Fuel Cell Market Size, Share & Industry Analysis, By Type (Proton Exchange Membrane Fuel Cell, Solid Oxide Fuel Cell, Phosphoric Acid Fuel Cell, and Others), By Application (Transport, Stationary, and Portable), and Regional Forecast, 2024-2032

The global fuel cell market size was valued at USD 9.85 billion in 2023 and is projected to grow from USD 12.75 billion in 2024 to USD 105.01 billion by 2032, exhibiting a CAGR of 30.15% during the forecast period. Asia-Pacific dominated the fuel cell industry with a market share of 61.21% in 2023. The Fuel Cell market in the U.S. is projected to grow significantly, reaching an estimated value of USD 9.77 billion by 2032, driven by economic and stimulus packages by government to incentives green energy production.

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.

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.

Fuel Cell Market Trends

Increasing Usage of Fuel Cells in the Maritime Industry to Drive Market Growth

Fuel cells powered by hydrogen can significantly reduce greenhouse gas and air pollutant emissions, aligning with stricter environmental regulations and sustainability goals. Fuel cells offer higher energy conversion efficiency compared to traditional combustion engines, leading to lower fuel consumption and operating costs. Unlike diesel engines, fuel cells operate silently, improving crew comfort and reducing noise pollution in marine environments. Fuel cells can be scaled to power various vessel types, from ferries and inland barges to larger passenger ships and cargo vessels.

Numerous pilot projects are underway testing fuel cell technology in various maritime applications, demonstrating their feasibility and potential. Short-sea vessels, such as ferries and workboats, are leading the way in early adoption, paving the way for large-scale applications. IMO regulations, such as EEDI (Energy Efficiency Design Index) and SOx/NOx emission control areas, are pushing the industry toward cleaner technologies. Many countries are offering subsidies and grants to support research, development, and deployment of fuel cells in the maritime sector.

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.

Fuel Cell Market Growth Factors

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.

RESTRAINING FACTORS

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.

Fuel Cell Market Segmentation Analysis

By Type Analysis

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 fuel cell, 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.

By Application Analysis

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.

REGIONAL INSIGHTS

Geographically, the global market has been analyzed across North America, Asia Pacific, Europe, and the Rest of the World.

Asia Pacific held the dominating global fuel cell market share in 2023. 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 fuel cell market in the U.S. is projected to grow significantly, reaching an estimated value of USD 9.78 billion by 2032, driven by increasing awareness of energy security, decarbonization, and corporate sustainability initiatives.

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.

List of Key Companies in Fuel Cell Market

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.

LIST OF KEY COMPANIES PROFILED:

• Ballard Power Systems (Canada)


• Bosch (Germany)


• Horizon Fuel Cell Technologies (Singapore)


• ElringKlinger (Germany)


• Hydrogenics (Canada)


• SOLIDpower Italia (Italy)


• Ceres Power (U.K.)


• AVL (Austria)


• Pragma Industries (France)


• Mitsubishi Hitachi Power Systems (Japan)


• W.L. Gore & Associates (U.S.)


• Nedstack Fuel Cell Technology (Netherlands)


• Proton Motor Fuel Cell GmbH (Germany)


• Bloom Energy (U.S.)


• AISIN (Japan)


• Convion (Finland)


• ITM Power (U.K.)


• Plug Power (U.S.)


• Nuvera Fuel Cells, LLC (U.S.)


• FuelCell Energy (U.S.)


• Elcogen (Estonia)


• Nexceris LLC (U.S.)


• SFS Energy AG (Germany)


• Blue World Technologies (Denmark)


• Roland Gumpert (Germany)

KEY INDUSTRY DEVELOPMENTS:

• August 2022: Proton Motor enabled train and engineering manufacturers, integrators, and SMEs to realize green emission-free fuel cell electric drives through its new hydrogen fuel cell system, HyRail.


• June 2022: Doosan Fuel Cell Co., Ltd. signed a Memorandum of Understanding (MoU) with Korea Southern Power along with Samsung C&T and the Korea Institute of Energy Research. The MOU encompasses cooperation in the development of fuel cell-coupled CCU technologies and ammonia fuel cell demonstration projects.


• January 2022: FuelCell Energy announced the completion of site construction and commencement of conditional commercial operation of its 7.4 megawatts SureSource fuel cell project located in Yaphank, Long Island, in New York.


• August 2021: SFC Energy AG and Nel A SA collaborated on developing the first integrated electrolyzer and hydrogen fuel cell system. The Norwegian company Nel ASA specializes in producing hydrogen, storage systems, and hydrogen refueling stations. Together, the two market and technology leaders are developing the world’s first integrated electrolyzer and hydrogen fuel cell systems for industrial markets as a key product to replace diesel generators.


• July 2021: Bloom Energy declared a 4.2 MW Combined Heat & Power (CHP) project in collaboration with the SK Eco plant. This project will mark South Korea’s first utility-scale solid oxide fuel cell CHP initiative. This project will leverage Bloom’s SOFC technology configured in an innovative Power Tower format. 

REPORT COVERAGE

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 fuel cell market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the fuel cell market growth in recent years.

Report Scope & Segmentation