The solid oxide fuel cells market is expected to grow at a CAGR of over 14% during the forecast period of 2020 - 2025. Factors such as rising environmental concerns and increasing demand for clean electrical energy are expected to be major drivers driving the market. The rising demand for clean energy over concerns of environmental impact of energy generation from conventional sources such as coal and natural gas, is expected to help grow the solid oxide fuel cells market. However, relatively high initial cost and a new technology have somewhat hampered the growth of the solid oxide fuel cells in the market.
- Data centers sector is expected to witness significant growth in forecast period, owing to various factors such as increase in investments in data centers, and usage of clean energy source for powering these centers. Use of solid oxide fuel cells in these centers have seen a rise due to energy efficiency of the fuel cells, and rising concerns over greenhouse gases emissions from conventional electricity generation methods.
- The increasing demand for electrical energy to sustain global development requires consistent heavy investments in energy efficient and clean energy sources. This has helped the market for solid oxide fuel cells to grow significantly in recent and is expected to do so in forecast period.
- Asia Pacific is expected to dominate the market growth with majority of the demand coming from the countries such as the China and India, owing to the factors like economic growth in the emerging nations, increasing number of data centers, and rising industrial activities.
Key Market Trends
Data Centers Sector to Dominate the Market Growth
- The data center market is expected to grow at a CAGR of over 8% in the forecast period, and along with-it power backup systems market is expected to grow too. 33% of the data centers outage is caused by power outages, and a power outage costs a lot of money to data centers operated. High efficiency, large capacity and continuous power generation capability have made solid oxide fuel cells a preferable choice for power backup and voltage variations.
- India is one of the fastest-growing economies in the world, and it is likely to boost the growth of public cloud-based data centers. The IT industry dominates the Indian market, as the largest private sector employer in the country, where data centers are widely used, thereby, propelling the solid oxide fuel cells market growth.
- There have been a massive increase in research and pilot testing of usage of solid oxide fuel cells in data centers. In September Microsoft along with McKinstry and Cummins launched world's first gas based data center.
- Therefore, with increase in internet usage, and ongoing research on solid oxide fuel cells, the market is expected to grow in forecast period.
Asia Pacific to Dominate the Market
- Asia-Pacific has dominated the solid oxide fuel cell market growth in 2018 and is expected to continue its dominance in the coming years as well. The region is expected to see an unprecedented increase during the forecast period.
- Japan is leading in the region with vast applications of fuel cells, ranging from backup services for datacenters, combined heat and power for homes, and many more. This is expected to provide a significant market growth for solid oxide fuel cell market.
- China has also witnessed a rise in its hyper-scale platforms, owing to which providing data center services for Chinese hyper-scale platforms has become necessary. China has 50 internet users per 100 population, indicating scope for lot of development and the connectivity ecosystem and thereby driving the solid oxide fuel cells market.
- Amazon Web Services is investing USD 1.6 billion to set up two data centers in India, with much of the investment going towards high end computer and storage units.
- Therefore, the aforementioned factors are expected to drive the market in forecast period, similar to the trend witnessed in recent years.
The solid oxide fuel cells market is fragmented with a log of active players. Some of the major companies are Mitsubishi Hitachi Power Systems, Ltd., DuPont de Nemours, Inc., Bloom Energy Corp., Sunfire GmbH, Ceres Power Holdings plc, Elcogen AS among others.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support