Global Fuel Cells Market: Snapshot
Fuel cells are electrochemical devices that have soared in popularity as a clean source of electric energy over the past decade. Forming an excellent source of alternative green energy technology, they are inherently more efficient than most other combustion engines. Fuel cells are used in a variety of applications such as submarines, vehicles, combined heat and power (CHP) systems, uninterrupted power supply systems (UPS), military power units, and various electric appliances. The demand for fuel cell technology is fast emerging as a source of heating in commercial buildings, since it supplies emission-free power.
The market for fuel cells is evolving with the spiraling demand for numerous stationary applications of fuel cells and also gradually replacing conventional batteries in some facilities. In the coming years, proton exchange membrane fuel cells and hydrogen fuel cells are expected to gain prominence for providing uninterrupted power supply in various end-use industries. Prominent portable applications are consumer electronics including laptops, tablets, cameras, and smartphones. As several large car makers are tweaking the potential of hydrogen fuel cells to suit power cars, the share of transportation and automotive industries in the market is also projected to rise.
In terms of revenue, the global market for fuel cells was valued at US$ 3.59 Bn in 2015 and is projected to attain a valuation of US$ 27.25 Bn by the end of the forecast period. During the same period, the market is projected to rise at a 23.64% CAGR.
Asia Pacific to Offer Lucrative Market Avenues in Coming Years
Based on geography, the fuel cells market is segmented into North America, Europe, Asia Pacific, and Rest of the World (RoW). Of these, the Asia Pacific market accounted for a significant market share of 59.94% in the fuel cells market in 2015. The regional market is expected to rise at an impressive CAGR over the forecast period. The steady growth will be driven by accelerated adoption of green energy technology, reducing reliance on fossil fuels, and spiraling electricity demand attributable to a burgeoning population in various countries. In addition, the swift pace of industrialization is expected to fuel the demand for fuel cells in numerous industrial applications. Furthermore, stringent government mandates to minimize carbon emissions, coupled with the demand for eco-friendly technologies, will catalyze the growth of the regional market.
The Asia Pacific market is followed by the North America market where a major percentage of demand for fuel cells comes from the U.S. The increasing adoption of emerging fuel cell technologies for generation of electricity and the use of fuel cells in UPS are expected to propel the regional market along the forecast period.
Upsurge in Stationary Applications of Fuel Cells to Accentuate Market Growth
The major types of fuel cells are direct methanol fuel cells (DMFC), proton exchange membrane fuel cells (PEMFC), and solid oxide fuel cells (SOFC). Of these, PEMFC segment held the significant market share in 2015. The substantial growth of the market for PEMFC is expected to be driven by increasing applications in the transport industry to power cars and buses and constant technological advancements aimed to increase the efficiency of these fuel cells. Furthermore, this technology is considered to be the preferred choice for several small-scale residential applications
Based on application, the fuel cells market is segmented into stationary, portable, and transport. Currently, the stationary application of fuel cells is the leading segment. Other applications are also expected to witness significant technological investments in R&D activities by major players.
Some of the top companies operating in this market are Ballard Power Systems Inc., AFC Energy PLC, Doosan Fuel Cell America, Inc., Hydrogenics Corporation, Panasonic Corporation, Plug Power, Inc., Toshiba Corporation., Nedstack, and SFC Energy AG.
This research study analyzes the market for fuel cells in terms of volume (Units) and revenue (US$ Mn). The fuel cells market has been segmented on the basis of type, application, and geography. For the research, 2015 has been taken as the base year, while all forecasts have been given for the period from 2016 to 2024. Market data for the segments including type, application, and regional have been provided from 2014 to 2024. The report provides a broad competitive analysis of companies engaged in the fuel cells business.
The report also includes the key market dynamics such as drivers, restraints, and opportunities affecting the fuel cells market. These market dynamics were analyzed in detail and are illustrated in the report with the help of supporting graphs and tables. The report also provides a comprehensive analysis of the fuel cells market with the help of Porter’s Five Forces model. This analysis helps in understanding the five major forces that affect the market structure and market profitability. The forces analyzed are bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitutes, and degree of competition.
The high-level analysis in the report provides detailed insights into the fuel cells business globally. There are currently numerous drivers of the market. Some of the most prominent drivers are high electricity demand and strict government regulations to minimize carbon emissions. Market attractiveness analysis was carried out for the fuel cells market on the basis different regions. Market attractiveness was estimated on the basis of common parameters that directly impact the fuel cells market.
Increasing demand for energy and rising cost of fossil fuels are likely to propel the demand for fuel cells. Rise in adoption of fuel cells in stationary, portable, and transport applications are anticipated to drive growth of the fuel cells market. Research and development activities in demonstration and adoption of improved and efficient fuel cell technology would reduce carbon dioxide emissions and enhance the efficiency of power delivered. Rapid population growth, high dependency on fossil fuels, increasing electricity demand, strict government regulations to minimize carbon emissions, and high awareness in different countries about clean energy usage are the main drivers of the fuel cells market.
High energy density and better backup power systems as compared to other batteries are also augmenting the fuel cells market. Rapid population growth followed by high electricity demand has resulted in a paradigm shift towards alternate sources of electricity generation such as fuel cells. Rapid rise in the industrial applications of hydrogen gas is expected to boost the demand for fuel cells globally. However, distribution and transportation challenges associated with hydrogen coupled with the high cost of fuel used in fuel cells such as hydrogen or other gas as against fossil fuels may restrain growth of the fuel cells market
Globally, investment influx in the fuel cells market is anticipated to grow during the forecast period. Power, portable charging requirements, CHP, and backup power systems are the primary drivers for the demand for fuel cells. The fuel cells market has been segmented in terms of type, application, and geography. By type, the fuel cell market has been segmented into proton exchange membrane fuel cells (PEMFC), direct methanol fuel cells (DMFC), solid oxide fuel cells (SOFC), and others. By Application, the market has been segmented into stationary, portable, and transport In terms of geography, the fuel cells market has been segmented into four regions: North America, Europe, Asia Pacific, and Rest of the World. Key players in the fuel cells market include AFC Energy PLC, Ballard Power Systems Inc., Doosan Fuel Cell America, Inc., FuelCell Energy, Inc., Hydrogenics Corporation, Nedstack Fuel Cell Technology B.V., Plug Power, Inc., Panasonic Corporation, SFC Energy AG, and Toshiba Corporation.
The fuel cells market has been segmented as follows:
Fuel Cells Market: By Type
- Proton Exchange Membrane Fuel Cells (PEMFC)
- Direct Methanol Fuel Cells (DMFC)
- Solid Oxide Fuel Cells (SOFC)
Fuel Cells Market: By Application
Fuel Cells Market: By Region
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Rest of the World