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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

Overview of the Global Fuel Cells Market

The global fuel cell market was valued at US$ 3.5 billion in 2017 and is expected to grow at a CAGR of 19.6% from 2018 to 2026. Technological advancement, government mandates on environmental safety and subsidiaries, and improved manufacturing efficiencies are some of the prime factors responsible for the exaggerated demand for fuel cells worldwide. The global appetite for fuel cell products is expected to increase in dramatic fashion over the next decade.

According to a U.S. Department of Energy report on fuel cell technology, technological advances are helping to reduce the cost of fuel cells, which further encourages the applications of fuel cells across numerous industry verticals. In addition, government mandates for the use of alternative energy sources, contamination abatement, and government subsidies are further propelling the fuel cell's cost competitiveness. The government, along with the market leaders, is increasingly initiating efforts to handle the market barrier for fuel cell technology. State governments and company associations are initiating efforts to increase the utilization of fuel cell technology among different industry applications.

Market Snapshot

Throughout the forecast period, the automotive end-use will witness significant growth in the overall fuel cell market.

Growing technology acceptance coupled with increasing awareness about environmental safety will ensure significant growth in the automotive industry over the review period from 2018 to 2026. To reduce greenhouse gas emissions, state governments are initiating efforts to promote clean energy sources such as fuel cells. Government organizations, particularly those in developing countries, are increasing their investments in alternative energy sources in order to completely eliminate CO2 emissions. Moreover, leading players in the automotive industry are welcoming fuel cell technology to serve the changing needs of nations. On September 14, 2018, the Hydrogen Council, a 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% hydrogen fuel use in different modes of transportation by 2030.

The Asia Pacific region dominates the fuel cell market, with North America expected to emerge as the next promising region.

Asia Pacific accounted for the leading market share in 2017, followed by North America. The growing automotive industry combined with increased fuel cell technology implementation among developing economies such as China, Japan, and Korea allows Asia Pacific to continue dominating the overall fuel cell market from 2018 to 2026.

A number of recent indicators and industry experts suggest that China is becoming the center of a global energy transformation. Growing technological advancements coupled with the falling price of renewable energy sources are 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-emission fuel-cell vehicles by 2025. The Chinese government intends to rapidly increase FCEV production to 1 million units by 2030. With the increasing adoption of fuel cell technology, Japan is also aiming to have more than 80 new hydrogen refueling stations in place by the end of 2021.

The U.S. fuel cell market is projected to grow with continuous economic support from government organizations comprising the Department of Energy. Increasing government participation to promote renewable energy technologies and reduce carbon emissions will further enhance the industry outlook. On October 9, 2018, the US Department of Energy and the US Army signed a memorandum of understanding for a collaborative project to develop fuel cell technology. This collaboration aims to facilitate R&D for an innovative hydrogen and fuel cell technology portfolio. Furthermore, with increased adoption and a greater number of hydrogen fueling stations, California now leads the overall fuel cell market in the United States.

Competitive Insights

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

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

Periods of History and Forecast

This research report presents the analysis of each segment from 2016 to 2026, considering 2017 as the base year for research. The compound annual growth rate (CAGR) for each of the respective segments was calculated for the forecast period from 2018 to 2026.

Report Scope by Segments   

The fuel cell 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 the global fuel cell market based on fuel cell type, temperature, functionality, end-use, and geography. Key segments covered in the global fuel cells market report include:

Fuel Cell Type Segmentation and Market Analysis (2016-2026; US$ Billion)

  • 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, the proton exchange membrane fuel cells (PEMFC) segment dominated the global fuel cells market. With a high rate of adoption for numerous applications, including backup power, distributed generation, and transportation, the 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 the Fuel Cells Market (2016–2026; US$ BN)

  • Low-temperature (100 C) cells
  • Cells with a temperature range of 101o C to 250o C
  • High-temperature cells (>500 C)

Low-temperature cells (100 C) dominated the global fuel cell market in 2017.PEMFC, which accounted for more than 35% of the overall fuel cell market in 2017, comes with an operating range of 80 C. The growing market for PEMFC has been observed as one of the prime factors supplementing the global low-temperature fuel cell market's growth.

Low-temperature fuel cells find major adoption in the automotive industry, followed by the consumer electronics sector. Moreover, low-temperature fuel cells were awarded as an environment-friendly technology capable of replacing combustion engines in cars and batteries in mobile devices by experts from the Aberdeen Institute of Energy.

Segmentation by Functionality and Analysis of the Fuel Cells Market (2016–2026; US$ BN)

  • Portable 
  • Stationary
  • Transportation

During 2017, the 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 cell applications include prime power, large combined heat and power (CHP), residential CHP (resCHP), and uninterrupted power supply (UPS). These applications reported the highest contribution to overall fuel cell market growth. Further, with the increasing adoption of light-duty vehicles, the transportation segment is expected to emerge as the next major one.

Segmentation by End-use and Analysis of the Fuel Cells Market (2016–2026; US$ BN)

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

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

Segmentation by Geography and Analysis of the Fuel Cells Market (2016–2026; US$ BN)

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

Asia Pacific led the fuel cell market in 2017 and is expected to continue its dominance in the near future. The U.S. has been securing the largest market share in the North American 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) is noted as one of the prominent factors influencing the growth of the overall fuel cell market. Tax reduction and other subsidiary policies are further supplementing the market growth.

Key questions are answered in this report.

  • What was the market size of fuel cells in 2017, and what is the forecast up to 2026?
  • Which is the largest regional market for fuel cells?
  • What are the key market trends observed in the fuel cell market?
  • Which is the most promising type of fuel cell on the market?
  • Who are the key players leading the market?
  • What are the key strategies adopted by the leading players in the market?
  • What are the key factors driving the global fuel cell market?
  • What are the market opportunities and threats faced by the market players in the global fuel cell market?

This report's distinct data points

  • Statistics on the adoption of fuel cells in all types, temperatures, end-use, and functionality segments per region
  • The market size for fuel cells has been calculated based on concrete parameters, including the distribution of fuel cells among different industries worldwide.
  • Market volume on the basis of fuel cell type, temperature, end-use, and functionality segments per region
  • Top countries in terms of penetration of fuel cells
  • Comparative scenario for all the segments for years 2017 (actual) and 2026 (forecast)

Frequently Asked Questions:

The market for Fuel Cells is expected to reach US$ 3.5 Bn in 2026.

The Fuel Cells market is expected to see significant CAGR growth over the coming years,at 19.6%.

The report is forecasted from 2018-2026.

The base year of this report is 2017.

ClearEdge Power LLC,FuelCell Energy Inc.,Ballard Power Systems Inc.,Hydrogenics Corporation,SFC Energy AG are some of the major players in the global market.

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Published Date:  Oct 2018
Category:  Energy
Report ID:   59404
Report Format:   PDF
Pages:   120
Rating:    4.4 (49)
Delivery Time: 24 Hours to 48 Hours   
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