Proton Exchange Membrane Fuel Cell Market (By Type: High Temperature, Low Temperature; By Material: Membrane Electrode Assembly, Hardware; By Application) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global proton exchange membrane fuel cell (PEMFC) market was surpassed at USD 3.88 billion in 2022 and is expected to hit around USD 20.53 billion by 2032, growing at a CAGR of 18.13% from 2023 to 2032. The proton exchange membrane fuel cell (PEMFC) market in the United States was accounted for USD 4.8 million in 2022.

Key Pointers

• The Asia Pacific accounted for 63.87% market share in the global PEMFCs industry in 2022
• In terms of revenue, automotive accounted for the largest share of 66.11% in the market in 2022. 
• In terms of revenue, membrane electrode assembly accounted for the largest share of 59.41% in the market in 2022.
• In terms of revenue, low temperature accounted for the largest share of 56.72% in the market in 2022.

Report Scope of the Proton Exchange Membrane Fuel Cell Market

Growing concerns related to greenhouse gas emissions along with supportable government initiatives to endorse carbon-free countries will boost the demand for PEMFC market growth. Growth of commercial, medium, light, and heavy-duty automobiles with a very less harmful discharge will further foster PEMFC market demand. PEMFC proposes a high-power density and can function at low temperatures allowing it to be united in numerous applications such as transportation and stationary.

Growing demand for unconventional energy sources is one of the key factors driving the global proton-electron membrane fuel cell (PEMFC) industry. Fuel cells are one of the fastest-growing alternate backup power solutions primarily due to the utilization of hydrogen as a fuel. PEMFC is a sustainable fuel as the only by-product generated by the fuel cell is water. Governments around the world have introduced incentive schemes to promote the adoption of PEMFC. It is a sustainable alternative to conventional fuels, which makes it a viable alternative for countries looking to reduce their carbon emissions. Furthermore, rising emphasis by matured economies, such as the U.S. and Europe, to reduce emissions and inclination toward a technological shift to support cleaner technologies will boost market growth.

The funding initiatives taken by the U.S. government had driven the deployment and development of the product across North America. The strict regulations related to carbon emission including Carbon Pollution Standards introduced by the U.S. EPA will further drive the overall PEMFCs market growth.  

Growing obligation for the adoption of clean vehicle fuel so as to limit carbon emission is one of the factors accelerating the market size. Since the product is fueled with pure H2 and uses oxygen as an oxidant resulting in zero harmful chemicals emitted into the atmosphere. The European region introduced the climate and energy framework that sets numerous objectives to decrease carbon release and promotes clean energy alternatives.    

Most of the states in the U.S., including California and New York, have set mandates to limit the carbon emissions from their commercial and industrial end users. This has resulted in end users opting for clean energy technologies to comply with these mandates and limit their carbon footprint. Bloom Energy, one of the major proton exchange fuel cell vendors in the U.S., provides its bloom energy servers for power generation applications to aid commercial and industrial end users limit their carbon footprint.

According to the U.S. Department of Energy, electric vehicles (EVs) have gained popularity in the country in recent years, thereby leading to the doubling of their sales from 308,000 units in 2020 to 608,000 in 2021. Increasing demand for electric vehicles in the country is expected to fuel the demand for proton exchange membrane fuel cells in the U.S. in the coming years.

Governments across the region are anticipated to increase the expansions by offering support in numerous forms, including suitable financing programs and funding research activities. The impact of COVID-19 pandemic has affected the PEMFC market by creating disruption in the supply chain and also affected the demand and production segment.

Application Insights

Based on application, the PEMFC market has been segmented into automotive, stationary, portable, others. In terms of revenue, automotive accounted for the largest share of 66.11% in the market in 2022. The product is broadly used in automobiles, forklifts, telecommunications, backup power systems, and primary systems. High efficiency and product versatility are expected to allow the stationary segment to maintain the foremost position.

One of the key applications of proton exchange membrane fuel cells is transportation, owing to its likely impact on the environment, which is a decrease in GHGs. Hence, major automobile companies are using PEMFC due to its characteristics and high power density when compared with other kinds of fuel cells present in the market space. As the size of the fuel cell is small, hence, the proton exchange membrane fuel cells become an excellent choice across portables such as mobile phones and the transportation sector.

Portable segment finds applications in laptops, personal electronics, consumer products, and mobile phones among others. The automotive segment is expected to have significant growth during the forecast period, owing to increasing research and development activities across developed countries of Europe and growing demand for PEMFC-powered forklifts.

Increasing sales and the popularity of fuel-cell vehicles are one of major drivers aiding the growth of the automotive market segment. Also, increasing inclination towards usage of clean fuel key car manufacturers such as Nissan, Toyota, Hyundai, and others moving towards fuel cell EVs will enhance the trends of the PEMFC market in the future. Additionally, growing government policies and initiatives to control carbon emissions is anticipated to create profitable sales prospects for the industry.

In aerospace sector, PEMFC is widely used for transportation application due to its efficiency, compactness, temperature range, and lifetime. As per Honeywell Aerospace, air-cooled PEMFC is best suited for aerospace applications due to advantages such as better thermal management, lighter balance of plant, shorter stack service life, and limited integration flexibility.

This demand is projected to be generated by the successful trials conducted by automobile manufacturers such as Nissan, Honda, and Toyota on fuel cell-based cars in the market to the end users. Some of the highest-selling fuel cell vehicle models include Hyundai Nexo, Toyota Mirai, and Honda Clarity Fuel Cell.

Government authorities from various countries have implemented numerous policies to develop hydrogen-based fuel cell vehicles. The development of refueling facilities for automobiles is anticipated to boost the growth of automotive application segment.

Material Insights

Based on material, the PEMFC market has been segmented into membrane electrode assembly and hardware. In terms of revenue, membrane electrode assembly accounted for the largest share of 59.41% in the market in 2022.

Market participant across the globe have been investing subsequently in the research and development of proton exchange membrane fuel cell materials as the cost of these materials are high. The cost of materials used has decreased by more than 55% in the past 10 years. Further, the cost of materials is likely to drop in the upcoming years. This decrease in the prices of materials is estimated to boost the market over the estimated period.

Type Insights

Based on type, the PEMFC market has been segmented into high temperature and low temperature. In terms of revenue, low temperature accounted for the largest share of 56.72% in the market in 2022.

Increasing demand for energy and the high costs of grid expansion is expected to fuel market growth for low-temperature PEMFCs. Low prices of distributed energy generation as compared to the conventional power generation methods along with a rising focus on green technology owing to environmental concerns are expected to boost the demand for PEMFCs over the forecast period.

Regional Insights

The Asia Pacific accounted for 63.87% market share in the global PEMFCs industry in 2022. Favorable government regulations in developed countries and eco-friendly objectives to remove the rate of emission will boost the demand for H2 power farms during the projection period.

Countries such as India, Australia, Singapore, and Malaysia are still in the process of framing regulations to support the growth of the fuel cell market. The demand for fuel cells in India, Thailand, and Singapore is mainly derived from research institutes and government bodies testing and conducting small-scale pilot studies. These factors are projected to boost the growth of the fuel cell market in the region over the forecast period.  

The contribution of the PEMFC across the Asia Pacific is majorly owed to its extensive-ranging application in the stationary segment. Apart from the commercial sectors, automotive sector is one of the key boulevards for PEMFCs’ demand in the region. Currently, PEMFC are being acknowledged as backup power choice in various industry which has an extensive existence across the region.

PEMFC market in North America is driven by significant support from the governments of countries such as the U.S. and Canada in the form of research and development funds. These funds have led to advancements in fuel cell technologies and the development of cost-effective parts used in fuel cell systems. For instance, the U.S. the Department of Energy (DOE) provides funds for fuel cell development through programs such as the Fuel Cell Technologies Office (FCTO). Such funding initiatives by the governments of the U.S. and Canada are expected to contribute to the deployment of proton exchange membrane fuel cells in North America in the coming years.

Proton Exchange Membrane Fuel Cell Market Segmentations:

By Type 

• High Temperature
• Low Temperature

By Material 

• Membrane Electrode Assembly
• Hardware
• Others

By Application 

• Automotive
• Portable
• Stationary
• Others

By Regional 

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
• Central and South America
  • Brazil
• Middle East and Africa
  • South Africa