Solid oxide fuel cell market projected at $1.42 billion by 2025
The global solid oxide fuel cell market is expected to reach $1.42 billion by 2025, growing at a CAGR of 30%. This is according to a report by Grand View Research, Inc. Government funding is largely being replaced by corporate funding, which has increased by more than 44% from 2013 to 2016. The report says that this is an encouraging sign for the prospect of feasible commercialization for the technology.
The rising pressure among nations to reduce carbon emissions while strengthening energy security is another factor favoring the growth of the solid oxide fuel cell market. Due to its working characteristic, the solid oxide fuel cell has an efficiency in the range of 50-60%. However, there are concerns among solid oxide fuel cell manufacturers to reduce the production cost to generate greater profit margin.
The soaring capital and operational costs and underutilization of various facilities for the development of the solid oxide fuel cell electric vehicle market are likely to result in high investment risks. High capital costs are directly related to the compression and storage of hydrogen. Therefore, highly pressurized hydrogen storage requires costly compressors. This is likely to pose a threat to market participants.
The Asia Pacific region is expected to benefit due to favorable governmental regulations in countries such as Japan and South Korea. Fuel cell powered automobiles and residential projects receive government subsidies in the region. Big players in North America such as Walmart, Coca-Cola, Equinix, Apple, CenturyLink, AT&T, and Verizon are actively investing in solid oxide fuel cell technology to reduce emissions and generate power for company operations.
Other key findings from the study suggest:
- The global solid oxide fuel cell market demand is expected to exceed 1,773.3 MW by 2025, at a predicted CAGR of 40.4% from 2017 to 2025
- The transportation application is expected to witness growth rate in terms of units sold, whereas the stationary application is expected to have the highest growth rate in terms of revenue
- Asia Pacific was the largest consumer of solid oxide fuel cell in 2016, in terms of units, closely followed by North America
- Consumption of the solid oxide fuel cell in Europe is expected to reach 112.6 MW by the end of 2025 due to the restructuring of infrastructure in Germany and France
- Japan accounted for over 30% of the global solid oxide fuel cell demand in 2016 and is expected to maintain dominance over the forecast period
For more information about the report, “Solid Oxide Fuel Cell (SOFT) Market Analysis By Application (Stationary, Transportation, Portable), By Region (North America, Europe, Asia Pacific, MEA, CSA), And Segment Forecasts, 2014-2025,” visit http://www.grandviewresearch.com/industry-analysis/solid-oxide-fuel-cells-market.