Fuel Cell Market

Fuel Cell Market Size

The global fuel cell market size was valued at more than USD 7.29 billion in 2024 and is anticipated to reach USD 18.58 billion by 2034, growing at a CAGR of 9.9% from 2025 to 2034. The surging power demand across remote areas, along with stringent emission norms, has led the industrial players to look for better and cost-effective technologies to meet their electricity needs. Fuel cells, due to their high efficiency, greater sustainability, and affordable pricing structure are gaining wide acceptance across the manufacturing sector. For instance, according to IEA 2023, more than 40 countries are setting out national hydrogen strategies across the globe owing to rapid expansion of low emissions hydrogen.

Ongoing introduction of emission reduction targets and energy efficiency standards by policymakers has increased the global demand for these cells across numerous applications. The commercial scenario will be driven by significant investment for the development and exploration of modern technologies from a number of government agencies and financial organizations, including DOE, Emerald Technology, GSV Capital, and Credit Suisse. In October 2024, for example, the U.S. DOE announced up to USD 46 million in funding to assist research, development, and demonstration efforts to enhance affordable clean hydrogen and fuel cell technology.

The fuel cell industry has been most impacted by trump imposed tariffs, which have upset the clean energy supply chain. Because of the taxes, the manufacturers have to pay more, which makes it more difficult for them to compete internationally. Companies are being forced to adapt by increasing local production, finding new suppliers, or raising client prices. These changes may also affect their short-term profitability and market share.

Fuel Cell Market Trends

• Increasing research and development activities, inorganic strategic growth ventures conducted between the key industry players will continue to boost the demand for large fuel cell systems in the country. Additionally, ambitious plans to integrate renewables into the energy grid, research and development activities coupled with subsidies provided for the installation of fuel cells will drive market growth. For instance, in March 2025, Cummins joined as a founding member of the Hydrogen Engine Alliance of North America (H2EA-NA), an initiative established by leaders from academia, the energy sector, government, and the transportation industry.
  
• The key strategic players will also continue to collaborate with various manufacturers to promote and augment the use of the technology. Furthermore, implementing guarantees of origin, facilitating cross border hydrogen trade, & streamlining permitting processes for hydrogen infrastructure are some of the common measures adopted to boost the demand for fuel cell systems. In January 2024, Ballard Power Systems signed a long-term agreement with NFI Group Inc. to supply 100 FCmove- HD fuel cell modules.
  
• Aggressive growth in the consumer electronics market in the coming times will significantly increase the manufacturing and deployment of fuel cells. The development of hydrogen society along with the increasing adoption across residential & commercial establishments will augment the business outlook. The introduction of subsidies by respective government authorities to promote the adoption of fuel cells will enhance industry growth. In March 2025, the North American wire and cable producer Southwire is collaborating with global hydrogen technology leader Plug Power Inc for the implementation of a clean hydrogen ecosystem at its new distribution center located at Dallas Fort Worth in Texas.
  

Fuel Cell Market Analysis

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• Based on product, the market is segmented as PEMFC, DMFC, SOFC, PAFC & AFC and MCFC. The global market for fuel cell reached USD 6.36 billion, USD 6.77 billion and USD 7.29 billion in 2022, 2023 and 2024, respectively.
  
• The PEMFC segment will cross USD 8.8 billion by 2034 owing to their low operating temperature, suitable for both mobile and stationary power applications, including backup power for data centers, telecom towers, and residential energy systems. Increasing demonstrative projects will additionally complement the business trend. For instance, March 2025, under the Advanced Hydrogen and Fuel Cell Call 2021, India’s Department of Science and Technology piloted the deployment of hydrogen fuel cells to power telecom towers.
  
• The SOFC segment will grow at a rate of over 9.5% till 2034 on account of ongoing investment in research activities. In January 2025, an Italian research team developed a 1 kW solid oxide fuel cell cogeneration system for homes. Their integration with energy storage devices and renewable energy sources makes them indispensable to future-ready low-carbon energy landscapes. The increasing demand for fuel cells that provide high efficiency, fuel flexibility, and suitability for both stationary and distributed power generation will coincide with the introduction of SOFC.
  
• PAFC & AFCs segment will grow at over 10% CAGR through 2034, because they are dependable and have a long operating life. For example, AFC Energy stated in June 2024 that their 200kW H-Power Generator, the highest power rated generator in the light to medium (50kW) duty generator class, would be delivered. The use of polymer-based, non-corrosive alkaline electrolytes, which address previous problems of carbonate contamination and corrosion, is the result of ongoing current research and development. Product growth has resulted from these developments greater system endurance and decreased maintenance requirements.
  
• MCFCs are ideal for utility-scale and industrial applications where efficiency is essential, which will support the business trend. The use of MCFCs will increase due to the growing demand for fuel cells from utilities and heavy industries for cogeneration and baseload power. Additionally, the product growth will be boosted by expanding government incentives, especially in the United States, Japan, and South Korea, that promote MCFC R&D and deployment through clean energy financing and decarbonization goals.
  

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• Based on application, the fuel cell market is segmented as stationary, portable and transport. The transport segment accounted for over 78.4% market share in 2024 due to ongoing deployment of fuel cells in e-bikes, UAVs, and in numerous commercial vehicles. Introduction of strengthening policies toward reduction of CO2 emissions in the shipping industry, advancements of logistics in short sea shipping and significant hydropower to make green H2 by electrolysis will favor the deployment across the maritime sector.
  
• The stationary fuel cell market revenue to cross USD 4.3 billion by 2034 on the account of rising demand for fuel cells offering support to distributed energy generation. Additionally, their fuel flexibility including hydrogen, natural gas, or biogas, allowing users to transition toward cleaner fuels while leveraging existing infrastructure, will facilitate gradual decarbonization without major overhauls leading to product growth. Continued funding, grants, and tax incentive schemes provided by national governments, particularly in Europe, the US, and some parts of Asia will back the product development and deployment.
  
• The portable segment will grow at CAGR of over 14% till 2034 on account of longer run time, rapid recharging, reduced weight, reliability, convenience, and low operating cost. Companies are continuously engaging in investments, achieving new orders and support from the government in terms of policies, grants to propel portable fuel cell growth. For instance, in June 2024, SFC Energy secured a USD 4.5 million order from FCSL for its EFOY methanol fuel cells for stationary, portable, and mobile hybrid power applications.
  

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• The U.S. fuel cell market size exceeded USD 1.52 billion, USD 1.53 billion and 1.55 billion in 2022, 2023 and 2024, respectively. North American market for fuel cell will grow at a CAGR of more than 6% till 2034. The introduction of on-site generation station with an in-built methane reforming hydrogen technology has resulted in a cost-effective solution for the establishment of refueling stations.
  
• Inorganic strategic ventures by the key players along with growing investments for the development of hydrogen stations will drive the business outlook. For instance, in 2024, the U.S. DOE allocated USD 750 million to universities and companies including Plug Power, General Motors, and Cummins, to enhance the production of fuel cells.
  
• Europe fuel cell market will grow at a CAGR of over 9% till 2034 owing to introduction of several national policies are complementing the green deal and entailing a vision in various sectors including fuel cell electric vehicles, stationary power, hydrogen filling stations and hydrogen refueling infrastructure. The government further aims at aligning the regulatory framework though introduction of schemes and packages to achieve the ambition of 55% GHG reduction by 2030.
  
• Asia Pacific fuel cell market will contribute to the business momentum owing to favorable government mandates, introduction of hydrogen roadmaps and standards influence the adoption of large-scale stationary systems in the region. Primarily, South Korea is anticipated to have the largest deployment for fuel cell systems owing to well-developed natural gas grid, enormous private and public capital investments, high energy demand coupled with introduction of environment friendly policies.
  

Fuel Cell Market Share

• Top 5 players operating in the industry include Cummins, Ballard Power System, Fuji Electric, Toshiba Corporation, and Plug Power contributing 40% of the market share. Collaborations and partnerships between fuel cell manufacturers, energy companies, and automotive manufacturers will contribute to the market growth.
  
• In addition, joint ventures and strategic alliances enhance research capabilities, expand the market reach, and foster innovation across the fuel cell industry. The industry is widely funded by private and public investment firms that are providing financial support for innovation and research & development. The industry is widely funded by private and public investment firms that are providing financial support for innovation and research & development over the years.
  

Fuel Cell Market Companies

• Ballard Power Systems has three facilities spanning over 22,000 m², producing over 1 GW of MEA’s and fuel cell stacks. The company has manufacturing facilities in the U.S. and Denmark with joint venture operations in China. There are about 1 GW fuel cells shipped to date. In March 2025, Ballard Power Systems, a leading commercial vehicle manufacturer in Egypt, has entered into a supply agreement for approximately 5 MW of fuel cell engines.
  
• Plug Power specializes in the development of hydrogen fuel cell systems that replace conventional batteries in equipment and vehicles powered by electricity. The company offers a wide range of hydrogen fuel cell solutions. In April 2025, Plug Power Inc. and Olin Corporation’s joint venture, Hidrogenii, has commenced operations at its hydrogen liquefaction facility in U.S., with a capacity of 15 metric tons per day (TPD).
  

Eminent players operating in the fuel cell industry are:

• Cummins
• Ballard Power Systems
• Plug Power
• Nuvera Fuel Cells
• Nedstack Fuel Cell Technology
• Bloom Energy
• Panasonic Corporation
• Doosan Fuel Cell
• Aisin Corporation
• Ceres
• SFC Energy
• Toshiba Corporation
• Robert Bosch
• TW Horizon Fuel Cell Technologies
• AFC Energy
• FuelCell Energy
• Fuji Electric
• Hyundai Motor Company
  

Fuel Cell Industry News

• In January 2024, Ballard Power Systems signed a long-term agreement with NFI Group Inc. to supply 100 FCmove- HD fuel cell modules. These fuel cell engines will be deployed in buses across the U.S. and Canada. The fuel cells produced at Ballard’s Oregon plant will primarily power the Xcelsior CHARGE FC hydrogen fuel cell buses of New Flyer. The agreement will increase the preferability of hydrogen fuel cell-powered buses across North America.
  
• In April 2025, the Europe-based provider of logistics and transport services for temperature-sensitive food products, STEF Group, started two projects for developing hydrogen fuel cells with Plug Power, a green hydrogen solutions provider, and Toyota Material Handling Europe, manufacturers of hydrogen fuel cell equipment. These projects are based in Athis-Mons (France) and Torrejón De Ardoz (Spain). This initiative fuels the creation of a fully integrated hydrogen economy which includes the production and operational usage of hydrogen. Spain's facilities have hydrogen produced onsite via a water-splitting electrolyze that produces hydrogen and oxygen. Clean hydrogen is supplied by a 2.9 MWp rooftop photovoltaic system which powers the electrolysis and local renewable energy is supplementing electricity.
  

This fuel cell market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘MW & USD Million’ from 2021 to 2034 for the following segments:

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Market, By Product

• PEMFC
• DMFC
• SOFC
• PAFC & AFC
• MCFC

Market, By Application

• Stationary
  • < 200 kW
  • 200 kW - 1 MW
  • ≥ 1 MW 
• Portable
• Transport
  • Marine
  • Railways
  • FCEVs
  • Others

Market, By End Use

• Residential
• Commercial & industrial
• Data centers
• Military and defense
• Utilities & government
• Transportation

Market, By Size

• Small scale
• Large scale

Market, By Fuel

• Hydrogen
• Methanol
• Ammonia
• Hydrocarbons

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Austria
• Asia Pacific
  • Japan
  • South Korea
  • China
  • India
  • Philippines
  • Vietnam
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
• Latin America
  • Brazil
  • Peru
  • Mexico