Fuel Cell Market Brings Unprecedented Demand Amidst Rising Environmental Concerns, says Market.us

Fuel cells use the chemical energy of hydrogen, or any other fuel, to generate electricity through electrochemical reactions. The reservoir has continuously supplied the reactants to the electrodes. The variety of applications that fuel cells can be used for is unmatched. Fuel cells can be used with a variety of fuels and feed stocks. They provide power for both large and small systems, such as utility power stations and laptop computers.

According to Market.us’ research, “The Fuel Cell Market size is expected to be worth around USD 60.1 Billion by 2032 from USD 5.2 Billion in 2022, growing at a CAGR of 24.9% during the forecast period from 2022 to 2032.

Anurag Sharma, a senior research analyst at Market.us, said,” The energy density of the PEM fuel cell is greater than that of the Li-ion batteries, making them suitable for long-haul transport and heavy vehicles. The most widely used PEM fuel cells will play an important role in Europe’s goal for fuel cell deployment, which will drive the growth of global fuel cell markets.”

Clean energy is needed due to rising environmental concerns such as climate change, low air quality, and increased regional transportation sector growth.

Increasingly, FC systems are being installed to generate combined heat and electricity (CHP), which can be used for heating and powering small homes and commercial spaces such as hotels, schools, colleges, universities, and other public buildings. Numerous state and federal authorities have created favorable legislative frameworks and subsidy programs to encourage the integration of these devices in many applications. 

The New Jersey government has updated its financial benefits to FC CHP installations as of October 1, 2020. The CHP-FC Program structure was created to encourage more manufacturers by providing monetary assistance of up to USD 3,000,000 per project to producers.

The fuel cells produce electricity directly from hydrogen and oxygen, so the power generated is not subject to the emission of carbon dioxide and other pollutants. This method releases very few harmful substances. The market growth may be impeded by the high price of fuel cell systems, which can lead to high costs for FCEV. The growth is likely to be impeded by investment risks like capital and operational cost, and under-utilization.

All over the world, strict carbon emission standards are in place

The signing of the Paris Agreement has helped green and renewable technologies gain access to markets. This is due to political leaders from all over the world coming together to reduce their countries’ carbon footprint. The carbon emission norms are allowing fuel cells to be included in the green and renewable technology category.

Due to their outstanding energy-conversion efficiency and environmental safety, fuel cells are one of the most efficient energy-conversion systems. Many initiatives have been issued around the globe, including in Europe, Japan, and the USA by larger car manufacturers and governments, to help fuel cells reach a partial commercialization stage. This initiative is mainly focused on the further development of cells for demonstrative purposes. The development of fuel cell technology was first embraced by the governments in Japan, Germany, and the UK. The development of fuel cell technology for automotive applications was also aided by government policies that promote clean transport. The market is still being affected by the high price of fuel cells.

Fuel cell electric vehicles (FCEVs), which are expected to continue growing in market share, will be a key part of the future trend toward zero-emission vehicles. The Toyota Mirai, Hyundai NexO, and Toyota Mirai have made some significant progress in passenger vehicles (cars). There are also significant opportunities for FCEVs in heavy-duty, where hydrogen-powered trucks offer the possibility of the hub-to-hub travels without needing to overhaul the refueling infrastructure.

Stationary sector fuel cell systems are those that can be used for backup power or primary power at a fixed place. For large-scale applications (100 kW or more), as well as small-scale (up to 100 kW), fuel cells are being developed. These include retail operations, data centers and residences, telecommunication towers, base stations, and utilities.

More than 750 MW of fuel cell capacity will be installed in the United States by 2021. South Korea also completed some of the largest installations in the world, with multiple multi-MW fuel cell power parks at major utilities, and around 300 MW total systems deployed. Japan and Europe only have a few larger systems. They are primarily focused on small-scale fuel cell systems for homes or businesses.