Fuel Cell Market

Fuel Cell Market Outlook 2031

• The global fuel cell market was valued at US$ 10.37 Bn in 2020
• It is estimated to expand at a CAGR of 23.64% from 2021 to 2031
• The global fuel cell market is expected to reach the value of US$ 107.03 Bn by the end of 2031

Analysts’ Viewpoint on Fuel Cell Market Scenario

The on-demand delivery of fuel cells and after-sale services are key strategies to ensure long-term revenue opportunities during the uncertain times of the ongoing coronavirus pandemic. Manufacturers in the fuel cell market are adopting contingency planning to offer competitive pricing for products. However, the high cost of fuel cells in automobiles is inhibiting market growth. Hence, stakeholders in the fuel cell market should increase the availability of the fuel cell technology to help lower its price for use in automobiles in the upcoming years. The growing acceptance toward fuel cells in automobiles, consumer appliances, and transport applications is anticipated to create stable revenue streams for manufacturers.

Commercial Uses of Fuel Cells Turbocharging Market Growth

Fuel cells are electrochemical devices that are being publicized as a clean source of electricity. They are naturally more effective than many of the other combustion engines available today, making them excellent providers of alternative green energy technology in automobiles.

Uninterrupted power supply systems (UPS), military power units, different electric appliances, combined heat & power (CHP) systems, submarines, and automobiles are examples of fuel cell uses. The fuel cell technology is becoming increasingly popular as a heating source in commercial buildings, as it produces no emissions. This is likely to work in favor of the global fuel cell market over the next few years.

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Fuel Cell Sale Registers Uptick with Increased Shipments Post Coronavirus Crisis

Companies in the fuel cell market are taking data-driven decisions before making inroads into newer regions during the ongoing coronavirus pandemic. The fuel cell market is likely to witness a surge in prices due to limited availability of raw materials, while price for end products is expected to remain volatile amid changing demand sentiments.

Nevertheless, fuel cell manufacturers are catering to mission-critical applications for residential and transport sectors by ensuring robust supply chains. Import and export of fuel cells is projected to rise, owing to an increase in shipment and demand of the same in the upcoming months and years.

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PEMFC Emerges as Frontrunner for Widespread Application

Major types of fuel cells are solid oxide fuel cells (SOFC), direct methanol fuel cells (DMFC), and proton exchange membrane fuel cells (PEMFC), of which, the PEMFC segment held the significant market share in 2020.

The tremendous growth of the market for PEMFC is expected to be driven by increasing applications in the transportation industry to power buses & cars and constant technological advancements aimed to increase the efficiency of these fuel cells. Furthermore, this technology is considered to be the preferred choice for several small-scale residential applications.

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Proliferation of Green Technologies Helps Augment Growth in Asia Pacific

The Asia Pacific fuel cell market has been growing at an astonishing pace due to the rising demand for more power, reduced reliance on fossil fuels, and greater adoption of green energy technologies. In addition, rapid industrialization in this region is projected to significantly increase the demand for fuel cells.

Moreover, adherence to tough government rules to reduce greenhouse gas (GHG) emissions is likely to drive the Asia Pacific fuel cell market in the next decade. One of the major elements likely to drive the expansion of the Asia Pacific fuel cell market is the growing need for alternative energy sources. Other variables that are anticipated to fuel the demand in the market include lower impact on the environment and rise in private-public enterprises. Governments are anticipated to assist these advancements by providing financial support for R&D activities and appropriate financial schemes.

Energy Efficiency of Fuel Cells Enabling Greater Adoption of Technology

Fuel cell is an electrochemical cell that transforms chemical energy from fuel to electricity. Main components of a fuel cell include anode, cathode, and electrolyte. Fuel cells provide several advantages, including ease of maintenance, energy efficiency, and extended operating times, among others. Besides, they are environment-friendly as they avoid the generation of greenhouse gases and air pollutants.

The global fuel cell market is expected to generate huge value-grab opportunities over the next few years. One of the primary reasons for this forecast is the increasing usage of fuel cells in a variety of applications such as combined heat and power (CHP) systems, submarines, vehicles, electric appliances, uninterrupted power supply systems (UPS), military power units, etc.

Fuel Cell Market: Overview

• The global fuel cell market is estimated to gather exceptional revenues in the upcoming period. One of the key reasons behind this estimation is growing use of fuel cells in wide range of applications. Fuel cells have gained traction as a source of clean electric energy since the past few years. Growing use of this energy source to power vehicles, submarines, and numerous electric appliances is pushing the demand. This wide application range signifies potential sturdy growth of the global fuel cell market.
• Government bodies of many countries have taken initiatives to minimize carbon emissions. To strengthen their efforts, they have introduced strict regulations. As a result, there is growing shift to use other alternatives such as green energy. Thus, this shift is pushing the demand for products from the global fuel cell market. Besides, many governments have announced subsidies for fuel cells programs. Main motive of this move is to promote clean energy generation.
• In recent times, many companies have increased their investments in research activities. One of the key motives of these efforts is to advance the fuel cell technology. This scenario shows prospective avenues for the growth of the global fuel cell market in the upcoming period. Owing to their eco-friendly qualities, fuel cells are well accepted for use in Combined Heat and Power (CHP) systems, Uninterrupted Power Supply systems (UPS), and military power units.
• Fuel cells are gaining popularity as a source of heating in commercial buildings, owing to their ability to supply emission-free power. Growing use of fuel cells in portable applications is one of the prominent driving factors of the global fuel cell market. In consumer electronics, there is growing use of fuel cells to power tablets, laptops, smartphones, and cameras. This demonstrates bright growth avenues for the global fuel cell market.

Increasing Focus on Clean Energy Generation to Boost Fuel Cell Market Growth

• Fuel cell is an electrochemical cell that transforms chemical energy from fuel to electricity. Main components of a fuel cell include anode, cathode, and electrolyte. Fuel cells provide several advantages, including energy efficiency, extended operating times, ease of maintenance, etc. Moreover, they are environment-friendly, as they avoid the generation of air pollutants or greenhouse gases.
• The worldwide fuel cell market is expected to generate significant revenue in the next few years. One of the primary reasons for this forecast is the increasing usage of fuel cells in a variety of applications such as submarines, vehicles, combined heat and power (CHP) systems, uninterrupted power supply systems (UPS), military power units, and other electric appliances.
• Fuel cells have gained popularity as a source of clean electric energy in recent years. Government bodies of many countries have taken steps to reduce carbon emissions by imposing stringent rules in order to bolster their efforts. As a result, there is an increasing trend toward alternate energy sources such as green energy, which is driving the worldwide fuel cell market growth. Furthermore, numerous governments have announced subsidies for fuel cells programs. The primary goal of this effort is to boost clean energy generation.
• Many businesses have recently increased their investments in the research and development of fuel cells. One of the primary goals of these efforts is to enhance fuel cell technology. This scenario depicts potential growth avenues for the global fuel cell market in the coming years.
• In 2020, Asia Pacific accounted for 59.94% of the global fuel cell market. Over the forecast period, the regional market is predicted to expand at a remarkable CAGR. The regional market growth will be fueled by quicker adoption of green energy technology, reduced reliance on fossil fuels, and rising electricity demand in many countries due to the growing population. Furthermore, rapid rate of industrialization is likely to drive demand for fuel cells in a number of industrial applications in the region. Moreover, rigorous government regulations to reduce carbon emissions and rise in demand for eco-friendly technologies are likely to boost the regional market growth.

Asia Pacific to Offer Lucrative Growth Avenues

• Based on region, the fuel cell market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Of these, Asia Pacific accounted for a significant share of the fuel cell market in 2020. The regional market is expected to expand at an impressive CAGR over the forecast period. The steady growth will be driven by accelerated adoption of green energy technology, reducing reliance on fossil fuels, and spiraling electricity demand attributable to a burgeoning population in various countries.
• In addition, the swift pace of industrialization is projected to fuel the demand for fuel cells in numerous industrial applications. Furthermore, stringent government mandates to minimize carbon emissions, coupled with the demand for eco-friendly technologies, will boost the regional market.
• Asia Pacific is followed by North America, where a major percentage of demand for fuel cells comes from the U.S. Increasing adoption of emerging fuel cell technologies for generation of electricity and rise in usage of fuel cells in UPS are expected to propel the regional market along the forecast period.

Upsurge in Stationary Applications of Fuel Cells to Accentuate Market Growth

• Major types of fuel cells are direct methanol fuel cells (DMFC), proton exchange membrane fuel cells (PEMFC), and solid oxide fuel cells (SOFC). Of these, PEMFC segment held the significant market share in 2020. Substantial growth of the market for PEMFC is expected to be driven by increasing applications in the transport industry to power cars and buses and constant technological advancements aimed to increase the efficiency of these fuel cells. Furthermore, this technology is considered to be the preferred choice for several small-scale residential applications.
• Based on application, the fuel cells market is segmented into stationary, portable, and transport. Currently, the stationary application of fuel cells is the leading segment. Other applications are also expected to witness significant technological investments in R&D activities by major players.

Fuel Cell Market Snapshot

Fuel Cell Market - Segmentation

TMR’s research study assesses the fuel cell market in terms of type, application, and region. This report presents extensive market dynamics and trends associated with different segments of the market and how they are influencing growth prospects of the fuel cell market.