Fuel Cells for Prime Power Applications Projected to See Strong Growth through 2023
Several governments have initiated extensive R&D programs to reduce costs and increase the deployment of fuel cells.
The global fuel cell market for prime power is projected to grow at a CAGR of nearly 28% from 2019-2023, according to a recent market research report from Technavio. Increasing R&D activities represent one trend driving the market, while cost is a major factor hindering the adoption of fuel cell systems. These systems have high upfront costs compared with other alternative technologies. However, fuel cells hold immense potential in supporting the transition toward clean energy production and are highly efficient.
Several governments have initiated extensive R&D programs to reduce costs and increase the deployment of fuel cells. Countries such as South Korea, Japan, the U.S., the UK, and Germany are leading the market in terms of R&D activities for fuel cells.
Another key factor contributing to the growth of the global fuel cell market for prime power is the growing demand for efficient and cleaner technologies. Globally, fossil fuels are the most dominant source of electricity generation. Their negative impact on the environment is prompting the increasing adoption of cleaner and efficient power sources to mitigate climate changes amidst growing environmental concerns worldwide.
The report segments the market by product, including proton-exchange membrane fuel cells (PEMFCs), phosphoric acid fuel cells (PAFCs), and solid oxide fuel cells (SOFCs). The PEMFC segment held the largest market share in 2018, accounting for nearly 33% of the market. This product segment is expected to dominate the global market throughout the forecast period.
Compared to the EMEA and Asia-Pacific, the Americas led the market in 2018 with a market share of over 37%. However, Asia-Pacific is expected to surpass the Americas by 2023 to become the leading region, accounting for a market share of over 41%.
Additional details are available at www.technavio.com.