Fuel Cell Market Size
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 7.16 Billion |
| Market Size (2029) | USD 29.33 Billion |
| CAGR (2024 - 2029) | 32.59 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Fuel Cell Market Analysis
The Fuel Cell Market size is estimated at USD 7.16 billion in 2024, and is expected to reach USD 29.33 billion by 2029, growing at a CAGR of 32.59% during the forecast period (2024-2029).
- Over the medium term, falling costs of green and blue hydrogen generation and rising demand from the automotive sector are expected to drive the market during the forecast period.
- On the other hand, competition for alternative energy sources and high capital costs are expected to hinder the growth of the market.
- Nevertheless, the distributed generation as a potential market for solid oxide fuel cells are expected to grow significantly in the market due to the increasing innovation. This factor is expected to create several opportunities for the market in the future.
- Asia-Pacific is expected to dominate the fuel cell market, with the majority of the demand coming from countries such as China, India, Japan, and South Korea.
Fuel Cell Market Trends
Vehicular Application to Dominate the Market
- The fuel cell-based automotive industry has become more lucrative in recent years due to the higher performance, reduced refueling time, and long range offered by the systems. The exhaust in terms of water, a decline in the proportion of emissions, and superior power and torque output play a significant role in terms of the adoption of fuel cell technologies for automobiles.
- On a traditional vehicle, the fuel cell technology provides a driving range of over 300 miles. It reduces the weight of carrying heavy batteries compared to battery electric vehicles, thereby boosting the market's growth over the forecast period.
- Furthermore, government regulations for reducing environmental pollution encourage the adoption of fuel cells in the automotive sector. The countries are focusing on R&D and investing in fuel cell technology to improve their public transportation while reducing harmful emissions. For instance, the South Korean government plans to replace around 26,000 CNG buses with fuel-cell buses by 2030.
- Also, material-handling vehicles, such as forklifts, trucks, etc., are expected to witness significant growth over the forecast period due to their increased usage in the logistics and construction sectors. Fuel cells are used as replacements for internal combustion engines in light-duty vehicles and warehouse forklifts, primarily to improve efficiency and reduce oil consumption.
- Furthermore, in methanol fuel cell trucks, the fuel is stored in refillable onboard tanks to reduce the refueling time, thereby providing feasibility for long routes. The major automobile manufacturers are developing Class 8 vehicles that operate on fuel cell technology.
- In the Asia-Pacific region, the adoption of fuel-cell electric vehicles is expected to be driven by strong incentives and government policies. This is expected to boost consumer acceptance and increase private investments by companies seeking to establish global fuel cell network refueling stations.
- Over the next five years, leading original equipment manufacturers (OEMs) are expected to launch approximately 20 fuel cell vehicle models in the Asia-Pacific market. Asian OEMs, with a first-mover advantage, are expected to dominate the market during the forecast period. For instance, the unit sales of Toyota fuel cell electric vehicles are estimated at 165,000 and those of Hyundai fuel cell electric vehicles at 148,000 by 2030.
- Japan is at the forefront in terms of the adoption of alternative fuel technologies. The Japanese government and the local original equipment manufacturers (OEMs) focus on standardizing electrified powertrains globally. Meanwhile, the Japanese government also encouraged hydrogen fuel technology for large-scale deployments and transport applications. The country has set a target of having 200,000 FCVs on the road by 2025.
- North America is the second-largest market for vehicular fuel cells, mainly dominated by the United States. Stringent emission norms, the presence of technology producers, incentives in the form of tax credits, etc., drive the market growth for fuel cell systems in the vehicular segment of the country. According to International Energy Agency (IEA), as of 2022, 15.2 thousand of total fuel cell vehicle was in circulation.
- The presence of some of the most prominent automotive manufacturers and original equipment manufacturers in the country is another major factor expected to propel the large-scale adoption of fuel cell commercial vehicles in the United States. Hyundai plans to build a production capacity of nearly 500k fuel cell systems for commercial and passenger vehicles by 2030 at an estimated cost of USD 6.4 billion.
- Hence, vehicular applications are expected to dominate the market due to increasing technological innovation and rising private player involvement.
Asia-Pacific to Dominate the Market
- Asia-Pacific is one of the most promising regional markets for fuel cells on account of the favorable government policies for clean energy usage in countries such as China, Japan, India, and South Korea.
- China is the country with one of the highest potentials for fuel cells due to the following reasons: The hydrogen fuel cell industry in the country has been gaining traction on the back of favorable national and provincial government subsidies and incentive programs from local authorities, mainly to encourage the uptake of hydrogen vehicles to cut pollution.
- Along with the potentially large market, China also has numerous domestic enterprises that manufacture fuel cells. Hence, the demand and the domestic supply are present in the country, further bolstering the growth of the market.
- China has great potential in the fuel cell market as the government is increasingly focusing on ways to utilize clean energy technology in order to switch to a low-carbon economy.
- China has also witnessed a rise in its hyper-scale platforms, owing to which providing data center services for Chinese hyper-scale platforms has become necessary. China has 50 internet users per 100 people, indicating scope for a lot of development and expansion in the connectivity ecosystem. The data centers can become major consumers of fuel cell technology in the country.
- In 2022, Elcogen incorporated solid oxide fuel cell (SOFC) and stack technology into the Convion C60 power unit to generate heat and electricity with high efficiency levels. The project provides a template for future projects of this kind, also at scale, which are expected to enable companies to generate both heat and electricity at high efficiency levels, all while reducing carbon emissions.
- In India, the government has been supporting research, development, and demonstration projects on various aspects of hydrogen, including its production, storage, and use as a fuel for power generation, which is likely to fuel an opportunity for the fuel cell market in the country.
- Further, in January 2023, the government of India announced the National Green Hydrogen Mission with initial funding of USD 2.4 billion, including an outlay of USD 2.1 billion for the SIGHT program, USD 700 million for pilot projects, USD 50 million for R&D, and USD 40 million for other mission components.
- Further, the country's green hydrogen production capacity is likely to reach at least 5 MMT per annum, with an associated renewable energy capacity addition of about N125 GW. The targets by 2030 are likely to bring in over INR 8 lakh crore of investments, and nearly 50 MMT of CO2 emissions are expected to be averted by 2030.
- Japan imports foreign resources to satisfy over 90% of its energy consumption needs. As a result, the heavy reliance on fossil fuels places Japan in fifth place globally in carbon intensity. However, Japan has been undergoing a significant transition in recent years, shifting away from fossil fuels and renewable energy sources. The country has strived to reform its energy policy and systems by focusing on renewable energy and clean hydrogen.
- Japan implemented one of the most successful fuel cell commercialization programs, the Ene-farm program, in 2015. The program led to the deployment of over 120,000 residential fuel cell systems. Japan remains, by far, the leader in developing and deploying small-scale fuel cell systems through the Ene-farm program, which provides subsidies for purchasing residential fuel cell systems for the domestic CHP.
- Therefore, factors such as supportive government policies and efforts to incorporate fuel cell technology in transportation and other applications are expected to drive the region's fuel cell market during the forecast period.
Fuel Cell Industry Overview
The fuel cell market is semi-fragmented. The key players in the market (not in particular order) include Ballard Power Systems Inc., FuelCell Energy Inc., Mitsubishi Power Ltd., Plug Power Inc., and Cummins Inc., among others.
Fuel Cell Market Leaders
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Ballard Power Systems Inc.
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FuelCell Energy Inc.
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Plug Power Inc.
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Mitsubishi Power, Ltd.
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Cummins Inc.
*Disclaimer: Major Players sorted in no particular order
Fuel Cell Market News
- February 2023: SFC Energy AG, a hydrogen and methanol fuel cell supplier, and FC TecNrgy Pvt Ltd inked a strategic cooperation agreement to set up a manufacturing facility for hydrogen and methanol fuel cells in India. SFC Energy AG would oversee the manufacturing and quality assurance of fuel cells. At the same time, FC TecNrgy Pvt. Ltd. would look for the development, installation, and integration of custom fuel cell solutions. This development came against the backdrop of India's strategic framework called the National Green Hydrogen Mission, which aims for carbon reduction and a clean energy supply.
- August 2022: Bosch declared it would invest more than USD 200 million in manufacturing fuel cell stacks at its South Carolina facility. This investment is expected to help the development of fuel cells for hydrogen-powered electric commercial trucks in the United States. The production of fuel cells is expected to begin in 2026. Initially, Bosch is expected to invest approximately USD 1 billion globally to manufacture fuel cell technologies by 2024.
Fuel Cell Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Falling Costs of Green And Blue Hydrogen Generation
- 4.5.1.2 Rising Demand from The Automotive Sector
- 4.5.2 Restraints
- 4.5.2.1 Competition for Alternative Energy Source
- 4.6 Supply Chain Analysis
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4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitute Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Application
- 5.1.1 Vehicular
- 5.1.2 Non-vehicular
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5.2 Technology
- 5.2.1 Polymer Electrolyte Membrane Fuel Cell (PEMFC)
- 5.2.2 Solid Oxide Fuel Cell (SOFC)
- 5.2.3 Other Technologies
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 France
- 5.3.2.3 United Kingdom
- 5.3.2.4 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 South Korea
- 5.3.3.3 Japan
- 5.3.3.4 Rest of Asia Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 United Arab Emirates
- 5.3.5.3 South Africa
- 5.3.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Ballard Power Systems Inc.
- 6.3.2 Horizon Fuel Cell Technologies Pte. Ltd.
- 6.3.3 Toshiba Energy Systems & Solutions Corporation
- 6.3.4 FuelCell Energy Inc.
- 6.3.5 Plug Power Inc.
- 6.3.6 Nuvera Fuel Cells LLC
- 6.3.7 Intelligent Energy Limited
- 6.3.8 SFC Energy AG
- 6.3.9 Mitsubishi Power Ltd.
- 6.3.10 Cummins Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Distributed Generation as a Potential Market For Solid Oxide Fuel Cells
Fuel Cell Industry Segmentation
Fuel cells use the chemical energy of hydrogen to produce electricity efficiently. They need not be periodically recharged like batteries but instead continue to generate electricity as long as a fuel source is provided. Fuel cells are very clean, with the only by-products being electricity, excess heat, and water. Fuel cells are used in vehicular (transport) and non-vehicular (stationary, portable) applications. Non-vehicular stationary fuel cells provide electricity but are not designed to be moved, while portable fuel cells charge up products that are designed to be moved, including small auxiliary power units (APUs).
The fuel cell market is segmented by application, technology and geography. By application, the market is segmented into vehicular and non-vehicular. By technology, the maket is segmented into polymer electrolyte membrane fuel cell (PEMFC), solid oxide fuel cell (SOFC), and other technologies. The report also covers the market size and forecasts for the fuel cell market across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD).
| Application | Vehicular | |
| Non-vehicular | ||
| Technology | Polymer Electrolyte Membrane Fuel Cell (PEMFC) | |
| Solid Oxide Fuel Cell (SOFC) | ||
| Other Technologies | ||
| Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| France | ||
| United Kingdom | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| South Korea | ||
| Japan | ||
| Rest of Asia Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| South Africa | ||
| Rest of Middle-East and Africa |
Fuel Cell Market Research FAQs
How big is the Fuel Cell Market?
The Fuel Cell Market size is expected to reach USD 7.16 billion in 2024 and grow at a CAGR of 32.59% to reach USD 29.33 billion by 2029.
What is the current Fuel Cell Market size?
In 2024, the Fuel Cell Market size is expected to reach USD 7.16 billion.
Who are the key players in Fuel Cell Market?
Ballard Power Systems Inc., FuelCell Energy Inc., Plug Power Inc., Mitsubishi Power, Ltd. and Cummins Inc. are the major companies operating in the Fuel Cell Market.
Which is the fastest growing region in Fuel Cell Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Fuel Cell Market?
In 2024, the Asia Pacific accounts for the largest market share in Fuel Cell Market.
Fuel Cell Industry Report
The report on the Fuel Cells Market provides a comprehensive industry analysis, covering market size and share segmented by application, technology, and geography. The market overview includes vehicular and non-vehicular applications, as well as various technologies such as Polymer Electrolyte Membrane Fuel Cell (PEMFC) and Solid Oxide Fuel Cell (SOFC). The industry outlook highlights the growth rate and market forecast, offering a detailed market review and market predictions for the coming years.
In terms of market segmentation, the report discusses the market value and market data across different regions including North America, Europe, Asia-Pacific, South America, and the Middle-East and Africa. The market growth is analyzed, providing insights into the market leaders and their market share. The industry reports also delve into industry trends and industry statistics, offering a clear market overview.
The report example includes a report PDF download, making it accessible for further research. The market outlook and market forecast are supported by detailed industry research, which includes industry information and industry sales data. The report also addresses market predictions and the long-term market outlook, ensuring a thorough understanding of the market dynamics.
Research companies will find valuable insights in the market analysis, which is backed by industry statistics and market data. The report covers market segmentation and provides a detailed market review, helping stakeholders understand the market value and market trends. The industry size is also discussed, providing a comprehensive overview of the industry growth and market trends.
Overall, this report is an essential resource for anyone looking to understand the Fuel Cells Market, offering a detailed market analysis and industry profile.
