Fuel Cell Market Size, Share & Trends Analysis Report By Raw Material, By Product (PEMFC, PEFC, SOFC, MCFC), By Application (Stationary, Transportation, Portable), And Segment Forecasts, 2023 - 2030

Report Overview

The global fuel cell market size was estimated at USD 6.3 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 19.9% from 2023 to 2030. Increasing demand for unconventional energy sources is one of the key factors driving the growth. Growing private-public partnerships and reduced environmental impact are expected to propel the demand. Governments across the globe are anticipated to supplement the developments by offering support in different forms, including funding R&D activities and funding suitable financing programs. Building a robust regulatory framework is vital as government enterprises need to provide an environment that is favorable for investment.

Stationary fuel cells accounted for the largest revenue share of more than 69.0% in 2022. Factors such as high efficiency, flexibility to use different fuels, and utilization of direct current are the significant factors propelling the stationary fuel demand.

Increasing regulations by different administrations in developed economies and eco-friendly objectives to reduce emission rates are propelling the demand for hydrogen power plants across the forecast period. Rising emphasis by governments in matured economies such as Europe and the U.S. and technological advancements to replace electric grids is more likely to foster market growth during the forecast period.

Ongoing projects in the European market are anticipated to enable market participants to extend their product portfolio. Deploying cleaner technologies at higher costs challenges the innovative streak of most of the market participants. Utilization of fuel cell technology in different transportation modes is increasing rapidly owing to an increase in R&D for building hydrogen-powered vehicles.

Fuel cells generate electricity directly from hydrogen and oxygen, and hence the power generated does not result in the emission of CO2 or any other environmental pollutants. When hydrogen is formed through this method, some harmful substances are released. However, the high cost of fuel cell systems is resulting in expensive FCEVs challenging the market growth. Investment risks such as operational & capital costs and under-utilization of various facilities about FCEV are likely to hinder the market’s growth.

Germany’s H2Mobility program is boosting the adoption of fuel cell vehicles by building fueling stations which is opening up opportunities for fuel cell deployments. In addition, Europe’s Hydrogen for Innovative Vehicles project aims to grow its hydrogen fuel cell network by building stations in Denmark, the United Kingdom, Austria, and Italy.

Application Insights

Stationary fuel cells dominated the global market in terms of revenue, accounting for a market share of more than 69.0% in 2022, owing to the increasing demand for fuel cells from distributed generation facilities and backup power applications. Furthermore, fuel cells are increasingly utilized in combined heat & power applications. Versatile factors and high efficiency enable the stationary segment to maintain a leading position.

Transportation is expected to be the fastest-growing segment due to the rising demand for fuel cell-powered forklifts and increasing research and development activities in mature economies of Europe. Portable fuel cells have applications such as personal electronics, portable products, laptops, mobile phones, APUs, and consumer products. Furthermore, the market is expected to grow owing to increased R&D activities in developed and developing countries to produce hydrogen-powered hybrid vehicles.

Product Insights

Proton exchange membrane fuel cells (PEMFC) accounted for more than 67.0% of the global units shipped in 2022. PEMFC is widely used in applications such as forklifts, automobiles, telecommunications, primary systems, and backup power systems. Versatility is a significant factor that bolsters their demand in the forecast period.

The PEMFC segment registered a market share of more than 60.0% in 2022, owing to the rising demand for clean power generation. In addition, PEMFC offers different advantages, such as improved reliability, high operational efficiency, low operational cost, less maintenance time, and others expected to fuel the market growth.

In the U.S., the Department of Energy (DOE) has provided funding for fuel cell development through programs such as Fuel Cell Technologies Office (FCTO) and Solid Oxide Fuel Cell (SOFC) program. Solid oxide fuel cell (SOFC) is expected to be the fastest-growing product segment over the forecast year. All the components in SOFC are solid, so the need for electrolyte loss is negated. Their ability to operate at high temperatures minimizes the need for costly catalysts, including ruthenium.

MCFC (Molten carbonate fuel cells) was the largest product segment in 2022. Since MCFC are widely used in large stationary power plants, they are expected to grow steadily during the forecast period.

Regional Insights

Asia Pacific held a significant volume share of more than 60% in 2022 and is expected to grow at the fastest CAGR over the forecast period. The growth of the fuel cell market in the Asia Pacific region has been boosted by strategies and policies that encourage fuel cell systems for transportation applications in China, India, South Korea, and Japan. Japan is the primary market in the region that deals in fuel cells, followed by South Korea. Owing to the significant demand for combined heat and power systems in Japan and other countries in this region, the market for fuel cells is slated to register a robust growth rate.

North America accounted for a significant market share in 2022. This is owing to the supportive legislation present in the North American region that aims to reduce carbon emissions, as well as the availability of financing for fuel cell R&D initiatives.

Key Companies & Market Share Insights

To deploy hydrogen fuel to the expanding application base and to implement economically viable new technologies, proactive involvement and coordination between public and private companies will be required.

In recent years, the market has witnessed several public-private partnerships to synchronize action between stakeholders to secure funding. Also, for the successful introduction of hydrogen-powered vehicles, several initiatives are undertaken by automobile manufacturers, oil and gas suppliers, and fuel cell producers to bear the investment risk.

Companies such as Ballard power systems, FuelCell Energy, Hydrogenics Corporation, Plug Power, and Ceres Power have high integration throughout the value chain. These companies have established themselves as key manufacturers and have focused on research and development activities to develop cost-effective fuel cell technology for the automobile industry.

Mergers and acquisitions, collaborations, and product launches are key strategies market players adopt. For instance, in January 2021, General Motors, OneH2, and Navistar Inc. agreed to offer complete solutions for long-haul transportation systems with reduced emissions. This agreement is expected to boost the hydrogen-powered truck ecosystem. Some prominent players in the global fuel cell market include:

• FuelCell Energy, Inc.

• Ballard Power Systems

• Hydrogenics Corporation

• SFC Energy AG

• Nedstack Fuel Cell Technology B.V.

• Bloom Energy

• Doosan Fuel Cell America, Inc.

• Ceres Power Holdings PLC

• Plug Power, Inc.

• Nuvera Fuel Cells LLC

Recent Developments

• In July 2023, Bloom Energy launched Series 10 Net-Zero compliant solution which is a fuel cell technology to accelerate the adoption of clean power generation.

• In May 2023, Nedstack Fuel Cell Technology BV renewed its partnership with GE Power Conversion to provide alternative electric and fuel cell power solutions in the merchant marine market.

• In April 2023, SFC Energy AG expanded its strategic partnership with Johnson Matthey for accelerating the joint value creation in the growing market of hydrogen fuel cell, and implement technology transfer for methanol fuel cell systems.

• In March 2023, Doosan Fuel Cell America Inc. developed a hydrogen fuel cell-based business model by forming an agreement with Kolon Global by utilizing biogas.

• In March 2023, Ceres Power Holdings PLC collaborated with Linde Engineering and Bosche GmbH to validate the cost, operational functionality, and performance of its fuel cell technology, Solid Oxide Electrolysis Cell (SOEC).

• In February 2023, FuelCell Energy Inc. collaborated with MMHE for delivering solid oxide electrolyzers by implementing fuel cell technology for the production of large-scale green hydrogen.

• In December 2022, Plug Power Inc. announced its collaboration with Nikola Corporation to make advancements in hydrogen economy. This resulted in the integration of green hydrogen fuel and fuel cell vehicles to decarbonize the hydrogen supply chain.

• In September 2022, Ballard Power Systems formed a strategic partnership with Quantron AG to make enhancement in the acceleration the adoption of fuel cell trucks.

Fuel Cell Market Report Scope

Global Fuel Cell Market Report Segmentation

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the global fuel cell market report based on product, application, and region:

• Product Outlook (Volume, Units; Capacity, Mega Watt; Revenue, USD Million, 2018 - 2030)

  • PEMFC

  • PAFC

  • SOFC

  • MCFC

  • Others

• Application Outlook (Volume, Units; Capacity, Mega Watt; Revenue, USD Million, 2018 - 2030)

  • Stationary

  • Transportation

  • Portable

• Regional Outlook (Volume, Units; Capacity, Mega Watt; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • Taiwan

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa