Growth Opportunities in the Global Stationary Fuel Cell Industry

Growth Opportunities in the Global Stationary Fuel Cell Industry

The Need for Decentralized Prime Power Continues to Drive Investment

Energy decentralization, supportive regulations and policies, greater focus on sustainability, and the crucial development of a hydrogen economy will drive the stationary fuel cell industry growth during the next decade. The broader market for decentralized energy solutions thrives as residential, commercial, and industrial customers seek greater energy security and cost savings. In terms of fuel cell technology type, solid oxide leads in market volume, significantly ahead of its closest competitor, phosphoric acid. Proton membrane technology lags some way behind, but this chemistry has the potential to work as backup power for renewable energy.

Fuel cell manufacturers continue to prioritize improving their solutions by increasing product lifespan and efficiencies while lowering costs. The commodity and supply chain crunch has eased for the industry, and there will now be a renewed focus on automation and cost reduction.

The growth of the global fuel cell market is inextricably linked to the development of the hydrogen economy. Although natural gas can power fuel cells, it also ties them to fossil fuels. The buildout of low-carbon hydrogen infrastructure will enable fuel cells to decarbonize, making them a more attractive proposition for many stakeholders. This has been challenging in the short term, but the mid-to-long-term potential for hydrogen is much stronger. The United States, South Korea, and Japan are the hottest fuel cell markets, but future growth will likely come from Europe and China.

In this study, Frost & Sullivan includes fuel cells used for large and small stationary prime power applications. Also included are stationary applications that deliver combined heat and power (CHP) to various industrial and commercial customers, including stationary micro-CHP applications. The study period is 2022–2035.