The global fuel cell market was valued at approximately US$709 million in 2019 and is anticipated to grow to around US$4,570.68 million by 2027, reflecting a compound annual growth rate (CAGR) of 26.8% throughout the forecast period.
Several factors are driving this market expansion, particularly the increasing demand to reduce reliance on oil and fossil fuels for vehicle operation. The push for a carbon-neutral environment is significantly influencing the adoption of fuel cells, thereby enhancing market growth. Governments in nations like China, Japan, and the United States are providing incentives to encourage the use of fuel cell vehicles, setting specific targets for the number of such vehicles on the roads. Additionally, the growing prevalence of electric vehicles aimed at lowering emissions is expected to further influence the uptake of fuel cell technology.
Recent innovations in catalyst technology are set to lower costs and enhance durability through advanced catalyst layer designs, which will improve the system's resilience across various operating conditions. Ongoing research is focused on developing use cases that explore the feasibility of reducing catalyst content, which could lead to lower overall system costs. For instance, Ballard has pioneered a proton exchange membrane (PEM) fuel cell that employs a non-precious metal catalyst, utilizing 80% less platinum and demonstrating greater tolerance to air impurities. Such advancements are likely to stimulate market growth.
The fuel cell market is categorized by type, application, end user, and geography. In terms of type, it includes proton exchange membrane fuel cells, phosphoric acid fuel cells, solid oxide fuel cells, and others. Applications are divided into transport, portable, and stationary uses. The end-user segmentation encompasses fuel cell vehicles, utilities, defense, and other sectors. Geographically, the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.
Key players in the fuel cell market include DIMEQ AS, Envision Enterprise Solutions America Inc., Favendo GmbH, Intrasys (Pte.) Ltd., Martek Marine, MER Group, Orbcomm Inc., Shipcom Wireless Inc., Vector Infotech Pte Ltd., and Zebra Technologies Corporation, among others.
Impact of the COVID-19 Pandemic on the Fuel Cell Market
The COVID-19 pandemic, which originated in Wuhan, China, in December 2019, has rapidly spread globally, prompting governments to enforce stringent restrictions on human and vehicle movement. In the initial quarter of the pandemic, the automotive sector faced significant disruptions due to supply chain interruptions, cancellations of technology events, and shutdowns of factories and offices. The automotive industry is currently experiencing a profound crisis, with 97% of light vehicle manufacturing facilities in North America and Europe temporarily closed. Furthermore, international travel bans imposed by various countries are hindering business collaborations and partnership opportunities. These factors are expected to adversely impact the automotive sector and slow market growth over the next 6 to 9 months; however, a positive overall growth trajectory is projected for the forecast period.
The size of the global fuel cell market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aims to provide an overview and forecast of the fuel cell market across all segments. Additionally, it offers insights and forecasts based on the various segments across five major regions: North America, Europe, Asia Pacific, and the Rest of the World. To validate the data and gain deeper analytical insights, multiple primary interviews have been conducted with industry participants and commentators. These participants typically include industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the fuel cell sector.