Proving the system durability and cost-benefit of fuel cells will ensure that end users begin to accept them as a superior alternative to conventional forms of energy generation, and result in increased sales 

Analysis from Frost & Sullivan, North American Stationary Fuel Cell Markets, shows revenues in this industry totaled US$21.4million in 2002 and are projected to reach US$1273.7million by 2009. 

To increase awareness about fuel cells, companies set demonstration projects and conduct test trials. “After a brief lull, the fuel cell industry seems to be back on track with numerous field trials and pre-commercial product launches. In order to sustain this development phase, the support of ‘early adopters’ is very critical,” says Frost & Sullivan Senior Industry Analyst, Ravi K.

Fuel cell developers need to clearly understand the operation and maintenance requirements and establish lifecycle costs of their systems and keep the customers aptly informed about the same. These factors become critical in decision-making, both for individual and organizational end users.

“Simulating running conditions will help companies mimic the requirements of different end users and address the maintenance and service issues pertaining to the respective segment,” observes Ravi.

The ability of a company to sustain technological improvements and offer innovative service 
agreements will have a direct impact on the size of its user base.

The high-temperature fuel cell systems need expensive materials that withstand heat, and the low-temperature version depends on costly reformers and precious metal catalysts, placing fuel cells at a disadvantage when compared to cheaper conventional technologies.

Reducing the manufacturing costs of fuel cells is one of the top challenges and current focus of the fuel cell industry. Technological improvements in fuel processing, reduction of expensive materials, and increased production volumes can lower production costs.

Suppliers to the fuel cell industry however, are fragmented and lack the efforts required to bring the component costs down since large fuel cell players are developing their own supply chain while the smaller ones are forced into partnerships. While more investments into the component industry is imperative, efforts to establish fuel cell component manufacturing clusters in different regions will help to sustain the market growth.

The fuel cell industry has the critical task of coordinating the efforts of various end user groups, regulatory authorities, component suppliers, and fuel cell distributors in order to sustain and accelerate growth.