Solid Oxide Fuel Cell Market

Government funding and expanded fuel cell programme R&D to propel the market growth

One of the key determinants of the expansion of the solid oxide fuel cell sector is the government's fuel cell rules and incentives. Fuel cell programmes are at the forefront in states like California, Delaware, and Connecticut, which also provide incentives and subsidies for fuel cell installations, resulting in SOFC and other fuel installations in the US. Prior to December 31, 2016, fuel cells deployed in the US were eligible for a tax credit of USD3,000/kW, or 30% of the project cost.

The Self-Generation Incentive Program (SGIP) of California provides incentives for generators to assist existing, new, and emergent distributed electricity generation. The programme has since been extended, with the most recent development being a workshop held by the Energy Division on SGIP Renewable Generation.

California had authorised a budget of USD 566 million for SIP until 2019, but it has since increased that amount. The major nations in Asia Pacific that are putting the most emphasis on the development of fuel cells for a variety of uses, including utility-scale power generation, are China, Japan, and South Korea. 2019 will see new energy vehicle subsidies announced jointly by China's National Development and Reform Commission, Ministry of Science and Technology, Ministry of Industry and Information Technology (MIIT), and Ministry of Finance.

Along with this, businesses like Bloom Energy and its affiliates have been collaborating closely with the South Korean government to build utility-scale SOFC power plants. Thus, this factor is driving the market CAGR.

According to the policy, by 2040, the nation plans to produce 6.2 million FCEVs and instal 1,200 hydrogen refueling stations. By the target year, the plan also aims to provide approximately 15 GW of FC systems for stationary power generation.

It further stated that during the same time period, the demand for other important fuels decreased. Thus, it is anticipated that this aspect will accelerate solid oxide fuel cell market revenue globally.

The Global Solid Oxide Fuel Cell Market Industry is poised for remarkable growth, with projections indicating a substantial increase in market value over the next decade. The market is expected to reach 922.8 USD Million in 2024, with an anticipated growth trajectory leading to an estimated value of 40,586.2 USD Million by 2035. This growth is underpinned by a compound annual growth rate (CAGR) of 41.06% from 2025 to 2035, reflecting the increasing adoption of solid oxide fuel cells across various applications. These projections highlight the industry's potential to become a cornerstone of the global energy landscape.

Government initiatives and funding are instrumental in propelling the Global Solid Oxide Fuel Cell Market Industry forward. Various countries are allocating substantial financial resources to support research and development in fuel cell technologies. For example, the United States Department of Energy has been actively funding projects aimed at advancing solid oxide fuel cell technology. Such initiatives not only foster innovation but also create a favorable environment for market growth. As a result, the industry is anticipated to expand significantly, with projections suggesting a market value of 40,586.2 USD Million by 2035, driven by increased government support and investment.

The versatility of solid oxide fuel cells is a key driver for the Global Solid Oxide Fuel Cell Market Industry, as they find applications across various sectors. These fuel cells are utilized in stationary power generation, transportation, and even portable power applications. Their ability to operate on multiple fuels, including natural gas and biogas, enhances their appeal in diverse markets. The increasing adoption of solid oxide fuel cells in industrial applications, such as combined heat and power systems, is likely to further stimulate market growth. This broad applicability positions the industry for substantial expansion in the coming years.

The Global Solid Oxide Fuel Cell Market Industry is experiencing a surge in demand for clean energy solutions as nations strive to reduce carbon emissions and combat climate change. Governments worldwide are implementing stringent regulations and incentives to promote the adoption of renewable energy technologies. For instance, the European Union has set ambitious targets for carbon neutrality by 2050, which is likely to drive investments in solid oxide fuel cells. This shift towards cleaner energy sources is projected to contribute to the market's growth, with the industry expected to reach 922.8 USD Million in 2024, reflecting a growing preference for sustainable energy alternatives.

The Global Solid Oxide Fuel Cell Market Industry is significantly influenced by stringent environmental regulations and sustainability goals set by governments and organizations. As countries commit to reducing greenhouse gas emissions, there is a growing emphasis on adopting cleaner technologies. Solid oxide fuel cells, known for their high efficiency and low emissions, align well with these sustainability objectives. The increasing pressure on industries to comply with environmental standards is likely to drive the adoption of solid oxide fuel cells, positioning the market for robust growth. This trend underscores the importance of sustainable energy solutions in achieving global climate targets.

Technological advancements play a crucial role in the Global Solid Oxide Fuel Cell Market Industry, enhancing the efficiency and performance of fuel cells. Innovations in materials, such as the development of advanced electrolytes and catalysts, are likely to improve the overall efficiency of solid oxide fuel cells. These advancements not only reduce production costs but also increase the lifespan and reliability of the systems. As a result, the market is expected to witness significant growth, with projections indicating a remarkable CAGR of 41.06% from 2025 to 2035. This technological evolution is pivotal in making solid oxide fuel cells a viable option for various applications.

By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific solid oxide fuel cell market accounted for USD 0.05 billion in 2021 and is expected to exhibit a 43.90% CAGR during the study period. Large government targets for FC technology, expanding urbanization and industrialization, rising energy demand, and changes in the existing infrastructure are a few of the causes supporting the expansion.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Solid Oxide Fuel Cell Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America solid oxide fuel cell market accounts for the fastest growing market share. Due to strong government support and a strategic market focus, the solid oxide fuel cell market in the United States has expanded tremendously and is increasing rapidly relative to the rest of the world.  Moreover, US solid oxide fuel cell market held the largest market share, and the Canada solid oxide fuel cell market was the fastest-growing market in this region

Europe solid oxide fuel cell market is expected to grow at a substantial CAGR from 2022 to 2030 because there is a growing need for the production of renewable energy, there is a greater emphasis on reducing carbon footprint, and hydrogen-based Combined Heat and Power (CHP) systems are being used. For instance, the Fuel Cells and Hydrogen Joint Undertaking (FCH JU), a private-public collaborative R&D programme in Europe, predicted in 2019 that by 2050, hydrogen fuel will likely make up roughly 24% of the region's total energy consumption.

Further, the UK solid oxide fuel cell market held the largest market share, and the Germany solid oxide fuel cell market was the fastest-growing market in the region.

Major market players are spending a lot on R&D to increase their product lines, which will help the solid oxide fuel cell industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

One of the primary business strategies manufacturers adopt in the global solid oxide fuel cell industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, solid oxide fuel cell industry has provided medicine with some of the most significant benefits. The solid oxide fuel cell market major player such as Mitsubishi Heavy Industries Ltd, Ensol Systems, Bloom Energy, Sunfire GmbH, Aisin Seiki Co. Ltd and Ceres Power Holdings plc.

Founded in the UK, Ceres Power Holdings plc is a fuel cell engineering and technology business. The Company's main priorities are the advancement of hydrogen and power production technology. The solid oxide fuel cell (SOFC) technological sector is how it functions. In October 2020, Ceres Power Holdings Plc and Doosan Fuel Cell Co., Ltd. announced jointly that the building of a new SOFC manufacturing facility with a 50 MW capacity by 2024 will strengthen their strategic partnership. The new unit, which Doosan will construct, will make use of Ceres' experience to develop improved power systems for utility-scale applications.

San Jose, California serves as the corporate headquarters of Bloom Energy. It produces and sells on-site electricity-generating solid oxide fuel cells. The business was started in 2001, and it came out of hiding in 2010. In June 2020, a joint development agreement (JDA) was signed by Bloom Energy and Samsung Heavy Industries (SHI) to design and manufacture fuel cell propulsion systems for maritime vessels. In order to meet the climate goals of the International Maritime Organization, SHI wants to include effective fuel cell systems into its fleet of ships.