Fuel Cell Market size is expected to reach $9.1 B by 2027, at a compound annual growth rate (CAGR) of 26.0% during the forecasted period, as per the recent study by MarketsandMarkets. The emissions from vehicles account for more than 15% of the global greenhouse emissions. Hence, governments all over the world are finding alternative power sources for use in the transportation sector.

The adoption of fuel cell vehicles (FCVs) in the sector is expected to increase in the near future, as there is zero owing to the absence of CO₂ emissions during vehicle operation. Therefore, many automotive manufacturers are making considerable investments to incorporate fuel cell vehicles in their product offerings.

A key factor driving the growth of the fuel cell industry is government policies and incentives provided for fuel cells. States such as California, Delaware and Connecticut in the U.S. lead in fuel cell research programs and offer incentives and subsidies for fuel cell installations, leading to the adoption of solid oxide fuel cell (SOFC) and other fuel cells in the U.S. Earlier, fuel cells installed till December 31, 2016, were eligible for a tax rebate of $3,000/kW or 30% of the cost of the project in the U.S. which was one of the market drivers in North America.