Markets such as uninterruptible power supplies, residential combined heat and power, power for remote monitoring equipment, auxiliary power units, and portal power for military applications have all experienced an increase in traction over 2010.

Key fuel cell trends that the research firm is watching in 2011 and beyond include the reemergence of private equity firms in the fuel cell market; the continuing growth and deployment of fuel cell vehicles; the rising influence of Japan and Korea in the global fuel cell industry; the emergence of hydrogen as an energy storage medium; rare earth restrictions as an obstacle to fuel cell adoption and unmanned aerial vehicles as a key market for micro fuel cells.

Kerry-Ann Adamson, research director at Pike Research, said: “Fuel cells are finding a place in an increasing number of commercial applications, and 2011 is shaping up to be a big year in terms of market development.

“Industry consolidation is a trend that has been long anticipated, but will only accelerate during the course of the year. In addition, new issues have sprung out of nowhere in the past year such as concerns over supply of rare earth metals.”

Ms Adamson adds that the issue of government intervention versus the free market will continue to simmer as different countries’ economic policies diverge on matters of fuel cell development. And new markets for fuel cells are continuing to come to the fore as the economics of adoption, both direct and indirect, continue to be tipped in favor of the technology.

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