Solid Oxide Fuel Cell Market size is anticipated to register robust gains throughout the forecast period 2021-2027. This growth can be closely tied to the need for energy-efficient power generation and strict emission regulations across the globe. SOFC technology is witnessing increasing adoption as it offers excellent fuel flexibility and promotes sustainability. The industry is continuously observing new public and private initiatives to advance developments in the technology.
Supportive government and regulatory initiatives to promote the adoption of low carbon technologies in power generation will augment the solid oxide fuel cell market share in the forthcoming years. The European Union, for example, has established a long-term goal to cut down greenhouse gas emissions by 80-95% by 2050 compared to 1990 levels, mainly by increasing the share of renewables in the EU energy mix. According to the EU, solid oxide technologies such as SOFC could be the key enablers for such integration.
The rise in R&D efforts backed by government investments to advance fuel cell programs will contribute significantly towards the expansion of solid oxide fuel cell market expansion between 2021 and 2027. For instance, the UltraSOFC Project, which is funded by the European Research Council (ERC) under the EU’s research and innovation program Horizon 2020, aims to break the temperature limits of SOFC technology and open up new opportunities with ultrathin portable power sources.
In terms of the applications, the solid oxide fuel cell industry is segmented into power generation, combined heat & power, and military, among others. Among these, the combined heat & power segment will witness growing deployment of SOFCs. Combined heat & power or CHP systems powered by SOFC act as an energy-efficient and low emissions technology for electrical and thermal power generation to be implemented in future buildings. Government and regulatory programs to boost CHP adoption will create a promising application outlook for SOFCs. The U.S. Department of Energy, for instance, offers the CHP Deployment Program and the CHP R&D program to accelerate innovations in CHP as well as its adoption.
Considering the regional landscape, North America solid oxide fuel cell market size is slated to expand at a notable CAGR through 2027. National and local authorities in the U.S. are implementing policy frameworks to transition towards hydrogen-based technologies. Regulators and policymakers have also introduced medium- and long-term goals to boost the deployment of innovative zero-emission technologies and decarbonize the economy.
North America Different national and regional authorities have implemented favorable policy frameworks to support the transition towards hydrogen-based technologies, which is likely to add to the solid oxide fuel cell market growth. Besides, governments have also presented their medium and long-term goals to decarbonize the economy and boost the deployment of innovative zero-emission technologies, such as fuel cells. Citing an instance, in September 2020, the U.S. Department of Energy announced USD 35 million in federal funding to develop technologies that can advance the present state of small-scale SOFC systems.
Bloom Energy, Siemens, Viessman Werke, Doosan Fuel Cell America Inc., LG Fuel Cell Systems Inc., Elcogen, Undersea Sensor Systems, Sunfire Hexis AG, PoscoEnergy, SOFCMAN Energy Technology Co. Ltd., Atrex Energy, SOLIDpower, and AisinSeiki are key players in the solid oxide fuel cell industry.
Latest Market Developments:
According to the International Energy Agency (IEA), the power generation sector has been significantly impacted by slowdown of transport, trade, and economic activity. A considerable decline in electricity demand was also witnessed during the start of the pandemic in 2020. IEA reports that the demand decreased by over 25% in countries with complete COVID-19 related lockdowns. These factors have slowed down developments across the SOFC industry to some extent. However, accelerating investments in clean energy transition will bolster the market outlook. As per IEA, investments in renewable energy must be at the center of economic recovery plans as they will not only accelerate clean energy transition but also stimulate economies.