The global fuel cell market is expected to reach USD 24.81 billion by 2025, according to a new report by Grand View Research, Inc. Growing demand for unconventional energy sources is one of the key factors driving the global fuel cell market. Fuel cell is one of the fastest growing alternate backup power options primarily due to the utilization of hydrogen as fuel. In addition, they are eco-friendly as their by-product is harmless in nature, unlike other conventional technologies.
On the basis of policy development, China is still lagging but shows tremendous promise in the near future as the majority of the Chinese fuel cell manufacturers have been focusing to develop proton exchange membrane fuel cells. This implies the focus of the country to incorporate fuel cells in various modes of transport.
The market is expected to witness strategic alliances to expand the end user segment in emerging markets. Public – private partnerships will be critical in attaining an economically viable technological shift. Introducing cleaner technologies to substitute existing methodologies is expected to incur high costs which are expected to challenge the innovative streak of the key market players.
Further key findings from the report suggest:
- Asia Pacific is expected to emerge as the largest market in terms of unit shipment. Rising demand of Combined Heat and Power systems in Japan and other countries in this region, the market for fuel cells is slated to register a robust growth rate.
- North America is likely to emerge as the largest market for fuel cells in terms of installed capacity owing to the regulatory scenario in the region and advancements in technology.
- PEMFC is expected to emerge as the most dominant form of fuel cell owing to their ability to suit a wide variety of applications ranging from portable to large scale power systems.
- In 2014, Japan had introduced “Promotion Project for Hydrogen Society Using Renewable Energy”, an updated policy focused on fuel cell and hydrogen roadmap. This region is expected to grow at an estimated CAGR of 37.8% from 2016 to 2025.
- Transportation and Portable application segment are likely to reach a tipping point between niche and mainstream over the forecast period.
- Transportation application segment is expected to grow at an estimated CAGR of 39.2% from 2016 to 2025
- Some companies operating in the global market include Plug power, Ballard Power Systems, Hydrogenics Corporation, Ceramic Fuel Cells, Ltd., SFC Energy AG