Freedonia Market Research Analyzes Fuel Cell Industry

Commercial fuel cell demand, which accounted for less than ten percent of total spending in 2007, is forecast to expand almost sixfold through 2012 to $975 million and reach $3.3 billion in 2017, when it will represent half of all fuel cell spending.  Total US fuel cell spending -- consisting of research and development (R&D) funding, investment in fuel cell enterprises, revenues associated with prototyping and test marketing, and demand for fuel cell systems, associated products and services -- is expected to reach $3.7 billion in 2012.  Prospects for fuel cells vary by market, with success being dependent on how well fuel cells stack up to other potential energy sources. Among the six main fuel cell chemistries, the market for direct methanol fuel cells is expected to advance at the most rapid pace through 2012.  These and other trends, including market share and company profiles, are presented in Fuel Cells, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

The largest market for fuel cells is electric power generation, which is expected to rise more than 40 percent annually to $450 million in 2012.  The electric power generation market will continue to comprise almost half of commercial demand in 2012, as molten carbonate fuel cells (MCFCs) and solid-oxide fuel cells (SOFCs), which have proven to be effective for electricity production, continue to become more cost efficient.

The market for fuel cells used to power portable electronic devices is expected to advance at the most rapid pace through 2012, as technological advancements have enabled these fuel cells to outperform most types of batteries used for similar purposes.  As portable wireless devices continue to advance in intelligence and functionality, fuel cells will be better able to meet their increased energy requirements, while simultaneously eliminating the need for an electrical outlet for recharging.

The motor vehicle market for fuel cells -- currently consisting mostly of spending for prototypes, demonstration and test marketing programs --  is expected to rise at a below-average pace, as cost barriers (such as high-priced platinum catalysts) continue to delay widespread commercialization.  The growing popularity of gasoline-electric hybrid vehicles will also restrain growth in the segment. Fuel cell-powered vehicles are likely to face increasing competition from all-electric vehicles.  By 2017, however, fuel cell-powered vehicles are expected to expand their market presence, as ongoing developmental work will ultimately drive down costs. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.