Fuel cell market size is poised to display a marked ascent over the upcoming years, perhaps owing to the escalating demands for space heating across the residential and commercial infrastructures. Fuel cells basically generate electricity through the combination of hydrogen and oxygen that is a highly renewable source of energy. The unprecedented demands for renewable energy will thus provide a major boost to the worldwide fuel cell industry size.
Introduction of favorable governmental policies intended toward the growth of sustainable energy technologies paired with proliferating investments by the private and public organizations would impel the global fuel cell market outlook during 2019-2025. A major breakthrough in this context is the achievement by the government of China in 2019. The government proposed to develop 20 hydrogen fueling stations and over 3,000 vehicles in Hubei Province by the end of 2020.
A paradigm shift towards environmental sustainability with negligible carbon emissions has enabled various fuel cell manufacturers to roll out various innovative strategies and tactics to encourage a sustainable source of energy. This is forecast to stimulate the industry outlook over the projected timeframe.
Global fuel cell market is characterized by a string of numerous governmental policies and norms to ensure zero carbon emission and high sustainability. Following are some of the pivotal trends which are predicted to propel fuel cell market dynamics in the upcoming years:
Surging demands for fuel cell electric vehicles
Shifting consumer inclination towards fuel cell electric vehicles in tandem with surging installation of portable charging stations have considerably powered the demand for sustainable and renewable fuel cells in recent times.
Driven by the rising consumer preference toward fuel cell electric vehicles, United Kingdom fuel cell market size has been forecast to surpass 50 megawatts by 2025. The progressive commercialization of hydrogen technology on an expansive scale will provide tremendous growth opportunities to market contenders, aiding the surge in the industry size. Additionally, strict laws addressing the carbon emission reduction would foster the business development.
Concurrently, an upsurge in the demands for stationary power sources across the remote areas backed with stringent government policies are likely to drive the market growth globally. Say for instance, the Department of Energy in 2018 declared investing nearly 39 million on the development of the fuel cells alongside the hydrogen fueling infrastructure across North America.
High investments in R&D and product innovations
An upsurge in the investment towards research and development programs and aesthetic product innovation is estimated to enable the global fuel cell industry to gain massive momentum over the forthcoming period.
Myriad applications across forklift trucks, two and three wheeler vehicles, trams, and other vehicles would supplement the increase in fuel cell market share by 2025. It is noteworthy to mention that the DOE in early 2019 released statistics claiming that the fuel cell vehicles across the United States jumped to a huge number of 6,500 as compared to that in 2015.
Escalating SOFC product demands
Rising adoption of SOFC products across the large and small stationary electricity producing systems to generate power across the remote areas will augment the product penetration, thereby providing an impetus to the industry growth.
The SOFC cells apparently find extensive applications across the utility spectrum where the requirement of high temperature between 800 degree Celsius to 1000 degree Celsius is commanded. In addition to this, reduced cost, robust efficiency, fuel flexibility, and lower emissions would supplement the business dynamics over the seven years term.
Speculations have it that the SOFC product segment would outdo 30 thousand units by 2025.
Robust innovations and R&D developments in South Korea
South Korea has undeniably emerged as the expansion hub for fuel cell market in the years ahead, fundamentally on the grounds of proliferating concerns addressed to the energy security paired with rising deployment of sustainable energy sources.
Further, expanding government initiatives towards the R&D, product innovation, and commercialization of the fuel cell technology are expected to spur the market size. Providing an evidence, the government of South Korea in 2018 proclaimed investing approximately $2.33 billion to improve the hydrogen infrastructure across the country.
Endorsing a rapid growth of fuel cells across global renewable energy sector, it has been apprehended that fuel cell industry size would cross a mammoth of USD 7 billion by the end of 2025.