"Actionable Insights to Fuel Your Growth"
The global fuel cell market size was valued at USD 4.58 billion in 2021 and is projected to grow from USD 5.90 billion in 2022 to USD 36.41 billion by 2029 at a CAGR of 29.7% during the forecast period. Based on our analysis, the global market exhibited a growth of 8.8% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with fuel cell experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.
Fuel Cell (FC) can be defined as a device comprising a cathode and an anode immersed in an electrolyte medium to conduct and produce electricity efficiently. These units also operate like a battery providing essential power to the system. However, it uses hydrogen-based fuel instead of charging for several periods. These systems work on the elementary electromechanical mechanism, which converts chemical energy into electrical energy.
Pandemic Delayed Projects which Temporarily Impacted the Market Growth
The outburst of the COVID-19 virus has disapprovingly ostentatious the financial situations of various sectors & countries across the globe. Various nations around the world have noticed slippage in major investment as industries were halted, resulting in decline in revenues. In addition, various small & medium-scale companies were also impacted due to the outburst of COVID-19 pandemic owing to work place closure, country-wide lockdowns, travel restrictions, which resulted in the lack of working professionals and disruption in cash flow.
However, various governments have introduced economic booster packages for many verticals, enabling various organizations to bear the revenue gap. Besides, the key players also focused on serving major industries to carry on their operational performance.
Request a Free sample to learn more about this report.
Rising Initiatives to Increase Consumption of Hydrogen to Boost the Demand
Burning fossil fuels release greenhouse gases and harmful content leading to many problems such as ocean acidification, global warming, and other severe issues. Hence, governments and other private organizations across the EU have increased the focus on diminishing carbon footprint and curbing other harmful emissions.
The Fuel Cells and Hydrogen Joint Undertaking (FCH JU), a European private-public collaborative R&D initiative, estimated that by 2050, hydrogen fuel would account for around 24% of the total regional energy consumption.
The U.S. Department of Energy (DoE) has unlatched the applications for whooping USD 7 billion programs with an aim to design & build clean hydrogen hubs (H2 hubs) majorly across the U.S. to form the U.S.’s economy of clean energy. In the context of hydrogen hub programs, the hubs will be the key driver to help communities benefit from investments in clean energy, high-paying jobs and improved energy security while meeting the goal of a carbon neutral economy by 2050.
Favorable Regulatory Policies to Support Product Deployment
FC systems are increasingly installed to produce Combined Heat & Power (CHP) for powering and heating small households and commercial spaces such as hotels, hospitals, educational centers, public buildings, and others. Consequently, various state and federal authorities have introduced favorable legislative frameworks and subsidy schemes to propel the integration of devices in numerous applications. For instance, the government of the state of New Jersey has updated its financial benefits for FC CHP installations on or after October 1st, 2020. Its CHP-FC Program structure is designed to propel more manufacturers with a monetary aid of up to USD 3 million per project to the producers.
Growing Need for Clean Energy Sources to Boost Market Proliferation
Carbon emissions contribute to climate change, which reflects serious consequences for humans and the environment. SOFC are used in mobile and stationary applications. This strengthens and diversifies energy infrastructure and provides a reliable, clean, and advanced energy-efficient solution to meet surging power demand. Thus, better fuel efficiency and rising adoption of zero-emission equipment will surge the demand for fuel cells for CHP application during the forecast period.
As per Global Energy Review, 2021 – Analysis by the U.S. International Energy Agency, CO2 emissions in the European Union (EU) were analyzed to be 2.4% lower in 2021. The European Union has averaged an annual improvement rate of around 3% since 2010.
Increasing Demand for Electric Vehicles and Difficulty in Managing Bulk Hydrogen Stations to Hinder Market Escalation
The demand for electric vehicles, which includes battery electric vehicles and plug-in hybrid electric vehicles, is increasing significantly due to various advantages, such as higher efficiency, no polluting byproducts, cost-efficiency, and energy security, which may hamper market expansion.
The high cost associated with producing and delivering hydrogen fuel to service stations along with the complex management of bulk fueling stations might obstruct market augmentation. Additionally, the planning and construction of new stations require huge investments that are dependent on multiple factors affecting market dynamics.
To know how our report can help streamline your business, Speak to Analyst
PEMFCs Segment to Lead Backed by Low Cost and Flexibility in Input Fuel
By type, the market is divided into proton exchange membrane fuel cell, solid oxide & phosphoric acid fuel cell, and others. The Proton Exchange Membrane Fuel Cell (PEMFC) segment dominates the global market. The demand for PEMFC is higher owing to various benefits over other types. Benefits, such as flexibility in input fuel, compact design, lightweight, low cost, and solidity of electrolyte, will aid market escalation.
The Solid Oxide Fuel Cell (SOFC) segment is estimated to grow significantly during the forecast period. SOFC has been gaining significant share in the Ene-Farm program due to the stack's higher efficiency and higher-grade heat. The net increase in SOFC shipment capacity is associated with increased bloom units for prime power shipments in the U.S. and Korea. Other suppliers, such as Ceres/Bosch, contribute to the total at a much lower volume.
Transport Segment to Grow at Highest CAGR Due to Rising Demand for DMFCs & PEMFCs in the Automotive Sector
According to application, the market has been segmented into transport, stationary, and portable. The transport segment will register growth at a rapid pace during the forecast period. The inclination toward clean transport is increasing across the globe. Various countries are investing in an emission-free environment, further boosting the transport segment.
The stationary segment is likely to witness significant growth during the forecast period. The use of fuel cells in stationary applications, such as data centers, UPS, and others, is increasing significantly amid zero-emission targets and investment toward green energy.
Asia Pacific Fuel Cell Market Size, 2021 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Geographically, the global market has been analyzed across North America, Asia Pacific, Europe, and the Rest of the World.
Asia Pacific holds the dominating global fuel cell market share. South Korea is now extending its lead in the manufacture and deployment of FC cars, driven by supportive government policies. For example, a record 8,500 NEXOs were shipped in the country in 2021, and this figure looks to increase substantially in the coming years. In addition, by 2023 year-end, Hyundai has planned to ramp up the production of its fuel cell systems to 100,000 units every year. Subsequently, China holds a dominating market in terms of size across the region. China has introduced very high targets to promote the adoption of clean-fuel automobiles. China aims to have 50,000 FC vehicles on its roads by 2025 under a long-term plan for developing the country's hydrogen industry released in March 2022.
North America is an established market in this technology. The region is increasing its investment in fuel cell installation owing to the enhanced capacity installation of FCs in the transport segment. The installation of portable applications is also increasing across the region. The U.S. dominates the industry in the North America region. The administration has set tremendous goals to promote hydrogen-powered vehicles to boost the demand for fuel-cell cars in this area. Furthermore, various infrastructure development plans, research & development investments, and subsidy programs will favor customers to adopt hydrogen fuel cell vehicles across the U.S. and Canada.
The installation of FCs in Europe has increased significantly. The region is investing large amounts of money in achieving zero-emission targets and enhancing the hydrogen infrastructure. The adoption of energy-efficient solutions is also increasing rapidly across the region. Berlin Airport in Germany has installed one of the first CHPs to run entirely on hydrogen.
The rest of the world is estimated to grow significantly during the forecast period. The demand and installation of fuel cells are rapidly increasing worldwide. The number of projects has been increasing across the area. In January 2021, Abu Dhabi National Oil Company (ADNOC), Mubadala Investment Company, and ADQ inked a Memorandum of Understanding (MOU) to incorporate a dedicated clean energy organization called Abu Dhabi Hydrogen Alliance.
Expansion of Product Portfolio by Leading Companies to Boost Market Proliferation
Leading companies in the global market are focusing on producing products with even higher power density and efficiency to enhance their global position. Several players are also producing fuel cell stacks at the regional or local level. For instance, in April 2022, Doosan Fuel Cell Co., Ltd. announced its strategic partnership with HyAxiom and Ballard Power Systems to develop PEM hydrogen fuel cell mobility applications initially focused in South Korea. Also, in February 2022, Ceres Power Holdings Plc announced a three-way collaboration between Weichai Power of China and Robert Bosch GmBH of Germany to develop and manufacture solid oxide fuel cells for the Chinese market.
An Infographic Representation of Fuel Cell Market
To get information on various segments, share your queries with us
The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, types, and leading applications. Besides this, the report offers insights into trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market growth in recent years.
Volume (MW) and Value (USD Billion)
By Type, Application, and Region
Fortune Business Insights says that the global market size was USD 4.58 billion in 2021 and is projected to reach USD 36.41 billion by 2029.
In 2021, the market value stood at USD 4.58 billion.
Growing at a CAGR of 29.7%, the market will exhibit healthy growth in the forecast period (2022-2029).
By application, the transport segment is the leading segment in the market
Rising demand for clean sources of energy to reduce carbon emissions is likely to boost the market growth
Ballard Power Systems, Bosch, Hydrogenics, Ceres Power, Mitsubishi Hitachi Power Systems, Plug Power, and Bloom Energy are among the leading players in the global market.
Asia Pacific dominated the market in 2021.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry