The size of the global phosphoric acid fuel cell market was worth USD 0.66 billion in 2023. The global market is anticipated to grow at a CAGR of 23.83% from 2024 to 2032 and be worth USD 4.52 billion by 2032 from USD 0.82 billion in 2024.
Several advantages of using phosphoric acid fuel cells are one of the key factors that are predicted to trigger the expansion of the worldwide market during the outlook period. These cells exhibit greater tolerance to impurities contained in fossil fuels, including gasoline and diesel. These fuel cells also utilize traditional fossil fuels resulting in the commercialization of phosphoric acid fuel cells compared to other fuel cells. Electricity needs have escalated exponentially around the world. The governments of several countries are carrying out the modernization and development of the infrastructure for power generation. Phosphoric acid fuel cells are one of the most mature cell types and the first to be employed commercially. Phosphoric acid is chemically stable and easy to handle. The phosphoric acid fuel cell is an essential part of the device's power source.
Distributed power generation is gaining popularity as it can generate electricity at or near the point of consumption using various technologies, such as solar panels and micro-cogeneration systems. As a result, the adoption of decentralized power generation is escalating dramatically, resulting in escalated calls for micro CHP systems. These systems mainly use fuel cells for power generation.
Technological advances are emerging to reduce the cost of manufacturing phosphoric acid fuel cells with the aim of providing safe and environmentally friendly electrical solutions. The escalated adoption of horizontal drilling and hydraulic fracturing has resulted in an increase in the production rate of crude oil, condensate, and natural gas, which will accelerate the developments in the global phosphoric acid fuel cell market during the envisioned period. A key factor in the expansion of the worldwide phosphoric acid fuel cell market is the increase in the worldwide call for energy. With the significant expansion in world population and economic activities, the call for electricity is escalating at a rapid rate. Additionally, the expansion of electronically connected devices and the digitization of modern economies are other factors driving the electrification of worldwide energy systems. Therefore, the rapid increase in worldwide energy calls from the residential and commercial sectors will drive the call for phosphoric acid fuel cells during the projected period.
The market for phosphoric acid fuel cells is capital-intensive. This is one of the main limitations of the market. Phosphoric acid fuel cells offer a variety of advantages in the field of power generation. For example, they can run on available fuels, making them commercially popular. Additionally, they are widely employed as emergency power generators, and many countries are rapidly replacing diesel generators with PAFCs. However, despite their many advantages, PAFCs suffer from some inherent drawbacks that can adversely affect the expansion of the global phosphoric acid fuel cell market.
Rapid advancements in sustainable technologies will help South Korea strengthen its grip on the phosphoric acid fuel cell market share in the coming years. In the United States, escalating the budget allocation for research and development in fuel cell technologies will accelerate market expansion in the country.
One of its most important drawbacks is its continued dependence on hydrocarbons. Although this problem has been solved by the use of dispersed platinum catalysts, it has made PAFCs economically unattractive because the use of platinum has raised their costs. Also, these cells are not as efficient when they produce electricity on their own as when they are employed in conjunction with fossil fuels. These disincentives could hamper the expansion trajectory of this market in the coming years.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2032 |
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CAGR |
23.83% |
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Segments Covered |
By Application, Component, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Ballard Power Systems, Hydrogenics, Fuel Cell Energy, Intelligent Energy, SFC Energy, and Plug Power, high-end technological solutions, Toshiba Energy Systems & Solution Corporation, Mitsubishi Hitachi Power Systems, Aisin Seiki Co., Bloom Energy, Ceres Power, Kyocera, SOLIDpower, Doosan Fuel Cell America, Horizon Fuel cell, Altergy, Nuvera, AFC Energy, Microrganic Technologies, Sainergy, and Arcola Energy Ltd and Others. |
The prime poser segment will represent the largest market share for phosphoric acid fuel cells. The growing call for electricity from the industrial and commercial sectors and the growing adoption of clean energy sources will drive the call for phosphoric acid fuel cells for high-end energy applications.
The Asia Pacific, with the nations of India, China, and Japan, is investing heavily in the phosphoric fuel cells business. These fuel cells are widely employed in electric vehicles to store electricity. North America offers great potential for the phosphoric acid fuel cell market. The use of phosphoric acid fuel cells is predicted to increase in North America due to the augmented call for electric cars and hybrid vehicles. European countries such as Germany, France, Sweden, and the United Kingdom are highly focused on reducing the use of crude oil in transportation. These countries are investing heavily in the development and improvement of phosphoric acid fuel cells for electric vehicles.
The European Union aims to reduce worldwide warming and promote the use of phosphoric acid fuel cells. This should reduce environmental pollution. The phosphoric acid fuel cell market in the Middle East and Africa is predicted to expand in the near future. Countries such as Saudi Arabia, Kuwait, Bahrain, and Qatar have made significant investments in the phosphoric acid fuel cell market for infrastructure development. Consumers in these countries are also spending more and more on household appliances. This is predicted to boost the phosphoric acid fuel cell market in the Middle East and Africa. The APAC region will represent the largest market share for phosphoric acid fuel cells during the foreseen period. The growing call for energy and the development of hydrogen and fuel cell technologies are some of the factors influencing the expansion of the PAFC market in this region. Strong government support for innovative projects in the defense sector creates unique development opportunities in the market. In addition to government organizations, the competitive market landscape is dotted with some other private companies, mainly from South Korea and Japan.
Companies playing a prominent role in the global phosphoric acid fuel cell market include Ballard Power Systems, Hydrogenics, Fuel Cell Energy, Intelligent Energy, SFC Energy, and Plug Power, high-end technological solutions, Toshiba Energy Systems & Solution Corporation, Mitsubishi Hitachi Power Systems, Aisin Seiki Co., Bloom Energy, Ceres Power, Kyocera, SOLIDpower, Doosan Fuel Cell America, Horizon Fuel cell, Altergy, Nuvera, AFC Energy, Microrganic Technologies, Sainergy, and Arcola Energy Ltd and Others.
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