The global fuel cell market was valued at USD 7.35 billion in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 27.1% from 2024 to 2030. A major driver of this growth is the rising demand for alternative energy sources. Additionally, collaborations between the private and public sectors and the reduced environmental impact of fuel cells are set to boost market demand. Governments worldwide are anticipated to encourage development by providing support through various channels, including funding for research and development (R&D) and financing programs. Establishing a robust regulatory framework is essential to create an environment favorable for investments.
In the U.S., several states, including California and New York, have introduced mandates to reduce carbon emissions from commercial and industrial users. This has led these end users to adopt clean energy technologies to comply with the mandates and minimize their carbon footprint. For example, Bloom Energy, a prominent fuel cell provider in the U.S., supplies Bloom Energy Servers for power generation, aiding commercial and industrial end-users in reducing their carbon footprint.
Gather more insights about the market drivers, restrains and growth of the Global Fuel Cell Market
In September 2023, FuelCell Energy, Inc. and Toyota Motor North America completed the installation of a Tri-gen system at Toyota's Port of Long Beach operations, showcasing FuelCell Energy's capability in scaling hydrogen-powered fuel cell technology. Such innovations are expected to drive demand in the fuel cell market over the forecast period.
The fuel cell sector is rapidly expanding, offering a range of potential opportunities. Advancements in materials and design have led to increased efficiency and performance, making fuel cells more appealing for diverse applications. The transportation sector represents one of the largest markets for fuel cells. Fuel cell electric vehicles (FCEVs) offer advantages over battery-electric vehicles (BEVs), such as longer range and quicker refueling. With decreasing FCEV costs and growing hydrogen infrastructure, the market for fuel cell vehicles is poised for significant growth. In January 2024, Nikola Corporation launched 42 and wholesaled 35 Class 8 Nikola hydrogen-powered FCEVs under its HYLA brand for customers in the U.S. and Canada. These trucks offer a 500-mile range and an estimated refueling time of just 20 minutes.
End-use Insights
The fuel cell market can be segmented into transportation, commercial & industrial, residential, data center, military & defense, and utilities & government. In 2023, the transportation sector led with over 48.0% of global revenue, mainly due to the rising adoption of FCEVs, particularly in heavy-duty trucks and buses. Government investments in hydrogen infrastructure, aimed at developing a robust fueling network, are essential for the widespread adoption of FCEVs.
The commercial and industrial segment is anticipated to be the fastest-growing segment over the forecast period. End-users in this segment include hospitals, hotels, shopping malls, office spaces, and sports centers, which use solid oxide fuel cells (SOFCs) and proton exchange membrane fuel cells (PEMFCs) for standby applications. For instance, in February 2023, Weichai Power, in partnership with Ceres, launched a stationary SOFC in China, which has demonstrated over 30,000 cumulative operational hours and an efficiency rate of approximately 60%, with the ability to start and stop up to four times during power generation.
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