Phosphoric Acid Fuel Cell Market Size was valued at USD 0.4 Billion in 2022. The Phosphoric Acid Fuel Cell market is projected to grow from USD 0.5 Billion in 2023 to USD 2.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 20.30% during the forecast period (2023 - 2032). Stepping up efforts to reduce global carbon emissions and shifting focus to clean energy sources will help fight climate change, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The use of the PAFC technology is likely to increase due to the rising number of unanticipated natural disasters and the rising number of actions taken to address the energy problems caused by these disasters. Due to their simple handling of toxic gases including carbon monoxide and carbon dioxide, the devices are easily installed for stationary purposes, which will accelerate the expansion of the phosphoric acid fuel cell market. Additionally, because PAFC systems typically operate at a higher temperature of around 220° C, they can handle up to 1% CO and produce high output ratings ranging from a few kWs to MWs.
One of the main phosphoric acid fuel cell market trends is the widespread installation of phosphoric acid fuel cells in a variety of commercial organizations, including hospitals, buildings, hotels, and electric utilities to provide cogeneration solutions. The systems' small- and large-scale combined heat-and-power (CHP) capacity can supply continuous electricity and meet supplemental energy needs. It generates high-temperature waste heat that can be effectively used in CHP systems to generate low-pressure steam, space heating, and water heating.
Global energy consumption is rising significantly as a result of the strong economic expansion. China, the US, and India, which together account for more than 40% of the increase, are the driving forces behind it. According to the IEA, the demand for electricity doubled between 1990 and 2016, exceeding the growth in demand for other fuels. The demand for electricity is anticipated to rise by 2040 at a rate that is estimated to be two times that of the demand for energy, which is anticipated to rise by more than 25%. India's electricity consumption was rising at a rate of roughly 5% yearly as of 2020 due to the country's ambition to achieve universal access to energy by 2025. Therefore, it is anticipated that an increase in demand from a single nation will boost the Phosphoric Acid Fuel Cell Market. Thus, driving the Phosphoric Acid Fuel Cell market revenue.
The Phosphoric Acid Fuel Cell Market segmentation, based on Application, includes vehicles, cogeneration, and others. In 2022, combined heat and power, also known as cogeneration, dominated the market. Due to its high thermal and electrical efficiency, it is the location where PAFC systems are most commonly installed. During the forecast period, the segment is expected to lead the industry in terms of both market size and volume. The implementation of CHP systems is supported by beneficial programs that certain regional governments have put in place. To install micro-CHP or m-CHP units, for instance, Japan had introduced Ene-Farm systems. By 2030, the government hopes to have a self-sustaining market for the technology and have distributed around 5.3 million of these systems.
According to the market analysis of phosphoric acid fuel cells, the automotive segment is also anticipated to experience significant increase throughout the projection period. Heavy-duty vehicles, including as buses and trucks, were the first to employ PAFC technology since it was readily available in bulk capacity and had a high electrical efficiency. Huge permanent Uninterrupted Power Supply (UPS) units and numerous bulk-sized Auxiliary Power Units (APUs) for huge vehicles are further applications for the technology.
Figure 1: Phosphoric Acid Fuel Cell Market, by Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific Phosphoric Acid Fuel Cell market is projected to dominate the market during the forecast period. Favorable government policies and ambitious long-term goals are credited for this. Furthermore, the presence of well-known manufacturers and significantly increased investment from a number of players are expected to further boost product demand in the nation. Furthermore, a large amount of growth is anticipated in South Korea as a result of the national administration's adoption of new technology. The nation is putting a lot of money into building and improving hydrogen infrastructure to accommodate the growing use of H2 based technology. Further, China’s Phosphoric Acid Fuel Cell market held the largest market share, and the Indian Phosphoric Acid Fuel Cell market was the fastest growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Phosphoric Acid Fuel Cell Market Share By Region 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America Phosphoric Acid Fuel Cell market experienced substantial growth in the Phosphoric Acid Fuel Cell Market in 2022. The U.S. industry trend will be boosted by increased budget allocation for growing hydrogen-based infrastructure and increased attention on conducting advanced research & development operations. The Office of Energy Efficiency and Renewable Energy (EERE) reported that the total funding for hydrogen and fuel cell technologies during the same fiscal year (FY) 2019 was around USD 120,000 for various uses. Out of this amount, 75% of the grant was designated for research and development of fuel cell technologies in conjunction with infrastructure and hydrogen fuel. Further, the U.S. Phosphoric Acid Fuel Cell market held the largest market share, and the Canada Phosphoric Acid Fuel Cell market was the fastest growing market in the North America region.
The European Phosphoric Acid Fuel Cell market is expected to witness a decent growth rate during the forecast period. The implementation of FC systems in the nations of the European Union is anticipated to be accelerated by a number of encouraging norms and initiatives. Several guidelines have been released by the Fuel Cells and Hydrogen Joint Undertaking (FCH JU), a partnership between private and public institutions, to encourage the demonstration and advancement of fuel cell technologies in the area. Further, the German Phosphoric Acid Fuel Cell market held the largest market share, and the U.K Phosphoric Acid Fuel Cell market was the fastest growing market in the European region.
Leading market players are investing heavily in research and development in order to expand their Product lines, which will help the Phosphoric Acid Fuel Cell market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Phosphoric Acid Fuel Cell Industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Phosphoric Acid Fuel Cell Industry to benefit clients and increase the market sector. In recent years, the Phosphoric Acid Fuel Cell Industry has offered some of the most significant advantages to medicine. Major players in the Phosphoric Acid Fuel Cell market, including Fuji Electric Co., LTD., Doosan Fuel Cell America, Inc., Defence Research and Development Organisation (DRDO), and Ingsman Energy and Fuel Cell Research Organization (IEFRO), are attempting to increase market demand by investing in research and development operations.
Cogeneration and solar power generation are provided by Hanwha Energy Corporation. The company provides power transformation, distribution, transmission, and other associated services. Worldwide services are provided by Hanwha Energy. For the purpose of running the Daesan Hydrogen Fuel Cell Power Plant, Hanwa Energy, Korea East-West Power, and Doosan formed a joint venture firm called Daesan Green Energy in August 2019. The power plant's Seosan Hanwa location will install 440 kWh worth of phosphoric acid fuel cells, with the plant's overall capacity exceeding 50 MW.
Siemens AG (Siemens) focuses on technology. The automation, digitalization, and electrification fields are all covered by its operations. The company designs, develops, and manufactures goods in addition to installing complex projects and systems. Additionally, it provides a range of uniquely created solutions for various needs. Power generation and delivery, intelligent building infrastructure, and distributed energy systems are Siemens' areas of expertise. It provides medical technology, smart mobility solutions, and digital healthcare services for the road and rail transportation sectors. Siemens maintains locations for its manufacturing plants, distribution centers, and sales offices all around the world. It offers clients services in a variety of industries, such as manufacturing, infrastructure, process, and energy. Munich, Bavaria, Germany serves as the home base for Siemens. Siemens ordered combined heat and power (CHP) units powered by hydrogen from the German company 2G Energy AG in July 2019. The new unit will be built up in a portion of its pilot project in Dubai in order to provide decentralized energy and broaden the technological horizons.
August 2019 An R&D project called D2Service was started by the German Aerospace Center (DLR) in collaboration with six additional parties working in five different countries. The initiative aims to simplify the installation and maintenance of fuel cell-powered CHP systems. Additionally, the venture aims to efficiently combine the components and interfaces of various products so that maintenance can be done with less effort.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 0.4 Billion |
| Market Size 2023 | USD 0.5 Billion |
| Market Size 2032 | USD 2.1 Billion |
| Compound Annual Growth Rate (CAGR) | 20.30% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Fuji Electric Co., LTD., Doosan Fuel Cell America, Inc., Defence Research and Development Organisation (DRDO), and Ingsman Energy and Fuel Cell Research Organization (IEFRO) |
| Key Market Opportunities | Distributed power generation |
| Key Market Dynamics | Increasing measures to limit the global carbon emissions to combat climate change and a paradigm shift towards clean energy sources |
Phosphoric Acid Fuel Cell Market Highlights:
Frequently Asked Questions (FAQ) :
The Phosphoric Acid Fuel Cell Market size was valued at USD 0.4 Billion in 2022.
The global market is projected to grow at a CAGR of 20.30% during the forecast period, 2023-2032.
Asia Pacific had the largest share in the global market
The key players in the market are Fuji Electric Co., LTD., Doosan Fuel Cell America, Inc., Defence Research and Development Organisation (DRDO), and Ingsman Energy and Fuel Cell Research Organization (IEFRO).
The Cogeneration Application had the largest share in the global market.
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