Global Solid Oxide Fuel Cells Market By Type (Tubular, Planar, and Other Types), By Application (Transportation, Portable, and Stationary) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2033

Market Overview

The global Solid Oxide Fuel Cells Market size is expected to be worth around USD 21.3 billion by 2033, from USD 1.4 billion in 2023, growing at a CAGR of 31.3% during the forecast period from 2023 to 2033.

One of the main factors driving the market growth is the increasing number of private-public partnerships. Solid oxide fuel cells are the fastest-growing alternative power option. They can generate electricity from a wide range of fuels. They are also eco-friendly because their by-product is non-toxic, which is unlike other traditional technologies.

The United States is one of the first to adopt clean energy solutions in the areas of power generation and transport. This is due to the U.S. government’s increased emphasis on clean energy solutions. These acts provide a guideline for implementing clean energy solutions within the country’s energy sector.

Note: Actual Numbers Might Vary In Final Report

Key Takeaways

• Market Growth Projection: The Solid Oxide Fuel Cells Market is expected to surge, reaching approximately USD 21.3 billion by 2033 from a base of USD 1.4 billion in 2023, showing a staggering CAGR of 31.3% during 2023-2033.
• Driving Factors: Private-Public Partnerships: Increasing collaborations are fostering market growth, making SOFCs a leading alternative power source. Environmental Benefits: SOFCs are eco-friendly, producing non-toxic by-products and catering to the rising demand for cleaner energy solutions globally.
• Type Analysis: Planar SOFCs Dominance: Accounting for over 61% market share in 2023, these stand out due to efficiency and compact design. Tubular SOFCs: Despite a smaller market presence, their robustness and suitability for high-temperature operations make them preferable for specific applications.
• Application Insights: Stationary Segment Dominance: Constituting 62% of 2023 revenue, stationary SOFC systems are noted for their efficiency and cleanliness in heat and electricity generation. Transportation Sector Growth: Collaborations between SOFC vendors and transportation sector suppliers are expected to drive SOFC-based applications in this sector.
• Drivers for Market Growth: Stringent Carbon Emission Norms: Growing demand for low-emission tech like SOFCs, propelled by strict regulations globally. Increasing Electricity Consumption: Sectors like data centers and the military are increasingly adopting SOFC solutions due to their effectiveness and reliability.
• Challenges Faced: Fuel Cell Degradation: Operating at high temperatures (~1,000°C) poses challenges in maintaining stability and preventing material damage. Carbon Dusting: Specific issues like carbon dusting arise from using ceramic parts, impacting fuel cell performance.
• Regional Analysis: APAC Dominance: APAC led the market in 2023, with Japan being a significant user of SOFCs in stationary sectors, expecting the fastest growth rate. North America & Europe Significance: The U.S. and European countries like Germany show strong growth due to governmental support and focused energy policies.
• Key Market Players: Prominent players like Bloom Energy, Mitsubishi Power Ltd., Cummins Inc., Ceres, General Electric, and Fuel Cell Energy Inc., among others, are driving innovation and development in the SOFC market.

Type Analysis

In 2023, the Planar type secured a leading position in the Solid Oxide Fuel Cells (SOFC) market, commanding over 61% of the market share. Planar SOFCs have emerged as a prominent choice due to their efficiency and compact design, appealing to various industries seeking reliable power generation solutions.

On the other hand, Tubular SOFCs, while holding a smaller market share in 2023, offer advantages such as robustness and suitability for high-temperature operations. Their design allows for easier maintenance and scalability, making them preferred in specific applications despite their smaller market presence.

The dominance of Planar SOFCs is largely attributed to their efficient power output and adaptability across different sectors. Meanwhile, Tubular SOFCs cater to niche markets due to their specific performance characteristics, demonstrating resilience and suitability for particular operational requirements.

Application Analysis

The market’s largest segment, the stationary application segment, accounted for 62% of the 2023 revenue share. The stationary solid oxide fuel cell system is the most efficient and cleanest way to generate heat and electricity. These systems are evaluated on three key parameters: net electrical efficiency, overall efficiency (in the case of cogeneration), and durability.

France and the UK, two European countries, are investing large in R&D for solid oxide fuel cells. These fuel cells can be used to power electric vehicles and other transportation applications. These factors are expected to increase the growth of the SOFC market’s stationary application segment over the forecast period.

Collaboration between SOFC vendors, transportation sector vendors, and SOFC suppliers is expected to lead to the development of SOFC-based transportation applications over the forecast period. In 2020, Ceres and AVL signed a strategic partnership for fuel cell development to speed up product development of SOFC technology in stationary and transportation applications. Both companies will combine their intellectual property portfolios in solid oxide fuel cell systems to provide new solutions for their clients.

Note: Actual Numbers Might Vary In Final Report

Key Market Segments

By Type

• Tubular
• Planar
• Other Types

By Application

• Transportation
• Portable
• Stationary

Drivers

Introduction of stringent carbon emission norms

Solid Oxide Fuel Cells Market, a clean technology using fuels like natural gas, produces almost no carbon emissions compared to other gas-based power technologies. It works differently, converting chemical energy directly into electricity without burning fuels.

The demand for low-emission tech, like SOFC, is rising due to strict rules on carbon emissions in regions like North America, Europe, and Asia Pacific. These rules also aim to limit the noise from diesel generators, reducing noise pollution. Every area has its own specific regulations.

For example, the European Union plans to cut carbon emissions by 20% by 2030. In the US, tough carbon emission standards have boosted the use of SOFCs. People are more aware of how carbon emissions affect climate change, pushing them to use cleaner energy sources. In 2022, electricity and heat generation caused a big increase in emissions.

The use of combined heat and power (CHP) systems led to a record high of 14.6 Gt emissions, with more emissions from coal-fired power. Yet, natural gas emissions remained stable. Renewable energy like solar and wind power helped lower carbon intensity, reducing power sector emissions by about 465 Mt. This need to cut emissions is driving the growth of SOFCs.

Restraints

Availability of alternatives

SOFCs don’t have a big share in the overall fuel cell market because they work for fewer purposes compared to other types. Proton exchange membrane fuel cells (PEMFC) dominate this market, having about 65% of it.

They’re versatile and used in many areas. PEMFC and direct methanol fuel cells (DMFC) are better for military uses, especially in small systems, as they work at lower temperatures. Other technologies like molten carbonate fuel cells (MCFC) and phosphoric acid fuel cells (PAFC) are rivals to SOFC in countries like the US, Japan, and South Korea. MCFC is especially competitive with SOFC in terms of cost and where they’re used, like in combined heat and power systems.

Opportunities

Increasing electricity consumption in data centers

Data centers and industries in the US are quickly becoming big users of power solutions. Data centers use a lot of power and need continuous electricity to avoid losing important data. Even though only a small number of data centers in the US use SOFC, it’s a very profitable business.

In the military, both fixed and movable SOFC power use is growing. The military needs quiet and effective power for their work, which is where SOFCs can fit in well. The military is increasingly using SOFC-powered gadgets for portable uses.

Challenges

Fuel cell degradation and carbon dusting

Solid Oxide Fuel Cells Market face several challenges because they operate at really high temperatures, around 1,000°C. Keeping this temperature steady is super important for how well they work. The materials used can get damaged, which is a big problem.

Different parts of the fuel cell need different materials because of how oxygen levels change inside it. Keeping these materials stable, especially the solid parts in low-oxygen conditions, and stopping them from reacting with other parts, is a big worry.

Sometimes, the materials inside can change shape and size, causing stress and making the fuel dirty or crack. Also, making sure the parts that connect everything stay stable in different conditions is tough. Ceramic parts are more stable but cost more.

Using ceramic parts can also cause another problem called carbon dusting. Lastly, matching the materials used for sealing with the rest of the fuel cell is important. All these material problems might be a big challenge for the solid oxide fuel cell market.

Regional Analysis

In 2023, the APAC was the dominant market and had the highest revenue share at 46.8%. In the next few years, the APAC will account for a significant share of global capacity demand. Japan is the epicenter. The majority of solid oxide fuel cells are used in stationary sectors in APAC. This market is expected to experience the fastest growth rate over the forecast period.

Malaysia, Singapore, and India are currently drafting regulations to help support the growth in alternative energy markets. Research institutes and government agencies are responsible for testing the operating hours and demand for solid oxygen fuel cells in India and Thailand. These factors will boost the growth in the SOFC market over the forecast period.

The stationary segment of North America is where solid oxide fuel cells are most widely used. This market will experience the fastest growth rate over the forecast period. Due to strong government support and a strategic focus on the market, the solid oxide fuel cell market has grown at an incredible rate in the United States.

Germany is one of the top markets for SOFCs in Europe. Structured energy policies and specific targets set by the German government can explain this. The energy policies also define the future development of technology related to solid oxide fuel cell technologies.

Note: Actual Numbers Might Vary In Final Report

Key Regions and Countries

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Key Players Analysis

The commercialization of SOFC systems in recent years has been limited to niche markets such as small-scale combined heating and power (CHP), in Japan, or on-site power generation, particularly for military and data centers in the U.S. Most market players have concentrated their research and development efforts on developing SOFCs for multiple uses. The market has seen a lot of public-private partnerships.

Although market players are gradually getting approval from policymakers to demonstrate their projects, industry players still have the uphill task of lowering the cost and improving quality. The market will see the introduction of micro-CHP programs targeting residential sectors in the next few years. The following are some of the most prominent players in the global solid oxide fuel cells market:

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• 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.
• Other Key Players

Recent Development

In June 2023, Bloom Energy signed an agreement with Perenco, an independent oil & gas company, to deploy 2.5 megawatts (MW) of Bloom’s solid oxide fuel cell technology in England.

In February 2023, WEICHAI POWER CO., LTD., a leading company of SOFC systems based in China, launched a stationary power SOFC system using Ceres technology. The newly launched SOFC system passed the EU CE certification.

In January 2023, Elcogen AS signed an MOU with Korea Shipbuilding and Offshore Engineering (KSOE) and Fraunhofer Institute for Ceramic Technologies and Systems (IKTS) for developing green hydrogen production and emission-free power generation systems. As per the partnership, Elcogen AS will supply its solid oxide fuel cell (SOFC) and solid oxide electrolyzer cell (SOEC) technology.

In July 2022, Aisin Corporation declared to acquire SBT Certification, an organization that sets Science Based Targets (SBTs). SBTs embody greenhouse gas emission-reduction goals that align with the scientifically established target outlined in the Paris Agreement.

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