Solid Oxide Fuel Cell Market Growth & Trends

The global solid oxide fuel cell market size is expected to reach USD 3.3 billion by 2027 registering a CAGR of 30.0%, according to a new report by Grand View Research, Inc. The increasing pressure across the countries to decrease carbon emissions while supporting energy safety is a factor favoring the growth of the solid oxide fuel cell (SOFC) market. Furthermore, SOFC has an impressive efficiency ranging between 40 and 60%.

The availability of government funding and collaborations between the companies has paved the way for advancement in technology for the SOFC market. These supportive efforts have resulted in reducing the manufacturing costs of SOFC systems by a substantial amount. Furthermore, the ongoing development is expected to make SOFC more affordable, thereby augmenting the market growth in the forecast period.

Favorable policies and regulations along with plans for implementation of fuel cell systems in the field of power generation by some of the major countries around the world have resulted in market growth. In addition, the availability of subsidies and incentives for SOFC installation is likely to support product adoption in some key markets.

However, the presence of alternative fuel cell technologies in the form of PEMFC, PAFC, MCFC, and AFC hinders market growth. Moreover, high costs of SOFC systems as compared to PEMFC may affect the product demand in various applications, thereby limiting the market growth.

Solid Oxide Fuel Cell Market Report Highlights

  • Stationary application emerged as the largest segment in 2019 owing to increased product adoption for utilization for micro-CHP systems and for large stationary power generation for residential and commercial sectors.
  • Transportation application is expected to emerge as the fastest-growing segment in the forecast period owing to product utilization in fuel cell vehicles as range extenders and for marine applications
  • North America accounted for a significant market share in the past owing to the presence of key companies, such as Bloom Energy, which has installed various large-scale SOFC-based power generation projects in the region
  • Europe is estimated to grow at a significant CAGR over the forecast period owing to the presence of supportive policies and incentives for fuel cell installation for residential and commercial sectors in the region
  • Asia Pacific is expected to be the largest as well as the fastest-growing regional market over the forecast period owing to the implementation of Ene farm program in Japan coupled with favorable policies for fuel cell in South Korea