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US firm Pike Research says that fuel cell technology could have a significant impact in the marine market if it is backed by substantial investment in research and development.

According to a new report by the company, worldwide revenue from fuel cell auxiliary power units (APUs) will reach $66 million annually in 2020, with a total cumulative investment of more than $400 million during the period from 2009 to 2020.

Although they represented 20 percent of all fuel cell systems shipped in 2010, fuel cells used as auxiliary power units (APUs) remain very limited commercially at present.

Originally used in the aviation industry, the term "auxiliary power unit" is used to describe a production unit that primarily provides power for the vehicle's hoteling loads - i.e., any electrical power that is required by the vehicle for purposes other than the primary propulsion system, including such draws as heating and lighting.

While the size of the market in terms of absolute numbers will not be large, reaching just over 5,000 units by 2020, the sector is forecast to grow strongly over the next several years.

"The reason for the slow but steady growth in this market is that, unlike the other applications for which fuel cell technology is being developed, there are a number of non-trivial technological and regulatory barriers that need to be addressed for the marine and aviation sectors especially, and for trucking to a lesser degree," said research director Kerry-Ann Adamson.

"For marine and aviation, although the drivers for the adoption of new practices or technologies are high, without further development, fuel cell technology cannot be rolled out in these sectors."

According to Pike Research, the marine and aviation markets represent the areas where fuel cells, with their lower emissions and noise signatures, could have the largest impact. But the company points out that both of these markets will require more substantial investment in R&D and technology development between now and 2020, before they are ready for widescale commercialization.

Pike Research anticipates that the RV sector, already the largest market for fuel cell APUs, will continue its steady growth during the coming decade. Although profit margins per unit remain low, even the market leader, SFC Energy, is starting to increase its focus on non-RV markets.

Pike Research's report, "Fuel Cells for Auxiliary Power Unit Applications", analyzes the market potential for fuel cells to be utilized as APUs in marine, trucking, aviation, and RV markets. The study includes a comprehensive assessment of market drivers and barriers, technology issues, and key industry players in each of the four sectors. Forecasts are provided for each sector up until 2020, including unit shipments, revenue, and total capacity in megawatts.

Image: Wärtsilä's WFC20 fuel cell unit - part of the METHAPU project.