Government Regulations on Clean Air and Strong Investments in Clean Energy Technologies to Drive the Global Solid Oxide Fuel Cells Market
The global market for Solid Oxide Fuel Cells (SOFCs) is projected to reach US$3.1 billion by 2025, driven by the ever increasing demand for electricity across the globe and rising focus on clean energy and renewable energy production.
A type of fuel cell technology, Solid Oxide Fuel Cell (SOFC) generates energy by electrochemical conversion. The technology therefore finds attractive application in the energy generation industry. As a reliable, environment-friendly and low cost source of energy with long-term stability and sustainability, SOFC is poised to witness robust growth in the coming years. With per-capita consumption of electricity on the rise worldwide, the need to increase electricity production has become a top priority for governments across the globe. As governments seek to balance energy self-sufficiency goals and commitment to climate change agreements, SOFC is soaking up the spotlight as a clean technology of the future. By boosting electricity generation capabilities of a nation, SOFCs help in attaining energy security goals. SOFCs score over traditional energy generation technologies by virtue of their higher operating efficiency and limited reliance on imported fuels. Being a multi-fuel technology, SOFCs can operate on a wide range of fuels including renewable energy, such as biogas, which makes the nation less dependent on imported fossil fuel for electricity generation.
SOFCs are increasingly used in stationary power generation multi mega-watt base load power plant applications, as well as in medium-watt sized residential applications. While SOFCs are primarily used for clean electricity generation in large multi-megawatt stationary power plants, its portable and smart features also make them suitable for use in small watt-portable applications, including battery chargers. SOFC technology directly oxidizes fuel in the cell and is therefore being commercialized for powering a range of portable and mobile electronic devices. Given their higher energy efficiency and scalability benefits, SOFCs are also finding mainstream adoption for auxiliary power generation thus displacing the inefficient traditional generators. Stringent environmental regulations and emission control norms governing the power and automobile sectors are also driving growth in the market. While combustion of coal in traditional thermal power plants contributes significantly to environmental pollution, rampant proliferation of internal combustion engine powered automobiles additionally doubles the impact on the environment. The zero emission drive and tightening clean air regulations are therefore forcing power generation and automotive companies to shift their focus from conventional methods of energy generation towards developing and using a more environment-friendly technology. The scenario opens a new window of opportunities for SOFCs. As the case with other fuel cell technologies, SOFC companies are heavily dependent on government subsidies for viability. The environmental benefits of SOFCs make them a key beneficiary of new government programs to reduce dependence on fossil fuel resources and promotion of alternate energy. Expansion in application areas other than energy generation, such as transportation, military, portable product power source and other application areas will be critical for growth in this market.
As stated by the new market research report on Solid Oxide Fuel Cells (SOFCs), Japan represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 29.2% over the analysis period led by huge government support for green energy and financial subsidies for environmental friendly power generation technologies. With progressive refinements in performance and affordability, China and other energy-hungry Asian economies are expected to embrace SOFC technology and emerge as game changers in SOFC market in the long term.
Major players in the market include Adelan Ltd., Atrex Energy Inc., Bloom Energy Corporation, Ceramic Fuel Cells Limited, Ceres Power Limited, Convion Ltd., Elcogen AS, FuelCell Energy, Inc., Hexis AG, SOLIDpower S.p.A., Sunfire GmbH, and Ultra Electronics Holdings Plc, among others.
The research report titled “Solid Oxide Fuel Cells (SOFCs) - Market Analysis, Trends, and Forecasts", announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in US dollars for all major geographic markets including the United States, Canada, Europe (France, Germany, Italy, United Kingdom, Spain, Russia and Rest of Europe), Asia-Pacific (including Japan), and Rest of World. The global market for SOFCs is also analyzed by end-use applications Remote Power & Auxiliary Power Units (APUs), Combined Heat & Power (CHP), and Others.
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