Solid Oxide Fuel Cell Market Set to Witness an Uptick during 2022 to 2030

Posted by Mrudula Karmarkar on October 14th, 2022

The global solid oxide fuel cell market[MV1] size is expected to reach USD 7,124.4 million by 2030, registering a CAGR of 40.7% during the forecast period, according to a new report by Grand View Research, Inc. Growing expenditure on infrastructure and industry development is expected to have a positive impact on the global market in the forecast period.

Installers and system providers usually hold stock of significant equipment in the inventory. However, manufacturers face bottlenecks and shortages due to the limited production in countries, severely affected by the COVID-19. Further, upcoming Solid oxide fuel cells (SOFC) based large-scale projects are expected to witness delays in commissioning due to the disruptions in supply chain and halting of on-site construction activities.

Rising awareness about alternative sources of energy is one of the major factors encouraging market growth. Increasing carbon emission levels is a global issue, and government authorities worldwide are supporting technological advancements to tackle the issue by providing research funding and drafting supportive policies and plans.

The global SOFC market is highly competitive owing to the ongoing technological advancements by the existing vendors and new entrants. Market players are concentrating on strengthening their relations with system installers due to their strong local presence and close ties with the clients, which in turn is likely to help enhance geographical presence.

The increasing private-public partnerships are one of the key factors fostering the market growth. Solid oxide fuel cells (SOFC) are one of the fastest-growing alternate backup power options, primarily due to their ability to generate electricity using a variety of fuels. In addition, they are eco-friendly as their by-product is harmless, unlike other conventional technologies. The U.S. is among the early adopters of clean energy solutions for the sectors such as power generation and transportation. This can be attributed to the increased importance of clean energy solutions as per the energy act, introduced by the U.S. government. Such acts have provided a starting guideline regarding implementing clean energy solutions in the country’s energy sector.

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https://www.grandviewresearch.com/industry-analysis/solid-oxide-fuel-cells-market/request/rs1

Favorable government regulations and their ability to cut down emission rates and use domestic sources of energy such as natural gas are some of the key factors likely to boost the market during the next eight years. Furthermore, the rising emphasis of the regional governments of mature economies such as the U.S. and Europe on reducing emissions and their inclination toward a technological shift to support or, to some extent, even replace the aging electric grids is likely to drive the market during the forecast period.

Solid Oxide Fuel Cell Market Report Highlights

  • In terms of revenue, the stationary segment accounted for a prominent market share of 81.35%  during 2021 and is further expected to witness major growth during  the forecast period
  • As of 2021, the Asia Pacific accounted for 46.78% revenue share in the overall SOFC market
  • In Europe, Germany dominated the market by the revenue share during  2021
  • Government funding and aggressive mergers & acquisitions between companies for alternative energy technologies contribute to heavy investments in Europe. Transportation is predicted to be the viable segment for the utilization of solid oxide fuel cells during the coming years

COVID-19 has hindered the market for SOFC globally owing to the factors such as disruption in the supply chain, which delayed some projects. Further, demand has been reduced for SOFC systems, deployed in residential and commercial end-user segments due to the limited new construction activities and diversion of available funds by the residential and commercial end-users, to sustain the COVID-19 pandemic.

In recent years, commercialization of SOFC systems has started with specific niche markets, such as small-scale combined heat and power (CHP) in Japan, and on-site power generations, especially for data centers and military applications in the U.S. Majority of the market participants have focused their research and development activities to develop SOFCs for multiple applications. As a result, the market has witnessed a number of public-private partnerships.

Even though the market participants are slowly getting approval from policymakers for demonstrating their projects, the industry players have an uphill task of bringing down the cost and improving the quality. In the coming years, the market is expected to witness the introduction of programs for micro-CHP systems targeting the residential sector.

Some prominent players in the global solid oxide fuel cell market include:

  • Bloom Energy
  • Mitsubishi Power Ltd.
  • Cummins Inc.
  • Ceres
  • General Electric
  • Fuel Cell Energy Inc.
  • Ningbo SOFCMAN Energy
  • KYOCERA Corporation
  • AVL
  • NGK SPARK PLUG CO., LTD.

 [MV1]

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Mrudula Karmarkar

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Mrudula Karmarkar
Joined: March 30th, 2020
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