Solid Oxide Fuel Cell Market Size, Share & Trends Analysis Report By Application (Stationary, Transportation, Portable), By Region (Europe, APAC, North America), And Segment Forecasts, 2020 - 2027

Report Overview

The global solid oxide fuel cell market size was valued at USD 403.3 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 30.0% from 2020 to 2027. Solid oxide fuel cell (SOFC) is a type of fuel cell, which employs solid ceramic electrolyte and it can run on fuels, such as natural gas, renewable biogas, or hydrogen. SOFC can work at a very high temperature in the range of 800ºC to 1,000°C and provides efficiencies of more than 60%. Growing awareness about alternative sources of energy is one of the major factors encouraging market growth. The rise in carbon emissions has been a global issue and government authorities across the globe are supporting the technological advancements to tackle the issue by providing research funds and drafting supportive policies and plans. Japan has emerged as one of the major markets for SOFC globally owing to the presence of various incentives and supportive government policies.

For instance, Japan is the largest consumer of SOFC units for residential micro-CHP applications due to its Ene farm program. This program has set up an ambitious target of the installed base of 1.4 million units and 5.3 million units of fuel cell systems for micro-CHP application by 2020 and 2030, respectively. These factors are expected to boost the growth of the market in the country.

The market growth is expected to be reliant on the concrete steps taken by policymakers as well as industry players. The industry is expected to witness strategic partnerships that will enhance the technological advancements in SOFC units. Private-public partnerships and availability of research funds are projected to be critical factors for achieving economically feasible SOFC units.

However, the presence of substitute fuel cell technologies, such as Polymer Electrolyte Membrane (PEM) and phosphoric acid fuel cells, are expected to hinder the market growth in the forecast period. The availability of low-cost PEM fuel cells has made them the most abundantly used fuel cell technology than SOFC and other available technologies.

Application Insights

The stationary segment accounted for the highest revenue share of over 82% in 2019 owing to the usage of SOFC systems for stationary power generation for applications, such as large stationary prime power, micro, and large-scale CHP systems. Stationary SOFCs are widely used as a power source for various commercial purposes, such as data centers. Various countries, such as Japan, South Korea, and Germany, are strengthening their regulatory frameworks, which have resulted in driving the utilization of SOFCs in residential and commercial areas for power generation purposes.

The transportation application segment is expected to register the fastest CAGR over the forecast period owing to the increasing adoption of SOFCs in automobiles, marine, and trucks. For instance, Bloom Energy in collaboration with Samsung Heavy Industries is working on utilizing SOFC systems to power ships. The portable application of SOFC systems includes small movable auxiliary power units for military applications and for lighting in the railroad. Technological advancement in SOFC systems for portable application segment is expected in the forecast period.

Regional Insights

North America was the second-largest regional market in 2019. The regional market was driven by the U.S. owing to the presence of supportive policies and incentives in the U.S. states, such as California and Connecticut. Furthermore, the availability of research grants from the U.S. Department of Energy has driven the adoption of SOFC systems in the country.

Bloom Energy, which is one of the top companies in the global market, is focusing on increasing the number of large-scale installations of bloom servers, which provide on-site stationary power generation across the U.S. Moreover, rise in demand for decentralization of electricity generation and uninterrupted power supply in the region will boost the market growth over the forecast period.

Asia Pacific is estimated to account for the fastest CAGR during the forecast period. The presence of countries, such as Japan and South Korea, have driven the market in APAC. South Korea in 2018 witnessed installations of bloom energy servers of 8.35 MW capacity in Bundang for Korea Southeast Power Company.

The market in Europe is driven by the PACE program, which started in 2016 with an aim to enhance the adoption of fuel cell systems for utilization in micro-CHP systems in the region. Germany has emerged as the major market for SOFC in Europe owing to the implementation of supporting policies and subsidy programs for the installation of fuel cell systems in the country.

Key Companies & Market Share Insights

The global SOFC industry is a highly competitive market owing to ongoing technological advancements being developed by the existing vendors and new entrants. Industry players are concentrating on strengthening their relations with system installers due to their strong local presence and close ties with the clients, which, in turn, is likely to help them inflate their geographical presence.

New application developments are expected to be the main parameter for being competitive in this market. Key participants depend upon strategies, such as joint ventures, mergers, and acquisitions, to increase their presence in the market. The R&D of cost-effective technologies is a key area of focus of the SOFC market players. Some of the prominent players in the solid oxide fuel cell market include:

• Bloom Energy

• Mitsubishi Heavy Industries, Ltd.

• Ceres Power Holdings plc

• Aisin Seiki Co., Ltd.

• Ensol Systems

• Sunfire GmbH

Solid Oxide Fuel Cell Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2027. For the purpose of this study, Grand View Research has segmented the global solid oxide fuel cell market report on the basis of application and region:

• Application Outlook (Volume, Thousand Units; Capacity, kW; Revenue, USD Million, 2016 - 2027)

  • Stationary

  • Transportation

  • Portable

• Regional Outlook (Volume, Thousand Units; Capacity, kW; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

  • Europe

    • Germany

    • France

    • The U.K.

  • Asia Pacific

    • Japan

    • South Korea

    • China

  • Rest of World