SAN FRANCISCO—Expansion in the fuel cell market is expected to kick into a higher gear over the next five years.
Worldwide fuel cell capacity is expected to reach 664.5 megawatts by 2020, branching out with a 22.6 per cent compound annual growth rate between 2014 and 2020, a new Grand View Research report says.
“The eco friendly nature of fuel cells among other advantages has resulted in governments of various countries pushing for its development and technological advancement,” the research firm said.
Along with government support that will see countries around the world begin to develop hydrogen fuel station infrastructure, the report found a favourable regulatory climate and the continued push toward renewable technology will fuel growth in the hydrogen industry.
Nonetheless, Grand View also noted the high cost of infrastructure development will hinder the shift toward hydrogen fuel cells, especially in developing countries, a factor that will significantly hamper the technology’s growth trajectory.
The report points to Fuel Cell Energy, Ballard, Clearedge and Toshiba as the dominant players in the industry, a trend the researchers expect to continue in the short term. The four leaders account for more than 70 per cent of the global market.