SOLID OXIDE FUEL CELL MARKET ANALYSIS

Market Challenges And Opportunities

Global Solid Oxide Fuel Cell Market Drivers:

Rise in research and development activities for SOFC based technologies to fuel the market pace

Solid oxide fuel cell technology is a promising technology, however, the initial investment and emphasis on R&D activities of this technology are crucial for feasible commercialization. In recent years, expenditure on R&D activities for development and feasibility enhancement of fuel cell has increased considerably due to various targets by governments globally for the reduction of greenhouse gas emissions and pressure on corporate world for reducing the carbon footprint. Several developed countries are increasingly investing major amounts in research and development of SOFC. Thus, this in turn is expected to fuel growth of the global solid oxide fuel cell market over the forecast period.

Increase in demand for energy-efficient power generation to drive the market growth

Solid state fuel cells have an important role in the decentralization of energy, as they produce clean, quiet, and efficient energy in especially stationary power generation. Soli oxide fuel cells are considered to be the most efficient type of fuel cells having efficiencies of electricity conversion. When the waste heat generated by SOFC is harnessed, the overall fuel efficiency of SOFC reaches to over 90%. This can happen with using the waste heat in central heating systems, as similar to all fuel cells, SOFCs generate energy from hydrogen, which is a carrier of energy. Thus, increase in demand for energy-efficient power generation will drive the demand for SOFCs, which is expected to augment growth of the global solid oxide fuel cell market over the forecast period.

Global Solid Oxide Fuel Cell Market Opportunities:

Growing deployment of Distributed Generation (DG) SOFC systems is expected to offer multiple business opportunities in the global solid oxide fuel cell market over the forecast period. The Solid Oxide Fuel Cell program conducted by the National Energy Technology Laboratory (NETL) has recognized that a lucrative pathway for deploying utility-scale systems is via the near-term market opportunities in DG. The experience related to operations and manufacturing gained through deploying DG SOFC systems will be beneficial to continue developing bigger systems based on the SOFC technology. This will eventually lead to SOFC-based utility scale central generating station using coal-derived synthesis gas or natural gas. Thus, deployment of DG SOFC systems will offer lucrative opportunities in the global solid oxide fuel cell market over the forecast period.

Growing applications of solid oxide fuel cell is anticipated to create various opportunities in the global solid oxide fuel cell market over the forecast period. The applications of DG solid oxide fuel cell are paving the way towards utility-scale systems with carbon capture, as they validate and enable the underlying technology through effective utilization of R&D investment by government. Moreover, several governments across the globe are promoting research and development of SOFC applications, which is also expected to create lucrative environment for growth opportunities in the market.

• Growing adoption of LIB technology    
• High cost of SOFC    

Global Solid Oxide Fuel Cell Market Restraints:

Growing adoption of LIB technology to limit the market growth

The cost of lithium-ion batteries (LIB) has reduced significantly in recent years and it continues to decrease, which is among various factors that are influencing the rapidly increasing adoption of LIB technology among various sectors such as energy storage and renewable automobiles. This is however is impacting use of solid oxide fuel cell-based technology across several sectors, which in turn is expected to hinder growth of the global solid oxide fuel cell market over the forecast period. However, growing technological advancement in SOFC technology is likely to drive the adoption of this solid oxide fuel cells, which is likely to support the market growth.

High cost of SOFC to impede market pace

Solid oxide fuel cells are known to be a complex integration of various chemical elements for electro-catalytic oxidation of LP gas, methane, and other natural gas-based fuels for generating electricity. As the main chemical process is an exothermic reaction, solid oxide fuel cells operate usually at significantly high temperatures that range from 700°C to 1,200°C. However, traditional ceramic electrolytes lack the efficiency of operating at these temperatures due to which, yttria stabilized zirconia (YSZ) is used as an electrolyte. This further significantly increases the capital cost needed for SOFC, which in turn hinders growth of the market.