Stationary Fuel Cell Systems Market Report

Stationary fuel cells are already commonly used as alternatives to combustion heat engines for producing electrical power. When compared to combustion engines, stationary fuel cell systems are extremely reliable technologies that provide outstanding power quality and system efficiency. Furthermore, as compared to a combustion engine, stationary fuel cell systems do not lose any heat by using it to their benefit. Such considerations are propelling the adoption of stationary fuel cell systems. Furthermore, because stationary fuel cell systems make little noise, they are highly adaptable. These systems may be installed anywhere as they are very quiet and emit very low pollution. They also take up a very small area as compared to other energy-generating technologies. Stationary fuel cell systems can be directly connected to natural gas infrastructure, allowing them to produce power even when grid electricity is unavailable. Thus, the great flexibility, efficiency, and other environmental advantages of stationary fuel cell systems are driving market adoption.

The market was dominated by the proton exchange membrane fuel cell (PEMFC) segment. Increased R&D expenditure and widespread use of zero-emission vehicles support the segment's expansion. However, the molten carbonate fuel cell (MCFC) segment is expected to grow at the fastest pace throughout the forecast period. This is owing to the development of molten carbonate fuel cells that uses CO2 as a reactant. The rise in global warming caused by greenhouse gases, particularly CO2, has a significant impact on environmental changes. As a result, molten carbonates are used as a raw material in the production of MCFCs. Stationary fuel cell systems are an entirely novel type of technology that has reached the commercialisation phase. These are the cleanest and most efficient technologies for generating power and heat. Furthermore, stationary fuel cell systems are utilised for a variety of applications, including large-scale power production, combined heat and power (CHP), backup power services, and off-grid energy. The market for stationary fuel cell systems has expanded dramatically in recent years due to the system's excellent dependability and efficiency.

The high cost of stationary fuel cell systems, low acceptance rates as well as the lack of hydrogen infrastructure, are projected to hinder industry growth. Furthermore, rising expenditures on developing hydrogen infrastructure, along with fuel cells' high efficiency and minimal maintenance, are expected to influence the growth of the stationary fuel cell systems market in the coming years. Technical challenges such as enhancing durability, efficiency, and lifespan of fuel cells require ongoing improvement to compete with traditional energy sources. The supply chain for crucial materials like platinum and other catalysts is constrained by limited availability and high costs, affecting production and scalability. Regulatory and policy inconsistencies across regions create hurdles for market growth and investment. Integrating fuel cell systems with existing power grids is complex and costly, often requiring significant upgrades. Additionally, the economic benefits and return on investment remain uncertain, while the intermittent nature of renewable energy sources impacts the reliability of hydrogen supply.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In June 2024, Plug Power Inc. secured crucial industry certification for its one MW high-powered stationary fuel cell system. Achieving certification to the FC 1-2021 standard by the American National Standards Institute/CSA Group underscores the system’s safety, performance, and construction quality. This certification facilitates the swift adoption of Plug’s zero-emission systems across hyperscale data centers, fleet EV charging stations, and microgrids. CEO Andy Marsh highlighted this as a significant milestone, reinforcing Plug's commitment to advancing green hydrogen and supporting global decarbonization efforts.

Furthermore, the Ballard Power units stated in May 2023 that it has received an order for 3.6 megawatts (MW) of fuel cell units from a European supplier of renewable energy solutions for critical stationary power applications. Ballard anticipates shipping 36 x 100 kW units between 2023 and 2024. Moreover, a new high-power stationary fuel cell system was unveiled by Plug Power in May 2023 for charging commercial EV fleets. Plug's regular 18,000-gallon liquid hydrogen tank, paired with its new megawatt-scale PEM fuel cell technology, can supply more than 60 megawatt hours (MWh) of electricity, enough to charge over 600 electric vehicles.

Asia Pacific held the largest market share as stationary fuel cell systems market has enormous potential, owing to increased concern among governments in emerging economies such as India, China, and South Korea about meeting zero-carbon emission targets. The rise in the automotive industry and expansion in the power and electronics industries in China and India are gaining traction for fuel cells, which is expected to drive market growth over the forecast period. Stationary fuel cell systems are also popular in North America and Europe. North American market growth may be attributed to the adoption of severe government laws aimed at reducing carbon emissions and a shift towards green energy.