- The global hydrogen industry is expanding on multiple fronts, driven by decarbonisation targets and rapid innovation in clean-energy technologies.
- New analysis from market research firm IDTechEx highlights major developments in stationary fuel cells, automotive proton-exchange membrane systems, and the fast-evolving market for green hydrogen.
SOFCs lead stationary fuel-cell market
Fuel cells continue to gain traction as a low-emission power source across industries, from transportation to backup power for data centers. Stationary systems designed to operate from a fixed location are emerging as a key solution for regions facing grid instability and for commercial sites seeking resilient, high-efficiency energy.
Solid oxide fuel cells (SOFCs) are among the leading technologies in this segment. Their high operating temperatures support continuous, high-power output and enable flexibility in the types of fuel used. This makes SOFCs well-suited for commercial, industrial, utility, and even residential applications.
However, IDTechEx notes ongoing challenges, including the risk of component degradation at high temperatures and lengthy startup times. To address these issues, manufacturers are developing low-temperature SOFC variants aimed at improving durability and responsiveness.
Alternative stationary fuel-cell types, such as alkaline fuel cells (AFCs) and molten carbonate fuel cells (MCFCs), are also covered in IDTechEx’s report “Stationary Fuel Cell Markets 2025–2035: Technologies, Players & Forecasts.” While these systems offer advantages like fast startup or internal fuel reforming, they generally operate with lower efficiencies and face performance trade-offs.
Proton exchange membrane fuel cells gain momentum in transport, despite cost hurdles
Proton exchange membrane fuel cells (PEMFCs) remain the dominant choice in automotive applications due to their low operating temperatures, rapid startup, and ability to quickly respond to fluctuations in power demand. These systems require high-purity hydrogen to avoid carbon-monoxide contamination, which has contributed to their higher overall cost.
IDTechEx points to two major barriers limiting widespread PEM adoption: the lack of hydrogen refuelling infrastructure and the heavy reliance on platinum catalysts, which add significant expense.
Still, interest in PEMFCs spans a wide range of vehicles, including passenger cars, light commercial vehicles, heavy-duty trucks, city buses, trains, and maritime vessels. The report “Materials for PEM Fuel Cells 2026–2036: Technologies, Markets, Players” examines the full supply chain supporting PEM fuel-cell development, from materials and components to OEMs and system integrators.
Green hydrogen production expands through diverse electrolyser technologies
Green hydrogen, produced using renewable-powered electrolysis, remains the most coveted but also the most expensive form of hydrogen on the market. IDTechEx notes that although green hydrogen commands a significant premium compared with lower-purity alternatives, it offers the strongest sustainability benefits and long-term decarbonization impact.
The report “Materials for Green Hydrogen Production 2026–2036: Technologies, Players, Forecasts” outlines several electrolyser types now shaping the market: alkaline (AEL), proton exchange membrane (PEMEL), anion exchange membrane (AEMEL), and solid oxide electrolyser cells (SOECs). Each system uses different materials and chemistries, leading to variations in cost, efficiency, and manufacturing complexity.
PEM electrolysers, for example, use multilayer structures that enable high proton conductivity, low gas permeability, and robust stability. AEL systems rely on porous diaphragms to separate electrodes, creating distinct performance characteristics and cost profiles. Manufacturing scale, supply-chain resilience, and access to critical materials further influence the competitiveness of each technology.
A rapidly evolving industry
With advances in fuel-cell performance, diversified electrolyser designs, and accelerating demand for low-carbon energy, the hydrogen sector is poised for significant growth. IDTechEx’s latest research suggests that while cost and supply-chain challenges remain, both stationary and mobile hydrogen technologies, supported by the rise of green hydrogen, could play increasingly central roles in global decarbonization strategies over the next decade.
Author: Bryan Groenendaal
