zero emissions, high efficiency, reliability, fuel flexibility, energy security, durability, scalability, and quiet operation.

Polymer Electrolyte Membrane (PEM) Fuel Cells Are Highest Revenue Generators in Market

In the global fuel cell market, PEM fuel cells held about 60% share, in terms of revenue generation, in 2021. PEM-fuel-cell-driven automobiles offer several advantages, including efficient and environmentally benign operation, quick start-up, compatibility with renewable energy sources, and power densities competitive with those of internal combustion engines (ICEs).

Moreover, many OEMs are making high investments in this technology. PEM fuel cells are used primarily for transportation applications and some stationary applications. Due to their low start-up time and favorable power-to-weight ratio, they are particularly suitable for cars and buses.

Major Opportunity Areas

• The market growth rate is expected to surge in the coming years as the fuel cell technology is developed further and commercialized on different vehicle platforms, such as heavy-duty trucks, buses, and light-duty passenger vehicles. Fuel-cell-powered material handling and logistics equipment is being deployed in warehouses and distribution centers. The application of this technology is also expanding to ports and airports, to help increase equipment productivity and energy efficiency.
• Fuel cells are scalable, meaning multiple fuel cells can be joined to form stacks, which can themselves be combined into larger systems. Fuel cell systems are available in a wide range sizes and power output, for applications ranging from large-scale installations that feed electricity directly to the grid to electric vehicles, a replacement for fossil-fuel-fired engines.
• Governing bodies of several countries across the globe are making long-term policies regarding low carbon emissions, such as promoting low-carbon hydrogen generation, primarily to meet the objectives agreed upon under the Paris Agreement. Such national and international initiatives include the European Commission Climate-Neutral Strategy for 2050, UK Climate Change Act, Japan’s Basic Hydrogen Strategy, China’s ecological civilization commitment, and The Netherlands Climate Law and Agreement. All these factors are forcing the move toward renewable energy resources, such as fuel cells ,and related technologies. Thus, the rising investment and cooperation between companies and countries, as a result, offer opportunities for fuel cell market players.

Fuel Cell Demand in Transportation Sector To Record Highest Growth Rate

The demand for the fuel cell technology in the transportation sector is expected to observe a CAGR of 33.6% during the forecast period. Transportation consumes about a quarter of the world's total energy. In the case of ICEs, a large part of the fuel energy is emitted as heat, due to friction loss and exhaust creation. The fuel cell technology is an alternative to Li-ion batteries and conventional ICEs.

Moreover, the transportation industry is responsible for about 17% of the global greenhouse gas emissions every year, so important changes are expected from this sector in order to reach the aims of the Kyoto Protocol. The industry’s outlook is to invest in technologies that would offer both significant reductions in harmful emissions and better energy conversion efficiencies, for which PEM FC is the best available technology.

Investments to Achieve Carbon Neutrality Drive Market Growth

The fuel cell market growth rate is expected to surge in the coming years as many countries are investing in hydrogen technologies, along with the increasing number of sectors they target, such as stationary power generation.

The stationary sector includes fuel cell systems that operate at a fixed location for primary power, backup power, or both. Fuel cells are being developed for both large-scale (100 kW and up) and small-scale (up to 100 kW) applications, such as retail operations, data centers, residences, telecommunication towers and base stations, and utilities.

In 2021, more than 750 MW fuel cell capacity was installed in the U.S. itself. Moreover, South Korea completed some of the world’s largest installations, with several multi-MW fuel cell power parks installed at major utilities and approximately 300 MW of total systems deployed. Japan and Europe have a handful of larger systems, as they are mainly focused on small-scale fuel cell systems for homes and businesses.

In the U.S., small-scale fuel cell systems are primarily used for backup power by telecommunications entities, railroads, utilities, governments, and traffic/emergency systems. To reinforce the role such equipment can play in reducing the carbon emissions from residential and commercial buildings in Europe, a Joint Declaration on Stationary Fuel Cells for Green Buildings was signed in November by key stakeholders.

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To Increase Market Share, Companies Involved in Partnerships and Collaborations

Players in the global fuel cell market have been involved in collaborations and partnerships to remain competitive. For instance

• In October 2021, Ballard Power Systems Inc. signed a partnership agreement with Forsee Power. Moreover, Ballard Power Systems Inc. also partnered with Quantron AG in September 2021.
• SFC Energy’s partnership with Nel ASA in August 2021 was another important development in the market.

The objective of these partnerships was the development of hydrogen fuel cell trucks, integrated electrolyzers, and hydrogen fuel cell systems for industries.

Key Players in Fuel Cell Market:

• BALLARD POWER SYSTEMS INC.
• PLUG POWER INC.
• FUEL CELL ENERGY INC.
• SFC ENERGY
• Bloom Energy
• Doosan Fuel Cell America Inc.
• Ceres Power Holdings Plc
• Nedstack Fuel Cell Technology B.V.
• Nuvera Fuel Cells LLC
• Toshiba Energy Systems and Solutions Corporation

Market Size Breakdown by Segment

The research offers market size of the global fuel cell market for the period 2017–2030.

Based on Technology

• Polymer Electrolyte Membrane Fuel Cells
• Solid Oxide Fuel Cells
• Alkaline Fuel Cells
• Phosphoric Acid Fuel Cells

Based on Application

• Stationary Power
  • Residential
  • Non-residential
• Transport
  • On-Road
    • Heavy-duty trucks
    • Buses
    • Light-duty vehicles
  • Maritime
  • Air
  • Off-Road
• Portable Power

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  •  Brazil
  • Mexico
• Middle East and Africa
  •  South Africa
  • Saudi Arabia