Fuel Cells Market by Type (Alkaline Fuel Cells, Phosphoric Acid Fuel Cells, DMFC, MCFC, PEMFC, SOFC ), by Temperature (Low Temperature Cells, Medium Temperatures Cells, High Temperatures Cells), by Functionality (Portable, Stationary, Transportation), by End-use (Healthcare, IT & Telecom, Sewage Processing, Retail & Logistics, Manufacturing, Military & Aerospace, Power Generation, Marine, Consumer Electronics, Automotive, Others) - Growth, Share, Opportunities & Competitive Analysis, 2018 – 2026

Global fuel cells market was valued at US$ 3.5 Bn in 2017 and set to grow at a CAGR of 19.6% throughout the forecast period from 2018 to 2026. Technological advancement, government mandates on environment safety and subsidiaries along with improved manufacturing efficiencies are some of the prime factors accounted for exaggerated demand for fuel cells worldwide. The global appetite for fuel cell products expected to increase in dramatic fashion over the next decade.

According to U.S. department of energy report on fuel cell technology, technological advances are helping in cost reduction of fuel cells, which further encouraging the applications of fuel cells across numerous industry verticals. In addition, government mandates to apropos the use of alternative energy sources, contamination abatement and government subsidies are further propelling the fuel cell cost competitiveness. Government along with the market leaders’ are increasingly initiating to handle the market barrier for fuel cell technology. State governments and company associations are initiating to increase the utilization of fuel cells technology among different industry applications.

"Automotive End-use to Witness Significant Growth in Overall Fuel Cells Market throughout the Forecast Period"

Growing technology acceptance coupled with the increasing awareness about environment safety ensuring significant growth in automotive industry over the review period from 2018 to 2026. To reduce greenhouse gas emissions, state governments are initiating to espouse clean energy sources such as fuel cells. Government organizations, especially of developing countries, are increasingly investing in alternative sources of energy to completely eliminate the emission of CO2 gas. Moreover, leading players in automotive industry are welcoming fuel cells technology to serve changing need of nations. On 14 September 2018, Hydrogen Council, global initiative of leading energy and transportation industry players promoting hydrogen to foster the energy transition, declared that the association is committed to an ambitious goal of guaranteeing 100% of hydrogen fuel use in different modes of transportation by 2030.

"Asia Pacific Dominates Fuel Cells Market, whereas North America to emerge as Next Promising One"

Asia Pacific accounted for the leading market share in 2017; followed by North America. Growing automotive industry coupled with the increased implementation of fuel cell technology among developing economies such as China, Japan and Korea allowing Asia Pacific to continue dominating the overall fuel cells market over the forecast period from 2018 to 2026.

Number of recent indicators and industry experts suggests that China is becoming the center of a global energy transformation. Growing technology advancements coupled with the falling price of renewable-energy sources powering the overall energy transformation market in China. In addition, to increase the deployment of FCEVs in China’s existing infrastructure, the Government has announced plans to build hydrogen stations to support over 50,000 zero-emissions fuel-cell vehicles by 2025. Chinese Government further planning to expand rapidly the production of FCEVs to 1 million units by 2030. With increasing adoption of fuel cells technology, Japan also aiming to shape more than 80 new hydrogen refueling stations in place by end of 2021.

The U.S. fuel cell market projected to grow with continuous economic support from government organizations comprising Department of Energy. Increasing government participation to promote renewable energy technologies and to reduce carbon emissions will further accompany the industry outlook. On 9 October 2018, U.S. Department of Energy singed a MoU with the U.S. Army on collaborative project for development of fuel cells technology. This collaboration aims to facilitate R&D for innovative hydrogen and fuel cell technologies portfolio. In addition, with increased adoption along with the count of hydrogen fueling stations, California leading overall fuel cells market in U.S.

Competitive Insights

Product launch and introduction to new applications of fuel cell technology are some of the widely accepted approaches in overall fuel cells market.  In order to sustain the dominating position in the global market, fuel cell vendors are increasingly presenting innovative applications of fuel cells technology to the world. On 20 July 2018, Golden Gate Zero Emission Marine (GGZEM) announced that the Company planning to introduce first commercial fuel-cell ferry named Water-Go-Round to the world by 2019.

Further, some fuel cell market vendors are engaging mergers and acquisitions as one of the key strategies for business expansion. For instance, on 26 April 2017, Hyundai Motor Group signed an agreement with Audi AG to create global leading player for manufacturing fuel cell electric vehicles. After this move, on 17 August 2017, Hyundai Motor Group unveiled its all new fuel cell SUV with improved travel range during media preview in Seoul, South Korea.  

Historical & Forecast Period

This research report presents the analysis of each segment from 2016 to 2026 considering 2017 as the base year for research. Compounded Annual Growth Rate (CAGR) for each respective segments calculated for the forecast period from 2018 to 2026.

Report Scope by Segments     

The fuel cells market report provides market size and estimates based on market dynamics and key trends observed in the industry. The report provides a holistic view of global fuel cells market based on fuel cell type, temperature, functionality, end-use and geography. Key segments covered under global fuel cells market report includes:   

Segmentation by Fuel Cell Type and Analysis of Fuel Cells Market (2016—2026; US$ Bn)

• Alkaline Fuel Cells (AFC)
• Direct Methanol Fuel Cell (DMFC)
• Molten Carbonate Fuel Cells (MCFC)
• Phosphoric Acid Fuel Cells (PAFC)
• Proton Exchange Membrane Fuel Cells (PEMFC)
• Solid Oxide Fuel Cells (SOFC)
•  

In 2017, Proton Exchange Membrane Fuel Cells (PEMFC) segment dominated the global fuel cells market. With high rate of adoption for numerous applications including backup power, distributed generation, transportation, PEMFC segment further ensures high demand during the review period from 2018 to 2026. In 2017, 45,500 proton exchange membrane fuel cells (PEMFC) were transported, globally.

Segmentation by Temperature and Analysis of Fuel Cells Market (2016—2026; US$ Bn)

• Low Temperature Cells (< 100o C)
• Medium Temperatures Cells (101o C to 250o C)
• High Temperatures Cells (>500o C)  
•  

In 2017, Global fuel cell market dominated by low temperature cells (< 100o C). PEMFC, accounted for more than 35% of overall fuel cell market in 2017, comes with operating range of 80o C. Growing market for PEMFC observed as one of the prime factors supplementing the global low temperature fuel cells market growth.Low temperature fuel cells find major adoption among automotive industry; followed by consumer electronics sector. Moreover, low temperature fuel cells awarded as an environment friendly technology capable for replacing combustion engines in cars and batteries in mobile devices, by experts form Aberdeen Institute of Energy.

Segmentation by Functionality and Analysis of Fuel Cells Market (2016—2026; US$ Bn)

• Portable  
• Stationary
• Transportation
•  

During 2017, Stationary segment accounted for the highest share of more than 70%   considering increased demand from several industry verticals including manufacturing and sewage processing among others. Stationary fuel cells application includes prime power, large combined heat and power (CHP), residential CHP (resCHP), along with uninterrupted power supply (UPS). These applications reported for the highest contribution in overall fuel cells market growth. Further, with increasing adoption from light duty vehicles, transportation segment expected to emerge as next provision one.    

Segmentation by End-use and Analysis of Fuel Cells Market (2016—2026; US$ Bn)

• Healthcare
• IT & Telecom
• Sewage Processing
• Food & Beverage
• Retail & Logistics
• Manufacturing
• Military & Aerospace
• Power Generation
• Marine
• Consumer Electronics
• Automotive
• Others (Education and Government, BFSI, Utilities, etc.)
•  

Automotive industry sees the great potential in fuel cells market. The development of new and diversified technologies are creating exciting opportunities within the automotive industry. Fuel cells for automotive applications is an attractive prospect for automotive consumers and manufacturers. It delivers a low carbon solution to mobility without the limited range allied with battery operated electric vehicles. This factor noted for changing consumer preference towards the adoption of fuel cell vehicles. Further, stringent government regulations regarding environmental effects of emission of pollutants through cars and other transportation vehicles observed as one of the prime factors supplementing the growth of fuel cells market. Transportation sector seen as one of major industries responsible for more than 12% of total CO2 emission.

Segmentation by Geography and Analysis of Fuel Cells Market (2016—2026; US$ Bn)

• North America
  • U.S.
  • Rest of North America
• Europe
  • U.K.
  • Germany
  • France
  • Rest of Europe
• Asia Pacific (APAC)
  • China
  • Japan
  • South Asia
  • Rest of Asia Pacific
• Rest of the World (RoW)
  • Middle East & Africa (MEA)
  • Latin America
  •  

Asia Pacific led fuel cells market in 2017 and expected to continue its dominance in near future. U.S. has been securing the largest market share in North America fuel cell market on account of rapid development in power technologies. Government support through research, development, and deployment initiatives and grants (e.g. for building the infrastructure for hydrogen distribution) noted as one of the prominent factors influencing growth of overall fuel cells market. Tax reduction and other subsidiary polices are further supplementing the market growth.