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Global stationary fuel cell market to grow to USD 17.10 B in 2025

The market size of the Global Stationary Fuel Cell market is estimated to be USD 5.53 Billion in 2018 and is expected to record CAGR growth rate of 17.5% and is expected to reach a market size of USD 17.10 Billion in 2025.The Growth Opportunities offered by the Global Stationary Fuel Cell Market includes Increasing R&D activities, Development of Zero-Energy Buildings and increasing adoption of microgrids

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Definition / Scope

An electrochemical cell that produces electricity through electrochemical reaction of hydrogen fuel with oxygen is known as fuel cell. Stationary fuel cells are fuel cells which are linked to an electric grid to deliver emergency and supplemental power or setup as independent grid generator for daily use. Fuel cells require a constant source of oxygen (air) and fuel to support the chemical reaction; however, energy is sourced from the chemical that is already present in the battery. The electricity in a fuel cell can be produced constantly as long as oxygen and fuel are supplied to the cell.

Efficiency of fuel cells is two to three times more than traditional combustion systems. A conventional combustion system generates electricity at efficiencies of around 35%, while the fuel cell system generates electricity at efficiency of nearly 65% and can be more energy efficient with cogeneration. The fuel cell can be powered with flexible fuels such as biogas, natural gas, and renewable source such as wind and solar.

A fuel cell system requires less maintenance as compared to traditional combustion engines, as it consists of fewer moving parts. The use of fuel cell is projected to reduce emission. Use of hydrogen as a source of energy can reduce dependency on more polluting fuels such as coal and oil. Fuel cells generate less noise as compared to the traditional systems.

Stationary fuel cell systems require working fuel such as hydrogen or organic gas, which include methane or natural gas. The gas is led into the first chamber with an anode electrode. The anode is attached to a cathode present in the second chamber and a closed electric circuit is formed. Air is introduced in the second chamber for an electrochemical reaction. The oxidation process take place as the fuel decomposes into a positively charged ion of fuel and negatively charged electron in the first chamber, which consists of an anode.

The positively charged ions travel to the cathode chamber through the electrolyte. The ions mix with electrons and react with the oxygen to create water (if hydrogen is used as fuel) or carbon dioxide (if organic gas is used as fuel) at the cathode. The migration of electrons through the electric circuit generates electricity.

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Market Overview

The market size of the Global Stationary Fuel Cell market is estimated to be USD 5.53 Billion in 2018 and is expected to grow at a CAGR of 17.5% to reach a market size of USD 17.10 Billion in 2025.

Three types of stationary fuel cells that are expected to be at the forefront of driving growth in the industry are

  • Proton exchange membrane fuel cells (PEMFCs)
  • Molten carbonate fuel cells (MCFCs)
  • Solid oxide fuel cells (SOFCs)

PEMFC is the most widely researched fuel cell technology in the world. It is preferred by the automotive industry as well as stationary power generators, as it operates at relatively low temperatures. Its forecasted revenues are estimated to be around USD 2.15 Billion by 2018 and are expected to grow at a healthy CAGR of 17.5% to reach a market size of USD 6.65 Billion in 2025

In the total Global stationary fuel cells market, MCFCs will be one of the already commercially available fuel cell technologies. In comparison to other fuel cells, MCFC manufacturers focus on more advanced technological improvements that are necessary to equip the fuel cell systems with increased robustness. With current revenues of USD 1.02 Billion in 2018, this technology is projected to have potential revenues of USD 3.5 Billion by 2025

The third type of stationary fuel cells, SOFCs, shows the potential to be one of the key power generation technologies in the future owing to their high electrical efficiency. They can run on many fuels, including hydrogen, methane, carbon monoxide and biogas. SOFCs are estimated to have potential revenues of USD 444.24 Million by 2018 at a compound annual growth rate of 15% to reach a market size of USD 1.18 Billion in 2025

Stationary applications are set to witness strong growth owing to increasing demand for space heating demand across homes, offices, and other commercial establishments. Increasing product penetration as a backup power source in hospitals, telecommunication base stations, data centres, tetra networks, schools and hotels will further augment the fuel cell market growth.

In 2018, approximately 72,000 fuel cell systems were shipped worldwide, up slightly from 2017 (66,000). More significantly, the total MW grew substantially from 300 MW in 2015 to 500 MW in 2016

The small increase in stationary fuel cell shipments show sustained activity in Asia, a combination of large scale units from Korea and smaller, residential fuel cell systems from Japan.

The largest increase—nearly triple—in MWs occurred in the transportation sector, and that growth can be attributed to the introduction and expansion of fuel cell light-duty vehicles from Japan and Korea to new regions around the world

North America is witnessing a range of forward moving partnerships of solid oxide fuel cell manufacturers with end-use consumers. Industry players from heavy industries, automobile, shale gas, and pharmaceutical among others along with data service and technology players are increasingly acquiring companies pioneering solid oxide fuel cell technology.

Since the past five years, U.S. is engaged in advancing its hold on fuel cell technology by actively entering into collaborations with government bodies such as the U.S. Department of Energy and Environmental Protection Agency (EPA). In Canada, private players along with government energy bodies are encouraging fuel cell induced energy generation. They are considering it as a prime source of energy security for future.

In U.S. major businesses such as eBay, Coca-Cola, Walmart, and Google have pledged to adopt fuel cell for internal consumption. Adoption of this technology for operations is expected to reduce electricity utilization cost of data centers by a significant margin.

Dominance of Asia Pacific over fuel cell market is expected to increase over the forecasted period. The market is likely to witness the fastest CAGR in near future. Asia Pacific is anticipated to account for more than 51% of global capacity demand in the coming years, with Japan being the epicenter of this demand. Fuel cells find wide scale application in stationary segment in Asia Pacific. Apart from commercial, automotive, and residential sectors; telecom industry is one of the major avenues accounting for SOFC demand.

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Key Metrics

Metrics Value Explanation
Base Year 2018 Researched through internet


Market Risks

Highly Consolidated Market

Bloom Energy Corporation, POSCO ENERGY, and Doosan Fuel Cell America are among the Tier I stakeholders, and Plug Power, Fuelcell Energy, Ballard Power Systems, and Fuji Electric Co., Ltd. are among the Tier II stakeholders in the stationary fuel cell systems market. Leading players in the stationary fuel cell systems are expected to account for 70-75% share in the growth of the stationary fuel cell systems market in the upcoming years.

High Entry Barrier for New Entrants

A majority of top tiered companies have received huge funds from banks or finance companies, which is enabling them to meet their sustainability goals and financial needs. In addition, with the help of these funds and investments, stationary fuel cell systems market leaders are introducing cleaner, resilient, and more innovative power solutions. Whereas, needs for high initial investments pose financial barriers to entry for new players in the stationary fuel cell systems market, which in turn aids the dominance of top tiered companies in the stationary fuel cell systems market.

Top Market Opportunities

Increasing R&D activities

R&D helps improve technologies to distribute hydrogen cost-effectively from the point of production to the point of end-use, such as in fuel cell vehicles. Hydrogen fuel cell R&D aims to reduce fuel cell system costs and size and to improve the performance and durability of polymer electrolyte membrane (PEM) fuel cell systems for transportation and for small stationary and portable applications. Research for hydrogen fuel cell electric vehicles is important to develop technologies that advance fuel cell systems, subsystems, and components.

Development of Zero-Energy Buildings

A zero-energy building, also known as a zero net energy (ZNE) building, net-zero energy building (NZEB), net zero building or zero-carbon building is a building with zero net energy consumption, meaning the total amount of energy used by the building on an annual basis is roughly equal to the amount of renewable energy created on the site or in other definitions by renewable energy sources elsewhere. The Stationary Fuel Cells are applied in Zero-Energy Buildings and prove to be efficient and act as an alternative to non-renewable energy.

Increasing adoption of microgrids

Microgrids are miniature versions of the centralized electric grid that dispatch, distribute, and regulate the flow of electricity. Many microgrids can operate and switch between grid-connected and grid-islanded modes, but it’s their ability to be ‘islanded’ from the main electrical grid which is their key distinguishing factor. That ability to continue powering commercial and industrial operations through grid outages is proving increasingly valuable to organizations as grid outages increase in frequency and duration. The surge in microgrid adoption is driving demand for stationary fuel cells.

Market Drivers

Increasing demand for electrical vehicle/hybrid electric vehicle/plug-in hybrid vehicle (EV/HEV/PHV)

Increasing application of fuel cells in (EV/HEV/PHV) is one of the driving factors of the fuel cell market. The electric vehicles market is increasing at a rapid pace, resulting in a high demand for fuel cell. In addition, increasing carbon emissions has elevated government attention towards the use of electric vehicles and plug-in hybrid vehicles.

Growing Needs for Environment-friendly Alternatives to Combustion Engines Drive Market Growth

There has been a global increase in the demand for fuel cells. The conventional petroleum products and fuels have created ecological concerns owing to excessive C02, CO, NOx, SOx emissions. Fuel cells serve as an alternative to conventional and unconventional energy sources by reducing the dependency on oil, diesel, and others.

In order to cater to the growing needs for more environment-friendly ways to generate electricity, players in the stationary fuel cell systems are promoting the benefits of hydrogen fuel cells as an alternative to traditional power generation. Furthermore, end-users’ awareness about the environmental benefits of using fuel cells in stationary applications, as they mitigate the dependence on oil and harmful emissions, is boosting adoption of stationary fuel cell systems.

Higher Efficiency over non-renewable fuels

Apart from its environmental benefits, stationary fuel cell systems offer more versatile advantages over conventional, combustion-based power generation systems. Stationary fuel cell systems are compact and create less noise, which are among the most important factors to trigger end-users to replace conventional electricity generation systems with stationary fuel cell systems.

However, fuel cells are 60% more efficient that other combustion-based engines at generating electricity, which persists to be the leading factors to boost adoption of stationary fuel cell systems across various end-users. Furthermore, stationary fuel cell systems are also preferred over tradition power generation methods for generating heat, as fuel cells are 90% more efficient at generating heat.

Low Maintenance Multiply Adoption of Stationary Fuel Cell Systems

In addition, as there are a small number of moving parts in stationary fuel cell systems, they require less maintenance than traditional combustion engines. Thereby, a majority of end-users are shifting away from conventional combustion-based engines to stationary fuel cell systems for highly efficient power generation.

Favorable government regulations and initiatives

One of the growth drivers of the global Stationary fuel cell market is the favorable government regulations and initiatives. The adoption of clean technologies such as Stationary fuel cells is increasing due to the increased demand for efficient and clean technologies to decrease the dependence on fossil fuels for fulfilling the energy demand and reduce GHG emissions. Hence government across the world is supporting the adoption of Stationary fuel cell through various initiatives and regulations.

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Market Restraints

High Cost of Fuel Cells Limit Applications and Adoption of Stationary Fuel Cell Systems

Despite the fact that fuel cells are environment-friendly and more efficient other combustion-based engines, their high cost continues to be a critical restraint for the growth of the stationary fuel cell systems. Though the proton exchange membrane fuel cell (PEMFC) technology shows promising growth of the stationary fuel cell systems in the automotive industry, the precious and expensive metal catalysts used to build PEMFC-based stationary fuel cell systems account for over three fourth of the total cost.

Due to the use of expensive metal catalysts, manufacturers in the stationary fuel cell systems fail to introduce competitive prices of stationary fuel cell systems as compared to its alternatives.

Lack of effective technological development to accelerate commercialisation

As a new energy technology, fuel cells have not yet significantly penetrated the energy market. Cost, durability, and reliability are the main challenges in the commercialization of fuel cells. scaling-up issues are mainly issues with materials and catalyst performance that have led to higher costs. However, these materials and catalyst issues are scientific issues, so the problem is not only scale dependent.

Thus, the fuel cell scaling-up issue has not been adequately realized due to the substantial uncertainty and TRLs of fuel cell products and systems are not as high as people have estimated. The inability to directly scale a pilot plant up to deployment due to reliability issues is a key barrier to investment into this new energy-conversion technology.

Higher Repair and Maintenance Cost

The unexpected repair and maintenance costs of fuel cells due to their low reliability can result in a substantial cost increase of up to 60%, and can reduce fuel cell availability. Therefore, the additional costs of maintenance and repairs and reduced availability are the greatest barriers to end-user acceptance and fuel cell commercialization.

The fuel cell industry must face the challenge of how to overcome the technical barriers of reliability and durability. The cost impact of maintenance and repairs due to unexpected defects could be high

Industry Challenges

Challenges associated with hydrogen refueling facilities

One of the challenges in the growth of the global fuel cell market is the challenges associated with hydrogen refueling facilities. The high costs and complexities associated with the development of hydrogen refueling stations might limit the development of FCVs, thereby restricting the growth of the global Stationary fuel cell market.

Competition from existing technologies

The primary end-user acceptance criteria are function, cost, and reliability; a fuel cell should outperform these criteria compared with its competitors, such as IC engines and batteries, to achieve a competitive advantage. The repair and maintenance costs of fuel cells (due to low reliability) can lead to a substantial cost increase and decrease in availability, which are the major factors for end-user acceptance. The fuel cell industry must face the challenge of how to overcome this reliability barrier. It was found that the current fuel cell manufacturing cost is still higher than the cost of IC engines, its operating costs.

Scaling-up issue

The channels in a cell and the cells in a stack system need to be operationalised under the same conditions. The framework and scaling-up approach need to be examined carefully with respect to the operation and risks associated with the fuel cells and systems used in the scaling-up, which are important in assessing the deployment of the fuel cell technologies.

Solving the reliability issues is essential in order to address the high cost and low availability of fuel cells. It is very difficult to keep all channels and cells working at the same levels. The theory of scaling-up has shown that an absolutely uniform flow distribution is still a challenge A small, uneven flow distribution can lead to an operational misalignment of cells and stacks, introducing high levels of uncertainty and decreased efficiency.

There are uncertainties in the implementation of “scale-up by number-up” as an engineering way in the chemical industry. This is, it is not clear what is resulting from an inefficient flow distribution design in the design and the modeling and operation of the pilot

Technology Trends

Embedding high efficiency portable technologies

A portable proton exchange membrane (PEM) fuel cell operates at room temperature, has an energy density which is 4 to 6 times larger than that of a Li-ion battery, and thus is a promising next generation power source for power-hungry portable devices. However, in spite of the high energy density, fuel cells have limited power capacity and cannot respond to sudden changes in the load.

Thus, a system powered solely by the fuel cell should be over-designed and not economical. Thus, fuel cells are commonly used with a battery to utilize both the high energy density of the fuel cell and the high power capacity of the battery.

Since power consumption of embedded systems dynamically changes over time, the control of a fuel cell and the charge management in the battery is sophisticated. Ultimate fuel-optimal configuration is achievable only when the control of the fuel cell, charge management of the battery, and the power management of the embedded system are jointly optimized.

Pricing Trends

The Pricing Trend for Stationary Fuel Cells according to various regions are as in the figure below

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Other Key Market Trends

Automotive Industry to Generate Lucrative Opportunities for Stationary Fuel Cell Systems Market Players

As automobiles are becoming high-tech, leading players in the automotive industry are adopting advanced fuel cell technologies to develop next-generation stationary fuel cell systems for modern electric vehicles. Growing needs for reducing emissions and improving energy efficiency of automobiles, the adoption of fuel cells has increased in the automotive industry, creating profitable sales opportunities for manufacturers in the stationary fuel cell systems market.

Most automakers across the world are adopting proton exchange membrane fuel-cell (PEMFC) systems to develop stationary fuel cell systems to provide heat as well as electricity. A majority of leading manufacturers in the stationary fuel cell systems market are developing the proton exchange membrane fuel-cell (PEMFC) technology for small or mid-sized stationary power generation for passenger cars.

The burgeoning trend of rising sales of electric vehicles and needs for controlling automotive emissions is expected to generate new avenues of growth for players in the stationary fuel cell systems market.

Market Size and Forecast

North America North America is the largest market for Stationary Fuel Cell globally; it is a relatively stable market and is likely to showcase moderate revenue growth for Stationary Fuel Cell reaching a market size of USD 3.14 Billion in 2025 from a market size of 930 Million in 2018

USA Stationary Fuel Cell Market Size

  • USD 372 Million – The estimated value of the US Stationary Fuel Cell Market in 2018
  • 16.9% - The CAGR growth rate of the US Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 1.10 Billion- The expected value of the US Stationary Fuel Cell Market in 2025
  • 53.97 MW- The estimated volume of the US Stationary Fuel Cell Market in 2018
  • 18.7% - The CAGR growth rate of the US Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 159.09 MW- The expected volume of the US Stationary Fuel Cell Market in 2025

Canada Stationary Fuel Cell Market Size

  • USD 186 Million – The estimated value of the Canadian Stationary Fuel Cell Market in 2018
  • 17.2% - The CAGR growth rate of the Canadian Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 564.95 Million- The expected value of the Canadian Stationary Fuel Cell Market in 2025
  • 26.98 MW- The estimated volume of the Canadian Stationary Fuel Cell Market in 2018
  • 17.1% - The CAGR growth rate of the Canadian Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 81.46 MW- The expected volume of the Canadian Stationary Fuel Cell Market in 2025

Mexico Stationary Fuel Cell Market Size

  • USD 93 Million – The estimated value of the Mexican Stationary Fuel Cell Market in 2018
  • 16.6% - The CAGR growth rate of the Mexican Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 272.5 Million- The expected value of the Mexican Stationary Fuel Cell Market in 2025
  • 13.49 MW- The estimated volume of the Mexican Stationary Fuel Cell Market in 2018
  • 16.4% - The CAGR growth rate of the Mexican Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 39.06 MW- The expected volume of the Mexican Stationary Fuel Cell Market in 2025

South America South America fuel cell is market is poised to grow rapidly in the coming future, as the governments started taking actions to increase the electric vehicles usage. Countries such as Brazil and Argentina are actively looking to increase their usage of electric vehicles in the country.

Brazil Stationary Fuel Cell Market Size

  • USD 111.6 Million – The estimated value of the Brazilian Stationary Fuel Cell Market in 2018
  • 17% - The CAGR growth rate of the Brazilian Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 334.94 Million- The expected value of the Brazilian Stationary Fuel Cell Market in 2025
  • 16.19 MW- The estimated volume of the Brazilian Stationary Fuel Cell Market in 2018
  • 17% - The CAGR growth rate of the Brazilian Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 48.59 MW- The expected volume of the Brazilian Stationary Fuel Cell Market in 2025

Argentina Stationary Fuel Cell Market Size

  • USD 66.96 Million – The estimated value of the Argentinian Stationary Fuel Cell Market in 2018
  • 17.2% - The CAGR growth rate of the Argentinian Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 203.38 Million- The expected value of the Argentinian Stationary Fuel Cell Market in 2025
  • 9.71 MW- The estimated volume of the Argentinian Stationary Fuel Cell Market in 2018
  • 17.2% - The CAGR growth rate of the Argentinian Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 29.49 MW- The expected volume of the Argentinian Stationary Fuel Cell Market in 2025

Asia-Pacific The Asia-Pacific fuel cell market is expected to exhibit a CAGR of 19.2% for the forecast period of 2018-2025. By the end of this period, the market is expected to raise a net revenue of USD 651 Million in 2018.

China Stationary Fuel Cell Market Size

  • USD 325.5 Million – The estimated value of the Chinese Stationary Fuel Cell Market in 2018
  • 17% - The CAGR growth rate of the Chinese Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 976.9 Billion- The expected value of the Chinese Stationary Fuel Cell Market in 2025
  • 47.22 MW- The estimated volume of the Chinese Stationary Fuel Cell Market in 2018
  • 17.2% - The CAGR growth rate of the Chinese Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 143.42 MW- The expected volume of the Chinese Stationary Fuel Cell Market in 2025

India Stationary Fuel Cell Market Size

  • USD 195.3 Million – The estimated value of the Indian Stationary Fuel Cell Market in 2018
  • 17.4% - The CAGR growth rate of the Indian Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 600.31 Million- The expected value of the Indian Stationary Fuel Cell Market in 2025
  • 28.33 MW- The estimated volume of the Indian Stationary Fuel Cell Market in 2018
  • 17.2% - The CAGR growth rate of the Indian Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 86.05 MW- The expected volume of the Indian Stationary Fuel Cell Market in 2025

Japan Stationary Fuel Cell Market Size

  • USD 156.24 Million – The estimated value of the Japanese Stationary Fuel Cell Market in 2018
  • 17% - The CAGR growth rate of the Japanese Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 468.91 Million- The expected value of the Japanese Stationary Fuel Cell Market in 2025
  • 37.78 MW- The estimated volume of the Japanese Stationary Fuel Cell Market in 2018
  • 17.2% - The CAGR growth rate of the Japanese Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 114.75 MW- The expected volume of the Japanese Stationary Fuel Cell Market in 2025

Europe The Europe Stationary Fuel Cell s market size was valued at USD USD 458.81 Million in 2018 and is anticipated to register a CAGR of 16.9% over the forecast period.

Germany Stationary Fuel Cell Market Size

  • USD 183.52 Million – The estimated value of the German Stationary Fuel Cell Market in 2018
  • 18.0% - The CAGR growth rate of the German Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 584.6 Million- The expected value of the German Stationary Fuel Cell Market in 2025
  • 26.54 MW- The estimated volume of the German Stationary Fuel Cell Market in 2018
  • 17.8% - The CAGR growth rate of the German Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 83.54MW- The expected volume of the German Stationary Fuel Cell Market in 2025

UK Stationary Fuel Cell Market Size

  • USD 128.46 Million – The estimated value of the UK Stationary Fuel Cell Market in 2018
  • 17.9% - The CAGR growth rate of the UK Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 406.78 Million- The expected value of the UK Stationary Fuel Cell Market in 2025
  • 18.57 MW- The estimated volume of the UK Stationary Fuel Cell Market in 2018
  • 17.8% - The CAGR growth rate of the UK Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 58.46 MW- The expected volume of the UK Stationary Fuel Cell Market in 2025

France Stationary Fuel Cell Market Size

  • USD 102.77 Million – The estimated value of the French Stationary Fuel Cell Market in 2018
  • 18.1% - The CAGR growth rate of the French Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 329.32 Million- The expected value of the French Stationary Fuel Cell Market in 2025
  • 14.86 MW- The estimated volume of the French Stationary Fuel Cell Market in 2018
  • 17.9% - The CAGR growth rate of the French Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 47.06 MW- The expected volume of the French Stationary Fuel Cell Market in 2025

Middle East and Africa Middle East and Africa Stationary Fuel cell market is slow compared to other regions of the world. Yet, there is decent market opportunity for fuel cell manufacturers and raw material suppliers, especially in countries such as UAE and South Africa.

Saudi Arabia Stationary Fuel Cell Market Size

  • USD 37.2 Million – The estimated value of the Saudi Arabian Stationary Fuel Cell Market in 2018
  • 16.8% - The CAGR growth rate of the Saudi Arabian Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 110.32 Million- The expected value of the Saudi Arabian Stationary Fuel Cell Market in 2025
  • 5.4 MW- The estimated volume of the Saudi Arabian Stationary Fuel Cell Market in 2018
  • 16.6% - The CAGR growth rate of the Saudi Arabian Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 15.82 MW- The expected volume of the Saudi Arabian Stationary Fuel Cell Market in 2025

UAE Stationary Fuel Cell Market Size

  • USD 26.04 Million – The estimated value of the UAE Stationary Fuel Cell Market in 2018
  • 16.6% - The CAGR growth rate of the UAE Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 76.30 Million- The expected value of the UAE Stationary Fuel Cell Market in 2025
  • 3.78 MW- The estimated volume of the UAE Stationary Fuel Cell Market in 2018
  • 16.6% - The CAGR growth rate of the UAE Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 11.08 MW- The expected volume of the UAE Stationary Fuel Cell Market in 2025

South Africa Stationary Fuel Cell Market Size

  • USD 29.76 Million – The estimated value of the South African Stationary Fuel Cell Market in 2018
  • 16.5% - The CAGR growth rate of the South African Stationary Fuel Cell value in the forecast period 2018 to 2025
  • USD 86.68 Million- The expected value of the South African Stationary Fuel Cell Market in 2025
  • 4.32 MW- The estimated volume of the South African Stationary Fuel Cell Market in 2018
  • 16.4% - The CAGR growth rate of the South African Stationary Fuel Cell volume in the forecast period 2018 to 2025
  • 12.51 MW- The expected volume of the South African Stationary Fuel Cell Market in 2025
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Market Outlook

The market size of the Global Stationary Fuel Cell market is estimated to be USD 5.53 Billion in 2018 and is expected to grow at a CAGR of 17.5% to reach a market size of USD 17.10 Billion in 2025.

Three types of stationary fuel cells that are expected to be at the forefront of driving growth in the industry are proton exchange membrane fuel cells (PEMFCs), molten carbonate fuel cells (MCFCs) and solid oxide fuel cells (SOFCs).

PEMFC is the most widely researched fuel cell technology in the world. It is preferred by the automotive industry as well as stationary power generators, as it operates at relatively low temperatures. Its forecasted revenues are estimated to be around USD 2.15 Billion by 2018 and are expected to grow at a healthy CAGR of 17.5% to reach a market size of USD 6.65 Billion in 2025

In the total Global stationary fuel cells market, MCFCs will be one of the already commercially available fuel cell technologies. In comparison to other fuel cells, MCFC manufacturers focus on more advanced technological improvements that are necessary to equip the fuel cell systems with increased robustness. With current revenues of USD 1.02 Billion in 2018, this technology is projected to have potential revenues of USD 3.5 Billion by 2025

The third type of stationary fuel cells, SOFCs, shows the potential to be one of the key power generation technologies in the future owing to their high electrical efficiency. They can run on many fuels, including hydrogen, methane, carbon monoxide and biogas. SOFCs are estimated to have potential revenues of USD 444.24 Million by 2018 at a compound annual growth rate of 15% to reach a market size of USD 1.18 Billion in 2025.

North America is witnessing a range of forward moving partnerships of solid oxide fuel cell manufacturers with end-use consumers. Industry players from heavy industries, automobile, shale gas, and pharmaceutical among others along with data service and technology players are increasingly acquiring companies pioneering solid oxide fuel cell technology.

Since the past five years, U.S. is engaged in advancing its hold on fuel cell technology by actively entering into collaborations with government bodies such as the U.S. Department of Energy and Environmental Protection Agency (EPA). In Canada, private players along with government energy bodies are encouraging fuel cell induced energy generation. They are considering it as a prime source of energy security for future.

In U.S. major businesses such as eBay, Coca-Cola, Walmart, and Google have pledged to adopt fuel cell for internal consumption. Adoption of this technology for operations is expected to reduce electricity utilization cost of data centers by a significant margin.

Dominance of Asia Pacific over fuel cell market is expected to increase over the forecasted period. The market is likely to witness the fastest CAGR in near future. Asia Pacific is anticipated to account for more than 51% of global capacity demand in the coming years, with Japan being the epicenter of this demand. Fuel cells find wide scale application in stationary segment in Asia Pacific. Apart from commercial, automotive, and residential sectors; telecom industry is one of the major avenues accounting for SOFC demand.

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Technology Roadmap

Direct Carbon Fuel Cell

Advancements in a fuel cell technology powered by solid carbon could make electricity generation from resources such as coal and biomass cleaner and more efficient. The fuel cell design incorporates innovations in three components: the anode, the electrolyte and the fuel. Together, these advancements allow the fuel cell to utilize about three times as much carbon as earlier direct carbon fuel cell (DCFC) designs. The fuel cells also operate at lower temperatures and showed higher maximum power densities than earlier DCFCs.

Whereas hydrogen fuel cells (e.g., proton exchange membrane (PEM) and other fuel cells) generate electricity from the chemical reaction between pure hydrogen and oxygen, DCFCs can use any number of carbon-based resources for fuel, including coal, coke, tar, biomass and organic waste.

Distribution Chain Analysis

The Distribution Chain is as a result of interactions between the following key players

  • Research & Development: R&D Process improves processes and reduces the cost of manufacturing components and systems for fuel cell production and delivery,
  • Component Manufacturer: The Component Manufacturers include manufacturers of the components of a fuel cell including Anode, Cathode and Electrolyte

Some of the Key Component Manufacturers include SFC Energy AG, Ballard Power System

  • Stack Assembler: The Stack Assembler represents the players involved in Assembling Components such as Anode, Cathode and Electrolyte.
  • Distribution Channel: The Distribution Channel includes Distributors of the Fuel Cell. It includes Key players such as Panasonic Corporation, Toshiba Fuel Cell Power System Corporation., and Siemens AG
  • Repair and Maintenance: Repair and Maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment, machinery, and supporting utilities.
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Competitive Landscape

The Stationary Fuel Cell Market is highly consolidated.

To withstand the competition, key players in the global fuel cell market have adopted different key business strategies, such as acquisitions, agreement and partnership, product launch, mergers, and expansion.

Bloom Energy Corporation, POSCO ENERGY, and Doosan Fuel Cell America are among the Tier I stakeholders, and Plug Power, Fuelcell Energy, Ballard Power Systems, and Fuji Electric Co., Ltd. are among the Tier II stakeholders in the stationary fuel cell systems market.

Leading players in the stationary fuel cell systems are expected to account for 70-75% share in the growth of the stationary fuel cell systems market in the upcoming years.

A majority of top tiered companies have received huge funds from banks or finance companies, which is enabling them to meet their sustainability goals and financial needs. In addition, with the help of these funds and investments, stationary fuel cell systems market leaders are introducing cleaner, resilient, and more innovative power solutions.

Whereas, needs for high initial investments pose financial barriers to entry for new players in the stationary fuel cell systems market, which in turn aids the dominance of top tiered companies in the stationary fuel cell systems market

Competitive Factors

Competitive Pricing

Competitive pricing is the process of selecting strategic price points to best take advantage of a product or service based market relative to competition. This pricing method is used more often by businesses selling similar products, since services can vary from business to business, while the attributes of a product remain similar. This type of pricing strategy is generally used once a price for a product or service has reached a level of equilibrium, which occurs when a product has been on the market for a long time and there are many substitutes for the product.

Quality

Competitive advantage denotes a firm's ability to achieve market superiority over its competitors. In the long run, a sustainable competitive advantage provides above-average performance. The characteristics relate to quality, quality can be an important means of gaining competitive advantage.

Innovation

The market dynamics are affected by many factors - from consumers’ socioeconomic conditions to a firm’s capacity to show an innovative product for consumption. Thus, innovation is becoming the companies’ main competitive factor to increase and keep their operating area.

Key Market Players

Bloom Energy Corporation designs, manufactures, and sells solid-oxide fuel cell systems for on-site power generation. The company offers Bloom Energy Server, a stationary power generation platform that converts standard low-pressure natural gas or biogas into electricity through an electrochemical process without combustion. It serves banking and financial services, cloud services, technology and data centers, communications and media, consumer packaged goods and consumables, education, government, healthcare, hospitality, logistics, manufacturing, real estate, retail, and utilities industries.

Posco Energy Co., Ltd. provides electricity services. The Company offers electric power generation, renewable energy, fuel cell, esource development, and other services. POSCO Energy offers services worldwide.

Doosan Fuel Cell America, Inc. designs, engineers, and manufactures stationary fuel cells for commercial and industrial applications. It offers Doosan PureCell system, an energy solution for generating clean electricity and heat through an electrochemical process with no combustion or moving parts, and natural gas. The company also provides multi-fuel cell installations for data centers, industrial facilities, and microgrids, as well as single fuel cell applications for commercial buildings. It also offers project development, installation, remote monitoring and control, equipment services, and financial solutions in partnership with finance providers.

Plug Power Inc., an alternative energy technology provider, engages in the design, development, manufacture, and commercialization of hydrogen and fuel cell systems for the material handling and stationary power markets primarily in North America and Europe. It focuses on proton exchange membrane (PEM) fuel cell and fuel processing technologies, fuel cell/battery hybrid technologies, and related hydrogen storage and dispensing infrastructure.

FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed power generation. The company offers SureSource product line based on carbonate fuel cell technology in various configurations, including on-site power, utility grid support, distributed hydrogen, and micro-grid, as well as multi-megawatt applications; and SureSource Recovery power plants for natural gas pipeline applications. It also provides SureSource Capture system that separates carbon dioxide from the flue gases of natural gas, biomass, or coal-fired power plants, as well as industrial facilities

Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane fuel cell products worldwide. The company offers heavy duty modules, fuel cell stacks, backup power systems, and portable power/ unmanned aerial vehicles, and material handling products. In addition, it provides technology solutions comprising engineering services and technology transfer services, as well as licenses and sells intellectual property portfolio for various fuel cell applications. Its products are applied to transit bus, rail, material handling, truck, marine, and infrastructure.

Fuji Electric Co., Ltd., together with its subsidiaries, operates in the power electronics systems, power and new energy, electronic devices, and food and beverage distribution businesses worldwide. Its Power Electronics Systems segment provides energy solutions, such as energy management systems, power distribution solutions, smart meters, substation equipment, industrial power supplies, datacenters, uninterruptible power systems, electrical facilities, switchgears, control gears, plant factories, cold chain systems, power conditioning systems, and switchboards, as well as power transmission, control, and distribution equipment.

Strategic Conclusion

The market size of the Global Stationary Fuel Cell market is estimated to be USD 5.53 Billion in 2018 and is expected to record CAGR growth rate of 17.5% and is expected to reach a market size of USD 17.10 Billion in 2025.

The major challenges pricking the growth of the Global Stationary Fuel Cell market includes Challenges associated with hydrogen refueling facilities, Competition from existing technologies and Scaling-up issue

The growth of the market is restrained by factors such as High Cost of Fuel Cells Limit Applications and Adoption of Stationary Fuel Cell Systems, Lack of effective technological development to accelerate commercialisation and Higher Repair and Maintenance Cost

The growth of the Global Stationary Fuel Cell market is augmented by Opportunities such as Increasing R&D activities, Development of Zero-Energy Buildings and Increasing adoption of microgrids

Further Reading

Appendix

  • CAGR - Compounded Annual Growth Rate
  • USD - US Dollar
  • PEMFC - Proton Exchange Membrane Fuel Cells
  • MCFC - Molten Carbonate Fuel Cells
  • SOFC - Solid Oxide Fuel Cells
  • ZNE - Zero Net Energy
  • NZEB - Net-Zero Energy Building
  • EV - Electrical Vehicle
  • HEV - Hybrid Electric Vehicle
  • PHV - Plug-in Hybrid Vehicle
  • GHG - GreenHouse Gas
  • IC Engine - Internal Combustion Engine
  • FCV - Fuel Cell Vehicle
  • DCFC - Direct Carbon Fuel Cell
  • MW - Mega Watt


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