Stationary power, not E.V., to drive market for fuel cells

Global fuel cell revenue is expected to surpass $28 billion by 2017, says a new report from Pike Research.

Contrary to popular expectations, however, it will not be the rise of fuel cell vehicles that will push this market growth but rather the increasing use of stationary fuel cells for power generation.

Though fuel cells in transportation have received the most attention from the media, the fastest growing application for fuel cells is what's known as stationary fuel cells, according to the report.

Stationary fuel cells are used to provide power, either as a main or auxiliary source, for applications such as residential power; off-grid and remote sites such as those for mobile communication base stations; and at combined heat and power plants.

In 2010, fully 50 percent of all fuel cell systems shipped were for stationary applications, the report said.

Pike found that significant volumes of portable fuel cells - such as those used in the transport sector - are yet several years away. The market should pick up as more automakers aim to launch fuel cell vehicles by 2015.

"Fuel cells are being recognized as a highly effective tool for deploying reliable, clean power for stationary, portable and transport applications," said research director Kerry-Ann Adamson.

Looking ahead, Pike Research forecasts that growth in the industry will accelerate rapidly beginning in 2012, with strong growth anticipated over the next six years.

Pike analyzes global clean technology markets and is based in Boulder, Colorado. The annual fuel cells report studies the development of the industry, looking at thirty-plus applications for the technology.