Solid Oxide Fuel Cell Market Analysis by Type (Planar and Tubular); by Application (Portable, Stationary, & Transport); and by End -User (Commercial & Industrial, Data Centers, Military & Defense, and Residential) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
Buy Now Report ID: 3514 | Published Date: Mar 03, 2023
The global solid oxide fuel cell market is estimated to garner a revenue of nearly USD 7 Billion by the end of 2033 by growing at a CAGR of ~34% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of around USD 2 Billion in the year 2022. The growth of the market can be attributed to the growing popularity of solid oxide fuel cells as the fastest growing alternate power backup options as they can generate electricity from different fuels. Also, a rise in the installation of green energy technologies is estimated to fuel the growth of the market. As of 2019, 11% of primary energy across the world is produced by renewable technologies.
The increasing concern for the environment among people is expected to rise the preference for solid oxide fuel cells as they release eco-friendly by-products is estimated to boost the solid oxide electrolyzer cell market. As per the findings in 2021, about 80% of people in Indonesia, 70% of people in the Philippines, and Vietnam become eco-friendly. On the other hand, the market growth is also attributed to rising government efforts to boost the use of clean energy. United States Offers Global Public Financing Of $94 Billion To Promote Sustainable Energy Globally. Moreover, international leaders must raise around USD 90 billion in public investment over the next four years for commercial-scale clean energy demonstration projects in order to achieve the global climate goals.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~34% |
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Base Year Market Size (2022) |
~ USD 2 Billion |
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Forecast Year Market Size (2033) |
~ USD 7 Billion |
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Regional Scope |
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Growth Drivers
Constant Research and Development Activities on Hydrogen Energy – Hydrogen is used in fuel cells in order to prevent the release of harmful chemicals as by-products. The usage of hydrogen produces only water and heat as by-products reducing combustion reactions and environmental pollution. Thus, hydrogen cells are estimated to have a positive impact on market growth. As per the statistics of the International Energy Agency (IEA) 2019, about 14.4 exajoules (EJ) i.e., 4% of global final energy was produced from hydrogen.
Rising Importance for Clean Energy Solutions – Solid oxide fuel produce small amount of carbon dioxide, thus they work efficiently and yet considered environmental friendly. As per U.S Energy Information Administration, in 2019, the percentage of renewable energy sources comprise 12.2% of total U.S energy utilization and 20.1% of electricity production.
Increasing Government Regulations on Release of Greenhouse Gases – Solid oxide fuel cells are effective and environmentally friendly since they don't require combustion to transform chemical energy from a fuel gas into electrical work. Therefore, reducing the emission of greenhouse gases. As per the U.S Environmental Protection Agency, the production of electricity generated 25% of greenhouse gases in 2020.
Reducing Dependency on Fossil Fuels for Energy Production – solid oxide fuel cells are capable of generating electricity by using natural gas, renewable energy, and hydrogen, thus reducing the dependency on fossil fuels. The total energy consumption of the U.S from fossil fuels was reduced to 80% in 2019, up from 94% in 1966.
Increasing Advanced Data Centers – Data center infrastructure management can benefit from highly efficient electricity provided by solid-oxide fuel cells (SOFCs), which use the existing natural gas infrastructure as fuel. Around 48% of participants said they are planning to building data centers during the next 12 to 36 months. Moreover, nearly 62 % people revealed that they intend to build data center in next three years.
Challenges
The global solid oxide fuel cell market is segmented and analyzed for demand and supply by application into portable, stationary, and transport. Out of which, the stationary segment is anticipated to hold the largest market size over the projected time frame. The growth of the segment can be attributed to the exponential rise in energy demand in various verticals. World energy consumption is estimated to grow by 50% between 2018-2050. Moreover, rising capacity of off grid energy grid is also expected to boost the segment growth. The technology behind solid oxide fuel cells (SOFC) has advanced to the point that it can now achieve electrical efficiency of more than 60%. They are therefore very well suited for off-grid applications. In 2021, China had an off-grid renewable energy capacity of 906.23 gigawatts, it is around 5% higher from the year 2020
The global solid oxide fuel cell market is also segmented and analyzed for demand and supply by end-user into commercial & industrial, data centers, military & defense, and residential. Amongst these four segments, the commercial and industrial segment is expected to garner a significant share. The segment growth is credited to rising energy demand from commercial and industrial sector. The amount of power used directly by the industrial and commercial sectors totaled roughly 0.14 trillion kWh, or about 3% of the total amount used. Additionally, in 2021, retail electricity sales to the commercial sector rose by around 3%. Moreover, the demand for electricity from industrial sector jumped by 3% from the year 2000.
Our in-depth analysis of the global solid oxide fuel cell market includes the following segments:
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By Type |
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By Application |
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By End User |
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The Asia Pacific solid oxide fuel cell market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the rising demand for renewable energy in the region. By 2025 and 2030, respectively, China and India intend to boost the installed capacity of renewable energy sources to more than 50%. Moreover, in the coming ten years, Indonesia plans to add 41 gigawatts of capacity, with renewable energy constituting the vast majority of built capacity for the first time. In the coming ten years, Vietnam plans to add about 70 gigawatts of capacity, with around 36% to 39% coming from renewable sources. Besides this, higher number of data centers present in the region. India had 138 data centers as of March 2022; by 2025, that number is anticipated to increase to 183, and Germany has about 487 data centers.
The North America solid oxide fuel cell market, amongst the market in all the other regions, is projected to hold the significant market share by the end of 2033. The market growth in the region is expected on the account of rise in the number of data centers and higher energy consumed by data centers, backed by the growing awareness and need for data center infrastructure management. As per the estimations, the number of data centers in the U.S are more than 2,500 utilizing more than 1.5% of the total energy of the U.S. Furthermore, In the year 2020, there were around to 2600 data centers in the United States. Moreover, in Canada currently, there are 181 colocation data centers across 26 regions.
Sunfire GmbH installed the first world’s multi-megawatt high-temperature electrolyzer to generate green hydrogen based on solid oxide electrolysis cell.
Robert Bosch GmbH formed an alliance with Ceres Power Holdings plc to prepare for full-scale production and planned to invest hundreds of millions in the solid oxide fuel cell till 2040.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Increasing demand for clean energy solutions and increasing number of advanced data centers are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~34% over the forecast period, i.e., 2023 – 2033.
Ans: The high cost and fabrication and deterioration in the performance of cells are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Robert Bosch GmbH, Mitsubishi Heavy Industries, Ltd., Aisin Corporation, Sunfire GmbH, FuelCell Energy, Inc., Catator ABNexceris, LLC, Ceres Power Holdings plc, General Electric Company, and Doosan Fuel Cell Co., Ltd.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, end user, and by region.
Ans: The stationary segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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