Global Fuel Cell Market 2023-2030

Global Fuel Cell Market 2023-2030

Global fuel cell market is estimated to grow at a CAGR of 20.0% during the forecast period. The major factors offering an opportunity for the growth of the market include the increasing demand for electric vehicles and government initiatives for the adoption of fuel-cell technology. As per the International Energy Agency (IEA), The global stock of electric passenger cars passed 5 million in 2018, which represents a rise of 63% from 2017. In 2018, China accounted for the largest share of nearly 45% of the global electric cars on the road, which is 2.3 million.

Fuel cell vehicles are highly efficient as compared to traditional internal combustion engine vehicles. FCEV running on hydrogen generates no tailpipe emissions and emits only water vapor and warm air. Owing to the stringent emission regulations, the governments of countries are making efforts to adopt hydrogen-powered vehicles. For instance, the US Department of Energy has been conducting research to make hydrogen-powered vehicles an environmentally friendly, affordable, and safe transportation alternative. Under the Energy Policy Act of 1992, hydrogen is considered an alternative fuel and eligible for alternative fuel vehicle tax credits. Hyundai Motor Group, a South Korean automotive company is focusing on electric vehicles powered by hydrogen fuel cells. In addition, Honda Motor Co. Ltd. and Toyota Motor Corp. are also focusing on hydrogen FCEVs. By 2030, Hyundai Motor Group is intended to produce 700,000 fuel-cell systems, which includes 500,000 units for FCEVs. This, in turn, is expected to drive the demand for hydrogen fuel cells in electric vehicles.

Segmental Outlook

The global fuel cell market is segmented based on type and application. Based on type, the market is segmented into polymer electrolyte membrane fuel cells (PEMFC), solid oxide fuel cells (SOFC), molten carbonate fuel cells (MCFC), phosphoric acid fuel cells (PAFC), and Others. Based on application, the market is classified into stationary, portable, and transportation.

Stationary fuel cells held a significant share of the application segment

Stationary fuel cells have significant applications in the energy sector to power from single-family homes to large commercial centers. These fuel cells have applications across a range of markets, such as telecommunications, retail, residential, data centers, and among others. In the US, fuel cells are currently used for backup power in over 40 states. As per the Fuel Cell & Hydrogen Energy Association (FCHEA), many companies across the globe are adopting stationary fuel cells for primary and backup power. These companies include AT&T, Adobe, Apple, CBS, Cox Communications, Coca-Cola, Delmarva Power, Honda, eBay, Google, Walmart, Microsoft, and others. As of January 2020, in the US, over 550 megawatts (MW) of stationary fuel cells were installed that provide distributed power to customers. These fuel cells have very low emissions, so they can be installed almost anywhere.

Regional Outlook

The global fuel cell market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Asia-Pacific is estimated to witness potential growth in the market during the forecast period, owing to the favorable government initiatives for fuel cell technology and increasing demand for electric vehicles in the region. As per the FCHEA, as of 2018, 14 hydrogen fueling stations and 2,000 fuel cell vehicles were in operation across South Korea. South Korea estimates up to 6.2 million vehicles combined with 1,200 hydrogen stations by 2040. This will make the country one of the major producers of fuel cell vehicles with supporting hydrogen infrastructure. China and Japan are also focusing on hydrogen-powered fuel cell vehicles, which in turn, will likely drive the market growth in these countries.

Market Players Outlook

The major players in the global fuel cell market include Ballard Power Systems, Inc., Ceres Power Holdings plc, Fuel Cell Energy, Inc., Plug Power Inc., and Hydrogenics Corp. Product launches and geographical expansion are considered as some key strategies adopted by the market players to increase market share and gain a competitive advantage. For instance, in October 2018, Ceres Power declared a nearly $9 million investment in a new, breakthrough production facility in the UK. This new facility will enable the company to initially supply the equivalent of 2 MW of fuel cells annually with the capacity to expand to I0 MW to fulfill the increasing demand from customers.