Global Solid Oxide Fuel Cell (SOFC) Market 2024-2031

Global Solid Oxide Fuel Cell (SOFC) Market 2024-2031

Global Solid Oxide Fuel Cell (SOFC) Market Size, Share & Trends Analysis Report ByTechnology (Planar SOFCs,Tubular SOFCs, and Other configurations), by Application (Power Generation,CombinedHeat and Power (CHP) Systems, Auxiliary Power Units (APUs), Military,Remote and Off-Grid Power, Portable Power) Forecast Period (2024-2031)

GlobalSOFC market is anticipated to grow at an exponential CAGR of 32.8% during the forecast period (2024-2031).SOFCs are electrochemical systems designed to directly convert the chemical energy of a fuel and oxidant into electrical energy. Their operational method, which relies on an electrochemical reaction rather than combustion, makes them remarkably more efficient and environmentally friendly compared to traditional electric power generation methods. Due to these inherent characteristics, SOFCs provide a promising solution to address various environmental issues, including concerns regarding fossil fuel-based electricity generation, climate change, and water consumption.

Source: OMR Analysis

Market Dynamics

Growing Demand for Clean Energy Solutions

The rising demand for clean energy solutions is a key factor contributing to the growing interest in the SOFC market. Globally, concerns regarding environmental sustainability are inducing a shift away from traditional fossil fuel-based energy sources towards cleaner alternatives. SOFCs are gaining popularity globally due to their high efficiency and minimal emissions compared to conventional combustion-based methods. This aligns with the objectives of governments, industries, and consumers seeking to reduce carbon footprints and address climate change. Moreover,tightening regulations and growing investments from both private and public organizations are driving the overall market growth. For instance, in July 2023, the German government granted €161 million($177 million) to Bosch, a German manufacturer, to initiate the industrialization process of its stationary SOFCs. These fuel cells convert hydrogen into electricity, facilitating a decentralized power supply.Additionally, increasing demand for clean energy solutions is driving investment, innovation, and deployment within the SOFC market across various sectors globally.

Growing demand for energy security globally has created demand for the SFOC market

The global energy sector has undergone significant setbacks in recent years owing to rising supply disruptions, finite reserves of traditional energy sources, and the need to diversify energy sources to reduce dependence on a single supplier or energy type. This has contributed to global governments'focus on SOFC solutions. These fuel cells offer decentralized power generation, reducing reliance on centralized grids and mitigating risks of disruptions. By utilizing various fuels, they enhance flexibility and independence from specific energy sources, contributing to stable and uninterrupted power supply in residential, commercial, and industrial settings.

Market Segmentation

Our in-depth analysis of the global SOFC market includes the following segments by technology and application:

Based on technology, the market is sub-segmented into planar SOFCs,tubular SOFCs, and other configurations.

Based on the application, the market is divided into power generation, Combined Heat and Power (CHP) systems, Auxiliary Power Units (APUs),military,remote and off-grid power and portable power

Demand for SOFC in Remote and Off-Grid Power Applications is Growing at Highest Rate

The growing demand for SOFCs in off-grid remote power generation is driven by their high efficiency, reliability, and adaptability. SOFCs present a cleaner alternative to traditional diesel generators, emitting fewer pollutants and greenhouse gases. Their capability to operate on various fuels, including natural gas, biogas, and hydrogen, renders them suitable for remote areas with limited access to conventional energy sources. Additionally, growing investment in energy storage globally, has further contributed to overall market growth. In 2022, worldwide investment in battery energy storage surpassed $20 billion, with a predominant focus on grid-scale deployment, accounting for over 65% of total spending. Following robust growth during this period, investment in battery energy storage is projected to reach a new peak, surpassing $35 billion in 2023. This trajectory is driven by ongoing projects in the pipeline and ambitious capacity targets established by governments.
 
Annual grid-scale battery storage additions, 2017-2022

Source: International Energy Agency(IEA)

Regional Outlook

The globalSOFCmarket is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America).

Europeis the FastestGrowing SOFC Market

Raising geopolitical tensions mainly in the Russia-Ukraine war has forced regional economies to focus on energy security.

Increasing focus on sustainable solutions has contributed significantly to the SOFC market growth.

Asia Pacific Holds Major Market Share

The increasing demand for SOFC in the Asia-Pacific region is driven by several factors. Primarily, there is a growing focus on sustainability and carbon emission reduction in the area, driven by concerns about climate change and air quality. SOFCs present a cleaner energy alternative compared to conventional fossil fuel-based power generation methods, which aligns with these sustainability objectives. Growing energy-related challenges such as accessibility, particularly in remote or rural areas. SOFCs offer a reliable power solution for off-grid locations, making them suitable for applications such as distributed energy generation and rural electrification initiatives.

Additionally, advancements in SOFC technology, including enhanced efficiency and cost-effectiveness, and increasing investments from public and private players have further contributed to overall market growth. For instance, In October 2023, KSOE agreed to invest €45million($48 million) in Elcogen. According to the company, this investment follows a previous R&D collaboration agreement between HD Hyundai and Elcogen focused on testing and developing Elcogen's technology. The investment aims to advance marine propulsion systems and stationary power generation using Elcogen's SOFC and solid oxide electrolyzer cell (SOEC) technology for green hydrogen production. Elcogen plans to utilize the investment to expand its manufacturing capacity, particularly in its new factory facility in Tallinn, Estonia, with a capacity of up to 360 MW to meet growing product demand.

Market Players Outlook

The major companies serving the global SOFC market includeIntelligent Energy Limited, andConvion Ltd., SFC Energy AGamong others.The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in October 2023, Ceres, a clean energy technology developer based in the UK, and Alma Clean Power, a Norwegian provider of clean power systems for ocean industries, collaborated to demonstrate a SOFCsystem for the marine sector. Together, they plan to install an 80KW natural gas-powered SOFC container on one of Odfjell's chemical tankers. The aim is to showcase the efficiency of SOFCs as energy converters for deep-sea shipping.

The Report Covers

Market value data analysis of 2023 and forecast to 2031.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global SOFCmarket. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.