Alkaline fuel cells market is anticipated to grow at a considerable CAGR of 4.7% during the forecast period (2023-2030). Fuel cells are devices that convert chemical energy derived from fuels to electrical energy. The chemical reaction involves utilizing oxygen or any other oxidizing agent for continuous redox reactions. Alkaline fuel cell (AFC) employs an alkaline media as an electrolyte. AFC are also known as Bacon fuel cells, these are one of the most developed and cheaply available fuel cell technologies. Increasing demand for unconventional sources of energy is one of the key factors driving the growth. Market players across the globe are anticipated to supplement the developments by offering support in different forms including mergers & acquisitions, funding R&D activities, and funding suitable financing programs. For instance, in January 2021, Ricardo plc and AFC Energy plc collaborated for manufacturing alkaline fuel cell product and service offerings, with an initial focus on marine, rail and stationary power generation. The collaboration will develop products and services that will directly support global efforts to decarbonize transport, energy, and nationally critical infrastructure.

Moreover, the alkaline fuel cells market is restrained by the advancements in the polymer electrolyte membrane (PEM) fuel cells owing to their ability to generate lower power densities. The alkaline fuel cell electrodes are poisoned by carbon dioxide which impacts the cell’s operation. This necessitates the decontamination of oxygen and hydrogen utilized in the cell, hence, making it cost-intensive.

Segmental Outlook 

The global alkaline fuel cells market is segmented on the basis of electrolyte and end-user. Based on the electrolyte, the market is bifurcated into immobilized or static and flowing. Based on the end-user, the market is sub-segmented into spacecrafts and space shuttles, defense and military, communication towers, automotive, and others including various industrial and residential applications. Among the electrolyte, immobilized or static sub-segment is anticipated to hold a considerable share of the market owing to several factors including high efficiency, flexibility to use different fuels, and utilization of direct current.

Automotive Sub-Segment is Anticipated to Hold a Considerable Share of the Global Alkaline Fuel Cells Market

Among the end-user, the automotive sub-segment is expected to hold a considerable share of the market and is further anticipated to grow at a considerable CAGR over the forecast period. The segmental growth is majorly attributed to the rising demand for static alkaline fuel cells in construction automotive vehicles such as fuel cell powered forklifts, and others. Owing to the rising demand, key market players are focusing on developing and introducing fuel cell specifically for automotive segment in order to cater to the rising demand. For instance, in December 2019, UK-based AFC Energy launched its H-Power electric vehicle (EV) charger based on alkaline hydrogen fuel cell technology. The self-contained charging system overcomes issues associated with poor grid coverage to provide rapid electric vehicle (EV) charging anywhere it is needed.

Regional Outlook

The global alkaline fuel cells market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, North America to hold a significant share of the global alkaline fuel cells market. The market share is primarily attributed to the existing supportive legislation in the region. These legislations aim to reduce carbon emissions.

Global Alkaline Fuel Cells Market Growth, by Region 2023-2030

The Asia-Pacific Region is Expected to Grow at a Significant CAGR in the Global Alkaline Fuel Cells Market

Among all regions, the Asia-Pacific region is expected to grow at a prominent CAGR over the forecast period, globally. The primary factor supporting the regional growth includes the rise in introduction of various strategies and policies which encourages the use of alkaline fuel cell systems for several applications. Alkaline fuel cell systems are majorly used in country including China, India, Japan, and South Korea for automotive and transportation applications. Japan is the major market in the region that deals in fuel cells followed by South Korea. Owing to the large demand for combined heat and power systems in Japan, the market for fuel cells is slated to register a robust growth rate.

Market Players Outlook

The major companies serving the alkaline fuel cells market include FuelCell Energy, Inc., Toshiba Corp., Bloom Energy, AFC Energy PLC, Ballard Power Systems Inc., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in January 2023, Alkaline Fuell Cell Power Corp. launched a powerful fuel cell system named Jupiter 1.0 for homes and small buildings. The launch has been conducted through its subsidiary Fuel Cell Power NV (FCP NV). The fuel cell is a prototype of its micro-combined heat and power (CHP) fuel cell. 

The Report Covers

• Market value data analysis of 2022 and forecast to 2030.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global alkaline fuel cells market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.