The fuel cell market size is projected to reach US$ 12.63 billion by 2031 from US$ 1.82 billion in 2023. The market is expected to register a CAGR of 27.4% in 2023–2031. The benefits of fuel cells over traditional combustion-based technologies and the growing demand for unconventional energy sources are likely to remain key to fuel cell market trends.
Growing consumer demand for non-conventional energy sources is one of the main drivers. To reduce the environmental impact are anticipated to fuel demand for fuel cell technologies. It is expected that governments everywhere will complement these advancements with support in various forms, such as financing research and development initiatives and appropriate financing schemes. In addition, the government initiatives and investments to foster the electric vehicles market further bolster the market growth.
A fuel cell generates electricity effectively and cleanly by harnessing the chemical energy of hydrogen or other fuels. The only byproducts if hydrogen is the fuel, are heat, water, and electricity. The range of potential uses for fuel cells makes them unique; they can power systems as big as utility power plants and as small as laptop computers, using a variety of fuels and feedstocks.
Fuel cells can be used to power a variety of applications, including transportation, industrial/commercial/residential buildings, and long-term grid energy storage in reversible systems. Fuel cells have numerous advantages over traditional combustion-based technologies. In addition, it is used in various power plants and vehicles. It can operate at higher efficiencies than combustion engines, converting the chemical energy in fuel directly to electrical energy with efficiencies of more than 60%. Compared to combustion engines, fuel cells emit less or no emissions. Hydrogen fuel cells emit only water, addressing critical climate challenges with no carbon dioxide emissions. There are also no air pollutants that cause smog or health problems at the point of operation. Fuel cells are quiet to operate because they have few moving parts.
The fuel cell market is an industry that is expanding quickly and offers many different business opportunities. Technology is always evolving, and new designs and materials result in higher performance and efficiency. As a result, fuel cells are becoming more appealing for a larger variety of uses. The fuel cell market is one of the biggest in the transportation sector. Compared to battery-electric vehicles (BEVs), fuel cell electric vehicles (FCEVs) have a number of benefits, including a greater range and quicker refueling times. Fuel cell vehicles are predicted to see rapid growth in market share as the cost of FCEVs decreases and the hydrogen infrastructure expands. Various initiatives by the government to bolster the electric vehicles market in the coming years can create a huge opportunity for the fuel cell market growth.
Key segments that contributed to the derivation of the fuel cell market analysis are type, application, and end-user.
The geographic scope of the fuel cell market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
In terms of revenue, Asia Pacific accounted for the largest fuel cell market share in 2023. Automakers such as Yamaha, Toyota, and others are taking steps to encourage fuel cell technologies, which is leading to the Asia Pacific fuel cell market growth. For example, in January 2023, in line with its mission of “Producing Happiness for All,” which seeks to contribute towards establishing a ‘future-proofed’ sustainable society that is in harmony with nature, Toyota has been developing green and clean technologies promoting sustainability across regions. Being pioneers in electrified and other green vehicle technologies, the company strives to offer an array of electrified and alternate fuel vehicles to minimize CO2 emissions by taking into consideration the energy generation, infrastructure readiness, and consumer adoption of each country/region. Further, globally Toyota is committed to Carbon Neutrality by 2050 and aims to achieve Net Carbon Zero in Manufacturing Operations by 2035.
The regional trends and factors influencing the Fuel Cell Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Fuel Cell Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 1.82 Billion |
| Market Size by 2031 | US$ 12.63 Billion |
| Global CAGR (2023 - 2031) | 27.4% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Fuel Cell Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Fuel Cell Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The Fuel Cell Marketis evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
The “Fuel Cell Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
The global fuel cell market was estimated to be US$ 1.82 billion in 2023 and is expected to grow at a CAGR of 27.4% during the forecast period 2023 - 2031.
The benefits of fuel cells over traditional combustion-based technologies and the growing demand for unconventional energy sources are the major factors that propel the global fuel cell market.
Innovations in materials science to make more effective and durable fuel cell membranes are anticipated to play a significant role in the global fuel cell market in the coming years.
The key players holding majority shares in the global fuel cell market are Cummins Inc.; FuelCeIl Energy, Inc.; Ballard Power Systems; SFC Energy AG; and Intelligent Energy Limited.
The global fuel cell market is expected to reach US$ 12.63 billion by 2031.
The incremental growth expected to be recorded for the global fuel cell market during the forecast period is US$ 10.81 billion.