Portable Fuel Cell Market size is estimated to reach ~USD 10 Billion by the end of 2035 by growing at a CAGR of ~20% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of the portable fuel cell was ~USD 4 Billion. The primary growth factor for the development of the global market during the forecast period is the rising demand for energy along with the need for an uninterrupted power supply to carry out various applications and services. As per recent statistics, it is forecasted that the global demand for electricity is expected to considerably grow by the end of 2023. Furthermore, it is stated that an additional 2,500 terawatt hours (TWh) of electricity demand is anticipated to be added by 2025. Thus, this 9% growth would take the global electricity demand to almost 30,000 terawatt hours (TWh).
A portable fuel cell is a technologically advanced device that acts as a battery, and does not need recharging or does not run down, as long as fuel is supplied as an oxidant. Hence, these portable fuel cells are a high-demand product in numerous industries including automotive, electrical & electronics, and others. This is considered to be a major factor for market growth during the forecast period. Also, the constantly growing technology in the fuel cell industry is anticipated to bring lucrative growth opportunities for market expansion in the near future. In addition to the aforementioned factors, the market is slated to expect promising growth owing to the growing demand for compact, portable, and rechargeable fuel cells for various applications along with the added benefits of portable cell fuels over traditional batteries.
Base Year |
2022 |
Forecast Year |
2023-2035 |
CAGR |
~20% |
Base Year Market Size (2022) |
~ USD 4 Billion |
Forecast Year Market Size (2035) |
~ USD 10 Billion |
Regional Scope |
|
Growth Drivers
Challenges
The portable fuel cell market is segmented and analyzed for demand and supply by fuel type into hydrogen, methanol, ethanol, butane, oxide, and others. Out of these types of fuel, the hydrogen segment is estimated to gain the largest market share of about ~31% in the year 2035, owing to the rising preference for hydrogen which lessens the reliance on fossil fuels and lowers the emission of carbon dioxide for protection of the environment. Further, the demand for hydrogen is estimated to increase as the result of several government regulations to save the nature and earth is anticipated to bolster segment growth in the forecast period. For instance, in 2021, the world's demand for hydrogen increased by 5% to 94 Mt, primarily owing to increased activity in the chemical and refining industries. Moreover, the consumption of hydrogen was 91 Mt in 2019. Also, hydrogen-based portable fuel cells are considered to be a perfect solution for clean energy, and a better alternative than other fuels are also expected to impetus a robust revenue generation for segment expansion in the next few years.
The portable fuel cell market is also segmented and analyzed for demand and supply by end-user into marine, automotive, government utilities, defense, and others. Amongst these segments, the automotive segment is expected to garner a significant share of around ~38% in the year 2035 on the account of rising demand and production rate of automobiles and the high utilization rate of the portable fuel cell to ensure the proper functioning of the electrical system of the vehicle. The International Organization of Motor Vehicle Manufacturers (OICA), released global sales of vehicle statistics which revealed that it rose to 56 million in 2021 from 53 million in 2020. Whereas, the global production of vehicles was calculated to be 57 million in 2021. Also, vehicles consist of a complex electrical system that requires an uninterrupted power supply is anticipated to generate favorable opportunities for market players and segment growth.
Our in-depth analysis of the global portable fuel cell market includes the following segments:
By Fuel Type |
|
By Application |
|
By Type |
|
By End User |
|
The market share of portable fuel cell in North America, amongst the market in all the other regions, is poised to be the largest with a share of about ~35% by the end of 2035. The major growth factor for the market expansion of the market in the region can be attributed to the rise in the number of data centers and the growing count of fuel cell vehicles in the region which generates the need for a portable fuel cell for proper functioning in the longer run. According to reports, more than 2,600 data centers in the United States use more than 1.5% of the country's total energy. Moreover, there are now nearly 328 colocation data centers, around 24 network fabrics, and over 500 service providers in Canada. Besides this, as of February 2019, there were more than 6,500 fuel cell vehicles on American roads.
The Asia Pacific portable fuel cell market is estimated to be the second largest, registering a share of about ~24% by the end of 2035. The market in the Asia Pacific region is estimated to witness noteworthy growth over the forecast period on the back of rising demand for EVs in Japan and South Korea, along with increasing usage of fuel cells in vehicles in the region. Apart from this, the growing government investments in clean power generation are also expected to boost market growth in the region.
Further, the market in the European region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The major factors for market growth during the forecast period are the rising demand for alternative energy sources, efficient technologies for growing economically developing regions, and expanding end-use industries in the region. Furthermore, the increasing demand for cleaner energy to overcome environmental concerns and the need for greater efficiency than traditional energy technology are other factors that are projected to create a positive outlook for market expansion in the region.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: The growing application of portable fuel cells in vehicles, and the high demand for EVs are estimated to boost the market growth during the forecast period.
Ans: The market size of the portable fuel cell is anticipated to attain a CAGR of ~20% over the forecast period, i.e., 2023 – 2035.
Ans: Low production rate and requirement of a high initial investment are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Ballard Power Systems Inc., Mitsubishi Power, Ltd., Plug Power Inc., Cummins Inc., Panasonic Corporation, Bloom Energy, TW Horizon Fuel Cell Technologies, Intelligent Energy Limited, SFC Energy AG, Hydrogenics Corporation, and other key players.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by fuel type, type, application, end-user, and by region.
Ans: The automotive segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Submit Your Request For Proposal (RFP)