North America Fuel Cells in Aerospace and Defense Market – Segmented By Type (Proton Exchange Membrane Fuel Cell, Solid Oxide Fuel Cell), By Application (Commercial Aircraft, Rotorcrafts, Others), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview:

North America Fuel Cells in Aerospace and Defense Market was valued at USD 1.83 Billion in 2024 and is expected to reach USD 4.12 Billion by 2030 with a CAGR of 14.47% during the forecast period. North American fuel cell market in aerospace and defense is driven by the critical need for long-endurance power solutions for unmanned aerial vehicles (UAVs), where fuel cells significantly outperform batteries. A parallel driver is the strategic shift towards energy resilience and silent operation for forward operating bases and portable soldier systems. Key trends include the development of hydrogen-electric propulsion for urban air mobility and the exploration of fuel cells as auxiliary power units in larger aircraft. For instance, based on the U.S. Department of Energy's March 2024 announcement, a key data pointer highlighting the scale of federal investment is the support for 52 projects across 24 states, funded through the Bipartisan Infrastructure Law, which aim to collectively develop domestic manufacturing capacity for 10 GW of electrolyzers and 14 GW of fuel cells annually enough production to supply an estimated 1.3 million metric tonnes of green hydrogen per year and power approximately 220,000 heavy-duty trucks.

Market Drivers

Demand for Long-Endurance Unmanned Aerial Vehicles (UAVs)

The requirement for intelligence, surveillance, and reconnaissance (ISR) missions lasting over 24 hours is a primary driver. Traditional battery-powered UAVs lack the endurance for prolonged operations, while internal combustion engines generate excessive heat and noise, increasing detectability. Fuel cells, particularly hydrogen proton exchange membrane (PEM) systems, offer a high energy-to-weight ratio, enabling silent and thermally discreet flights that can extend for days. This capability is strategically vital for persistent border patrol, critical infrastructure monitoring, and extended military missions where frequent landing for refueling or recharging is not operationally feasible. For instance, based on the development of the HoGreen Air drone achieved a 2.5-hour flight endurance using a hydrogen fuel cell system, showing unprecedented long-range operational capacity of 9,300 kilometers and flight endurance exceeding 14 hours, enabled by dual-phase hydrogen storage (liquid and gaseous) and advanced PEM fuel cell technology, which allows for remotely piloted or autonomous missions such as its intercontinental flight from the U.S. controlled from South Korea while producing zero emissions and maintaining secure, global connectivity via integrated RF and LTE/5G communication systems.

Rising Demand for Clean Energy in Aerospace and Defense

The global shift toward reducing emissions in aviation and defense has placed fuel cells at the center of sustainable energy solutions. Aerospace and defense industries are under pressure to minimize reliance on fossil fuels while ensuring operational efficiency, leading to increasing adoption of hydrogen and proton exchange membrane (PEM) fuel cells. These systems emit only water vapor, offering a clean alternative with minimal environmental footprint, which aligns with international sustainability targets. In defense applications, fuel cells also provide silent operation and reduced heat signatures, offering tactical advantages in the field. The drive for eco-friendly propulsion and auxiliary systems is pushing companies to scale investments in fuel cell technology for both manned and unmanned platforms. For instance, Singapore Airlines Group recently acquired 1,000 tonnes of CORSIA-eligible neat SAF from Neste’s Singapore refinery and 2,000 tonnes of SAF certificates from World Energy, together projected to cut more than 9,500 tonnes of CO₂ emissions. Temasek, through its portfolio, holds a 53% shareholding in Singapore Airlines, and Berge Bulk operates a fleet of 90 vessels as part of its broader decarbonisation strategy.

Technological Advancements in Fuel Cell Efficiency and Design

Continuous innovation in fuel cell technologies is driving their adoption across aerospace and defense applications. Advances in lightweight composite materials, compact stack designs, and improved hydrogen storage methods have significantly enhanced the efficiency and feasibility of deploying fuel cells in aircraft and defense systems. Research efforts are focusing on improving power-to-weight ratios, ensuring that fuel cells can meet the stringent requirements of aerospace engineering without compromising flight performance or payload capacity. Hybrid configurations, where fuel cells are integrated with batteries, are also gaining momentum to maximize energy efficiency and endurance. Developments in PEM fuel cells and solid oxide fuel cells (SOFCs) are extending their applicability to both high-power aviation needs and portable defense equipment. For instance, scientists at UCLA have developed a new hydrogen fuel cell catalyst combining platinum, graphene, and porous carbon, enabling a lifespan of 200,000 hours with less than 1.1% power loss after 90,000 test cycles, far exceeding the U.S. DOE’s 30,000-hour 2050 target, delivering 1.08 W/cm² output and promising lighter, faster-refueling alternatives.

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Key Market Challenges

Underdeveloped Hydrogen Infrastructure

The promise of hydrogen power is currently constrained by a nascent and fragmented supply chain. Establishing production facilities for "green hydrogen" using renewable energy is capital-intensive and not yet widespread. The transportation of hydrogen requires specialized cryogenic tankers or high-pressure tube trailers, which are not readily available. At the point of use, refueling requires high-pressure compressors and storage, equipment that is complex, expensive, and unsuitable for rough field conditions. This infrastructure gap creates a "chicken-and-egg" scenario where platform adoption is slow due to lack of fuel, and fuel investment is hesitant due to few platforms. Bridging this gap requires significant coordinated investment between government and industry.

High Initial System Costs and Total Ownership Expense

The economic viability of fuel cells remains a significant hurdle to mass adoption. The manufacturing of fuel cell stacks involves expensive catalysts like platinum and complex membrane materials. Lightweight carbon-fiber hydrogen storage tanks are costly to produce and certify for aerospace use. Beyond acquisition, the total cost of ownership includes the current high price of hydrogen fuel compared to jet fuel, maintenance by highly specialized technicians, and the logistics of handling hydrogen. While costs are expected to decrease with scale and technological advancement, current pricing limits deployment to high-value, niche applications where their unique capabilities justify the premium, hindering broader market penetration.

Key Market Trends

Expansion into Urban Air Mobility (UAM)

The emerging eVTOL market represents a significant growth vector for aerospace fuel cells. Batteries alone struggle to provide the required range and rapid turnaround for profitable commercial air taxi services. Hydrogen fuel cells are being integrated into hybrid-electric propulsion systems to extend range and enable quicker refueling versus recharging. Major aerospace firms are investing in megawatt-class fuel cell systems capable of powering larger, cargo-oriented eVTOLs. This civil aerospace application is driving down costs through higher production volumes and fostering innovation in airworthiness certification processes, which will later benefit defense applications. The trend signifies the technology's move from military-specific use to broader aerospace integration.

Development of Advanced Hydrogen Storage Solutions

Innovation is intensely focused on solving hydrogen's low volumetric density, which is the primary technical bottleneck. Research is advancing in three key areas: higher-pressure composite vessels (exceeding 700 bar), cryogenic liquid hydrogen tanks that offer high density but require complex thermal management, and solid-state storage using metal hydrides or chemical carriers that bind hydrogen for safer, denser storage. For aircraft, the focus is on conformal tanks that can be integrated into wings or fuselages to minimize drag and weight penalty. These advancements are critical to achieving the practical range and payload capacity required for the technology to be competitive with conventional energy sources across multiple platforms.

Integration as Auxiliary Power Units (APUs)

A significant trend is the replacement of traditional gas turbine APUs with fuel cells in larger military platforms like aircraft, naval ships, and armored vehicles. Jet-fuel-based APUs are inefficient, noisy, and have a high thermal signature. Fuel cell APUs, which can reform jet fuel into hydrogen, provide highly efficient and silent electricity for onboard systems, hotel loads, and mission electronics without starting the main engines. This saves fuel, reduces maintenance costs, and dramatically lowers the acoustic and thermal footprint of a parked vehicle or ship, enhancing survivability. This application represents a near-term, high-value market that leverages fuel cell advantages without the full challenge of transitioning an entire platform's primary propulsion.

Segmental Insights

Application Insights

In 2024, the dominant application segment for fuel cells in North American aerospace and defense is Unmanned Aerial Vehicles (UAVs), often categorized under "Others." This segment significantly outpaces more traditional applications like commercial aircraft and rotorcraft in terms of current adoption and investment. The clear driver is the critical military demand for enhanced intelligence, surveillance, and reconnaissance (ISR) capabilities. Fuel cells provide a decisive tactical advantage by enabling silent, long-endurance missions that far exceed the limitations of battery-powered drones. This allows for persistent overwatch and operations in sensitive areas where detectability is a major concern. While development continues for auxiliary power units in larger manned aircraft, these projects remain largely in the demonstration and testing phase.

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Country Insights

In 2024, United States is the overwhelmingly dominant region in North American fuel cells for aerospace and defense market. This supremacy is anchored in its massive defense budget, which allocates substantial funding for the research, development, and procurement of advanced technologies. The presence of leading defense agencies and a dense ecosystem of technology contractors and research institutions creates a powerful innovation pipeline. Operational requirements for long-endurance intelligence, surveillance, and reconnaissance (ISR) missions and the strategic push for energy resilience directly drive the adoption of fuel cell-powered unmanned aerial vehicles and portable soldier systems. The scale of investment and the concentration of end-users make the U.S. the central hub for both technological advancement and deployment, accounting for the vast majority of the regional market's value and activity.

Canada represents the second largest market within the region. Its involvement is characterized by strong technological collaboration with United States on defense initiatives and a growing focus on leveraging fuel cells for Arctic sovereignty and surveillance operations. The harsh environmental conditions of the Arctic make the silent, long-endurance capabilities of fuel cell systems particularly valuable for monitoring vast, remote territories. Further driving the market is a concerted national strategy to develop and integrate clean technologies, with federal support often directed towards innovative applications in aerospace that align with broader sustainability goals, providing a stable foundation for market growth.

Recent Developments

• ​In 2025, Airbus and MTU Aero Engines have signed an MoU to co-develop hydrogen fuel-cell propulsion, aligning roadmaps under Europe’s Clean Aviation programme to create a fully integrated zero-emission engine for future aircraft.
• In 2025, US and Israel have announced a joint initiative to develop hydrogen-powered unmanned aerial vehicles (UAVs). The collaboration will leverage fuel cell technology to significantly extend drone flight endurance for defense applications, enhancing intelligence, surveillance, and reconnaissance (ISR) capabilities with a low-thermal, silent operational profile critical for modern stealth requirements.
• In 2025, in Baoji, Honeywell Aerospace and the National Renewable Energy Laboratory (NREL) are partnering to develop and scale a novel chemical hydrogen storage technology for small unmanned aerial systems. The solid-state solution aims to triple drone flight endurance by safely releasing hydrogen on demand, overcoming traditional high-pressure storage challenges and enabling longer zero-emission missions for mapping and surveillance.
• In 2025, ZeroAvia has been awarded a U.S. Air Force grant to develop an autonomous hydrogen-electric aircraft capable of long-range intelligence, surveillance, and reconnaissance (ISR) missions. The project will leverage high-temperature PEM fuel cell technology and liquid hydrogen storage to achieve zero-emission operations, underscoring the DoD's investment in decarbonizing aviation and advancing unmanned tactical capabilities.

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

Report Scope:

In this report, North America 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:

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

o    Proton Exchange Membrane Fuel Cell

o    Solid Oxide Fuel Cell

• ·         North America Fuel Cells in Aerospace and Defense Market, By Component:

o    Commercial Aircraft

o    Rotorcrafts

o    Others

• ·         North America Fuel Cells in Aerospace and Defense Market, By Country:

o    United States

o    Canada

o    Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in North America Fuel Cells in Aerospace and Defense Market.

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Company Information

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