U.S. Fuel Cell Demand to Reach $1.1 Billion by 2008 Feb 24, 2004

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According to research firm The Freedonia Group, the commercial market for fuel cell products and services in the U.S. is expected to increase ten times in the next 4 years to reach U.S. $1.1 billion by 2008 and $4.6 billion by 2013. The total includes revenues associated with prototyping, test marketing activities, and actual product sales.

New markets for fuel cells are expected to develop over the next 10 years, according to the report, as new technologies and economies of scale will drive costs down to competitive levels. Efforts to reduce dependence on imported oil will also help fuel cell commercialization.

The firm also says electric power generation is emerging as the first large-scale commercial market for fuel cells. Portable electronics are expected to record the strongest advances over the next 10 years to become the second largest market for fuel cells.

Proton-exchange membrane (PEM) fuel cells, currently accounting for half of the system demand, will reportedly maintain their market position through 2008. Solid-oxide fuel cells (SOFC) will account for the second largest share of system demand in 2008. Demand for direct methanol fuel cells (DMFC) will remain below PEM and SOFC sale levels, but will grow at an above-average rate as they will be used in portable electronics and power generation applications.

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