PEM Fuel Cell Market

PEM Fuel Cell Market Size

The PEM fuel cell market size was valued at USD 4.6 billion in 2025. The market is expected to grow from USD 5 billion in 2026 to USD 10.4 Billion by 2035, at a CAGR of 8.4%, according to Global Market Insights, Inc.

• Extensive applicability of reliable & low emission devices coupled with growing demand for renewable energy adoption in power grids will drive the business outlook. For instance, the European Union has outlined a goal to deploy 40 GW of electrolysis capacity by 2030, with the objective of generating 10 million tons of renewable hydrogen annually.
  
• Key factors including quick response times and rapid start-up, allow for efficient and quick power delivery which will complement PEM fuel cell market growth. Growing investments for the development of fuel cell infrastructure will further drive the business scenario. For instance, in January 2023, Ballard Power Systems entered into an agreement with Adani Enterprises Limited to develop a hydrogen-powered mining truck equipped with Ballard’s 120 kW PEM fuel cell technology.
  
• Enhancements in membrane materials, catalysts, and stack designs will increase their lifespan, thereby reducing the maintenance costs coupled with growing deployment of fuel cells for stationary applications is set to stimulate the industry dynamics. For example, in January 2023, Ballard Power Systems secured an order from CrossWind to supply a PEM fuel cell system for a 1 MW stationary offshore wind project in the Netherlands.
  
• Established codes and standards for hydrogen use driven by its adoption in aerospace and other industries along with ongoing commercialization of hydrogen and PEM systems, are supporting market growth. The HFTO-funded SBIR program (2021) backs R&D on fuel cells and hydrogen technologies, focusing on MEAs and gas diffusion layers for heavy-duty PEM fuel cells to improve durability and efficiency.
  

PEM Fuel Cell Market Trends

• Favorable government regulations, codes, and standards for safety operations and adoption across various applications coupled with technological advancements will drive the market growth. In May 2023, TECO 2030 began developing a gigafactory in Norway dedicated to producing hydrogen PEM fuel cell stacks and modules. The facility is set to scale its output gradually, aiming to expand production capacity from around 120 MW in 2024 to approximately 1.6 GW by 2030.
  
• Rising requirement to reduce carbon emissions in various sectors coupled with increasing demand for clean energy solutions will contribute to PEM fuel cell market growth. For example, in February 2024, Plug Power partnered with Uline to deploy on-site hydrogen infrastructure and fuel cell solutions at Uline’s Kenosha, Wisconsin campus. The collaboration includes installing an 18,000-gallon hydrogen storage tank, 17 hydrogen dispensers, and 250 fuel cell powered forklifts operating on hydrogen produced through Plug Power’s integrated system.
  
• Ongoing development of new innovative products by major industry players including Blue World Technologies and Doosan Fuel Cell among others will complement the business growth. For example, the fuel cell developer Blue World Technologies launched the Cell Pack Stationary PEM fuel cell system, which operates as a methanol-based fuel cell power generator.
  
• Inorganic growth strategies adopted by the prominent market leaders comprising of AVL and Nedstack among others is set to augment the market landscape. For instance, in August 2022, Nedstack and AVL established an Industrialization Support Partnership to accelerate the commercialization of Nedstack’s third-generation stack platform. Under the agreement, AVL provides co-development, sampling, and verification services to improve the platform’s power output and durability for challenging stationary and maritime applications.
  

PEM Fuel Cell Market Analysis

• Based on application, the market is segmented into stationary, portable and transport. The stationary segment is set to reach more than USD 1.4 billion by 2035, owing to low emissions, high efficiency, and quick start-up along with ramp-up characteristics.
  
• This versatility enables PEM fuel cells to be deployed across diverse settings, including remote locations with limited grid access, industrial sites, and commercial buildings, thereby driving market growth. Leading companies are investing in the development of advanced, environmentally friendly solutions, further creating market opportunities. For example, in October 2023, Horizon Fuel Cell Group delivered a 2 MW PEM fuel cell CHP system and announced plans to deploy zero-emission stationary power plants with capacities of up to 100 MW.
  
• The portable segment contributed to 0.9% of the market share in 2025 on account of growing demand for sustainable and clean energy sources fuels their adoption of portable electronic devices including laptops, smartphones, medical devices and drones. Technological advancements have enhanced efficiency, durability, and stability, increasing their appeal for portable applications. For example, in June 2022, ZBT GmbH demonstrated a PEMFC hybrid system for portable use, incorporating 3D-printed components as part of their research.
  
• Transport PEM fuel cell market size will cross USD 8 billion by 2035 and is anticipated to grow significantly over coming years. Government initiatives including research funding, tax incentives, and subsidies, will further encourage industry growth and investment in PEMFC technology. Furthermore, rising demand for fuel cell electric vehicles as alternatives to conventional vehicles, combined with the introduction of technologically advanced products, is expected to drive adoption. For example, in April 2022, Doosan Fuel Cell Co., Ltd., in collaboration with Ballard Power Systems and HyAxiom, announced the launch of PEM fuel cells for mobility applications in South Korea.
  

• The U.S. PEM fuel cell market accounted to USD 1 billion in 2025. North America accounted for 22.7% market share in 2025. Government agencies and private institutions, including the DOE, Credit Suisse, New Enterprise Associates, and DAG Ventures, are providing funding to support the industry in meeting its emission reduction targets.
  
• The region is witnessing substantial growth, propelled by supportive regulations and policies. For instance, in September 2022, the U.S. Department of Energy (DOE) partnered with industrial stakeholders, universities, and national laboratories to tackle technical challenges in fuel cell development, emphasizing durability and establishing ambitious targets for system lifetime.
  
• Europe PEM fuel cell market will grow at a CAGR of more than 7.5% by 2035. The growth of sustainable transportation systems and initiatives to reduce reliance on fossil fuels are driving market expansion. Additionally, governments worldwide are offering support and financial incentives to encourage fuel cell adoption.
  
• Leading companies are collaborating to advance the design and development of PEM systems, resulting in more efficient and cost-competitive products across the region. In line with the EU’s CO₂ emission reduction targets for trucks in 2025 and 2030, Bosch projects that 20% of global electric vehicles will be powered by fuel cells by 2030.
  
• The initiatives encompass R&D grants, tax incentives, subsidies, and directives for fuel cell installations, providing support to manufacturers and encouraging investment in the commercialization of fuel cell technologies. For example, in July 2022, the UK government launched a national clean-hydrogen subsidy scheme, utilizing a Contracts for Difference (CfD) model to fund green and blue hydrogen projects while aiming to expand hydrogen production capacity by 2030.
  
• Asia Pacific PEM fuel cell market will grow at a CAGR of 9.5% by 2035, owing to significant backing of hydrogen potential in the economies including Australia, South Korea and Japan. Ongoing exploration of hydrogen as an energy transition fuel will complement the business growth.
  
• In Australia, the Clean Energy Finance Corporation launched the Advancing Hydrogen Fund, valued at approximately USD 300 million, to support the commercial and technical development of hydrogen in the country. Additionally, the Australian Renewable Energy Agency (ARENA) contributed USD 1.28 million toward the establishment of the Australian Hydrogen Centre.
  
• Middle East & Africa PEM fuel cell market will witness gradual adoption primarily driven by government initiatives to diversify the energy sources and reduce reliance on fossil fuels. Economies including the Saudi Arabia and UAE are investing in hydrogen infrastructure, green energy projects, and pilot fuel cell applications in mobility and stationary power to support decarbonization goals.
  
• Industrial sectors, including oil & gas and large-scale utilities, are exploring PEM fuel cells for backup power and hybrid energy solutions. The product adoption is still at an early stage in comparison to Europe and North America regions, however, increasing policy support, investment in research, and regional energy diversification strategies are expected to drive steady growth in the coming years.
  
• In Latin America, PEM fuel cell adoption is gradually increasing and will grow over 7% CAGR by 2035, fueled by renewable energy expansion and the region’s abundant solar and wind resources, which provide an opportunity for green hydrogen production. Countries including Brazil, Chile, and Argentina are piloting PEM fuel cell applications in transport, industrial backup power, and remote electrification projects.
  
• Government incentives, coupled with growing interest from private players in sustainable mobility and off-grid solutions, are fostering market growth. Despite infrastructure and cost challenges, strategic collaborations, investments in hydrogen production, and rising demand for low-emission technologies are positioning the region for accelerated PEM fuel cell adoption in the near future.
  

PEM Fuel Cell Market Share

• The top five manufacturers operating in the PEM fuel cell industry comprise of Ballard Power Systems, Plug Power, Toyota Power Corporation, Doosan Fuel Cell, and PowerCell Sweden AB. The market exhibits moderate concentration, with top players collectively holding roughly 45% of the global market. Further, increasing focus on strategic partnerships and alliances will support the companies gain a competitive edge over the others.
  
• Moreover, geographic expansion across major regions comprising of Europe, North America, and Asia Pacific will exhibit distinct clusters of PEM FC development, driven by government incentives, regional hydrogen strategies, and renewable energy integration.
  
• Emerging players and start-ups are targeting niche applications including the UAVs, portable power, and off-grid stationary systems, creating opportunities for differentiation and new revenue streams. Overall, the industry is anticipated to remain dynamic, with innovation, partnerships, and policy support shaping up long term competitive advantage.
  
• The industry has attracted significant funding from both private and public investment firms, supporting innovation and research & development over the years. Key investors in the fuel cell market include Credit Suisse, Emerald Technology, New Enterprise Associates, GSV Capital, Rolls-Royce, and DAG Ventures. Some industry players are fully integrated across the value chain, participating in the manufacturing, installation, and operation of fuel cell power plants.
  
• Cummins is a global leader in the design, manufacture, and distribution of engines, power generation systems, and related technologies, operating in more than 190 countries and territories with over 600 facilities, including plants, research centers, and distribution hubs. In the most recent 12?month period ending in September 2025, the company reported revenues of approximately USD 33.6 billion. In addition, in 2022 Cummins began production of its new hydrogen PEM fuel cell systems at its facility in Herten, Germany, marking a key step in expanding its clean energy offerings
  

PEM Fuel Cell Market Companies

Eminent players operating in the PEM fuel cell industry are:

• Air Liquide Energies
• Advent Technologies
• Ballard Power Systems
• Cummins
• Doosan Fuel Cell
• ElringKlinger AG
• Horizontal Educational
• H2B2 Electrolysis Technologies
• Hyundai Motor Company
• Intelligent Energy
• Nuvera Fuel Cells
• Nedstack Fuel Cell Technology
• Plug Power
• Panasonic Corporation
• PowerCell Sweden AB
• Proton Motor Power Systems
• Robert Bosch
• SFC Energy
• TW Horizon Fuel Cell Technologies
• Toyota Motor Corporation
  
• Nuvera Fuel Cells is a prominent manufacturer of heavy-duty, zero-emission fuel cell engines and power systems, focusing on the development of clean, safe, and efficient solutions for industrial vehicles and various transportation sectors. Recently, the company secured USD 14 million in investment tax credits from the U.S. Internal Revenue Service under the 48C program, which offers up to 30% investment tax credits for qualifying clean energy manufacturing projects.
  
• Robert Bosch is a German multinational engineering and technology company operating across four major business segments: Mobility, Consumer Goods, Industrial Technology, and Energy & Building Technology. The company reported sales exceeding USD 98 billion in 2024. It has further begun developing PEM-based electrolysis prototypes, aiming to deliver 1.25 MW units for pilot projects, and remains on schedule to begin large-scale production in 2025.
  
• Ballard Power Systems is a Canadian clean-energy company and a leading developer of PEM fuel cell products, primarily focused on heavy-duty mobility, stationary power, and emerging applications. The company designs, manufactures, and sells fuel cell engines and related systems for buses, trucks, rail, marine, and backup power markets globally. The company recorded USD 32.5 Million in Q3 2025, driven by strong deliveries in bus and rail applications.
  
• Doosan Fuel Cell is a South Korean fuel cell technology company and a subsidiary of the Doosan Group, focusing on the design, development, manufacturing, and deployment of advanced fuel cell power systems. The company has expanded its technology portfolio through various new manufacturing initiatives and partnerships. The company reported revenue of USD 360 million by 2025. It further engages in strategic collaborations to support next-generation distributed power solutions, including hydrogen integration with gas engines and other hybrid systems, positioning it to capture growth across the broader clean energy and hydrogen sectors.
  

PEM Fuel Cell Industry News

• In October 2025, Hyundai Motor Company began constructing a large-scale hydrogen fuel cell manufacturing facility in Ulsan, South Korea, backed by an investment of USD 0.63 billion. Scheduled to commence operations in 2027, the plant will produce up to 30,000 fuel cell units per year and will also include PEM electrolyzer production. The development strengthens Hyundai’s long-term ambition to lead the global hydrogen value chain, spanning production, infrastructure, and mobility applications.
  
• In November 2025, fuel cell electric buses continued to gain momentum, especially across Europe. During the first half of 2025, 279 hydrogen buses were registered—representing an approximate 426% surge compared to the same period in 2024. This sharp uptick underscores the accelerating adoption of PEM fuel cell technology in public transportation and broader sustainable mobility initiatives.
  
• In January 2024, Nedstack Fuel Cell Technology BV entered a partnership with Groeneveldt to deliver portable fuel cell systems to power the workboat for Overijssel Province. The MPU 20-400C PEM fuel cell system will be used to recharge battery when shore power is not available and can be detached to use across the other mobile applications. Moreover, it can operate as a standalone unit for autonomous hydrogen microgrids. Thereafter, the company will be contributing towards environmentally friendly energy efficient solutions across marine industry.
  
• In May 2023, Nedstack Fuel Cell Technology BV entered into a partnership with RWTH Aachen University’s Chair of Production Engineering of E-Mobility Components and AE Driven Solutions GmbH for industrialization of PEM fuel cell technology in Europe. The partnership also aims to contribute to the EU’s target of net-zero emission by 2050. The participants will influence the development of advanced PEM fuel cells and serve the Europe’s hydrogen economy. The collaboration will enable the organizations to build strong position across the region and in the fuel cell industry.
  

The PEM fuel cell market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘MW & USD Million’ from 2023 to 2035 for the following segments:

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Market, By Application

• Stationary
• Portable
• Transport

The above information has been provided for the following regions and countries:

• North America
  • U.S
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Austria
• Asia Pacific
  • Japan
  • South Korea
  • China
  • India
  • Philippines
  • Vietnam
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
• Latin America
  • Brazil
  • Peru
  • Mexico