Solid Oxide Fuel Cell Market

Solid Oxide Fuel Cell Market Size (2023-2028):

The Solid Oxide Fuel Cell Market was valued at USD 1.3 billion in 2022 and is projected to reach USD 7.57 billion by 2028, growing at a CAGR of 34.50% during the forecast period 2023-2028.

Market Overview:

Solid oxide fuel cells are defined as devices that are installed with a ceramic membrane which makes them conduct ions and allow currents at higher temperatures. They're electrochemical units that utilize non-porous & solid metal oxide electrolytes to convert chemical energy into thermal energy and electricity using hydrogen fuel. These units are readily used across various applications due to their ability to work at elevated temperatures, stability, high efficiency, and acceptability of varied kinds of fuels. Consequently, rapidly rising energy demand, including rising measures to adopt green power generation sources, fosters solid oxide cell market growth. Increasing interest in developing and deploying energy-efficient systems to satisfy additional power requirements will further complement the industry size.

Market Drivers:

Factors like rising environmental concerns and increasing demand for clean electrical energy are expected to be major drivers driving the market. The rising demand for clean energy over concerns about the environmental impact of energy generation from conventional sources like coal and gas is predicted to assist grow the solid oxide fuel cells market. Government policies and incentives provided for cells are a number of the important driving factors for the expansion of the solid oxide fuel cell industry. States like California, Delaware, and Connecticut lead in cell programs and offer incentives and subsidies for fuel cell installations, resulting in Solid oxide fuel cells and other fuel installations within the US.

Market Restraints:

Solid oxide fuel cells are a complex integration of various chemical elements for the electro-catalytic oxidation of methane, LP gas, and other natural gas-based fuels to get electricity. Conventional ceramic electrolytes don't offer high operational efficiency at such temperatures; therefore, yttria-stabilized zirconia (YSZ) is required as an electrolyte. Moreover, a study conducted by a research institution in the US concluded that cell performance increases further when YSZ composite electrodes also are utilized with the electrolyte. Zirconium is a component that has titanium-like properties and has a particularly high melting temperature of 1,852°C. However, the value of per unit zirconium is nearly double the per-unit cost of conventional ceramic-based electrolytes. This increases cell manufacturing and installation costs, which is one of the main restraints for this market.

Market Opportunities:

Data centers are the fastest-growing end users for facility generation applications within the US. Operating a data center is very power-consuming and power intensive. Additionally, data centers require uninterrupted power 24*7 so on minimize the loss of valuable data. Fuel cells, including solid oxide fuel cells, have previously seen tremendous growth within the United States. Solid oxide fuel cell adoption for data centers by Google, IBM, and Equinix has increased growth at a fast rate within the US Solid Oxide Fuel Cell market. Currently, the entire Solid oxide fuel cell adoption by data centers remains minuscule with reference to the entire data centers within the US, thus making it one of the foremost lucrative end-use segments for Solid oxide fuel cells.

In the military sector, stationary and portable power generation by Solid oxide fuel cells is on the rise. Additionally, the necessity for noiseless and efficient power generation for military applications creates a chance for Solid oxide fuel cells during this segment. The developments in Solid oxide fuel cell which is used as applications for military application are expected to extend with opportunities for the expansion of this market further.

SOLID OXIDE FUEL CELL MARKET REPORT COVERAGE:

Market Segmentation:

Solid Oxide Fuel Cell Market - By Product Type:

• Planar
• Tubular

Among the planar and tubular types, the planar segment is anticipated to account for the largest share in the market of solid oxide fuel cells. The marketplace for the planar segment is driven by the simple geometry and comparatively easier construction process. As its construction is comparatively simple, it's the foremost commonly used solid oxide cell type.

Solid Oxide Fuel Cell Market - By Application:

• Portable
• Transport
• Stationary

Based on application, the SOFC market is often primarily trifurcated into stationery, transport, and portable. Stationary application is projected to possess the dominating share in terms of volume also as revenue. The setup of large-scale power generation facilities and the development of distributed energy generation infrastructure is expected to positively impact the segment size. The research programs, and new collaborations between industry players to effectively enter the niche automotive Solid oxide fuel cell sector, is about to boost the transport segment growth.

Solid Oxide Fuel Cell Market - By End-User Industry:

• Data Centres
• Commercial and Retail
• APU

Based on end-users, this market is often majorly divided into commercial, data centers, military & defense, etc. The commercial sector is projected to carry a considerable stake across the world due to the setup of recent fuel cell-powered combined heat & power (CHP) power plants with various power outputs. Energy-efficient and innovative CHP generation solutions deliver eco-friendly ways to satisfy the rising energy needs of various buildings while having no atmospheric emissions and high electrical productivity. The data centers segment is expected to be dominant because of increasing research and pilot testing programs across new verticals to implement high energy savings together with significant emission declines.

Market Regional Analysis:

• North America
• Asia Pacific
• Europe
• Latin America
• The Middle East and Africa

The US is the largest and fastest-growing market within the region. The expansion in this country is often attributed to the high demand for cell power generation and the increasing research and development for hydrogen generation. Additionally, government policies and subsidies, including the Solid-State Energy Conversion Alliance (SECA), and the Department of Energy’s (DoE’s) Program, are the major factors for the growth of Solid oxide fuel cells within the US market.

Impact Of the COVID-19 Pandemic on the Solid Oxide Fuel Cell Market:

The outbreak of COVID-19 across the world in the first half of 2020 forced multiple countries to travel into complete lockdown. Since governments and native authorities issued strict guidelines, all non-essential operations were halted. This adversely affected the Solid oxide fuel cell market due to the suspension of activities of end-users.

Market Key Players:

The prominent players operating in the Solid Oxide Fuel Cell Market key players are:

1. Ceres Power (UK)
2. Mitsubishi Power (Japan) 
3. Aisin Seiki Co (Japan) 
4. Hitachi Zosen (Japan)  
5. Sunfire (Germany) 
6. Convion (Finland) 
7. Kyocera (Japan)
8. Elcogen (Estonia)
9. SOLIDPower (Italy)
10. Watt Fuel Cell Corporation (US) 
11. H2E Power (India)
12. ZTEK Corporation (US)
13. Bloom Energy (US)

Market Recent Developments:

• In November 2020, SK E & E&C and Bloom Energy signed an agreement with Korea’s Changwon RE100 to develop a solid oxide fuel cell Project. Under this project, both companies will supply 100% hydrogen-powered solid-oxide fuel cells and electrolyze.