Direct Methanol Fuel Cell Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Direct Methanol Fuel Cell Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The direct methanol fuel cell (DMFC) market is expected to register a CAGR of more than 13% during the forecast period of 2022 – 2027. The COVID-19 outbreak in Q1 of 2020 had led to declining investments on research and development (R&D) on fuel cell technology, and further caused negative impact on advanced applications of fuel cells as complex energy systems. Factors such as increasing demand for clean energy solutions, high investments in fuel cell development, ease of transportation and storage, and high energy density are expected to drive the market during the forecast period. However, declining lithium-ion battery prices and an increase in the lithium-ion battery-based application, and expensive catalysts are likely to restrain the growth of the direct methanol fuel cell market during the forecast period.

Key Highlights

• The direct methanol fuel cell is still under development phase, but DMFCs finds application in areas of modest power requirements, such as portable power packs, mobile electronic devices or chargers, and the transport sector. The growth in demand and technological advancements of consumer electronics are likely to drive the market during the forecast period.
• The direct methanol fuel cell DMFCs eliminates the need for charging infrastructure for the battery. Moreover, methanol as a fuel is inexpensive, has relatively high energy density, and can be easily transported and stored within the warehouse which likely to support the market. This in turn likely to create huge opportunities for the market players soon.
• Asia-Pacific is expected to dominate the direct methanol fuel cell market, with the majority of the demand coming from China, Japan, and India, etc.

Direct Methanol Fuel Cell Market Trends

Technological Advancements Expected to Drive the Market Demand

• Fuel cells are currently one of the most efficient technologies that convert fuel to electricity. Fuel cells are used in a wide range of applications, including transport and emergency backup power applications. Direct methanol fuel cell is still in the development phase and expected to cover major share in the fuel cell market.
• A conventional combustion-based power plant generates electricity at efficiencies of 33% to 35%, while direct methanol fuel cells can generate electricity at efficiencies up to 60% and even higher with co-generation. Fuel cells are expected to be a major driver of distributed power, allowing homes and businesses to generate/produce their energy efficiently, as, and when, required.
• The traditional emission reduction technologies related to the internal combustion engine have become too outdated to meet the current emission regulations. As a result, the automotive industry is moving towards cleaner sources of fuel, such as fuel cells and batteries, to power vehicles.
• DMFC is gaining momentum, especially in China, where it is already used as a fuel. Weltmeister is also developing a fuel cell car using a DMFC. Moreover, the United States Department of Energy (DOE) has selected 28 hydrogen and fuel cell R&D projects, which also include DMFC, as an initiative to produce and use hydrogen across multiple energy sectors. As a result, government initiatives and private sector investments are expected to drive the development of technology for wide adoption in the market.
• China new battery electric vehicle sales has been recored 931.29 '000 units in 2020. The new battery electric vehicle sales has increased by 11.6% as compared to 2019. This is expexted to drive the direct methanol fuel cell market.
• DMFC has been acting as the direct substitute to the electric vehicles which are experiencing a boom in the global market especially in China and India. The sales of EVs has been increasing over the study period and is expected to continue the similar trend over the forecast period.
• This, in turn, technological advancement in direct methanol fuel cell likely to drive the market studied during the forecast period.

Asia-Pacific to Dominate the Market

• Asia-Pacific is expected to dominate the direct methanol fuel cell market, with the majority of the demand coming from China, Japan, and India.
• The Asia-Pacific is one of the promising regional markets for DMFC in the coming years, on account of the government’s policies in the region, that are driving the clean energy usage.
• In March 2021, SFC Energy and Toyota Tsusho expand their cooperation to Southeast Asian region. This joint strategy helps to expand exclusive sales of SFC hydrogen and direct methanol fuel cells to Thailand, the Philippines, and Vietnam. Together with Toyota Tsusho, SFC Energy brings environmentally friendly and powerful hydrogen and direct methanol fuel cell systems around the EFOY series to further Southeast Asian country markets.
• Also, in September 2021, SFC Energy signed a memorandum of understanding (MoU) with Indian companies like Bharat Electronics Limited (BEL) and FC TecNrgy Pvt Ltd. to cooperate and address emerging demand for sustainable energy supply in India through hydrogen and fuel cells. This is expected to drive the market for DMFC in India during the forecast period.
• Moreover, favorable government policies for clean fuel in the region along with the growing number of public-private partnership projects are expected to augment DMFC usage in the various industries because DMFC has relatively high energy density and can be easily transported and stored. Therefore, the growing demand for DMFC will propel fuel cell industry expansion in Asia-Pacific region during the forecast period.

Direct Methanol Fuel Cell Industry Overview

The direct methanol fuel cell market is moderately consolidated. The key players in the market include Blue World Technologies ApS, Johnson Matthey, SFC Energy AG, Viaspace Inc., Ballard Power Systems Inc., among others.

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