Solid Oxide Fuel Cell Market Size, Share, By Type, Fuel Type, Application, End-User, and Region - Trends, Analysis, and Forecast till 2035

• The solid oxide fuel cell market size is anticipated to grow at a rate of USD 29.8 billion by 2035.
• The target market was valued at USD 2.6 billion in 2024.
• The market is growing at a CAGR of 30.7%.

Solid oxide fuel cell is an advanced energy conversion technology that generates electricity through an electrochemical reaction using a solid ceramic electrolyte. The target market is witnessing robust growth, which is driven by the increasing demand for clean, efficient, and reliable energy systems.  

For instance, in November 2024, Bloom Energy, a world leader in solid oxide fuel cell generation (SOFC) and solid oxide fuel cell electrolyzer (SOEC) technologies, announced a landmark project to deliver fuel cells to the largest single-site installation to date in history. The 80 MW project, developed in partnership with SK Eternix, will power two ecoparks in North Chungcheong Province, South Korea, providing reliable, sustainable energy for critical infrastructure, and regional development. The project is expected to begin commercial operations in 2025.

Key Takeaways:

• North America held the largest share of the market in 2024 due to its advanced infrastructure, significant investments in research and development, and increasing applications in defense, data centers, and commercial sectors across the region.
• Asia Pacific is expected to be the fastest-growing market during the forecast period as it is driven by government support for sustainable energy solutions, rising energy demand and the adoption of clean technologies in the region.
• By type, the planar segment is expected to account for the largest share of the solid oxide fuel cell market in the upcoming years as it is indicated by the emphasis on planar designs in various applications, particularly due to their higher power density and efficiency.

Key Drivers of Target Market:

Growing Demand for Clean Energy to Boost Market Growth

Increasing environmental concerns and stringent regulations aimed at reducing carbon emissions are propelling the demand for clean energy solutions, such as SOFCs. The shift toward renewable energy sources further fuels the solid oxide fuel cell market growth.  

• For instance, in October 2024, H2e Power Systems has secured a tender from Oil India (OIL) to develop a 1 MW green hydrogen project in Himachal Pradesh. The project is anticipated to be operational within 18 months of receiving the award letter. In its previous years, Oil India sought bids for a green hydrogen project in the state, featuring a generation capacity of 17 kg/hr. H2e's innovative steam electrolysis system utilizes solid oxide fuel cell (SOFC) technology, resulting in lower hydrogen production costs compared to traditional methods. Hydrogen output will range from 0 to 125%.

Government Support and Incentives is expected to Drive Market Expansion

Governments are boosting international partnerships to enhance research and development efforts in solid oxide fuel cell technology. Further, the collaboration facilitates knowledge sharing and resource allocation which accelerates the adoption of solid oxide fuel cell globally.

• For instance, in September 2024, the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) announced up to $4 million in federal funding to make clean hydrogen a more available and affordable fuel for electricity generation, industrial decarbonization, and transportation. Specifically, the funding opportunity will support research and development (R&D) projects that will expand the versatility and applicability of solid oxide fuel cell technology a source of efficient, low-cost electricity from hydrogen or natural gas with a focus on reversible solid oxide fuel cell (R-SOFC) systems. 

Restraints:

Competition from Alternative Technologies Hampers Target Market Growth

The presence of competitor technologies, such as Proton Exchange Membrane fuel cells and other renewable energy solutions, reduces the focused market share as consumers choose alternatives that better match the individual requirements.  

• Counterbalance Statements: Despite many alternative fuel cell technologies, which require pure hydrogen solid oxide fuel cells can use a variety of fuels, such as biogas and hydrocarbons. Further, this adaptability enable solid oxide fuel cells to be more effortlessly incorporated into existing energy infrastructures giving them a considerable edge over competitors that are restricted to specific fuel types.

Opportunities & Market Trends:

Integration with Renewable Energy Sources to Provide Future Growth Opportunities

• Solid oxide fuel cells can be integrated into renewable energy systems including solar and wind to offer a consistent power supply when renewables are inconsistent. In future, this hybrid strategy improves energy reliability and facilitates the transition to a more sustainable energy system.
• For instance, in June 2024, XCMG Machinery launched a new hydrogen fuel cell dump truck model, Expanding Renewable Energy Fleet. The EHSL552F, equipped with a 120kW hydrogen fuel cell and high-power battery system. This launch marks a significant step in reducing greenhouse gas emissions by 99.3 kilograms on a daily basis for large-scale transportation projects, such as mining operations.

The solid oxide fuel cell market is classified into type, fuel type, application, end-user, and region.

Type:

Solid oxide fuel cell market by type is categorized into tubular, planar, and monolithic. The planar segment is expected to dominate over the forecast period as the modular nature of planar enable easy scaling up or down making them suitable for a wide range of applications from small residential units to large industrial systems. 

Fuel Type:

By fuel type, the market is segmented into natural gas, hydrogen, biogas, and others. The hydrogen segment holds the largest solid oxide fuel cell market share as hydrogen fuel cells produce only water vapor as a by-product when hydrogen is oxidized making them an eco-friendly option.

• For instance, in November 2024, Hyundai Motor unveiled the concept of its upcoming passenger hydrogen fuel cell electric vehicle (FCEV) named Initium that comes with an extended driving range and ample hydrogen fuel storage capacity. Initium is a concept by Hyundai that reflects the product and design direction of a passenger FCEV.

Application:

On the basis of application, the market is categorized into stationary applications, portable applications, transport applications, and other applications. The stationary applications segment is expected to dominate the market over the forecast period. The growth is attributed to the increasing demand for heat and electricity generation technologies, particularly in backup power systems and commercial applications.

• For instance, in May 2024, Accelera by Cummins, the zero-emissions business segment of Cummins Inc. launched Next-Gen Hydrogen and Electric Solutions for Commercial Vehicles. New versions of its hydrogen fuel cell engines, a high efficiency eAxle, and its next-generation batteries are among the new products Accelera.

End-User:

By end-user, the solid oxide fuel cell market is divided into commercial, industrial, residential, military & defense, and others. The commercial segment dominates the focused market share due to the increasing demand for clean energy generation to meet the rising electricity needs of various establishments, including commercial buildings, and data centers.

Region:

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This region is expected to dominate the target market share as electricity demand continues to rise, particularly in densely populated areas, SOFCs are well-positioned to provide efficient, and sustainable power solutions.

• For instance, in May 2024, Toyota Motor North America (TMNA) announced that it is renaming the TMNA R&D California office as its new North American Hydrogen Headquarters (H2HQ). This move is to reaffirm its commitment to support fuel cell and additional hydrogen-related products and technology toward a hydrogen economy.

Asia Pacific: This is largest and fastest-growing region in target market as the rise in gaming culture particularly among younger demographics is propelling demand for Solid Oxide Fuel Cell as enthusiasts seek realistic racing simulations.

Solid Oxide Fuel Cell Market Report Scope:

Segmentation:

By Type:

• Tubular
• Planar
• Monolithic

By Fuel Type:

• Natural Gas
• Hydrogen
• Biogas
• Others

By Application:

• Stationary Applications
• Portable Applications
• Transport Applications
• Other Applications

By End-User:

• Commercial
• Industrial
• Residential
• Military & Defense
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the solid oxide fuel cell market include Bloom Energy, Cummins, Ballard Power Systems, and others. In the focused market the competitive landscape is shaped by various factors such as technological advancements, strategic partnerships, and government support.

For instance, in November 2024, FuelCell Energy, Inc. announced a global restructuring of its operations in the U.S., Canada, and Germany that aims to significantly reduce operating costs, realign resources toward advancing the company’s core technologies, and protect the company’s competitive position amid slower-than-expected investments in clean energy. The plan involves further expanding the company’s Connecticut-manufactured molten carbonate technology to offer distributed power solutions. These solutions can deliver power swiftly, accelerate customer revenue, address critical grid deficiencies, and meet the increasing power demand driven by the rapid AI-fueled growth of data centers.

List of Key Players in the Market:

• Bloom Energy
• Cummins
• Ballard Power Systems
• Mitsubishi Heavy Industries
• Kyocera
• Bosch
• CeramTec GmbH
• FuelCell Energy
• Fuji Electric Co., Ltd.
• United Technologies Research Center (UTRC)
• General Electric (GE)
• Siemens
• Aisin Seiki Co., Ltd.
• Ceres Media Ltd.
• SFC Energy AG

• In December 2024, Ballard Power Systems has announced the signing of a multi-year supply agreement with Stadler US to supply 8 megawatts of FCmove-HD+ fuel cell engines to power trains for the California Department of Transportation (Caltrans). The supply of the 100kW modules will be integrated into Stadler’s line of zero-emission passenger trains, the FLIRT H2.
• In November 2024, Extending a strong partnership in the deployment of zero-emission public transit, Ballard Power Systems has announced a purchase order to supply 200 fuel cell engines to New Flyer, a subsidiary of NFI Group Inc. a leader in electric mass mobility solutions in North America and Europe focused on bus and coach manufacturing.
• In August 2024, Bloom Energy, a world leader in solid oxide fuel cell (SOFC) technology, is now offering the Bloom Energy Server power solution with ~60% electrical efficiency while using 100% hydrogen. Bloom engineers achieved the milestone efficiency at the company’s research and development facility in Fremont, California, U.S.
• In September 2021, Doosan Corporation announced that it has completed the development of a 10kW solid oxide fuel cell (SOFC) for buildings and houses with the world's highest power generation efficiency. Compared to the existing PEMFC (Polymer Electrolyte Membrane Fuel Cell) product, the 10kW SOFC developed this time is more than 40% higher in power generation efficiency.

Analyst View:

Solid oxide fuel cell market is positioned for significant growth over the upcoming years, which is fueled by technological advancements, government support for clean energy initiatives, and increasing demand for efficient power generation solutions.

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