An electrochemical device called a solid oxide fuel cell (SOFC) converts the chemical energy of fuels into electrical energy. Because they produce energy without the need for combustion, SOFCs are more effective and environmentally friendlier than traditional electric power methods. Due to their high performance and fuel adaptability, these cells are used in various applications, including data centers, residential areas, power plants, and autos.
The market worth of solid oxide fuel cells in 2021 was USD 869.71 billion and will reach USD 12.25 billion by 2030 at an 11.78% CAGR.
Flexible fuel options, minimal emissions, great heat and power efficiency, low cost, and long-term stability are all benefits of SOFCs. One of the key factors boosting demand for the solid oxide fuel cell market is the growing use of these cells due to their better efficiency. Increased fuel cell research and development will boost market expansion.
Market Dynamics
Drivers
The usage of solid oxide fuel cells has increased over the past several years due to the growing demand for higher energy efficiency in connection with the production of electricity. The solid oxide fuel cell market is expanding due to rising environmental concerns, the implementation of strict emission rules globally, and increased government backing and efforts.
For the installation of fuel cells and the purchase of new energy vehicles, several governments provide subsidies. Clean energy sources have been adopted due to the growing global population and increased energy demand. They can provide a variety of devices with clean, effective, and dependable power generation.
Restraints
The primary factor severely impeding this business’s expansion is fuel cell expense. The average cost of a fuel cell is about USD (32,000 to 34,000).
Opportunities
Fuel cells are increasingly being used in military applications and data centers. The data centers are preparing for price reductions by adopting the distributed power production method, notably the fuel cells, including SOFC, that had previously shown significant growth. This is due to the consumption of enormous amounts of power. However, the demand for effective and silent power generation for military applications is continuously growing. Future market expansion for solid oxide fuel cells is anticipated to be fueled by all these important aspects.
Market Segmentation
Type Insights
In 2020, the “planar” sector had the biggest market share of nearly 60.22%. This is because building it was a lot simpler procedure. The ceramic fuel cell modules of the Planar kind of SOFCs are arranged one on top of the other, resembling a sandwich with an electrolyte sandwiched between the two electrodes.
Application Insights
In 2021, the stationary application segment ruled the market and contributed nearly 81.35% of total revenue. Stationary solid oxide fuel cell is the cleanest and most effective method of producing heat and power. Three high-level characteristics, including net electrical efficiency, total efficiency in cogeneration, and durability, are prioritized when evaluating these systems’ performance.
End-user Insights
The Commercial & Industrial segment accounted for more than 48% of the market in 2021 and had the highest end-user share. This is due to the growing demand for SOFCs for commercial and industrial applications.
Regional Insights
North America largely ruled the regional market in 2021 with 44% of the revenue share. The region’s product demand is driven by the strong need for fuel cell power generation and growing research and development for hydrogen production. The market in the United States has developed at a remarkable rate and is expanding significantly faster because of strong government support and strategic market emphasis. The U.S. Department of Energy (DOE) stated in September 2021 that it will provide US$34 million to design and produce small-scale SOFC systems.
The Asia Pacific region will expand at a rapid CAGR. Governments all around the region have chosen utility-scale SOFC power facilities since they are primarily focused on utilizing renewable energy. The top nations in the Asia Pacific that support the use of fuel cells for various uses, including utility-scale power generation, are China, Japan, India, and South Korea.
Key Players
- Mitsubishi Power
- Aisin Seiki
- Hitachi Zosen Corporation
- Bloom Energy
- Ceres Power
- Adaptive Energy
- Solid Power
- Adelan
- Watt fuel cell corporation
- Upstart power
- Convion ltd
- Kyocera Corporation
- AVL
- Special Power Source
- ZTEK Corporation
- h2e Power
- Elcogen AS
- Miura
- Sunfire
The market worth of solid oxide fuel cells in 2021 was USD 869.71 billion and will reach USD 12.25 billion by 2030 at an 11.78% CAGR. The solid oxide fuel cell market is expanding due to the rising utilization in data centers, the military, and the defense sector. The market will rise in the upcoming years as a result of growing R&D efforts and installations of green energy technology.