Solid Oxide Fuel Cell Market Size, Share & Trends Analysis Report By Application (Transportation, Portable, Industrial), By Region, And Segment Forecasts, 2024 - 2030

Solid Oxide Fuel Cell Market Size & Trends

The global solid oxide fuel cell market size was estimated at USD 627.43 million in 2023 and is expected to grow at a CAGR of 40.7% from 2024 to 2030. The increasing private-public partnerships are one of the key factors fostering market growth. Solid oxide fuel cells (SOFC) are one of the fastest-growing alternate backup power options, primarily due to their ability to generate electricity using a variety of fuels. In addition, they are eco-friendly as their by-product is harmless, unlike other conventional technologies.

Favorable government regulations and their ability to cut down emission rates and use domestic energy sources, such as natural gas, are some of the key factors likely to boost the over the next eight years. Furthermore, the rising emphasis of the regional governments of mature economies, such as the U.S. and Europe, on reducing emissions and their inclination toward a technological shift to support or, to some extent, even replace the aging electric grids is likely to drive the market over the forecast period.

Drivers, Opportunities & Restraints

Proactive involvement and coordination between public and private companies are essential to deploy hydrogen fuel to the expanding application base and implement new, economically viable technologies. During the forecast period, the market is anticipated to witness a rise in public-private partnerships, especially for R&D projects.

SOFC is emerging as one of the prominent fuel cell technologies worldwide. The governments of countries such as the U.S., Japan, South Korea, and the European Union have aided vendors worldwide to enhance research & development efforts due to the availability of research grants and funds disbursed by organizations such as the U.S. Department of Energy.

The high cost of solid oxide fuel cell systems is anticipated to increase total vehicle costs and stationary power application costs compared to substitute fuel cell technologies. Hence, a major challenge for market players lies in developing technologies or systems to manage the solid oxide fuel cell stack and balance of plant (BOP) costs while increasing the system’s service lifetime. Implementing suitable policies that help manufacturers achieve economies of scale will likely play a key role in making this technology economically viable.

Market Concentration & Characteristics

The solid oxide fuel cell (SOFC) market is poised for significant growth, driven by several key dynamics: growing demand for clean energy, technological advancements, government support and incentives, increasing applications in data centers, and rising investments and partnerships. Continuous R&D efforts lead to improvements in SOFC technology, such as increased energy conversion efficiency, reduced manufacturing costs, and enhanced durability, making SOFCs more competitive with other energy technologies and driving market adoption.

Many countries offer financial incentives, subsidies, and policy support to encourage SOFC adoption, with the U.S. providing funding for small-scale SOFC system design and construction. The increasing demand for data center services, particularly in Asia Pacific, is creating opportunities for SOFC deployment, as data centers require reliable and efficient power sources.

Major players in the market invest in R&D, manufacturing capacity, and strategic partnerships to drive market growth, with Asia Pacific, led by China and Japan, anticipated to dominate the global market due to strong government support and growing demand for clean energy technologies.

Application Insights

The stationary application segment led the market and accounted for a share of 81.49% in 2023. A stationary SOFC system is one of the cleanest and most efficient heat and electricity generation technologies. The performance of these systems is focused on three high-level parameters, including net electrical efficiency, overall efficiency in the case of cogeneration, and durability.

European countries, such as France and the UK, invest heavily in the R&D of SOFCs for power generation and transportation applications. The factors above are anticipated to boost the segment growth over the forecast period. Collaboration among SOFC vendors and transportation sector vendors is expected to develop SOFC-based systems for transportation applications over the forecast period.

Regional Insights

The solid oxide fuel cell market in North America accounted for a share of 38.07% in 2023. Countries, such as the U.S. and Canada, provide substantial funds in this regard. These funds are likely to aid advancements in R&D activities for SOFC technologies and the development of cost-effective parts for SOFC systems. For instance, in the U.S., the Department of Energy (DOE) provides funding for fuel cell development through programs, such as Fuel Cell Technologies Office (FCTO) and Solid Oxide Fuel Cell (SOFC) program.

U.S. Solid Oxide Fuel Cell Market Trends

The U.S. dominates the solid oxide fuel cell market accounted for a share of over 80.68% in 2023. The U.S. is among the early adopters of clean energy solutions in the world for sectors, such as power generation and transportation. This can be attributed to the increased importance given to clean energy solutions as per the Energy Act introduced by the U.S. government.

The solid oxide fuel cell market in other countries is expected to grow at a significant CAGR of 36.8% from 2024 to 2030. Canada is one of the major users of CCS technologies across the globe and is highly committed to continuous advancements of these technologies. Moreover, the development of CCS infrastructure in the country is also part of a broad spectrum of measures pursued by the country’s government to meet the GHG reduction targets.

Asia Pacific Solid Oxide Fuel Cell Market Trends

The Asia Pacific solid oxide fuel cell market is expected to witness rapid growth over the forecast period. Asia Pacific is anticipated to account for a major share of the global capacity demand in the coming years, with Japan being the epicenter of this demand. Solid oxide fuel cells majorly find wide-scale applications in the stationary segment in Asia Pacific. The market is expected to witness the highest growth rate over the forecast period.

The solid oxide fuel cell market in Japan accounted for the largest share of over 75.31% of the APAC market revenue in 2023. The domestic market is growing at a significant rate compared to the rest of the world on account of strong government support and strategic market focus.

The South Korea solid oxide fuel cell market is expected to progress with a CAGR of 59.9% over the forecast period. The domestic market growth is driven by the country’s increasing focus on the deployment of new and renewable energy (NRE) as fuel cells for a sustainable option.

Europe Solid Oxide Fuel Cell Market Trends

The Europe solid oxide fuel cell market is growing due to the projects announced by the European Commission through organizations, such as Fuel Cells and Hydrogen Joint Undertaking (FCH JU). These projects have been announced to increase the adoption of fuel cells in vehicles in Europe and aid the development of supportive hydrogen infrastructure for fuel cell vehicles in major European countries.

The solid oxide fuel cell market in Germany accounted for a revenue share of 68.63% in 2023. Germany is among the leading markets for SOFC applications in Europe. This can be attributed to structured energy policies and concrete targets introduced by the government of Germany. The future development of technologies related to SOFC has also been defined in the energy policies. Research, development, and demonstration of projects are carried out at the national level with the support of designated agencies to reduce the time taken to market relevant products.

The France solid oxide fuel cell market is expected to grow at a CAGR of 35.4% from 2024 to 2030. The French policy for the SOFC program is in the development stage. The stationary application segment generated the highest revenue in 2020 owing to the presence of the PACE project that is being deployed by the European Union to enhance the adoption of fuel-cell based micro-CHP systems. These factors are expected to boost the growth of the SOFC market in the country over the forecast period.

Central & South America Solid Oxide Fuel Cell Market Trends

The Central and South American solid oxide fuel cell market is still in its nascent stage, with limited adoption compared to other regions. However, growing energy demands, decarbonization goals, and increasing investments in clean energy technologies present opportunities for SOFC deployment, particularly in industrial and remote power applications.

Middle East & Africa Solid Oxide Fuel Cell Market Trends

The solid oxide fuel cell market in Middle East & Africa is still in its early stages, but the region shows promising growth potential. Factors driving the regional market include government initiatives to promote renewable energy, rising energy demands, and the need to reduce carbon emissions. However, high costs and lack of infrastructure remain key challenges.

Key Solid Oxide Fuel Cell Company Insights

In recent years, commercialization of SOFC systems has started with specific niche markets, such as small-scale combined heat and power (CHP) in Japan, on-site power generations, especially for data centers and military applications in the U.S. Majority of the market participants have focused their R&D activities to develop SOFCs for multiple applications. As a result, the market has witnessed several public-private partnerships.

Even though the market participants are slowly getting approval from policymakers for demonstrating their projects, the industry players have an uphill task of bringing down the cost and improving quality. In the coming years, the market is expected to witness the introduction of programs for micro-CHP systems targeting the residential sector.

Recent Developments

• In March 2024, Nissan started trials of a power generation system fueled by bio-ethanol, which is powered by SOFC. The trials began at Nissan’s Tochigi Plant, the company aims to improve power generation capacity toward full-scale operations by 2030

• In March 2023, Elcogen and Bumhan announced a partnership to commercialize SOFCs and electrolyzers. Under the agreement, Elcogen will facilitate the supply of SOEC and SOFC technology, which offers efficient solutions to emission-free energy production

• In February 2023, Weichai Power launched a stationary power SOFC system based on Ceres technology with EU CE certification of TÜD SÜD. Moreover, the SOFC achieved an operational time of 30,000 hours

Solid Oxide Fuel Cell Market Report Scope

Global Solid Oxide Fuel Cell Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global solid oxide fuel cell market report based on application, and region:

• Application Outlook (Volume, Thousand Units; Capacity, kW; Revenue, USD Million, 2019 - 2030)

  • Transportation

  • Portable

  • Stationary

• Regional Outlook (Volume, Thousand Units; Capacity, kW; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany

    • France

    • UK

  • Asia Pacific

    • China

    • Japan

    • South Korea

  • Rest of World