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Clean-energy technology fuel cells are commercially mature in several niches and work technically in almost every application. Full industrialization is moving in different directions, growing quickly in stationary power, especially for data centers, but shrinking sharply in cars and light commercial vehicles. Most of the remaining problems are about cost, durability and hydrogen supply rather than whether the basic science works.
In terms of types, the established ones are proton exchange membrane (PEMFC), solid oxide (SOFC), phosphoric acid (PAFC), molten carbonate (MCFC), alkaline (AFC) and direct methanol (DMFC). Meanwhile, doped polymer (HT-PEM) and anion-exchange membrane (AEMFC) are in early commercialization and still at R&D.
PEMFC, which has a perfluorinated polymer membrane electrolyte and 60 to 90 C operating temperature, is the most widely produced. It is used in cars, buses, trucks, forklifts and backup power. SOFC is ceramic-based and can function safely and effectively at 600 to 1,000 C, matching the requirements in on-site power, data centers and combined heat and power applications.
PAFC uses liquid electrolyte and has a 150 to 200 C range. While considered mature, it remains a niche, with deployment in commercial and utility power in South Korea. MCFC, with a molten carbonate salt electrolyte and 650 C temperature rating, is another specialized type, finding application in utility-scale and industrial power.
AFC, with a potassium hydroxide solution as electrolyte, dates back to use in the Apollo and Shuttle missions. It remains the option in space, submarine and specialty fields. DMFC based on a polymer membrane electrolyte is confined to portable and military power applications.
PEM technology leads transport because it starts quickly and packs a lot of power into a small space, while SOFC is gaining in stationary power because it reaches about 60 percent electrical efficiency and can run on natural gas, biogas or hydrogen.
Growing applications
Data centers and on-site power make up the strongest market, as grid connection delays have made on-site SOFCs attractive. In the material handling segment, fuel cell forklifts in large warehouses are one of the few uses, while fuel cells are used as backup power for telecom sites and critical facilities. In residential applications, there is Japan's ENE-FARM program that has installed hundreds of thousands of combined heat and power units in homes.
Automakers, meanwhile, sold fewer than 13,000 fuel cell vehicles worldwide in 2024, compared with about 17 million battery and plug-in vehicles. Global sales fell another 27 percent year on year in the first half of 2025. GM stopped next-generation passenger fuel cell development in October 2025, while Toyota, Hyundai, Honda and BMW are still committed. However, full 2025 figures showed a rebound. According to SNE Research, sales of fuel cell electric vehicles (FCEVs) rose 24.4 percent last year to 16,011 units worldwide, thanks to Hyundai's new Nexo and a year-end rush in China.
In trucks and buses, China remains the global leader, and Hyundai delivered trucks to Europe, including Switzerland, Germany, France, the Netherlands and Austria, according to IDTechEx. Elsewhere, Stellantis ended its hydrogen van program in July 2025, citing scarce refueling stations, high capital needs and weak incentives, while startups Nikola, Hyzon and Quantron went bankrupt, and several large truck companies scaled back their programs.
Key players
The stationary power market, specifically for SOFC, PAFC and MCFC, is led by Bloom Energy, Doosan Fuel Cell, FuelCell Energy, Ceres Power, Mitsubishi Heavy Industries, Kyocera, Aisin, Panasonic, Toshiba, Fuji Electric, SOLIDpower and Elcogen.
In PEM for mobility and industry, there are Ballard Power Systems, Toyota, Hyundai carrying the HTWO brand, Plug Power, Cummins (Accelera), PowerCell, cellcentric, Symbio, Bosch, ElringKlinger, SinoHytec, Refire, SHPT (SAIC), FTXT (Great Wall), Weichai-Ballard and SinoSynergy.
The portable and backup power segment has SFC Energy, Intelligent Energy, Nedstack, Horizon and Altergy.
Market outlook
In the near term, growth is likely to center on stationary power, driven by data centers, backup power and industrial combined heat and power where SOFCs and existing gas networks give a practical route.
In mobility, forklifts are likely to stay strong, while trucks, buses, ships and trains are a longer-term bet that depends on cheap low-carbon hydrogen and fueling networks. Passenger cars look like a small niche outside Japan, Korea and parts of China.
A look at China’s FC industry
In recent years, vehicles have been the main driver of R&D among Chinese fuel cell manufacturers. This is expected to continue for several more years, and it calls for fuel cells with high power, high efficiency and long service life. According to Professor Ouyang Minggao of Tsinghua University in Hydrogen Fuel Cell Vehicle Technology Roadmap and Progress in China published by Journal of Automotive Safety and Energy in June 2022, China's targets for vehicle fuel cells by 2030 are a rated power of 250kW, efficiency level of 50 percent and a life span of 30,000 hours. By 2035, the goal is to realize 300kW and 35,000 hours.
Research institutes, universities and companies have recently made several technical breakthroughs. Fossel (Wuhan) Integration Co. Ltd has launched a metal-supported solid oxide fuel cell (MS-SOFC), saying the product offers high mechanical strength, fast startup, strong thermal shock resistance and high reliability. The supplier claims to be the second company in the world with this technology, after the UK's Ceres Power. In August 2026, Fossel signed a partnership with Yuchai Hydrogen Energy to commercialize the technology.
New investment
Figures reported by Sohu News put the global fuel cell market at $5.01 billion in 2025, rising to $9.32 billion by 2032 or at a CAGR of 9.27 percent. China is expected to beat this rate and achieve over 10 percent during the same period.
Most manufacturers say the growth comes from strong demand for FCEVs, with Towards Automotive putting the annual growth at about 21 percent based on $2.55 billion in 2024 reaching $17.73 billion by 2034. Commercial vehicles are seen to make up most of that market.
As a result, new investment has been pouring in. Refire, one of China's leading fuel cell suppliers, started a $151 million project in Cangnan, Wenzhou in Zhejiang province in 2025. The site covers about 24,000sqm and will include production and R&D facilities for fuel cell systems, stacks and key components. Phase one is due to start mass production in 2026 while phase two is scheduled to begin operating in 2029.
China-made fuel cells
Chinese manufacturers offer PEMFCs, PAFCs, AFCs, MCFCs and SOFCs, with PEMFCs and SOFCs forming the bulk of shipments.
PEMFCs are light, start quickly and run at about 60 to 80 C. They are mainly used in vehicles and portable devices. For stationary power generation, SOFCs are highly efficient and run at high temperatures, roughly 600 to 1,000 C.
One manufacturer interviewed by Global Sources is Gogolada (Shenzhen) Technology Co. Ltd. It markets the MG2044, a PEM fuel cell with a rated power of 50W for portable electronics and renewable energy systems.
Generally, manufacturers put more weight on customizing products to meet each customer's needs.
Key raw materials used in fuel cells include membrane electrode assemblies (MEAs), bipolar plates, sealing gaskets and shells. These are usually sourced from domestic suppliers, with the major ones including Shanghai ZhiZhen, Shanghai HongFeng, Tangfeng Energy and Hydrogine Technology.
Over the past one to two years, declining production costs have driven a corresponding decrease in the price of Chinese-made fuel cells. According to data from the Qianzhan Industrial Research Institute, the average price of fuel cells in China fell from $458.30 per kW in 2023 to about $416.60 in 2024. With ongoing cost reductions, technological upgrades and new market entrants, this downward trend persisted through 2025 and 2026. In the year ahead, both production costs and fuel cell prices are expected to continue their going down.
Coastal hubs
China has about 100 fuel cell manufacturers, and more than 80 percent of them are small or medium-sized enterprises. The leading companies include SinoHytec, Refire, Sinosynergy and Kensino, which also rank highly worldwide.
In 2023, the top 10 Chinese manufacturers held over 70 percent of the domestic market, and the top three held over 30 percent, according to the Qianzhan Industry Research Institute. As new companies enter the market, the top 10's share is expected to drop to about 60 percent or lower within one to two years.
Most production is in the coastal regions such as the Yangtze River Delta, the Pearl River Delta and the Bohai Rim. Key provinces and cities include Jiangsu, Shanghai, Zhejiang, Guangdong, Fujian, Beijing and Shandong. These areas have complete supply chains, good transport links and technical support from local universities and research institutes. Central and western regions, such as Hubei, Henan and Sichuan, also have a growing number of manufacturers.
