According to a recently published report from Business Communications Company, Inc, the worldwide hydrogen generation, storage and delivery device market is worth an estimated $702 million. The market is expected to reach nearly $1.5 billion as it grows at an average annual growth rate of 15.8% through to 2008.
Vehicle and stationary hydrogen delivery are expected to dominate the market sometime after 2010, but prior to 2010, R&D dollars will sustain the industry, though small portable fuel cells may gain earlier market ubiquity.
Devices for stationary electric generation are expected to become commercial over the next five years as they move from the laboratory and pilot production lines into full commercial production. Today the stationary market is estimated to be about 66% of the total hydrogen delivery device market.
Transportation will represent 35% of the market for the hydrogen delivery device market in 2008, up from 28% in 2003. The portable market is reflective of the research market for these devices as only a small number of companies offer fuel cells for hand held devices. Portable fuelling systems were valued at about $39 million in 2003 but are estimated to grow to $81.3 million in 2008.
The value of hydrogen production, storage, and dispensing devices for fuel cells is expected to grow in the high double-digit range from a base of $321 million in 2002, mostly in research spending and from the sales of beta model commercial units.
An increase in European, Japanese, and US R&D spending more than doubled that in 2003 to $780 million. Costs remain high due to a lack of mass production, which is expected to move into a higher gear in the near term. Many companies will continue to research and improve the devices. The market for the application of these devices in the stationary, vehicle and portable markets is expected to exceed $1.6 billion in 2008.