Fuel Cells in Aerospace and Defense Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Proton Exchange Membrane Fuel Cell, Solid Oxide Fuel Cell), By Application (Commercial Aircraft, Rotorcrafts, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.34 Billion
CAGR (2026-2031)	16.23%
Fastest Growing Segment	Solid Oxide Fuel Cell
Largest Market	North America
Market Size (2031)	USD 5.77 Billion

Market Overview

The Global Fuel Cells in Aerospace and Defense Market will grow from USD 2.34 Billion in 2025 to USD 5.77 Billion by 2031 at a 16.23% CAGR. Fuel cells in the aerospace and defense market are defined as electrochemical devices that efficiently convert chemical energy from hydrogen into electricity to drive propulsion systems, auxiliary power units, and unmanned aerial vehicles. The market is propelled by the critical need for low-emission technologies to meet international net-zero targets and the military demand for silent, long-endurance power solutions that surpass the capabilities of conventional batteries. According to the International Air Transport Association, in 2024, hydrogen-powered aircraft could potentially constitute 18% of the global commercial fleet by 2050 under their net-zero technology scenarios.

Despite these strong drivers, the market faces a significant challenge regarding the immaturity of hydrogen infrastructure. The absence of a comprehensive global network for hydrogen production, storage, and refueling at airports and defense installations creates a logistical bottleneck that could substantially delay the operational integration and scalability of fuel cell technologies across the sector.

Key Market Drivers

The implementation of stringent environmental regulations and decarbonization mandates is the primary force accelerating the adoption of fuel cells in the aerospace sector. As the industry grapples with international net-zero targets, manufacturers are pivoting to hydrogen propulsion to decarbonize flights that exceed the energy density limits of battery-electric systems. This strategic transition is heavily supported by public investment aimed at maturing the necessary technology stack. According to the UK Government, in 2024, the state awarded £103 million in joint industry funding specifically for green aerospace projects, including zero-emission hydrogen flight technologies. Such funding is critical for meeting development timelines; according to Airbus, February 2024, in a corporate update delivered at the 'Singapore Airshow', the company reaffirmed its strategic target to introduce the world's first hydrogen-powered commercial aircraft into service by 2035.

The escalating demand for long-endurance Unmanned Aerial Systems (UAS) serves as the second critical driver, particularly within the defense landscape. Military operators require silent, low-thermal signature power sources that sustain extended surveillance missions without the frequent recharging downtime associated with lithium-ion batteries. Fuel cells provide the high energy density required to drastically extend flight duration for tactical operations. Highlighting this capability, according to Intelligent Energy, June 2024, in a news release titled 'The Gryphon takes flight!', their hydrogen fuel cell-powered drone achieved a flight endurance of 3 hours, significantly surpassing the capabilities of standard battery-operated systems. This performance gap is driving the rapid integration of fuel cell units into next-generation defense fleets.

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Key Market Challenges

The immaturity of hydrogen infrastructure presents a substantial barrier to the growth of the fuel cell market within the aerospace and defense sectors. Unlike conventional aviation fuel, which utilizes a fully established global distribution network, hydrogen requires specialized facilities for production, liquefaction, and high-pressure refueling that are currently sparse. This deficiency restricts the operational flexibility of hydrogen-powered aircraft, effectively limiting them to short-range loops or specific demonstration routes rather than enabling the global mobility required for defense logistics and commercial transport.

This logistical gap creates significant financial uncertainty for stakeholders considering the adoption of fuel cell technology. According to the Hydrogen Council, in 2024, only approximately 7% of announced renewable hydrogen capacity projects had reached the Final Investment Decision stage, indicating that actual infrastructure deployment lags far behind market announcements. This slow pace of physical capital development forces manufacturers and operators to delay the integration of fuel cell systems, as they cannot rely on a consistent fuel supply chain to support widespread routine operations.

Key Market Trends

The advancement of liquid hydrogen storage technologies is emerging as a critical trend to enable long-range aviation by moving beyond the limitations of gaseous storage. Manufacturers are prioritizing cryogenic systems that significantly increase fuel energy density which is essential for powering larger commercial aircraft architectures. This technological pivot was highlighted when, according to Airbus, March 2025, in the 'Airbus showcases hydrogen aircraft technologies during its 2025 Airbus Summit' press release, the company unveiled a next-generation concept aircraft equipped with two liquid hydrogen tanks supplying four 2-megawatt fuel cell engines to directly address the volumetric constraints of zero-emission flight.

Simultaneously, the deployment of wearable and portable fuel cells for soldier modernization programs is accelerating as defense agencies seek lightweight and energy-dense power sources. These systems are replacing heavy battery packs to support advanced tactical equipment and offer extended operational autonomy in remote environments. The rapid market uptake of this technology is evident in procurement data where, according to SFC Energy, February 2025, in the 'SFC Energy AG releases preliminary Group figures for 2024' report, the company's defense and public security segment achieved a sales increase of approximately 60% compared to the previous year driven by the growing reliance on fuel cells for dismounted soldier power.

Segmental Insights

The Solid Oxide Fuel Cell segment is anticipating the fastest growth in the global aerospace and defense market due to its distinct operational advantages. These systems offer exceptional fuel flexibility, allowing integration with standard logistics fuels like jet kerosene, which is a critical requirement for military and commercial aviation operations. Consequently, defense agencies are increasingly prioritizing this technology for auxiliary power units and unmanned systems to ensure extended mission endurance. Continued research initiatives by the United States Department of Energy regarding high-temperature operations further validate the strategic shift toward this efficient energy solution.

Regional Insights

North America commands a dominant share of the global fuel cells in aerospace and defense market, driven by substantial defense budgets and strategic government initiatives. The United States Department of Defense actively funds programs to integrate fuel cell technology into unmanned aerial vehicles and soldier power systems to enhance operational duration. Furthermore, the region benefits from a mature aerospace manufacturing ecosystem that fosters collaboration between technology developers and major defense contractors. This concerted effort to reduce reliance on traditional fossil fuels secures North America’s position as the primary region for market development.

Recent Developments

• In September 2025, Advent Technologies delivered its next-generation portable fuel cell systems, known as the Honey Badger 50, to the U.S. Army under a contract with the Department of Defense. These state-of-the-art units incorporated the company’s proprietary membrane electrode assembly technology to provide a lightweight and quiet power source for critical field operations. The delivery marked a significant transition from development to active deployment, supporting soldiers with reliable power for radio, satellite communications, and remote surveillance systems. This milestone underscored the growing adoption of fuel cell solutions to replace heavy batteries in defense applications.
• In March 2025, Airbus unveiled an updated concept for a hydrogen-powered commercial aircraft during its annual summit, reaffirming its dedication to the ZEROe program. The aerospace manufacturer presented a fully electric configuration featuring four engine pods, each driven by a hydrogen fuel cell system that converts stored liquid hydrogen into electrical energy. This strategic focus on a fuel cell-based architecture followed years of testing, including the successful power-on of the "Iron Pod" propulsion system in early 2024. The company highlighted that this technology offered the most promising pathway to decarbonize future regional and single-aisle aircraft operations.
• In October 2024, ZeroAvia entered into a strategic collaboration with PowerCell Group by signing a Memorandum of Understanding to advance next-generation fuel cell technologies. The partnership focused on the joint research and development of intermediate and high-temperature fuel cell stacks specifically tailored for aerospace applications. These advanced high-temperature fuel cells were intended to unlock energy-intensive uses, including large fixed-wing aircraft and rotorcraft, by offering improved power density and simplified thermal management. This agreement built upon a longstanding relationship where PowerCell’s low-temperature stacks were utilized in ZeroAvia’s earlier prototype powertrains for smaller flight demonstrators.
• In April 2024, Honeywell Aerospace Technologies secured a contract from General Technical Services to develop a hydrogen fuel cell power system for the U.S. Army. This initiative was designed to support soldiers by powering a multitude of electronic devices while significantly reducing the weight burden compared to standard batteries. The system utilized Honeywell’s proton exchange membrane fuel cell technology, which had been proven in unmanned aerial systems. By enabling soldiers to charge batteries and power equipment on the move, the new fuel cell solution aimed to enhance mission effectiveness and reduce the logistical challenge of carrying spare batteries in the field.

Key Market Players

• Advent Technologies
• Australian Fuel Cells Pty Ltd
• Cummins Inc
• ElringKlinger AG
• Gen Cell Ltd
• Honeywell International Inc.
• Infinity Fuel Cell and Hydrogen, Inc
• Intelligent Energy Limited
• Plug Power Inc.
• MTU Aero Engines AG

By Type	By Application	By Region
Proton Exchange Membrane Fuel Cell Solid Oxide Fuel Cell	Commercial Aircraft Rotorcrafts Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Fuel Cells in Aerospace and Defense Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Fuel Cells in Aerospace and Defense Market, By Type:

• Proton Exchange Membrane Fuel Cell
• Solid Oxide Fuel Cell

• Fuel Cells in Aerospace and Defense Market, By Application:

• Commercial Aircraft
• Rotorcrafts
• Others

• Fuel Cells in Aerospace and Defense Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE