The global fuel cell market is garnering strength and is predicted to move at an impressive CAGR of 25.2% during 2022-2032.

“Demand for fuel cell acting as an external power source is burgeoning, owing to its carbon-free attributes and is likely to advance as portable electronic devices are witnessing unforeseen rise in their sales,” according to Future Markets Insights analysts.

The demand for renewable energy sources is growing at a global level, which, in turn, propels the development of associated products like fuel cell cars.

What are the key drivers propelling growth of the fuel cell market?

“Fuel cell energy is the renewable energy source that the world waits for. As the environmental crisis increases, the world looks for efficient and clean energy technology. This united approach towards the transformation is leading to a high number of sales in fuel cell market,” according to Future Markets Insights analysts.

Fuel cells were used for application in probes, satellites and space capsules. Generally, fuel cells utilize oxygen and H₂ during the electrochemical reaction process and generate electricity, heat and water. These cells are used where continuous flow of electricity is required; they convert the fuel cell energy into the electric energy.

The cells provide continuous flow of electricity that is empowered with clean energy technology if source fuel is supplied. As fuel cells are carbon-free due to their non-burning nature, environmental norms support the development of this market.

Institutional organizations such as Sandia National Laboratories and the University of the Basque Country (UPV/EHV) are constantly conducting extensive research to improve the efficiency of fuel cells. Key players (manufacturers) in the industry adopt strategies such alliances and partnerships to expand their product lines. Furthermore, strategic alliances are helping market players to penetrate relatively newer application areas.

Fuel cell manufacturers are also involved in enhancement of product offerings. For example, Ballard Power Systems, Inc. and Plug Power, Inc. signed an agreement to supply fuel cell stacks to Plug Power, Inc. for three years to be used in forklift trucks.

Fuel cell manufacturers are also involved in the operational expansion through the setting up of new plants. Recently, Daimler AG and The Linde Group entered strategic alliance to build H₂ fueling stations in Germany. Such initiatives are helpful to commercialize fuel cell application in the transportation sector.

Furthermore, fuel cell-powered vehicles require H₂ filling stations. With such initiatives, it is possible to commercialize fuel cell-powered automobiles.

How is the global fuel cell market classified?

“Fuel cell technology finds application in stationary power, portable power and transportation power, and specialty vehicles, fuel cell electric vehicles, auxiliary power units and material handling equipment,” according to Future Markets Insights analysts.

Fuel cells were used for application in probes, satellites and space capsules. Generally, fuel cells utilize oxygen and hydrogen during the electrochemical reaction process and generate electricity, heat and water. These cells are used where continuous flow of electricity is required; they convert the fuel cell energy into the electric energy.

At a global level, various fuel cell design modifications are available. This includes solid oxide fuel cell, proton exchange membrane, molten carbonate fuel cell and a few others. Furthermore, the fuel cell market can be categorized based on source type as H₂ powered, methanol powered, biogas powered, natural gas powered and hydrocarbons powered.

Fuel cell technology has become one of the dominant technologies in the power generation industry owing to its carbon-free, non-burning nature and safe energy source.

Which region shows strong growth potential in the fuel cell market?

“Whether it is for fuel cell system development in central Oregon, wind power generation along the Columbia Gorge, or geothermal energy in southern Oregon, investing in new energy sources makes North America more energy-independent,” according to Future Markets Insights analysts.

Rising environmental concerns along with stringent regulations, especially in North America and Europe to reduce carbon emission, is likely to fuel the demand for fuel cell systems over the forecast period. Furthermore, various other factors such as consistently declining fuel cell cost due to technological advancement and uncertainty of the source of fuel cell are likely to spur growth of the fuel cell market.

Such factors limit the application of fuel cells to a narrower spectrum. Depletion of global oil and gas reserves coupled with the demand for clean energy or renewable energy are fueling the global fuel cell market.

In the past few years, fuel cell market has witnessed different levels of developments, especially occurring in North American and European countries. FMI also analyzed MEA, Latin America and Asia Pacific as potential markets for the fuel cell technology.

In addition, Asia Pacific has become hub for consumer electronics, where electronic goods and renewable energy sources are produced at relatively lesser cost. Fuel cell market is likely to take advantage of such factors and is expected to witness increment in the penetration in Asia Pacific.