Fuel Cell Market Size, Share & Trends Analysis Report By Raw Material, By Product (PEMFC, PEFC, SOFC, MCFC), By Application (Stationary, Transportation, Portable), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global fuel cell market size was valued at USD 4.1 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 23.2% from 2020 to 2028. Increasing demand for unconventional sources of energy is one of the key factors driving the market growth. Growing private-public partnerships and reduced environmental impact are other factors anticipated to propel the demand. Governments across the world are expected to supplement the developments by offering support in various forms, such as funding research activities and suitable financing programs. Developing a robust regulatory and policy framework is especially important as government enterprises need to provide an environment that is suitable for investment.

Encouraging regulations by the governing bodies in developed economies and eco-friendly objectives to eliminate emission rates propels the demand for hydrogen power plants during the forecast period. Rising emphasis by governments of developed economies, such as Europe and the U.S., and technological advancements for the replacement of electric grids are likely to further foster the growth.

Ongoing projects in Europe are anticipated to enable market participants to extend their product portfolio. Deploying cleaner technologies at higher cost challenges the innovative streak of most of the market participants. The use of fuel cell technology in various transportation modes is growing rapidly due to an increase in R&D for developing hydrogen-powered vehicles.

Increasing public-private partnerships result in faster adoption of hydrogen-based applications. For instance, Bloom Energy signed MoU with GAIL (India) Limited to deploy fuel cell technology in India using natural gas. Doosan Fuel Cell signed a deal with Samsung C&T Group and Korea Hydro & Nuclear Power to manufacture and deliver 70 fuel cells for a residential complex in Busan.

Fuel cells generate electricity directly from hydrogen and oxygen and hence the power generated does not result in the emission of carbon dioxide or any other environmental pollutants. When hydrogen is formed under this method, a small number of harmful substances are released. However, the high cost of fuel cell systems resulting in the high cost of FCEV may challenge the market growth. Investment risks such as capital and operational costs and under-utilization of various facilities pertaining to FCEV are likely to further hinder the growth.

Application Insights

Based on application, the fuel cell market has been segmented into stationary, transportation, and portable. The stationary segment is expected to emerge as the largest application segment over the forecast period. Factors such as high efficiency and flexibility to use different fuels are expected to boost the growth of the stationary application segment.

Transportation application segment is expected to progress at the fastest growth rate over the forecast period owing to the growing demand for fuel cell cars and fuel cell-powered forklifts. Furthermore, increasing research & development activities in Europe to develop hybrid vehicles powered by hydrogen are likely to drive the growth of the segment.

European countries such as Germany, France, and the UK are heavily investing in research related to the utilization of fuel cells for power generation. This is anticipated to boost the growth of the stationary application segment over the forecast period. The stationary segment is expected to emerge as the dominant application segment over the forecast period.

Product Insights

Based on product, the global fuel cell market has been segmented into PEMFC, PAFC, SOFC, MCFC, and others. Proton exchange membrane fuel cell (PEMFC) was the dominant product segment in 2020 in terms of units. The segment’s high share is primarily due to the extensive use of PEMFC in stationary, transportation, and portable applications.

In terms of shipped units, solid oxide fuel cell (SOFC) emerge as the product segment with a significant share. In SOFCs need for electrolyte loss is negated, which acts as one of the major advantages. In addition, their ability to operate at high temperatures reduces the need for costly catalysts such as ruthenium. SOFCs are majorly favored for stationary applications.

PEMFC requires pure hydrogen, oxygen, and water for its working. It operates at a comparatively lower temperature of around 80°C, making it eligible for quick start and less prone to wearing of system components. As a result, PEMFC is more durable than other product types. In addition, it provides advantages such as low weight and volume as compared with other available fuel cell types.

Due to the rise in environmental concerns, government authorities are shifting toward a hydrogen economy by executing numerous policies to develop hydrogen-based fuel cells and hydrogen refueling stations for vehicles. This is likely to boost the demand for PEMFC in the coming years across the world. For instance, in 2019, South Korea's government announced that it would build hydrogen refueling stations in line with its policy related to hydrogen that encourages the usage of clean energy in the automobile industry.

Regional Insights

Asia Pacific accounted for the largest share of the global fuel cell market in 2020 in terms of units mainly due to the ENE-FARM program in Japan, which has driven the use of PEMFCs and SOFCs for micro-CHP applications in the country. Moreover, supporting policies and plans for fuel cell systems for transportation application in China and South Korea have fueled the growth of the fuel cell market in the region.

North American fuel cell market held a significant share in 2020 in terms of capacity owing to the presence of supporting policies to limit carbon footprint in the region coupled with the availability of funds for the research & development related to fuel cells. Furthermore, the presence of vendors such as Bloom Energy has driven the installation of fuel cells for stationary applications in the U.S. in sectors such as data centers, sports stadiums, and commercial buildings.

Fuel Cell Market Share Insights

The global fuel cell market is highly competitive owing to continuous technological advancements being introduced by the existing vendors and new entrants. Industry players are concentrating on strengthening their relations with system installers and are looking at collaborations & merger strategies to help them to enhance their presence in the value chain and expand their geographical presence.

Progressive private-public partnerships are predicted to be essential for attaining an economically viable technological shift. The introduction of cleaner technologies to substitute the existing methodologies is anticipated to lead to higher costs. This is projected to be a challenge for the innovations carried out by key market players. Some of the key players operating in this industry include:

• Fuel Cell Energy, Inc.
• Ballard Power Systems
• 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

Fuel Cell Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this report, Grand View Research has segmented the global fuel cell market report on the basis product, application, and region:

• Product Outlook (Volume, Units; Capacity, Mega Watt; Revenue, USD Million, 2016 - 2028)

  • PEMFC

  • PAFC

  • SOFC

  • MCFC

  • Others

• Application Outlook (Volume, Units; Capacity, Mega Watt; Revenue, USD Million, 2016 - 2028)

  • Stationary

  • Transportation

  • Portable

• Regional Outlook (Volume, Units; Capacity, Mega Watt; Revenue, USD Million, 2016 - 2028)

  • 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