Global Fuel Cell Industry to Surpass $15 Billion by 2017

August 9, 2012

In 2011, the fuel cell industry experienced a year of mixed results, but analysts at Pike Research expect it will become a $15.7 billion market by 2017.

On the positive side, total shipments broke the 20,000 barrier for the first time in 2011, thanks to a 2009-2011 compound annual growth rate of 83 percent. “This aggregate figure, however, hides the fact that the fuel cell industry has continued to exhibit a growth/contraction pattern,” the research company noted. “In 2011, for example, system shipments in the portable fuel cell sector contracted by 16 percent on a year-over-year basis, and the sector lost a large number of companies.”

Despite the mixed reports, Pike Research expects the fuel cell market -- including all applications in the stationary, portable, and transport sectors – to reach $15.7 billion in 2017, but a number of challenges must be overcome for that figure to be achieved.

“While the fuel cell industry posted growth last year, vendors still face significant headwinds,” said Research Director Kerry-Ann Adamson. “Many companies in the portable sector have exited the space or are diversifying to bolster revenue. The transport sector continued to grow in 2011, but the continued movement towards the launch of fuel cell light-duty vehicles in the 2015 timeframe has created a gap between today’s ambitions and tomorrow’s potential.”

The 2014-2015 timeframe remains critical in terms of transitioning from a niche industry to moving into the mainstream, Adamson said. Costs for fuel cell stacks remain much higher than those of incumbent technologies. The industry is at the beginning of the cost curve, and major cost reductions are to be expected over the next 5 to 10 years. Currently, fuel cell producers are largely limited to subsidy-strong markets (California for stationary power) or high-value early adopters (business users who travel frequently and carry external battery rechargers), according to the report.

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