Global Phosphoric Fuel Cell Market Size (2024-2030)

The Global phosphoric fuel cell market was valued at USD 1.89 Billion and is projected to reach a market size of USD 6.66 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 19.72%.

Market Overview:

The phosphoric fuel cell comprises an anode and one cathode that is made up of finely dispersed platinum catalyst on carbon and a silicon carbide structure and holds the phosphoric acid electrolyte. They are one of the commercially available batteries. They are excellent and resistant to poisoning by carbon monoxide but have lower efficacy than any other fuel cell producing electricity. Most of these batteries provide power ranging from 50KW to 200KW. They have a power generation efficiency of almost 40%, and their operating temperature is between 150 to 300 degrees Celsius. They are a poor ion conductor, especially at low temperatures. The rapidly increasing need for electricity across the globe is the primary driving factor for the phosphoric fuel cell market. Governments and official authorities of several countries are entering into new ventures to adopt this modern power generation infrastructure. It is one of the most mature cell types to have such wide-scale commercial applications across industries. They are majorly used in stationary power generators with a power range of 100 kWh to 400kWh. Phosphoric acid is a chemically stable and easy-to-handle acid and is an important component of the power source in appliances.

COVID-19 Impact on the Phosphoric Fuel Cell Market:

The COVID-19 outbreak has severely affected economies and industries in various countries due to lockdowns and business shutdowns including the global phosphoric fuel cell industry, due to disruptions in the demand-supply chain and reduced demand and cash flow among people, regional players, and traders. The global lockdown and strict restrictions imposed by governments caused a long halt in the production and manufacturing operations of several companies. This affected the major key players' sales and revenue charts. To maintain social distancing norms imposed by governments, various companies have minimized the operating workforce that affected their production and supply chain. However, several government initiatives and strategies align with the phosphoric fuel cell industry’s motives and have issued proposals to take advantage of the reduced carbon emission footprint levels brought about by the slowdown of the manufacturing and transportation industries, driving demand for clean fuel alternatives. This has improved the outlook of the phosphoric fuel cell market during the COVID-19 outbreak.

Market Drivers:

The increasing concern to maintain energy security is propelling the market size of phosphoric fuel cells:

The increasing occurrence of unexpected natural calamities and the energy issues arising from these disasters is set to drive the market need for the phosphoric fuel cell market globally. The devices are installed majorly for stationery purposes owing to the easy handling process of poisonous gases such as carbon monoxide and carbon dioxide, augmenting the market growth.

The growing deployment of combined heat and power systems is fostering the market growth for phosphoric fuel cells:

Phosphoric Fuel Cell devices are extensively installed and used in various commercial and official establishments such as hospitals, buildings, hotels, and electric utilities to deliver solutions. The devices offer both large and small-scale combined heat and power capacities to provide uninterrupted power and energy requirements.

The surging investments in the R&D Defense projects are intensifying the competition in the phosphoric fuel cell market:

The rising investments in the R&D Defense projects and strong government support to implement them are creating large-scale growth opportunities in the market. Besides the government, major players across the globe are also focussing on advanced technologies to expand their portfolio augmenting the global market size.

Market Restraints:

The high initial installation cost is hampering the growth rate of the market for phosphoric fuel cells:

Global Phosphoric acid fuel cell producers are emphasizing more on creating batteries with higher energy efficiency and longer battery life. But the high initial cost of device installation is restraining the growth of the market. Therefore, to produce environmentally sustainable and secure electricity, technological advancements are being made to minimize the cost of producing phosphoric fuel cells.

PHOSPHORIC FUEL CELL MARKET REPORT COVERAGE:

This research report on the Phosphoric Fuel Cell Market has been segmented and sub-segmented based on the Application, Region, and Companies.

Phosphoric Fuel Cell Market – Application.

• Vehicles

• Cogeneration

• Others

Based on application, the Phosphoric Fuel Cell Market has been segmented into 3 segments – Vehicles, Cogeneration, and Others.

Owing to its great thermal and electrical efficiency, cogeneration, also known as combined heat and power (CHP), is the most common installation location for PAFC systems. During the forecasted period, the cogeneration sector is anticipated to lead the global phosphoric fuel cell market in terms of both size and volume. The implementation of Combined Heat and Power systems is aided by beneficial government initiatives that certain regional governments have put in place. To install micro-CHP or m-CHP units, Japan has created Ene-Farm systems. By 2030, the government aspires to have a self-sustaining market for the technology and has distributed around 5.3 million of these systems.

The vehicle segment is also projected to witness considerable growth over the forecasted years, 2023-2030. The applications for the technology involve large-scale stationery and Uninterrupted Power Supply for large vehicles.

Phosphoric Fuel Cell Market – Region.

• North America

• Europe

• South America

• Asia-Pacific

• Middle-East and Africa

Based on region, the Phosphoric Fuel Cell Market has been segmented into 5 major regions – North America, Europe, South America, Asia-Pacific, Middle-East, and Africa.   

Japan is anticipated to have a majority of the market share for global phosphoric fuel cells and witness rapid growth due to supportive government strategies and policies and ambitious long-term goals. Also, the presence of major manufacturers and rising investments from a number of channels are likely to further boost the phosphoric fuel cell market. Furthermore, a massive amount of growth is predicted in South Korea as a result of the national administration's use of modern technology. They are putting a lot of money into building and improving hydrogen infrastructure to accommodate the growing use of this technology.

In Europe, countries are continuously investing large amounts of money in the research and development of these projects. They are continually working towards achieving the targets set by the European Commission for the adoption of sustainable energy sources in the future. This would further augment the demand for phosphoric fuel cell systems.

North America would witness remarkable growth during the forecasted years supported by the implementation of strict norms and regulations by the governments to manage the emissions of greenhouse gases.

Phosphoric Fuel Cell Market – Companies.

1. Fuji Electric Co., LTD.

2. Doosan Fuel Cell America, Inc.

3. Ingsman Energy and Fuel Cell Research Organization (IEFR)

4. Defense Research and Development Organisation (DRDO)

The global phosphoric fuel cell market is highly fragmented, with a high level of competition. The key players are working on new product launches and other initiatives to provide better equipment to their customers and expand their company portfolio globally. These leaders are enlarging their client base in a variety of ways, and many organizations are building strategic and creative partnerships with other start-up businesses in order to raise global phosphoric fuel cell market share and profitability.

Recent Key Industry Developments:

• In February 2020, the Defense Research and Development Organization (DRDO), India collaborated with Larsen & Toubro to showcase the effectivity of its Air Independent Propulsion (AIP) to the Indian Navy.

• In August 2019, Hanwa Energy, Korea East-West Power, and Doosan together formed a joint venture firm, Daesan Green Energy. The Seosan Hanwa site of the power plant will install 440kWh worth of phosphoric fuel cells.

• In August 2019, D2Service, research, and development initiative was launched by the German Aerospace Center (DLR) in collaboration with 6 other parties working in 5 other countries. It aims to simplify the installation and maintenance of fuel cell-powered CHP systems.

• In July 2019, 2G Energy, a Germany-based leader in CHP systems, collaborated with Siemens at its project site in Dubai to provide decentralized energy.