Global market for stationary fuel cells to grow

SFCs remain a niche power generation technology, with uptake heavily concentrated in a handful of markets: the US, Japan, South Korea, and parts of Europe. According to a new report from Guidehouse Insights, annual SFC deployments are expected to increase from 475.2 MW in 2022 to 1,206.0 MW in 2031 at a compound annual growth rate (CAGR) of 10.9%. 

“In comparison with combustion-based power solutions such as diesel generators or gas turbines, fuel cells offer higher efficiency potential, lower emissions, and reduced maintenance demands,” said Jacques Moss, Research Analyst with Guidehouse Insights. “SFCs also present lower capital costs and longer discharge periods than standalone battery storage systems when used for backup power applications.”

However, the SFC industry has yet to undergo a substantial scale-up, hampered by relatively high fixed costs, limited economies of-scale, and immature hydrogen distribution infrastructure for low temperature fuel cell technologies.

In coming years, Guidehouse Insights anticipates that SFC players will benefit from several emerging technology trends. Growing grid resiliency concerns are driving demand for reliable and fuel flexible distributed power generation technologies, especially for critical infrastructure sites such as data centres and healthcare facilities. Significant uptake of fuel cells for mobility applications, in addition to the rapid scale-up of electrolyser manufacturing capacity, will assist learning rates for select SFC manufacturers and technologies. Increasing policy support for low carbon infrastructure projects will also make hydrogen cheaper to produce and easier to procure for SFC owners, according to the report.

The report, Market Data: Stationary Fuel Cells, provides analyses for annual stationary fuel cell deployments and revenues from 2022-2031, segmented by global region, fuel cell technology, and application. Detailed discussions are provided of each fuel cell technology, the primary industry players, and the various end-use sectors for SFCs, from the data centre industry to residential micro-CHP. An executive summary of the report is available for free download on the Guidehouse Insights website.