Solid Oxide Fuel Cells Market Revenue Sales to Reach USD 1.42 Billion by 2025: Grand View Research Inc.
The global solid oxide fuel cell market is expected to reach USD 1.42 billion by 2025, growing at a CAGR of 30%, according to a report by Grand View Research, Inc. Government funding is largely being replaced by corporate funding and in turn exhibited to display positive growth potential. There has been an increase of more than 44% of corporate funding from the period 2013 until 2016 hence displaying feasible commercialization prospect 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, 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 significant profit margin.
The soaring capital & operational costs and underutilization of various facilities for the development of 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, Verizon are actively investing in solid oxide fuel cell technology to reduce emissions and generate power for company operations.