Solid oxide fuel cells are devices that have a ceramic membrane that allows them to conduct ions and flow currents at high temperatures. They are electrochemical units that use non-porous and solid metal oxide electrolytes to convert chemical energy into thermal energy and electricity with the help of hydrogen fuel. Because of their ability to operate at high temperatures, high efficiency, stability, and acceptance of a variety of fuels, these units are widely used in a wide range of applications.
The worldwide solid oxide fuel cell market was worth $869.71 billion in 2021 and will reach $12.25 billion by 2030, growing at a CAGR of 11.78% throughout 2021-2030.
Market Dynamics
- Growth Factors
The growing demand for greater energy efficiency in power generation has accelerated the adoption of solid oxide fuel cells in recent years. The solid oxide fuel cell market is being driven by an increase in environmental concerns, the implementation of stringent emission regulations around the world, and an increase in government support and initiatives.
Several governments provide financial incentives for the purchase of new energy vehicles and the installation of fuel cells. The growing global population and increased energy demand have prompted the use of clean energy sources. They can provide clean, efficient, and dependable power to a variety of devices.
- Restraints
The primary factor severely impeding the expansion of this market is the cost of fuel cells. The average cost of a fuel cell is around USD (32,000 to 34,000).
- Opportunities
Fuel cells are increasingly being used in data centers and military applications. Due to the massive power consumption, data centers are planning to reduce costs by implementing distributed power generation methods, particularly fuel cells, including SOFC, which have previously shown tremendous growth. On the other hand, the demand for efficient and noiseless power generation for military applications is increasing at an alarming rate. All of these critical factors are expected to drive future growth in the solid oxide fuel cell market.
Segmentation analysis
Application Insights
In 2021, the stationary application segment led the market, accounting for 81.35% of total revenue. The most efficient and cleanest heat and electricity generation technology is a stationary solid oxide fuel cell system. These systems' performance is measured using three high-level parameters: overall efficiency in the case of cogeneration, net electrical efficiency, and durability.
Solid oxide fuel cell research and development are receiving significant funding from European nations like France and the UK for use in transportation and energy production. Throughout the forecast period, the factors mentioned above are anticipated to support the stationary application segment's growth in the SOFC market.
End-User Insights
In 2020 the commercial and industrial segment ruled the overall market with a revenue share of more than 48.22%. It is due to the continuous increase in the demand for solid oxide fuel cells for industrial and commercial purposes.
Regional Insights
In 2021, the Asia Pacific region held a commanding 46.78% revenue share of the global market. In the upcoming years, it is estimated that the Asia Pacific will demand a significant portion of the world's capacity, with Japan serving as its hub. In the Asia Pacific, solid oxide fuel cells are broadly used in stationary markets. During the anticipated period, the market will experience the highest growth rate.
Regulations are still being developed in nations like India, Singapore, and Malaysia to support the expansion of the alternative energy markets. Solid oxide fuel cells demand in Thailand, India, and Singapore is being driven by government agencies and research organizations that are experimenting with how long solid oxide fuel cells can operate. During the forecast period, these factors are anticipated to spur the growth of the SOFC market in the region.
Major Players
Major players working in the solid oxide fuel cell market are:
- Hitachi Zosen Corporation
- Watt Fuel Cell Corporation
- Special Power Source
- Upstart Power
- Kyocera Corporation
- Bloom Energy
- Adaptive Energy
- Solid power
- Other Players
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