Fuel cells produce electricity through an electrochemical reaction, not combustion, and have the potential to power anything that needs electricity, from vehicles to homes and businesses. Fuel cells have advantages over other types of batteries as they have higher energy densities with longer runtimes and faster refueling. Fuel cells are highly efficient, clean, and quiet power sources. They use hydrogen gas (and sometimes methanol or other fuels) to generate electricity with water and heat as the only by-products. As concerns grow over air pollution and climate change due to transportation emissions, fuel cells have enormous potential to provide clean and renewable transportation energy.
The global Fuel Cell Market is estimated to be valued at US$9.2 billion in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing demand for hydrogen fuel cell vehicles is expected to be a key driver fueling growth of the fuel cell market during the forecast period. Hydrogen fuel cell electric vehicles (FCEVs) emit only water and heat and can be refueled rapidly in a similar way to gasoline vehicles. They have comparable or better driving ranges and faster refueling times than battery electric vehicles. Major automakers such as Toyota, Hyundai, and Honda have already mass produced FCEV models and more fueling stations are being installed globally. Governments worldwide are also promoting the adoption of FCEVs through subsidies and incentives as they aim to reduce oil dependence and greenhouse gas emissions from transportation. These factors are expected to significantly increase sales and adoption of hydrogen FCEVs in the coming years, which will directly boost demand for fuel cells.
Key players operating in the fuel cell market are Ballard Power Systems, Hydrogenics Corporation, Plug Power, Ceres Power Holdings, Nuvera Fuel Cells, Panasonic Corporation, Nedstack Fuel Cell Technology, Toyota Motor Corporation.
The global fuel cell market is divided into proton exchange membrane fuel cells (PEMFC), phosphoric acid fuel cells (PAFC), molten carbonate fuel cells (MCFC), and solid oxide fuel cells (SOFC) based on technology. PEMFC dominates the market as they are suitable for transportation and portable applications due to their high power density, quick start-up, and low operating temperature. PEMFC is widely used in fuel cell vehicles, backup power systems, and portable power applications.
The global Fuel Cell Market is expected to witness high growth.
Regional analysis: The Asia Pacific region is currently the fastest growing market for fuel cells and is expected to maintain its dominance during the forecast period as well. The presence of leading fuel cell manufacturers and government initiatives promoting hydrogen infrastructure development are driving market growth in the region.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it