Global Fuel Cells Market Thriving: Projected to Grow at a CAGR of 18.82% By 2027
Published | 02 December 2021
The global fuel cells market is growing at a high CAGR because of the increasing demand for portable devices. The growth can also be attributed to the rising demand for clean energy generation in developed regions, increased use of fuel cell-based vehicles, booming power sector, and augmented power generation capacities globally….
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that global fuel cells market was worth USD 2,230.12 million in 2020. It is estimated to grow at a CAGR of 18.82%, earning revenue of around USD 7,456.40 million by the end of 2027. Increasing demand for portable devices and expanding production capacity of hydrogen fuel cell vehicles in developing countries are driving the global fuel cell market upwards. Furthermore, growing concern regarding environmental pollution across the world is another factor boosting the demand for hydrogen fuel cells. The awareness level regarding hydrogen cells has increased, helping the market to grow at a steady pace. Additionally, stringent government regulations in controlling the carbon emission in their respective countries and developing unconventional energy sources infrastructure also propel the demand for fuel cells in the market. However, fuel cells require higher initial investments than their counterparts and have certain limitations, such as less durability, which could hamper their growth.
Increasing Demand for Green Energy Sources Is Expected to Drive the Global Fuel Cells Market Growth
With the depleting levels of non-renewable energy sources and its immediate effects on environment, governments of different countries are taking various initiatives towards promoting the use of renewable energy sources to cut on their carbon emissions. The use of renewable energy sources has been estimated to register a surge of 3% in 2020. Hydrogen is the most abundantly present element in the atmosphere and is a renewable source of energy. Therefore, it serves as a perfect source for the zero-carbon needs for combined heat and power supplies. Hydrogen fuel cells provide a clean energy source with no adverse environmental impact as the byproducts are only heat and water. During the forecast period, the demand for fuel cells is likely to increase as ecological consciousness rises.
Market growth is projected to be driven by high fuel cell efficiency
A hydrogen fuel cell unit is fast and powerful, comparable to its conventional battery counterparts. For instance, electric vehicles need around 30 minutes and several hours to charge, whereas hydrogen fuel cells can be recharged in under five minutes. Therefore, EV manufacturers are increasingly shifting towards hydrogen fuel cells. A number of research projects focus on improving fuel efficiency. Scientists have developed stretchable fuel cells that extract energy from sweat and generate ten times more power surface area compared to conventional fuel cells. Such developments are anticipated to fuel the market growth during the forecast period.
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Global Fuel Cells Market - By Application
Based on applications, the global fuel cells market is segmented into transport, portable, and stationary. The stationary segment dominates the global market because of its prominent use in stationary power units for backup power. Its application in consumer goods, such as for power laptops as well as single family homes plays in favor of its market growth. However, the transport segment is anticipated to witness highest CAGR during the forecast period due to the use of fuel cell technology for heavy-duty operations, such as public transportation in regions like the Asia Pacific.
Global Fuel Cells Market - Regional Insights
North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa make up the global fuel cells market. Among these regions, the Asia-Pacific dominates the market. As for North America, it also holds great potential for the growth of the fuel cells market, and is projected to grow at a substantial rate during the forecast period. Hydrogen fuel cell vehicles are becoming increasingly popular in this region due to increasing awareness of carbon emissions. Furthermore, the high prominence and investment in research and development activities for bringing innovations to the fuel cell is likely to drive the market in the forecast period.
Impact of COVID-19 on Global Fuel Cells Market
The sudden outbreak of COVID-19 has negatively affected the global fuel cell market. The lockdown imposed by different countries crippled several manufacturing and production industries. The demand for fuel cells plunged sharply after the transport, portable, and stationary production operations were temporarily restricted. One of the major end-user industries was the manufacturer of hydrogen fuel cell vehicles. Due to the unavailability of workers, OEMs could not manufacture fuel cell vehicles, which caused significant revenue losses and delayed production. Thus, due to operations and distribution channel restrictions during COVID-19, the global fuel cells market had to undergo substantial losses.
The leading global fuel cells market players are Ballard Power Systems Inc., Cummins Inc., Horizon Fuel Cell Technologies Pte. Ltd, Mitsubishi Power Ltd, Toshiba Fuel Cell Power Systems Corporation, SFC Energy AG, FuelCell Energy Inc., Intelligent Energy Limited, Plug Power Inc., Nuvera Fuel Cells LLC, Proton Power Systems PLC, ITM Power Plc, United Technologies, Hydrogenics, Fuji Electric India Pvt. Ltd., AFC Energy Plc, Nedstack Fuel Cell Technology B.V., Doosan Fuel Cell America, Inc., Ceres Power Holdings PLC, and other prominent players.
With several players on the market and innovations and advancements incorporated into their products, the market has emerged as highly competitive and consolidating. The industry participants adopt competitive strategies, such as mergers, acquisitions, partnerships, collaborations, etc., to increase their product penetration in the regional market and expand their user base.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global fuel cells market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global fuel cells market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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