Market Research Report
Solid Oxide Fuel Cell Market Forecasts to 2028 - Global Analysis By Type (Planar, Tubular), Product Mobility (Transport, Portable), Application (Power Generation, Auxiliary Power Unit) and By Geography
|Solid Oxide Fuel Cell Market Forecasts to 2028 - Global Analysis By Type (Planar, Tubular), Product Mobility (Transport, Portable), Application (Power Generation, Auxiliary Power Unit) and By Geography|
Published: February 1, 2022
Stratistics Market Research Consulting
Content info: 200+ Pages
Delivery time: 2-3 business days
According to Stratistics MRC, the Global Solid Oxide Fuel Cell Market is accounted for $1,119.42 million in 2021 and is expected to reach $6,336.30 million by 2028 growing at a CAGR of 28.1% during the forecast period. Solid oxide fuel is useful for many purposes due to its high electrical efficiency. 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.
Government subsidies and increased R&D on fuel cell programs
Government policies and incentives provided for fuel cells are some of the important driving factors for the growth of the solid oxide fuel cell industry. States such as California, Delaware, and Connecticut lead in fuel cell programs and offer incentives and subsidies for fuel cell installations, leading to SOFC and other fuel installations in the US. The Self-Generation Incentive Program (SGIP) of California supports the existing, new, and emerging distributed electricity generation through rebates for generators. California had authorized a budget of USD 566 million for SGIP until 2019; however, the program has further been extended, with the latest development being a workshop held by the Energy Division on SGIP Renewable Generation.
High capital costs required for SOFC
SOFC is a complex integration of different chemical elements for the electro-catalytic oxidation of methane, LP gas, and other natural gas-based fuels to generate electricity. Since the basic chemical process is an exothermic reaction, SOFC usually operates at very high temperatures, typically ranging from 700°C to 1,200°C. Conventional ceramic electrolytes do not offer high operational efficiency at such temperatures; therefore, yttria-stabilized zirconia (YSZ) is required as an electrolyte. Further, a study conducted by a US research institution concluded that cell performance increases further when YSZ composite electrodes are also used with the electrolyte. Zirconium is an element that has titanium-like properties and has an extremely high melting temperature of 1,852°C. However, the cost of per unit zirconium is almost double the per-unit cost of conventional ceramic-based electrolytes. This increases fuel cell manufacturing and installation costs, which is one of the major restraints for this market.
Increasing adoption by end users in data centres and military sector
Data centers are the fastest-growing end-users for power generation applications in the US. Operating a data center is highly power-consuming and power intensive. Additionally, data centers require uninterrupted power 24*7 to minimize the loss of valuable data. According to the IEEE Communications Society, globally, electricity demand from data centers in 2018 was an estimated 198-terawatt hour, or almost 1% of the demand for electricity in the world. Due to the high consumption of power, data centers are opting for cost reductions by adopting distributed power generation, particularly fuel cells.
High operating temperatures and start-up time of SOFC
SOFC requires a longer duration for starting up operation when compared to other fuel cell technologies. Being a high-temperature technology, SOFC requires time to reach a critical operating temperature to function at full capacity, thus contributing to higher start-up time. In addition, the operation of a SOFC releases a high amount of heat into the surrounding, which significantly increases the need for good thermal shielding, ultimately increasing its weight. These are the main reasons why SOFC has a low market share in portable applications and emergency power applications.
The stationary segment is expected to be the largest during the forecast period
The stationary segment is expected to be the largest share due to the increasing focus on hydrogen-powered fuel cells for backup power, highly focusing on utilizing renewable energy and hence opting for utility-scale SOFC power plants by the governments of South Korea, China, and Japan.
Region with highest share:
North America is projected to hold the largest share in the market due to the rapidly growing investments, strict government carbon reduction targets, increasing energy demand, and rapidly developing commercial infrastructures.
Region with highest CAGR:
North America is projected to have the highest CAGR in the market. Solid oxide fuel cells majorly find wide-scale applications in the stationary segment in North America. The market is expected to expand further at a considerable growth rate over the forecast period. The market in the U.S. has developed at a tremendous rate and is growing significantly compared to the rest of the world on account of strong government support and strategic market focus.
Key players in the market:
Some of the key players profiled in the Solid Oxide Fuel Cell Market include AVL, Bloom Energy, Ceres, Convion Ltd., Cummins Inc., DuPont de Nemours, Inc., FuelCell Energy Inc., General Electric, KYOCERA Corporation, Mitsubishi Hitachi Power Systems, Ltd., Hexis S.A., NGK SPARK PLUG CO., LTD., Ningbo SOFCMAN Energy, Sunfire GmbH, and Watt Fuel Cell Corporation.
In October 2020: Ceres Power Holdings Plc and Doosan Fuel Cell Co., Ltd. collectively announced to boost their strategic collaboration with the construction of a new SOFC manufacturing facility with 50 MW capacity by 2024. The new unit will be built by Doosan and utilize Ceres's expertise to deliver enhanced power systems across utilityscale applications.
In June 2020: Bloom Energy and Samsung Heavy Industries (SHI) inked a joint development agreement (JDA) to design and produce fuel cell units to propel marine vessels. SHI aims to integrate efficient fuel cell systems in its ship fleets to the International Maritime Organization's climate objectives.
What our report offers:
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options: