ID: MRFR/E&P/2928-CR | 96 Pages | Published By Priya Nagrale on October 2020
Solid Oxide Fuel Cell Market Size was valued at USD 0.1 billion in 2021. The solid oxide fuel cell market industry is projected to grow from USD 0.14 billion in 2022 to USD 1.3 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 37.30% during the forecast period (2022 - 2030). Due to their better efficiency, these cells are being adopted more and more, and there has been an increase in fuel cell research and development, which are considered to be the main market drivers for market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
One of the key determinants of the expansion of the solid oxide fuel cell sector is the government's fuel cell rules and incentives. Fuel cell programmes are at the forefront in states like California, Delaware, and Connecticut, which also provide incentives and subsidies for fuel cell installations, resulting in SOFC and other fuel installations in the US. Prior to December 31, 2016, fuel cells deployed in the US were eligible for a tax credit of USD3,000/kW, or 30% of the project cost. The Self-Generation Incentive Program (SGIP) of California provides incentives for generators to assist existing, new, and emergent distributed electricity generation. The programme has since been extended, with the most recent development being a workshop held by the Energy Division on SGIP Renewable Generation. California had authorised a budget of USD 566 million for SIP until 2019, but it has since increased that amount. The major nations in Asia Pacific that are putting the most emphasis on the development of fuel cells for a variety of uses, including utility-scale power generation, are China, Japan, and South Korea. 2019 will see new energy vehicle subsidies announced jointly by China's National Development and Reform Commission, Ministry of Science and Technology, Ministry of Industry and Information Technology (MIIT), and Ministry of Finance. Along with this, businesses like Bloom Energy and its affiliates have been collaborating closely with the South Korean government to build utility-scale SOFC power plants. Thus, this factor is driving the market CAGR.
The gadgets are easily used as a dependable power source for several verticals, including fixed, transport, and portable. The units provide a reliable, clean, and energy-efficient output to meet the demand, which is growing quickly. The adoption of green power production techniques, together with the massive hydrogen and other renewable aims to keep a lid on the growing GHG levels, are expected to significantly increase attention, which is expected to drive product demand. For instance, the South Korean government unveiled a new policy in January 2019 dubbed the Hydrogen Economy Roadmap that outlines the objectives for H2 technologies. According to the policy, by 2040, the nation plans to produce 6.2 million FCEVs and instal 1,200 hydrogen refueling stations. By the target year, the plan also aims to provide approximately 15 GW of FC systems for stationary power generation.
Another primary factors driving the SOFC market is the growing awareness of the need to reduce harmful carbon emissions and the increasing adoption of low carbon technologies. A number of nations have stated their intentions to meet the rising energy demand with clean power production sources, promoting the possibility for fuel cell deployment. For example, the International Energy Agency (IEA) said in its Global Energy Review 2021, released in April 2021, that in 2020, the use of clean energy climbed by about 3%, while the production of electricity from renewable sources increased by nearly 7%. It further stated that during the same time period, the demand for other important fuels decreased. Thus, it is anticipated that this aspect will accelerate solid oxide fuel cell market revenue globally.
The Solid Oxide Fuel Cell Market segmentation, based on type is divided into Planar and Tubular. The planar segment dominated the solid oxide fuel cell market revenue in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Due of the straightforward geometry and very simple building procedure, the development is obvious. The ceramic fuel cell modules are normally placed one on top of the other in a sandwich-style arrangement with the electrolyte inserted between the electrodes in planar solid oxide fuel cells.
The Solid Oxide Fuel Cell Market segmentation has been segmented by mobility into Stationary and Portable. The stationary segment dominated the market growth in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. One of the cleanest and most effective methods of producing heat and power is a stationary solid oxide fuel cell system. Three major factors—net electrical efficiency, total efficiency in the case of cogeneration, and robustness—are used to evaluate how well these systems function.
Figure 2: Solid Oxide Fuel Cell Market by mobility, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Solid Oxide Fuel Cell Market data has been segmented by application into Combined Heat and Power. The power segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The market is anticipated to be driven by rising demand for the production of renewable energy. Power generation includes distributed power storage and remote and backup power options for domestic, industrial, and commercial applications such as data centres, telecom towers, retail establishments, and residential communities.
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific solid oxide fuel cell market accounted for USD 0.05 billion in 2021 and is expected to exhibit a 43.90% CAGR during the study period. Large government targets for FC technology, expanding urbanization and industrialization, rising energy demand, and changes in the existing infrastructure are a few of the causes supporting the expansion.
Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: SOLID OXIDE FUEL CELL MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America solid oxide fuel cell market accounts for the fastest growing market share. Due to strong government support and a strategic market focus, the solid oxide fuel cell market in the United States has expanded tremendously and is increasing rapidly relative to the rest of the world. Moreover, US solid oxide fuel cell market held the largest market share, and the Canada solid oxide fuel cell market was the fastest-growing market in this region
Europe solid oxide fuel cell market is expected to grow at a substantial CAGR from 2022 to 2030 because there is a growing need for the production of renewable energy, there is a greater emphasis on reducing carbon footprint, and hydrogen-based Combined Heat and Power (CHP) systems are being used. For instance, the Fuel Cells and Hydrogen Joint Undertaking (FCH JU), a private-public collaborative R&D programme in Europe, predicted in 2019 that by 2050, hydrogen fuel will likely make up roughly 24% of the region's total energy consumption. Further, the UK solid oxide fuel cell market held the largest market share, and the Germany solid oxide fuel cell market was the fastest-growing market in the region.
Major market players are spending a lot on R&D to increase their product lines, which will help the solid oxide fuel cell industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.
One of the primary business strategies manufacturers adopt in the global solid oxide fuel cell industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, solid oxide fuel cell industry has provided medicine with some of the most significant benefits. The solid oxide fuel cell market major player such as Mitsubishi Heavy Industries Ltd, Ensol Systems, Bloom Energy, Sunfire GmbH, Aisin Seiki Co. Ltd and Ceres Power Holdings plc.
Founded in the UK, Ceres Power Holdings plc is a fuel cell engineering and technology business. The Company's main priorities are the advancement of hydrogen and power production technology. The solid oxide fuel cell (SOFC) technological sector is how it functions. In October 2020, Ceres Power Holdings Plc and Doosan Fuel Cell Co., Ltd. announced jointly that the building of a new SOFC manufacturing facility with a 50 MW capacity by 2024 will strengthen their strategic partnership. The new unit, which Doosan will construct, will make use of Ceres' experience to develop improved power systems for utility-scale applications.
San Jose, California serves as the corporate headquarters of Bloom Energy. It produces and sells on-site electricity-generating solid oxide fuel cells. The business was started in 2001, and it came out of hiding in 2010. In June 2020, a joint development agreement (JDA) was signed by Bloom Energy and Samsung Heavy Industries (SHI) to design and manufacture fuel cell propulsion systems for maritime vessels. In order to meet the climate goals of the International Maritime Organization, SHI wants to include effective fuel cell systems into its fleet of ships.
September 2021: Blooming Technologies unveiled the Hydrogen-based Servers. This system uses a partial oxidation stack and hydrogen as fuel to potentially supply on-site energy. It was hoped that such electrolytes will begin to be shipped commercially in 2022. These PCs underwent a five-month testing phase in South Korea alongside the SK Eco facility.
January 2021: A funding was provided by the Danish Energy Technology Development and Demonstration Program (EUDP) for a collaborative project to quicken the advancement and application of SOFC technology in the maritime sector. Alfa Laval, Haldor Topse, DTU, Svitzer, and Maersk McKinney Mller Center are the project's partners.
|Market Size 2021||USD 0.1 Billion|
|Market Size 2022||USD 0.14 Billion|
|Market Size 2030||USD 1.3 Billion|
|Compound Annual Growth Rate (CAGR)||37.30% (2022-2030)|
|Historical Data||2018 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Modality, Application, and Region|
|Geographies Covered||North America, Europe, Asia Pacific, and Rest of the World|
|Countries Covered||The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||Mitsubishi Heavy Industries Ltd, Ensol Systems, Bloom Energy, Sunfire GmbH, Aisin Seiki Co. Ltd and Ceres Power Holdings plc|
|Key Market Opportunities||Governments have a lot of goals to reduce their reliance on fossil fuels to support growth|
|Key Market Dynamics||Green energy technology use is increasing, which will boost market growth Government funding and expanded fuel cell programme R&D|
The market size was expected to be USD 0.1 billion in 2021.
The market is expected to register a CAGR of ~37.30% over the next ten years.
Asia Pacific held the largest market share in the market.
Mitsubishi Heavy Industries Ltd, Ensol Systems, Bloom Energy, Sunfire GmbH, Aisin Seiki Co. Ltd and Ceres Power Holdings plc are the key players in the market.
The stationary category led the segment in the market.
The power category had the largest market share in the market.