Plug Power Inc. (PLUG - Free Report) recently announced the acquisition of EnergyOr — a leader in advanced lightweight and compact PEM hydrogen fuel cell (HFC) systems. The company will use EnergyOr’s advanced HFC solutions to expand into the robotics and unmanned aerial vehicles(UAV) markets.
Opportunities for Plug Power
EnergyOr is an expert in developing fuel cells for robotics, small-scale material handling and aerospace industries. Integration of fuel cell in UAVs are in vogue lately as fuel cell-powered systems can fly longer and can be refueled quickly. Per MARKETS AND MARKETS, the UAV market is projected to reach $52.30 billion by 2025 at a CAGR of 14.15% from 2018 to 2025.
Thus, this acquisition willenable the company tocater to increasing demand. Also, it will help the company toexpand footprint in the UAV market and enhance use of fuel cell.
Fuel Cell Market Outlook
The demand for fuel cell technology is gaining popularity on the back of reliability and cheaper-than-conventional power sources. It also provides clean technology solutions. Per a report by Market Research Engine,the Hydrogen Fuel Cells Market is expected to surpass more than $3,480 million by 2025 at a CAGR of 13.0%.
Apart from Plug Power, other companies like Ballard Power Systems (BLDP - Free Report) , Bloom Energy Corporation (BE - Free Report) and FuelCell Energy, Inc (FCEL - Free Report) are dealing with fuel cells and are expected to benefit from improving demand for fuel cell.
Zacks Rank & Price Movement
Plug Power currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Plug Power has outperformed its industry in the past year. The company’s shares have rallied 30.3%, against the industry’s decline of 13.6%.
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