Europe Solid Oxide Fuel Cell Market Size, Share, Industry, Forecast and outlook (2024-2031)

Market Overview

• According to DataM Intelligence's latest research report on the Solid Oxide Fuel Cell market in Europe for the historic period, 2019 and the forecast period 2020–2030, the rising demand for SOFCs during growing data centers is expected to boost the market in Europe during the forecast period.
• In terms of revenue, Europe's Solid Oxide Fuel Cell market is estimated to surpass US$ XX Bn by 2030, expanding at a CAGR of XX% throughout the forecast period.

Increasing R&D on fuel cells coupled with government support augment the market growth of solid oxide fuel cell

The market's expansion can be attributed to increased R&D efforts to make electricity-generating more affordable and rising end-user demand for energy-efficient power generation. The usage of solid oxide fuel cells has also been promoted through several public-private partnerships, which is anticipated to have a favorable impact on the Europe SOFC market over the projected period.

The tremendous growth of the European fuel cell market has positively impacted the solid oxide fuel cell market, particularly in Germany, Russia, Poland, France, Italy, UK, Belgium and the rest of Europe. Government initiatives, such as schemes encouraging fuel cell electric vehicles and financing provided by the government, play a significant role in industry expansion in UK. The central government of Germany and private groups are driving the fuel cell market in Germany. According to government sources, Germany's Transport Ministry invests around 250 million pounds in hydrogen fuel cell vehicle development 

Furthermore, the government also funded various programs to support the growth of solid oxide fuel cells in the region. The Fuel Cells and Hydrogen 2 Joint Undertaking (JU) is funding the SO-FREE project as part of the European Commission's Horizon 2020 initiative. The SO-FREE project aims to create a combined heat and power (CHP) generation system based on solid oxide fuel cells (SOFCs), which entails a flexible system concept for efficient, nearly emission-free, fuel-flexible and truly modular power and heat supply to end-users in the residential, commercial, municipal and agricultural sectors.

The growing shift of Germany towards clean energy sources is driving the market share for solid oxide fuel cells in the region

Germany is a major player in Europe's solid oxide fuel cell market predominately due to the rising demand for electricity and a growing shift towards clean energy sources. Germany's energy supply has moved from a clear dominance of coal and oil to a more diverse system over the last four decades. In keeping with Germany's energy transition goals originally deployed in the 1970s, nuclear energy is being phased out in favor of more renewables.

Furthermore, coal, the most common source of electricity, is expected to be phased out entirely by 2038, creating huge market growth opportunities for the renewable energy sector to grow in the country. Despite this, Germany is still struggling to accomplish its climate change goals and is on track to miss its short-term carbon reduction targets. Although increased renewable energy generation has reduced emissions, the nuclear phase-out and rising electricity exports have countered some gains. 

However, the government's planned coal phase-out could help the country get back on track to meet its long-term electricity-related emissions targets. Furthermore, to speed up the process, the government is investing in fuel cell technology to reduce the dependence on fossil fuels and shift to clean energy.

Furthermore, By the end of 2018, German customers had access to 60 hydrogen refueling stations; 54 were owned and operated by H2 Mobility, a joint venture founded by FCHEA members Air Liquide and Linde industry partners. By the end of 2019, there were 100 hydrogen refueling stations. The fuel cell is also projected to be adopted in the marine sector to deliver electricity to cruise ship hotel operations in the next years.

COVID-19 Pandemic had a moderate impact on the market 

The COVID-19 pandemic significantly impacted the Europe solid oxide fuel cell sector because of factors such as supply chain disruption, the interruption of essential end-user industries' export and import activities and reduced product demand from the end-user side.

Nonetheless, the market for solid oxide fuel cells is likely to recover due to the growing global growth in the automotive market. Solid oxide fuel cells effectively power fuel cell vehicles like automobiles, buses or boats to generate primary or emergency backup power for vehicles. Additionally, since low-cost, long-lasting fuel cells are now available and offer energy storage with a high density for a suitable range and quick refilling, solid oxide fuel cells' functionality, reliability and cost are comparable to gas-fueled counterparts. Further, the safety characteristics are identical to those found in gasoline-powered automobiles. As a result, the demand for EVs and the growing import and export activities in the respective market are expected to improve the demand for the Europe solid oxide fuel cell market in the post-COVID-19 era.

DataM Analysis Report

Europe Solid Oxide Fuel Cell market is expected to expand at a CAGR of XX% during the forecast period. Government subsidies, increased fuel cell research and development, fuel flexibility, rising demand for energy-efficient power production and strict pollution regulations are the main factors driving the solid oxide fuel cell market. 

Key Driver

• The solid oxide fuel cell is a strong competitor for transportation applications due to its well-known compatibility with hydrocarbon fuels. For decades, gasoline and diesel have been the most popular fuels.
• The combined inertia of 500 million cars, the current fuel delivery system and the economic dominance of oil and vehicle corporations favor liquid fuels and internal combustion engines.
• Solid oxide fuel cells may play an essential role in transportation due to their compatibility with vaporized liquid hydrocarbon fuels. A typical "SOFCar" is a hybrid fuel cell vehicle with a modest buffer battery and a relatively small onboard SOFC power source that continuously converts conventional gasoline or diesel fuel into DC electricity.
• Over the projection period, SOFC-based solutions for transportation applications will likely be developed through collaboration between SOFC suppliers and transportation sector vendors. Thus various companies are investing in building SOFCs for transportation applications. For instance, Mitsubishi Power’s first hybrid solid oxide fuel cell (SOFC) began operations in Europe in June 2022 at the Gas- und Wärme-Institut Essen e.V. (GWI).
• The SOFC is a public display of low-emission, alternative renewable energy solutions that might supply electricity to Europe in the future. The hybrid SOFC is integrated with the GWI's power and heat supply and may run on various fuels, including biogas, natural gas and hydrogen, in actual operating conditions.

Growing application of solid oxide fuel cells in residential and commercial applications

• Solid oxide fuel cells for residential usage are composed of a generating unit that generates electricity and a hot-water supply unit that utilizes the heat created by the generating unit. Different materials for the cells at the system's center create different fuel cells. Residential polymer electrolyte fuel cells (PEFC) using polymer electrolyte membranes are already available.
• The technologies are highly energy-efficient, emit very little sulfur oxide (SOx) and nitrogen oxide (NOx) and emit very little carbon dioxide (CO2), a major contributor to climate change. As a result, solid fuel cell applications in the home as an environmentally friendly technology are projected to rise in the future
• Furthermore, A decade ago, it sounded too good to be true for home applications to generate power and heat with no pollution and significantly lower greenhouse gas emissions. Stationary fuel cells are a viable alternative to combustion engines for producing electricity and cogenerating heat as part of micro-combined heat and power (micro-CHP) systems.
• Among the numerous types of micro-CHP, fuel cell cogeneration systems can achieve 90% efficiency (60% electric and the remainder thermal). Because of fuel cells' low heat-to-power ratio, the technology is well adapted to the increasing trend in homes toward higher electricity consumption and lower space heating demand.
• However, despite their enormous potential for domestic applications, micro-CHP systems have yet to enter the business market. New developments presented by the EU-funded HEATSTACK project appear to assist in overcoming the high capital cost problem precluding the technology's commercialization.
• The primary emphasis has been on lowering the production costs of the two most expensive components of the fuel cell system, the fuel cell stack and heat exchanger, which account for most of the fuel cell capital expenses. The researchers drew on the success of a cutting-edge micro-CHP system powered by a solid oxide fuel cell (SOFC) stack created by project partner Sunfire.
• As a result, the system has undergone extensive field experiments as part of European-wide residential fuel cell micro-CHP deployment programs. It is one of the most promising SOFC cogeneration technologies on the verge of commercialization.

Competition Landscape

• Detailed profiles of major market players providing Solid Oxide Fuel Cell solutions are provided in the report, including financials, company profile analysis, market revenue analysis, import and export, recent developments and market strategies analysis, key product/service offerings and an overview of the Company
• Key players operating in the region's Solid Oxide Fuel Cell market are Ceres Power Holdings Plc, KERAFOL Ceramic Films GmbH & Co. KG and others.

Strategic Partnerships

• Major market players of Solid Oxide Fuel Cell solutions in Europe, such as Bloom Energy, Special Power Sources, Watt Fuel Cell Corporation and others, are focusing on strategic partnerships and acquisitions to expand their footprint. Some other key market strategies in the Solid Oxide Fuel Cell market in Europe are highlighted below:
  • In 2020, Mitsubishi Power received an order to supply Europe's first Solid Oxide Fuel Cell (SOFC). By March 2022, the extremely effective hybrid system will be operational at the Gas- und Wärme-Institut Essen e.V. (GWI) in Essen. The flexible operation of the Hybrid-SOFC and the proportionate usage of hydrogen as a fuel gas are just two topics that will be explored in real-world settings.
• In Europe Solid Oxide Fuel Cell market report, we have discussed individual strategies, followed by company profiles of providers of Solid Oxide Fuel Cell solutions. The 'Competitive Landscape' section is included in report to provide the readers with a dashboard view and competitive analysis of key players operating in the Europe Solid Oxide Fuel Cell market.