Solid oxide fuel is useful for many purposes due to its high electrical efficiency. Today, thesolid oxide fuel cell market value is estimated at 403.3 USD million. However, the expected growth rate by 2023 is 30.0%. The solid oxide fuel contains components such as ceramic electrolyte that is compatible with natural gas. Some of the features of SOFC make it a highly valued fuel. The solid oxide fuel is resistant to high temperatures. It can function at a high temperature of 800ºC to 1,000°C. The increasing awareness about alternate fuel sources is major factors for solid-oxide fuel cell Market Growth. Other demand driving-factors of the industry are fuel flexibility, low operational costs and energy efficiency.
Today, carbon emission from energy sources is a universal issue. Many governments are utilizing innovative researches to manage this issue. Therefore, many fuel companies are opting for clean energy or eco-friendly fuel sources. These factors are raising the demand for the solid-oxide fuel cell market in the upcoming years. Further, the government’s subsidies alter the solid oxide fuel cell Market Trends.
Covid 19 analysis
The outbreak of covid 19 has caused the downfall of many industries around the globe. It has adversely affected the solid-oxide fuel cell Industry. Due to covid 19, many governments restrict all types of mobility. It has lead to the suspension of production and disturbance in the supply-demand chain in the SOFC market. The fuel industries are not operating in a full-fledged manner. The solid oxide fuel cell Market Analysis shows the crucial setbacks due to the pandemic.
The governmental policies and incentives offered for fuel cell production is the driving factors for market growth. The states such as Delaware, California and Connecticut are offering incentives for SOFC installations. Some of the states in the US allocate more than 500 million budgets for SOFC installation programs.
The plenty of tax rebates, development workshops and monetary support from the government are the crucial market drivers. Furthermore, there are plenty of national developments and reforms introduced for the SOFC market. Many successful fuel companies joined hands to install the SOFC power plant to increase production. There have been tons of promotion programs for the SOFC market. These efforts by top-agencies are paving its way for more growth of the solid-oxide fuel market in the forecast year 2023.
The global demand for clean energy has a positive influence on the SOFC market. The awareness for clean SOFC energy is another factor that drives more demand for the market. The development for producing natural gas is rising exponentially. These factors are completely changing the solid-oxide fuel cell Market Outlook. It is integrated into existing fuel systems to provide continuous energy. SOFC power is useful for a wide range of commercial and industrial purposes. It is compatible with any fuel combination. Also, no harmful emissions are released from solid oxide fuels. Therefore, both the government support and the global need for clean energy are the top driving factors of the SOFC market.
The demand from the end-users provides massive growth opportunities for SOFC markets. Data centres are the major end-users who consume immense power. They are the fastest-growing sectors to put SOFC energy into use. Also, the data centres require the undisrupted flow of power for smooth working and prevention of data loss. SOFC is a power source that meets all the requirements of data centres. Furthermore, due to high power consumption, the datacenters require a cost-efficient energy source.
There is no better power source than the solid oxide fuel cell to match their requirements. The adoption of SOFC by data centres power provides massive scope for growth in the market. Some of the data centres in the US are already utilizing SOFC that ultimately rises its market demand. The other popular data centres such as Google, IBM and Equinix are adopting SOFC in the future years. It enables increase in the solid oxide fuel cell Market Revenue in the forecast year 2023.
Another growth aspect of the SOFC market is the military sector. The military-sector requires efficient energy that is essential in noiseless military application. This requirement in the military-sector increases the growth opportunities for the SOFC market in the forecast period.
High capital costs of the SOFC are the major restraint in the market. SOFC is a complex component that is an integration of a variety of chemical elements. The combination of components such as electro-catalytic methane, natural gas and hydrogen gas are essential to generate SOFC electricity.
The crucial advantage of using SOFC is high-temperature resistance ad electrolyte features. However, to achieve these features, the stabilized-zirconium electrolyte is used. Zirconium is an expensive element. It contains titanium properties and comes with high melting points. The use of zirconium in SOFC increases the manufacturing and installation cost. It is the major restraint in the solid-oxide fuel cell market.
The startup duration of the SOFC operation is longer when compared to other fuel industries. As it is a high-temperature component, more time is required to reach critical functioning temperature. Therefore, higher startup time is essential to make the power functional and to reach full capacity.
Moreover, the SOFC releases extreme heat into the surrounding at the operation time. To control the heat, excessive-thermal shielding is required. The thermal shielding is dense that ultimately increases the weight of the solid oxide fuel. Due to these reasons, the SOFC is less-preferred in portable and emergency power applications. These technical difficulties are crucial challenges in the entire SOFC market.
There is a serious need to fix the technical difficulties of the solid oxide fuel. Making the SOFC functional-energy is the biggest-requirements of this market. Investing in R&D of SOFC is essential for market growth. Also, innovation is essential to use zirconium in a cost-effective way in SOFC. These developments will make the SOFC an easily functional and affordable clean energy in the fuel industry.
North America holds a solid-oxide fuel cell Market Sharein the world. The SOFC market in the US is growing rapidly. The high demand for fuel cell power and increasing development in hydrogen gas R&D are the main attributes for growth. Also, governmental policies and subsidies are the crucial SOFC market driving factors in the US. Also, the demand in these parts tends to grow more during the forecast year.
Based on type
Based on application
Based on end user
Based on region
North America is a massive SOFC regional market. The US states such as Connecticut and California are the key-contributors to the SOFC market growth. Plenty of supportive policies and reforms were introduced to create awareness. Bloom Energy is a top company to increase SOFC installations in the US. The Asia Pacific is another region where there is substantial growth for the SOFC market in the forecast period. Japan and South Korean are establishing new SOFC installations. Moreover, Europe is another region to adopt SOFC installations in countries such as Germany.
The market players in the competitive SOFC market are as follows
The market players by geography are
The key players in the SOFC market are
The new application development is the parameters of the competitive SOFC market. The key market players focus on cost-effective R&D programs to develop new technologies. Some of the prominent players of the market are
|CAGR||12.87% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Mobility, Application, End-user|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Mitsubishi Heavy Industries, Ltd., Ensol Systems, Bloom Energy, Sunfire GmbH, Aisin Seiki Co., Ltd., Ceres Power Holdings plc|
|Key Market Opportunities||Potential In Emerging Economies|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The market expansion is estimated to be at a rate of 12.87% in the near future.
The market has the capacity to achieve a valuation of USD 1,183.6 million by 2023.
The noteworthy companies in the market are Protonex (U.S.), Redox Power Systems (U.S.), Bloom Energy (U.S.), Delphi (U.K.), FuelCell Energy (U.S.), Atrex Energy (U.S.), Elcogen (Estonia), Ceramic Fuel Cell Ltd. (Australia), Convion Fuel Cell Systems (Finland), WATT Fuel Cell Corporation (U.S.), Ceres Power Holdings Plc. (U.K.), and others.
The substantial potential of the solid oxide fuel cell technology in emerging countries to bring down the energy costs is considered to be a massive opportunity in the market.
The types of solid oxide fuel cells available in the market are tubular and planar.
The power generation segment can gain the highest traction in the market.
The major end users are commercial & residential, data center, auxiliary power units and retail.
Global Solid Oxide Fuel Cell Market: Competitive Landscape
Bloom Energy (U.S.), Atrex Energy (U.S.), FuelCell Energy (U.S), Ceramic Fuel Cell Ltd. (Australia), and Ceres Power Holdings Plc. (U.K). have collectively accounted for more than 34% of the share of the global solid oxide fuel cell market in 2017. These companies continue to retain their strong global presence through expansions followed by partnerships and collaborations.
Bloom Energy held the largest market share of 21.1%. Bloom Energy is a major vendor in terms of providing solutions for reliable, affordable and clean energy. The company is a manufacturer of electricity – generating fuel cells, which require solid oxide ions that undergo chemical reactions to convert fuel to electricity. The company has its business through energy server platforms that comprise stacks of solid oxide fuel cell. Energy Servers are the solutions offered by Bloom Energy; are based on solid oxide fuel cell technology and each unit of these servers is capable of producing 200-300 KW of power and reduce carbon footprints at large scale. In February 2018, Bloom Energy was awarded the contract to provide power unit for a utility in South Korea. Bloom Energy offered an 8.35 MW unit of fuel cell that uses a chemical reaction to convert natural gas into electricity for customers of Korea South-East Power Co. The project will help the Korean utility to meet its renewable energy requirement.
Atrex Energy held a market share of 7.8%. Atrex Energy Inc. designs and manufactures remote power generation systems utilizing their patented SOFC technology for adverse operating conditions and remote locations. The company has a huge prospect to develop and expand, across the globe, over the forecast period. Since 2000 Atrex Energy has spent over USD 100 million on research and development of a commercially viable remote power generator utilizing solid oxide fuel cells (SOFC). Atrex Energy has increased the output power fuel cell tube by 120 times. The company developed SOFC design with a peak output of over 120kW with tripled density as well as it has developed around 18 patented technology.
FuelCell Energy delivers proprietary power solutions, which enable economic prosperity with clean and affordable supply, recovery and storage of energy. It offers solutions such as utility-scale and on-site power generation, carbon capture, local hydrogen production for transportation and industry, and energy storage to utilities, industries and large municipal power users on three continents. FuelCell Energy is engaged in design, manufacture, installation, development, operation and maintenance of environmentally responsible fuel cell power solutions. The company is also involved in developing solid oxide fuel cell stacks to configure efficient and cost-effective energy storage solutions for storing solar power and wind power. The company operates predominantly in the U.S. and has its operations in North America and Europe.
Ceramic Fuel Cells Ltd. is a world leader in solid oxide fuel cell technology and is engaged in developing SOFC technology for small-scale on-site micro combined heat and power (m-CHP) and distributed generation units. It company offers a wide range of products in fuel cell technology, which include powder and ceramic production, high-temperature metal and ceramic materials, advanced heat exchanger design, balance of plant system, fuel cell testing systems. Other than these, the company offers product grouped under fuel cells, fuel cell module, fuel cell systems, and balance of plants. Ceramic Fuel Cells Ltd. also provides the key components of a plant, which include heat exchangers, steam generators, pre-reformers & gas treatment, power electronics and others. The company has offices in Melbourne, Australia, Chester in UK, and Heinsberg, Germany.
Ceres Power Holdings plc is engaged in the business of metal supported solid oxide fuel cells. The company develops, commercializes, and improves its patented SteelCell technology. The technology has the potential to be the cost-effective fuel cell technology. The advanced SteelCell technology, a fuel cell technology that converts fuel directly into electrical power and uses the existing infrastructure of natural gas generators and is manufactured using commodity materials, such as steel. The company offers products for use in combined heat and power for commercial, residential buildings, data centres. Ceres Power Holdings has a good hold in electric automotive sector and is backed by original equipment manufacturers. The company’s vision is to bring cheaper, cleaner energy to businesses, homes, and vehicles and enable the global energy transition by deploying unique technology to ensure decarbonization and decentralization of energy system. The company has its presence in Europe, North America, and Asia Pacific.
The global solid oxide fuel cell market is characterized by the presence of many global, and regional players. Intense competition, and rapid advances in technology are key factors that confront market growth. The vendors compete in terms of cost, product quality, reliability, and aftermarket service. It is crucial for the vendors to provide cost-efficient and high-quality solid oxide fuel cell, to survive and succeed in an intensely competitive market environment. Extensive growth in solid oxide fuel cell market has brought to light that new product development on large scale to stay in competitive market, is a key strategy adopted, extensively, by the players with a share of more than 50.0%, to spread their geographical presence and improve operational efficiencies. Partnerships and collaborations is also a major strategy adopted by the major players in the global solid oxide fuel cell market with a share of more than 25%. This strategy is widely adopted to increase the market share of the company across the globe. For an instance in October, 2016, FuelCell Energy entered a contract that was supported by U.S. Department of Energy, for advancing the commercialization of solid oxide fuel cells.