The global fuel cells market is envisaged by seasoned analysts to grow in prominence due to the need to replace conventional sources of electric energy and rising demand for green energy technology. Besides being a clean source of electric energy, fuel cells are considered to be more efficient than combustion engines. Their supply of emission-free power has earned them a speedily growing demand in commercial settings where they could be used as a heating source.
Sossina Haile, fuel cells pioneer and Northwestern University professor, has introduced a new fuel cell that offers long-term stability and also excellent power densities. Research and development in the fuel cells field could prove to be extremely beneficial for market growth.
The global fuel cells market is foretold by Transparency Market Research (TMR) to rise at a massive CAGR of 23.64 per cent between 2016 and 2024 to be valued at $27.25bn by the final forecast year. In 2015, the market was worth $3.59bn.
The vendor landscape could experience a degree of competition rising from medium to high in the coming years. With a view to explore untapped markets in developing countries, there could be tactical alliances encouraged between leading and local players of the industry. Doosan Fuel Cell America Inc, AFC Energy PLC, and Ballard Power Systems Inc are some of the leading companies in the market.
What could Help PEMFC to increase market demand?
Amongst primary types of fuel cells, proton exchange membrane fuel cell (PEMFC) technology is anticipated to showcase its prominence in the coming years due to rising applications in the transport sector that involve powering buses and cars. Moreover, consistent technological developments targeted at improving the efficiency of fuel cells could enhance the increase in the demand for PEMFC. A number of small-scale residential applications are researched to engage this technology as a preferred choice.
Fuel cells are used in a range of different applications such as electric appliances, military power units, UPS systems, combined heat and power systems, vehicles, and even submarines. There could be three main types of applications that fuel cells could be employed in: transport, portable, and stationary. However, the stationary market is foreseen to collect a higher revenue share in the near future. Nonetheless, you could find other applications receiving support from technological investments for research and development made by leading players.
Will Asia Pacific continue to take the lion’s share?
In 2015, Asia Pacific topped the international fuel cells market by securing a colossal share of 59.94 per cent. The dominance of this regional market is prognosticated to continue to take shape in the coming years. Much of the lead taken by the emerging region could be attributed to the burgeoning rise in the population size of different economies and enlarging demand for power. A more interesting research about the region reveals that it is foretold to expand at an exceptional CAGR during the course of the aforementioned forecast period.
The demand for fuel cells in Asia Pacific could accelerate on the back of a high demand for ecofriendly technologies, tight government mandates to reduce carbon emissions, increasing industrialization, and declining dependence on fossil fuels. North America is predicted to tread on the heels of Asia Pacific with a maximum of the demand for fuel cells coming from the U.S. Fuel cells are extensively used in UPS systems and are adopted as a power generation technology in North America.
See the full report here.