Fuel Cell Power System Market Size, Share, Competitive Landscape and Trend Analysis Report, by Fuel Cell Type, by Application : Global Opportunity Analysis and Industry Forecast, 2024-2030

Key Market Dynamics

The decreasing production costs in the fuel cell power system market have emerged as a pivotal factor driving its substantial growth. As advancements in technology and manufacturing processes continue, the cost of producing fuel cells has experienced a notable decline, making this clean energy solution more economically viable and competitive with traditional power generation methods. In addition to making fuel cell technology more cost-effective, the decreasing production costs enhance the market's competitiveness in comparison to conventional energy sources. All these factors drive the growth of the fuel cell power system market. According to India Brand Equity Foundation (IBEF) , in February 2023, oil demand rose to a 24-year high, which resulted due to a boost in the industrial activity. It was the 15th consecutive year-on-year rise in demand.

Limited hydrogen infrastructure poses a significant restraint to the growth of the fuel cell power system market. Hydrogen serves as a critical fuel source for various types of fuel cells, and its production, distribution, and accessibility are vital components for the widespread adoption of fuel cell technologies. However, the current infrastructure for hydrogen is limited compared to traditional energy sources, hindering the seamless integration and deployment of fuel cell power systems. All these factors hamper the fuel cell power system market growth.

Fuel cell technology has experienced significant advancements in recent years, particularly in the design and composition of catalysts. Innovations in catalyst materials have led to improved electrochemical reactions within fuel cells, boosting their overall efficiency and power output. In addition, advancements in materials science have led to the development of more durable and cost-effective components for fuel cell systems. These improvements address historical challenges related to the longevity and manufacturing costs of fuel cells, making them more attractive for both stationery and mobile applications. All these factors are anticipated to offer new growth opportunities for the fuel cell power system market forecast.

Market Segmentation

The fuel cell power system market is segmented on the basis of fuel cell type, application, and region. By fuel cell type, the market is classified into Solid Oxide Fuel Cell (SOFC) , Proton Exchange Membrane Fuel Cell (PEMFC) , Molten Carbonate Fuel Cell (MCFC) , Phosphoric Acid Fuel Cell (PAFC) and others. Based on application, the market is segmented into residential, commercial, and industrial. Region-wise, the market is studied across areas such as North America, Europe, Asia-Pacific, and LAMEA.

Regional Market Outlook

Fuel cell power system market in Asia-Pacific is experiencing significant growth and development driven by several factors. Japan stands out as a frontrunner in adopting fuel cell technology, with strong government support and substantial investments in research and development. Japanese companies such as Ballard Power Systems, Toshiba Energy Systems & Solutions Corporation, and Toyota are leading the way in fuel cell innovation, driving advancements in both stationery and transportation applications.

• According to India Brand Equity Foundation (IBEF) Diesel demand in India is expected to double to 163 MT by 2029-30, with diesel and gasoline covering 58% of India’s oil demand by 2045.

• In May 2022, according to the Press Information Bureau, the Indian government approved changes in the Biofuel Policy to bring forward the target for 20% ethanol blending with petroleum to 2025-26 from 2030.

• In February 2022, Japan's Ministry of the Environment announced that it would support local governments and companies in the establishment of a hydrogen business consortium. The ministry has been jointly implementing a hydrogen supply chain platform that generates low-carbon hydrogen and utilizes it in the region with certain companies and local governments. It aims to realize the hydrogen supply chain platform after conducting demonstrations across Japan by around 2030.

Competitive Landscape

The major players operating in the fuel cell power system market include Ballard Power Systems, Toshiba Corporation, Panasonic Life Solutions India Pvt. Ltd, Fuji Electric Co., Ltd., Nuvera Fuel Cells LLC, Bloom Energy, JX Nippon Oil & Gas Exploration Corporation, Fuel Cell Energy Inc., Plug Power inc, and Doosan Fuel Cell Co., Ltd. Other players in the fuel cell power system market include Mitsubishi Heavy Industries Ltd., Elcore GmbH, Ultracell Corporation and others.

Recent Key Strategies and Developments

• In April 2024, Ballard Power Systems has recently disclosed the receipt of numerous purchase orders amounting to 70 FCmove-HD hydrogen fuel cell engines from its customer, Wrightbus, a prominent UK-based bus manufacturer renowned for deploying hydrogen-powered buses across the UK and Europe. These orders signify a significant step forward in the adoption of clean energy transportation solutions. Anticipated to be delivered in 2024, the fuel cell engines will propel both single- and double-decker buses set to commence operations in 2025 in the UK and Germany. This collaboration underscores the commitment of both companies towards advancing sustainable mobility and reducing carbon emissions in the public transportation sector.

• In May 2023, Fuel Cell Energy, Inc. and Toyota Motor North America, Inc. (Toyota) are commemorating the inauguration of the groundbreaking "Tri-gen" system at the Port of Long Beach, California. This innovative system, the first of its kind, harnesses biogas to generate renewable electricity, renewable hydrogen, and usable water. Specifically designed to support the vehicle processing and distribution center for Toyota Logistics Services (TLS) at Long Beach, this facility stands as Toyota's largest North American vehicle processing facility, receiving around 200, 000 new Toyota and Lexus vehicles annually. This collaboration underscores a significant stride towards sustainable practices, enhancing energy efficiency and reducing environmental impact in the automotive industry.

Global Fuel Cell Power System Market Patent Outlook, by Country

The U.S. collectively hold more than half of the total fuel cell power system patents that indicate strong innovation and investment in this technology in U.S. countries. This suggests fierce competition and a significant focus clean energy infrastructure R&D in these leading economies. U.S. has the highest patent filed which accounts for 51.1% of the total global patents related to the fuel cell power system market. Europe and PCT, although holding smaller percentages of fuel cell power system patents individually, collectively contribute to the overall Asian dominance in clean energy infrastructure innovation. The recent surge in patent filings related to fuel cell power systems underscores the significant strides made in materials science and engineering research and development within the industry. These patents highlight a concerted effort to enhance various aspects of fuel cell technology, such as electrode and membrane materials, catalyst formulations, and system design.

Key Regulations

• Particulate Matter (PM) : Although fuel cells produce minimal particulate matter during operation, auxiliary power units or backup generators within fuel cell systems may emit fine particles and aerosols. Emission standards for PM typically specify limits for both PM10 (particulate matter with a diameter of 10 micrometers or less) and PM2.5 (particulate matter with a diameter of 2.5 micrometers or less) , expressed in milligrams per cubic meter (mg/m³) .

• Nitrogen Oxides (NOx) : Fuel cell systems may produce nitrogen oxides (NOx) as byproducts, particularly during combustion processes in auxiliary power units or backup generators. Emission standards for NOx are typically specified as limits in parts per million (ppm) or milligrams per cubic meter (mg/m³) , varying based on jurisdiction, fuel type, combustion technology, and application.

• Carbon Monoxide (CO) : CO emissions can occur during the incomplete combustion of fuels used in auxiliary power units or backup generators associated with fuel cell systems. Emission standards for CO are typically expressed in parts per million (ppm) or milligrams per cubic meter (mg/m³) , with limits varying depending on jurisdiction and application.

• Volatile Organic Compounds (VOCs) : While fuel cells themselves produce minimal VOC emissions, other components of the fuel cell power system may emit VOCs during operation, such as in fuel processing or storage. However, specific emission standards for VOCs may or may not be applicable to fuel cell power systems, as regulations often focus on other pollutants such as particulate matter and nitrogen oxides.

Industry Trends

• Government regulations for reducing environmental pollution encourage the adoption of fuel cells in the automotive sector. The countries are focusing on R&D and investing in fuel cell technology to improve their public transportation while reducing harmful emissions. According to SEOUL METROPOLITAN GOVERNMENT (SMG) the South Korean government plans to replace around 26, 000 CNG buses with fuel-cell buses by 2030.

• Japan is at the forefront in terms of the adoption of alternative fuel technologies. The Japanese government and the local original equipment manufacturers (OEMs) focus on standardizing electrified powertrains globally. Meanwhile, the Japanese government also encouraged hydrogen fuel technology for large-scale deployments and transport applications.

• In January 2022, the German government endorsed the CryoTRUCK project, focusing on advancing hydrogen-powered trucks. The initiative involves collaborative efforts between the testing specialist IABG and the Technical University of Munich, aimed at developing a CRYOGAS hydrogen gas tank paired with a refueling system tailored for long-distance transport. Spanning three and a half years, the CryoTRUCK project boasts a substantial budget exceeding EUR 25 million. Its primary goal is to pioneer and validate a first-generation technology for cryogenic compressed hydrogen gas (CRYOGAS) storage and refueling systems, specifically designed for heavy-duty fuel cell trucks.

Key Sources Referred

1. World Economic Forum

2. International Trade Administration

3. MDPI

4. Department Of Energy

5. Invest India

6. Fuel Cell & Hydrogen Energy Association

7. India Brand Equity Foundation

8. International Energy Agency

9. IABG

10. Seoul Metropolitan Government

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the fuel cell power system market overview, current trends, estimations, and dynamics of the fuel cell power system market analysis from 2024 to 2030 to identify the prevailing fuel cell power system market opportunities.

• The market research is offered along with information related to key drivers, restraints, and opportunities.

• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.

• In-depth analysis of the fuel cell power system market share assists to determine the prevailing market opportunities.

• Major countries in each region are mapped according to their revenue contribution to the global fuel cell power system market report.

• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.

• The report includes the analysis of the regional as well as global fuel cell power system market trends, key players, market segments, application areas, and market growth strategies.