The solid oxide fuel cell market size is expected to advance at a CAGR of 34.4% during 2022–2030, to reach USD 5,005 million by 2030. This can be mainly ascribed to its cost and superior efficiencies, long-term stability and fuel flexibility, increasing government subsidies and R&D on fuel cells, rising need for energy-efficient power production, and strict pollution rules & regulations.
The rising expansion of alternative technologies for power generation is one of the key trends being observed in the solid oxide fuel cell market. Governments across the globe are concerned regarding the depletion of conventional resources for power generation. In order to overcome this situation, countries including the U.S., Germany, Japan, South Korea, and China are supporting the advancement of SOFC technology with project funding and research activities. In addition, the projected increase in the development of fuel-cell electric vehicles by large automobile manufacturers is expected to create a focus on the expansion of hydrogen-fueling infrastructure, which, in turn, will provide a boost to the market in the coming years.
The APAC market is projected to record the highest CAGR in the coming years. This can be because the governments of China, Japan, and South Korea are positively focusing on utilizing renewable energy and hence opting for utility-scale solid oxide fuel cell (SOFC) power plants. SOFCs are majorly used in several applications in industries in the region.
Countries like Singapore, Thailand, Malaysia, and India are still making necessary rules to support the growth of the alternative energy industry. The need for SOFCs in these countries is driven by government entities and research institutes, which are actively involved in testing the operating hours of these cells. Thus, these factors are responsible for the regional market growth.
The stationary category accounted for the largest market share in 2022, and it is expected to hold its position in the coming years as well. This is attributed to the surging focus on fuel cells powered by hydrogen for backup power, and the stationary solid oxide fuel cell method is one of the purest and most efficient heat and electricity production technologies. Moreover, its performance is focused on three parameters, namely, net electrical efficiency, durability, and overall efficiency in the case of cogeneration.
Furthermore, stationary power covers any application in which fuel cells are utilized at a fixed location, such as large-scale systems for backup power, prime power, combined power and heat, and small systems for micro-combined power and heat for commercial and residential processes. Fuel cells also deliver reliable backup power for the telecom industry, whose network facilities are situated in remote areas, in many cases, without developed power infrastructure, owing to which the need for stationary SOFCs is expected to increase in the coming years.
Some of the major players operating in the solid oxide fuel cell market are Bloom Energy, Mitsubishi Power, Aisin Seiki, Hitachi Zosen Corporation, Ceres Power, Adelan Ltd., Upstart Power, Adaptive Energy, Solid Power, and Watt Fuel Cell Corporation.