The government’s policies and incentives regarding fuel cells are important factors that influence the growth of the solid oxide fuel cell industry. In addition to offering incentives and subsidies for fuel cell installations, states like California, Delaware, and Connecticut are leading the way in fuel cell programs, which has led to the installation of SOFCs and other fuel installations in the US. Fuel cells installed in the US were eligible for a tax credit of USD 3,000/kW, or 30% of the project cost, up to December 31, 2016. California’s Self-Generation Incentive Program (SGIP) offers incentives to generators to support dispersed electricity generation, whether it is new or emerging. Since then, the program has been expanded; the most recent change being a workshop on SGIP Renewable Generation hosted by the Energy Division.
Up until 2019, California had authorized a budget of USD 566 million for SIP; however, that sum has subsequently been increased. China, Japan, and South Korea are the main countries in Asia Pacific that are focusing the most on the development of fuel cells for a range of applications, including utility-scale power generation. China’s Ministry of Science and Technology, Ministry of Industry and Information Technology (MIIT), Ministry of Finance, and National Development and Reform Commission will all collectively announce new energy vehicle subsidies in 2019. In addition, companies such as Bloom Energy and its affiliates have been working closely with the South Korean government to construct SOFC power facilities on a utility scale. Thus, the market CAGR is being driven by this aspect.
The devices can be employed in a stationary, transit, or portable setting with ease as a dependable power supply. The units address the rapidly increasing demand by producing a dependable, clean, and energy-efficient output. Adoption of green power production techniques is anticipated to greatly improve awareness, which is anticipated to promote product demand, along with the vast hydrogen and other renewable targets to keep a lid on the expanding GHG levels. For example, the goals for H2 technologies are outlined in a new policy that the South Korean government released in January 2019 and called the Hydrogen Economy Roadmap. The policy states that by 2040, the country would install 1,200 hydrogen refueling stations and generate 6.2 million FCEVs.
Growing awareness of the need to cut harmful carbon emissions and the rising use of low-carbon technologies are two more major drivers propelling the SOFC market. A number of countries have made it clear that they intend to use clean power production sources to fulfill the growing need for energy, which is encouraging the potential for fuel cell adoption. For instance, the usage of clean energy increased by almost 3% in 2020, while the generation of electricity from renewable sources increased by nearly 7%, according to the International Energy Agency (IEA) in its Global Energy Review 2021, which was published in April 2021. It went on to say that other significant fuels saw a decline in demand during that same time frame. It is therefore expected that this factor will propel the solid oxide fuel cell market.
Research Methodology:
After secondary research provided a fundamental understanding of the worldwide Solid Oxide Fuel Cell Market scenario, extensive primary research was carried out. A number of primary interviews were carried out with industry experts from the supply and demand sides, including C- and D-level executives, product managers, and marketing and sales managers of major manufacturers, distributors, and channel partners from tier 1 and tier 2 companies offering Solid Oxide Fuel Cell Market, as well as personnel from academia, research, and CROs. These interviews were conducted across five major regions: North America, Europe, Asia Pacific, and the Rest of the World (Latin America & the Middle East & Africa). Participants from the supply-side and demand-side participated in about 70% and 30% of the primary interviews, respectively. Through the use of questionnaires, emails, online surveys, in-person interviews, and phone interviews, this main data was gathered. The primary participants share is given below:
The segmentation coverage of the study is provided below.
Solid Oxide Fuel Cell Market based on Application:
- Stationary
- Transport
- Portable
Solid Oxide Fuel Cell Market based on End user:
- Commercial
- Data Centers
- Military & Defense
- Others
Solid Oxide Fuel Cell Market based on Geography:
- North America
- US
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe (RoE)
- Asia Pacific (APAC)
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia Pacific (RoAPAC)
- Latin America (LATAM)
- Brazil
- Argentina
- Rest of South America
- Middle East and Africa (MEA)
- UAE
- Turkey
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
The market can be broadly divided into three segments based on the application: portable, transit, and stationary. The fast rising energy demand in many verticals and the requirement for low-carbon alternatives for efficient power production and cogeneration facilities are likely to drive significant growth in both volume and revenue for the stationary segment. In addition, the transportation application sector is anticipated to increase at a significant rate due to the rapidly increasing demand for medium- and heavy-duty automobiles as well as active research and development.
This industry can be broadly classified into commercial, data center, military & defense, and other categories based on the end users. Because of the increasing requirement for clean energy generation on the site to meet the suddenly increasing electricity needs from various establishments, the commercial segment is expected to keep a leading market share.
Additionally, over the course of the projection period, the data centers segment is expected to benefit from the building of brand-new, cutting-edge data centers to enhance the network infrastructure throughout developed and emerging countries. Furthermore, the increasing adoption of underwater and unmanned aerial vehicle technologies with enhanced power characteristics and longer operating times is driving the military and defense end-user market.
Geographically speaking, the market has been examined in four major regions: North America, Europe, Asia Pacific, and the rest of the globe. With a projected value of USD 0.37 billion in 2020, the Asia Pacific solid oxide fuel cell market is perhaps one of the fastest-growing geographical areas. Large government aims for FC technology, fast industrialization and urbanization, rising energy consumption, and changes to the current infrastructure, among other reasons, support the growth.
Furthermore, the growing need for clean energy production and the increased emphasis on reducing carbon emissions and implementing hydrogen-powered combined heat and power (CHP) systems support the European SOFC industry. For example, in 2019 the Fuel Cells and Hydrogen Joint Undertaking (FCH JU), a European collaborative private-public R&D program, stated that by 2050, hydrogen fuel is expected to make up around 24% of the region’s total energy consumption.
As a result, numerous governmental and commercial organizations have made large investments to improve the hydrogen infrastructure throughout the rest of the world, including Brazil, Mexico, Saudi Arabia, the United Arab Emirates, South Africa, and many more. In addition, a number of players have teamed together to improve H2 production and use across multiple sectors. For example, U.S.-based Air Products said in July 2020 that it will sign a USD 5 billion deal with NEOM and ACWA Power to build a state-of-the-art facility in Saudi Arabia. By 2025, the new facility is expected to be operational, producing 1.2 million solar cells, 4 GW of green power from wind, solar, and storage, 650 tons of hydrogen per day through electrolysis, and nitrogen.
- This report illustrates the most vital attributes of the Solid Oxide Fuel Cell Market, which are driving and providing opportunities.
- This research gives an in-depth analysis of the Solid Oxide Fuel Cell Market growth on the basis of several segments in the market.
- This report presents the predictions of the past and present trends of the Solid Oxide Fuel Cell Market.
- This study also presents the competitive analysis, such as key strategies and capabilities of major players of the Solid Oxide Fuel Cell Market.
