Fuel cell refers to a device which converts the chemical potential energy into an electrical energy. Every fuel cell has an electrolyte which carries electrically charged particles from the one electrode towards the other. It does not require electric charging but a re-fuelling through an external supply of fuel. Over the past few years, fuel cell has gained momentum as it is associated with innumerable advantages such as higher efficiency, longer operating time, production of zero toxicity and minimal maintenance cost. Owing to this, it is widely used to power industrial, commercial and residential spaces.
As fuel cell is the fastest growing alternative for power storage and backup options, the demand for unconventional energy sources is witnessing an increase across the globe. This can be accredited to the fact that fuel cells are environment-friendly in nature and have the potential to produce electricity using a variety of fuels. Apart from this, due to an increasing depletion of fossil fuels, governments of several nations are taking initiatives for promoting the use of sustainable energy substitutes like fuel cell which are strengthening the market growth. For instance, the government of Germany is investing in hydrogen fuel cells, specifically for trains, in order to minimise the emission of greenhouse gases by the end of the year 2020. Besides this, fuel cells eliminate the requirement of conventional fuels, thereby reducing the dependence on oil producing nations. This acts as another factor which is widening the growth prospects of the market. Other proactive factors which are anticipated to support the market growth include technological advancements, rising awareness about the benefits of fuel cell, and mounting count of fuel cell vehicles particularly in regions like China, Japan and Korea. However, high market price of the catalyst influences the price of fuel cell, which in turn, may diminish the sales of fuel cells. As per the research analysts at IMARC Group, the global fuel cell market share was worth US$ 4 Billion in 2017.
Fuel cell market classification on the basis of type and application
On the basis of type, the market is segmented into proton exchange membrane fuel cells (PEMFC), solid oxide fuel cells (SOFC), molten carbonate fuel cells (MCFC), direct methanol fuel cells (DMFC), phosphoric acid fuel cells (PAFC) and others. Amongst these, proton exchange membrane fuel cells exhibit a clear dominance in the market as it is extensively used in forklifts, automobiles, data centres, primary systems, telecommunications and backup power systems.
Asia Pacific dominates the market
On a geographical front, the major markets of fuel cell include Asia Pacific, North America, Europe, Middle East and Africa, and Latin America. Currently, Asia Pacific enjoys the leading position in the global market. This can be attributed to the rising demand for fuel cell electric vehicles in Japan as well as South Korea. Although, the market penetration of fuel cell is presently very low in several developing regions, however Asia Pacific offers huge growth opportunities to the investing fraternity.
Fragmented market structure due to the presence of several key players
The fuel cell market is fragmented in nature due to the presence of both small as well as large manufacturers who are actively operating in the market. Some of the key players in the market include Bloom Energy Corporation, Ballard Power Systems Inc., Nuvera Fuel Cells Inc, Toshiba Fuel Cell Power Systems Corporation, FuelCell Energy Inc, Plug Power Inc, AFC Energy plc, SFC Energy AG; Mitsubishi Hitachi Power Systems, Ltd.; Panasonic Corporation, Intelligent Energy Limited and Doosan Fuel Cell America Inc. Looking forward, the fuel cell market is anticipated to reach US$ 8.4 Billion by 2023, expanding at a CAGR of more than 13% during 2018-2023.
About IMARC Group: IMARC Group is a leading market research and consulting company that offers management strategy and market research worldwide. The company has done multiple projects on the fuel cell industry, which has enabled the clients to successfully setup and expand their businesses. Some of the company’s offerings include:
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