After a prolonged period of lower growth, the fuel cells market has gained significant momentum in the past three years, reflected by higher-than-forecast order volumes. The wider market for decentralized energy solutions continues to thrive as residential, commercial, and industrial customers look to achieve greater energy security and cost savings. In terms of technology, proton exchange membrane and solid oxide lead in terms of market volumes, but other chemistries have a role to play for specific applications. For fuel cell manufacturers, the priority continues to be improving the solutions that they offer by increasing life span and efficiencies while lowering costs. The current commodity and supply chain crunch poses some immediate challenges, but these can be overcome in the longer term.
The growth of the fuel cell market will be inextricably linked to the development of the hydrogen economy. Although fuel cells can be powered by natural gas, this means that they are tied to fossil fuels. The buildout of low-carbon hydrogen infrastructure will enable fuel cells to decarbonize, making them a more attractive proposition for many stakeholders. Fortunately for fuel cell manufacturers, hydrogen is an investment priority for nearly all the world’s major economies. The United States, Japan, and South Korea are the hottest fuel cell markets, but future growth is forecast to come from Europe and China.
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