Versatility and increasing area of applications are the two prominent reasons for growing fuel cell technology market. Fuel cells are a type of device that help conversion of chemical energy from fuels to electric energy. They share distinct similarities with batteries. However, they are supplied with fuel sources from outside, which make them, resemble with engines. Fuel cells are available in variety of types, which are based on the components that are used. These types are also based on the type of reaction that takes place with each cell type. Versatility and growing application range help fuel cell market to excel in various regions of the world.
Market Trends Based on Segmentation
Segmentation in fuel cell technology market is very interesting. It is largely based on the types of fuel, devices and applications of fuel cells. Geographical demand scenario also influences the current market trends and forecasting reports for these devices. Proton exchange membrane (PEM), molten carbonate fuel cell (MCFC), solid oxide fuel cell (SOFC) and direct methanol fuel cell (DMFC) are the major types of fuel cells. Being versatile devices, fuel cell technologies can work with a variety of fuel types such as hydrogen, biogas, methanol, hydrocarbons and natural gas. Fuel cell technology has three basic applications, namely, transport, stationary and portable.
Fuel cells produce water as a byproduct, while working with hydrogen as a fuel source. This process causes zero emission; hence, it is one of the most beneficial conversions. The global energy market is steadily moving towards renewable and environment friendly energy sources, which is responsible for the growing popularity for fuel cell technology. Rise in the global demands for clean energy, which causes less emission make fuel cells to be ideal for numerous applications. Concentration towards early market applications is another reason, which is driving the market on global level.
Early market applications of fuel cells include specialty vehicles, major power generation tools and emergency backup power tools. For all these applications, fuel cells are cost effective, easily available and steady source of power, which has increased the demand and production in this industry. Growing commercialization and constant technological advancements in fuel cell technology make the market extremely volatile, with numerous business opportunities for new entrants as well as existing key players. According to the latest forecasting reports, the industry is set to witness great expansion and growth in the next four to five years.
The market is expected to reach at $2.5 billion by 2018. According to the global sales reports for the market, unit shipment for fuel cells is expected to increase by more than 14 folds. Being a vital source of clean energy, fuel cells market has a great future.
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