Phosphoric Acid Fuel Cell Market Size, Share & Trends Analysis Report By Application (Vehicles, Cogeneration, Others), By Region (North America, Europe, Asia Pacific, Middle East & Africa), And Segment Forecasts, 2024 - 2030

Phosphoric Acid Fuel Cell Market Trends

The global phosphoric acid fuel cell market size was estimated at USD 475.25 million in 2023 and projected to expand at a CAGR of 20.9% from 2024 to 2030. The market is primarily driven by the growing concern of global carbon emissions and the need to transition to cleaner energy sources. Governments worldwide are implementing policies to reduce carbon footprints, which is stimulating the demand for phosphoric acid fuel cells (PAFCs). These fuel cells are particularly well-suited for stationary applications, such as combined heat and power systems, due to their ability to tolerate high levels of carbon monoxide and carbon dioxide, making them versatile for various fuel types.

The increasing deployment of combined heat and power systems is expected to boost the market outlook. The market is also influenced by the need to maintain energy security, especially in the wake of natural disasters, which highlights the importance of reliable and efficient power generation technologies like PAFCs. Furthermore, the technological advancements in PAFCs, including improved stability, performance, and cost-effectiveness, have made them a viable option for early stationary applications, contributing to their growing adoption.

Drivers, Opportunities & Restraints

The PAFC market is experiencing robust growth driven by the increasing global demand for clean and reliable energy sources. Factors such as the need to reduce carbon emissions, the rise of combined heat and power systems, and technological advancements are expected to drive the PAFC market.

The phosphoric acid fuel cell market is restrained by its high capital costs, which make it economically unattractive, especially with the use of platinum catalysts. Additionally, PAFCs are less efficient when producing electricity on their own compared to when used with fossil fuels, which hampers their expansion trajectory.

The phosphoric acid fuel cell market presents several opportunities for growth. The increasing adoption of combined heat and power systems, the need for the growing demand for clean energy sources in stationary applications are expected to drive the PAFC market.

Application Insights

Based on application, cogeneration held the largest revenue share of 63.5% in 2023. Phosphoric acid fuel cells (PAFCs) are widely used in cogeneration or combined heat and power (CHP) applications due to their high thermal and electrical efficiency. The cogeneration segment is expected to lead the global PAFC market in terms of both size and volume, driven by government initiatives supporting the deployment of CHP systems.

The phosphoric acid fuel cell market is seeing strong demand for vehicle applications. PAFCs are well-suited for transportation due to their ability to tolerate high levels of carbon monoxide and carbon dioxide, making them versatile for various fuel types.

Regional Insights

The North America phosphoric acid fuel cell market accounted for 30.0% which is driven by the growing demand for clean and reliable energy sources, as well as the increasing adoption of combined heat and power (CHP) systems. Government initiatives supporting the deployment of CHP technologies are further boosting the PAFC market in the region.

U.S. Phosphoric Acid Fuel Cell Market Trends

The PAFC market in the U.S. accounted for a significant share in the region, driven by the government initiatives supporting the deployment of combined heat and power (CHP) systems, and technological advancements in PAFCs, which improved their stability, performance, and cost-effectiveness.

Europe Phosphoric Acid Fuel Cell Market Trends

The phosphoric acid fuel cell market in Europe is expected to witness significant growth, driven by the region's focus on reducing carbon emissions and promoting the adoption of clean energy technologies. Government initiatives supporting the deployment of combined heat and power (CHP) systems, as well as the growing demand for reliable backup power, are key factors driving the PAFC market in Europe.

Phosphoric acid fuel cells market in Germany are characterized by their improved stability, performance, and cost-effectiveness, making them well-suited for early stationary applications. PAFCs in Germany operate at a temperature range of 150-210°C and use liquid phosphoric acid as the electrolyte, allowing them to tolerate high levels of carbon monoxide and carbon dioxide.

UK phosphoric acid fuel cell market is driven by government initiatives supporting the deployment of combined heat and power (CHP) systems and the growing demand for backup power. Phosphoric acid fuel cells (PAFCs) developed in the UK are characterized by their improved stability, performance, and cost-effectiveness, making them well-suited for early stationary applications.

Asia Pacific Phosphoric Acid Fuel Cell Market Trends

Asia Pacific dominated the global phosphoric acid fuel cell market and accounted for the largest revenue share of 42.2% in 2023. The Asia-Pacific region is a key market for phosphoric acid fuel cells (PAFCs), driven by factors such as the growing energy demand, government initiatives supporting clean energy, and the increasing adoption of combined heat and power (CHP) systems. Japan, South Korea, and China are expected to be major contributors to the PAFC market. For instance, Japan is a leader in PAFC deployment, with the government's Ene-Farm program aiming to install around 5.3 million micro-CHP units by 2030.

China's phosphoric acid fuel cell market is expected to be a key driver of growth in the Asia-Pacific region. Factors such as government support for clean energy initiatives, the presence of major PAFC manufacturers, and increasing investment in hydrogen infrastructure are fueling the rapid expansion of the PAFC market in China.

Japan Phosphoric Acid Fuel Cell Market Trends

The Ene-Farm program has been a key driver of PAFC adoption in Japan, as it supports the deployment of micro-CHP systems that utilize the high thermal and electrical efficiency of these fuel cells. The expelled water from PAFCs can be converted to steam for air and water heating, potentially allowing efficiency increases of up to 70%.

Central & South America Phosphoric Acid Fuel Cell Market Trends

In countries like Brazil, the growing demand for reliable and clean energy sources, particularly in remote or off-grid areas, is creating opportunities for PAFC applications. PAFCs are well-suited for these decentralized power generation needs due to their ability to tolerate high levels of carbon monoxide and carbon dioxide, allowing them to operate on a variety of fuel sources.

Middle East & Africa Phosphoric Acid Fuel Cell Market Trends

The phosphoric acid fuel cell market in the Middle East and Africa is expected to experience significant growth in the coming years. Countries such as Saudi Arabia, Kuwait, Bahrain, and Qatar have made substantial investments in the PAFC market for infrastructure development.

Key Phosphoric Acid Fuel Cell Company Insights

The Phosphoric Acid Fuel Cell Market is a highly competitive industry with several key players operating globally.

Recent Developments

• In May 2024, Doosan Corporation announced initiation of mass production for phosphoric acid fuel cell (PAFC) which is expected to increase power generation efficiency by 25% to electricity production costs.

• In May 2024, Bobcat announced the installation of 14 PureCell M400 PAFC Stationary Fuel Cells from HyAxiom at two of its manufacturing facilities located in North Dakota, U.S.

Phosphoric Acid Fuel Cell Market Report Scope

Global Phosphoric Acid Fuel Cell Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented phosphoric acid fuel cell market report based on application and region:

• Application Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)

  • Vehicles

  • Cogeneration

  • Others

• Regional Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Italy

    • Spain

    • France

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • UAE