SOFC and SOEC Market Trends and Forecast
The future of the global SOFC and SOEC market looks promising with opportunities in the stationary, transportation, and portable & military markets. The global SOFC and SOEC market is expected to grow with a CAGR of 29.6% from 2025 to 2031. The major drivers for this market are the growing investment in hydrogen production, the increase in energy efficiency requirement, and the rising demand for clean energy solution.
• Lucintel forecasts that, within the type category, planar is expected to witness higher growth over the forecast period.
• Within the application category, stationary is expected to witness the highest growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.
Emerging Trends in the SOFC and SOEC Market
Due to the climate and efficiency requirements of the energy systems, the SOFC and SOEC market is transforming tremendously. There are many new trends which are causing a change in the way these technologies are developed, marketed, and used. SOFC and SOEC systems have attained industrial relevance and importance for grid regulation as well as for stabilizing energy value chains with increasing emphasis on energy-resilience and decarbonization. Advances in materials science, policies, new integrations with renewable energy, and policy changes are coming together to create new market opportunities. All of these trends are not only quickening adoption, but also making the technologies economically feasible.
• Production of Green Hydrogen SOEC: SOEC are becoming more popular due to their ability to produce green hydrogen using renewable electricity. SOECs operate at high temperatures as compared to others, which decreases the energy needed to split water, allowing the use of industrial heat. Bloom Energy and Sunfire Are working on SOEC systems for commercial purposes in the steel, ammonia, and energy industries. Europe, Asia, and North America have governments sponsoring pilot programs and infrastructure to increase scaling deployment. This trend promotes cleaner hydrogen production and less dependency on fossil fuels, which helps achieve global decarbonization objectives.
• Industrial Decarbonization Using SOFC and SOEC: Heavy industries are looking for solid oxide technologies to help lower carbon emissions where electrification is difficult. SOFC are effectively combined heat and power systems for chemical plants and refineries. At the same time, SOECs provide a route for producing low-emission hydrogen and syngas feedstocks. Germany and China are piloting SOECs in steel and synthetic fuel production. These technologies are being integrated into decarbonization strategies because of their ability to supplant, high-emission processes, allowing industries to remain efficient while meeting regulatory requirements.
• Hybrid Systems with Renewables and Storage: There’s a growing SOFC and SOEC combined with renewable and energy storage systems trend. These hybrid systems improve energy utilization and grid stability. For example, in fuel cells, SOECs can store excess solar or wind energy as hydrogen and then convert it back to electricity using SOFC during peak demand. Such systems allow to overcome intermittency-related problems and support decentralized energy systems. Leading projects in Japan and the United States illustrate how hybrid systems can improve grid reliability and decrease reliance on the centralized power system.
• Innovations In Materials and Manufacturing Procedure: The development of new ceramic materials, specialized coatings, and innovative system architectures is yielding improvements in SOFC and SOEC durability, cost, and scalability. Current programs agenda aims towards lowering the operating temperature while maintaining performance to increase the life and reduce the maintenance work, thereby trimming down costs. Additive manufacturing and automated assembly line systems are being developed to simplify incorporative processes. These technologies are essential for mass acceptance and competition with other clean energy technologies. Collaborative R&D between academia, industry, and government is speeding up the movement from laboratory innovation to commercialization.
• Incentive Schemes and Tactical Framework: The initiative SOFC and SOEC countries and governments are taking in terms of supporting policies, public funding, and national hydrogen goals are critical in advancing the market. The European Union Green Deal, Inflation Reduction Act of the USA, and Hydrogen Strategy in Japan are some of the policies which have gained international attention. These policies include funding for pilot projects and procurement programs alongside tax incentives. In combination, these policies lower the defensive investment barrier stiffening competition and stimulating private investment. Infrastructure development for clean hydrogen and decentralized solid oxide power generation technologies is made possible through comprehensive policies alongside long term commitment.
Economically transforming industries, technological advancements, and global climate objectives greatly impact the market of SOFC and SOEC. Solid oxide technologies have become more essential and scalable due to the formation of competitiveness trends such as decarbonization of hydrogen and other industries, government incentives, and the development of hybrid systems. These marketed technologies are projected to enable countries to invest and cooperatively control advanced energy systems, making SOFC and SOEC technologies the dominating elements of a positive fuel economy. This encourages energy resilience while decreasing emissions and promoting sustainable growth.
Recent Development in the SOFC and SOEC Market
The sector of SOFC and SOEC market technologies is adopting new trends because of the efforts taken towards global decarbonization, technological progress, and increasing need for clean energy. These high-temperature electrochemical devices have SOFC and SOEC, which are used for turning power into electricity and producing hydrogen, respectively. Hence, they are essential for all strategies regarding energy transition. There is considerable activity at the government level and among industrial stakeholders to scale production, enhance materials, and adapt systems for larger energy frameworks. There are new collaborations and commercialization activities from all regions of the globe, which indicates movement towards more supporting policies placed regionally. There are numerous advancements which are changing the innovations landscape of SOFC and SOEC technologies in regard to new heightened commercial opportunities, regional expansion, and widespread application support.
• Bloom Hydrogen’s SOEC Expansion Projects for Hydrogen Fuel: Bloom Energy is SOEC pilot projects to green hydrogen production in the industrial and power sectors. The company claims to have commissioned the world’s most efficient 4 MW SOEC facility. This marks a both a subsidized-reduction-act era and eucalyptus deals worth SHIFT from laboratory-sized plants to commercial operations electrolysis. It further supports the US and European union hydrogen agenda positions. By lowering hydrogen production costs and optimizing system performance, BloomÄX%$%Xs fabrication bolsters SOECÄX%$%Xs capacity to decarbonize difficult-to-abate emissions and propel infrastructure investments around the world.
• The Collaboration on SOFC Stack NGK Insulator: Mitsubishi Power collaborates with NGK Insulators to create an advanced SOFC stack with higher durability and lower use of rare-earth materials. This partnership focuses on reducing costs of manufacturing and enhancing lifetime performance. Their solution has completed preliminary field tests and is planned for commercial launch by 2026, catering to both stationary power generation and backup systems. This initiative is critical for effectively managing the availability of materials, along with the improvement of economic feasibility. SOFC systems need this kind of advancement in construction to enable broad residential and industrial market access in Japan and other countries.
• The Integration of SOEC with Industrial Clusters by Siemens Energy: Siemens Energy is the first to incorporate SOEC technology into European industrial clusters with projects like “H2FUTURE,” which demonstrates multi-megawatt electrolyze units for green steel production. Siemens improves the operational and economic efficiency of decarbonization processes by embedding SOEC within high-demand industrial processes. The project focuses on the lower electricity divided to net-zero industrial operations and greater output of high purity Hydrogen from SOEC. This integration, aimed at meeting objectives, shifts the perception of SOEC systems from an independent unit into a primary constituent of multi-sector decarbonization frameworks.
• Ceres Power’s Licensing Framework of SOFC Technology: In order to commercialize its SOFC technology, Ceres Power has optimized its licensing model to cooperate with Bosch, Wichai, and other global manufacturers. Through this approach, Ceres is able to sell his SOFC technology much faster regionally with global partners without constructing large scale manufacturing facilities. Under this model, Ceres has promoted the German and Chinese SOFC manufacturing with the help of infrastructure and distribution systems of his partners. This enhances the spread of the technology and achieves the targets of clean energy in the region. It also shows the pace of innovation and creativity in the collaborative SOFC invention, which is known as agile and decentralized system for the growth of the market.
• Increase of Funding for Research and Development on SOFC and SOEC: The European Union has increased the funding of SOFC and SOEC R&D activities through Horizon Europe and Clean Hydrogen Partnership. These include the recent grants worth several million Euros for the development of advanced materials, the integration of the system, and the efficiency analysis of the entire life cycle of the system. These changes strengthen the pathways of innovation, build new public-private partnership projects, and lower the risk of technologies that are in the initial stage. The focus of the funding includes not only improvement of function but maximizing sustainability and recycling at the end of the intended lifespan of the system. Such strategies ensure that Europe sustains its position as a leader in the invention of fuel cells and electrolysis while creating a dynamic environment of start-up companies, research institutes, and industrial enterprises.
The latest trends in the SOFC and SOEC market demonstrate an interplay of technological evolution, collaboration, and supportive regulations. These developments like increasing the production of green hydrogen and developing cost-efficient and long-lasting fuel cell stacks, represent the movement towards the commercialization phase. Their implementation into industrial uses and international licensing speeds up market acceptance. Consequently, these technologies are positioned to transform fuel and clean hydrogen production. Such changes and the promise to enhance numerous industries and regions will make SOFC and SOEC systems crucial in the shift towards using cleaner energy worldwide.
Strategic Growth Opportunities in the SOFC and SOEC Market
Global efforts toward decarbonization and striving for energy efficiency are expanding the application range of the SOFC and SOEC market. The value propositions offered by these technologies are substantial in the realms of power generation, transportation, industrial-grade hydrogen production, data centers, and residential energy systems. SOFC are preferred for on-grid and off-grid residential units owing to their low emission and high-efficiency electricity generation. On the other hand, SOECs are essential for large-scale sustainable hydrogen production. Industries seeking to reduce carbon footprints and decentralize energy systems face new strategic opportunity gaps. These emerging opportunities are fueling innovation and investment.
• Distributed Power Production on Site: SOFC are particularly useful in remote areas or places where the electrical grid cannot be accessed, since they form decentralized power stations with low emissions and high efficiency. Operating on various fuels such as biogas and hydrogen, SOFC improve the flexibility of local energy systems. Municipalities and utility providers are exploring using SOFC micro grids for improved energy security, reduced reliance on the grid, and to gain resiliency during disasters. SOFC align with international objectives for net-zero emissions and aid the growing trend toward Distributed Energy Resources (DERs). Their compact size and quiet operation also enhance the feasibility of SOFC systems in urban areas. The growing applications of SOFC for off-grid energy systems indicates a positive trend towards investment-driven market growth.
• Industrial Green Hydrogen Production: Considering the production of green hydrogen at the industrial level, SOEC technology is particularly useful for the ammonia and chemical sectors, as well as for steelmaking. They all stand to benefit from its lower consumption of electricity relative to low-temperature electrolysis driven by the high-thermal operating efficiency of SOECs. Some industrial leaders are already beginning to incorporate SOEC systems into their emission reduction plans. Initiatives such as H2FUTURE and REFHYNE are demonstrating this change by showing that, with SOECs, projects can be both low-cost and sustainable. SOEC’s efficiency advantage over other systems makes it the preferred choice for gigawatt-scale hydrogen-producing electrolysis systems, especially with increasing global demand. This way, SOECs can be optimally aligned with industrial emission reduction objectives and circular economy frameworks.
• Data Centers and SOFC Systems as Backup Power for Critical Infrastructure: Data centers and mission-critical infrastructure require reliable backup systems, and SOFC have emerged as technologically advanced options. SOFC systems that deliver uninterrupted power with faster SOFC startup and minimal emissions are replacing traditional diesel generators. This is greatly valued in healthcare, finance, telecommunications, and other sectors where uptime and sustainability are crucial. Microsoft and Equinix have tested SOFC systems to improve energy reliability and reduce carbon footprints. The growing demand for resilient digital infrastructure and clean backup power will further drive the adoption of SOFC in this high-value application.
• Residential and Commercial Combined Heat and Power: CHP systems are capable of generating electricity and thermal energy from SOFC technology, resulting in higher energy efficiency for residential and commercial buildings. These systems are mainly adopted in colder regions with high energy prices. Japan and Germany are frontrunners in this regard and have subsidized funds that further increase adoption. SOFC-CHPÄX%$%Xs value proposition rests on the reduction of utility costs, increased energy self-sufficiency, and diminished emissions. While building decarbonization is a trend, there is a marked increase in the appeal of SOFC-based CHP systems for decarbonized heat and power supply, especially in fueling urban and rural areas.
• Fuel Cell Systems for Heavy-Duty Transportation: SOFC are being considered for long-haul and maritime transportation due to their better efficiency and fuel flexibility, even though they are more commonly linked with PEM technology. These types of Cells are appropriate for heavy-duty construction because of their capability to use liquid fuels or Ammonia for onboard hydrogen production. SOFC integration into transportation platforms is currently being tested with some pilot programs involving trucks, trains, and ships. This marks a major development zone in the context of international moves towards de-carbonization of the logistics and shipping industry. SOFC could complement the decarbonization of complex transport systems as fuel infrastructure and fuel-flexible systems advance.
The SOFC and SOEC market are going through transformational developments due to the increase in application domains. They are aligned with the most important global energy trends, from decentralized energy and industrial hydrogen to standby power and clean transportation. Investments and innovations across crucial sectors is being driven by their flexibility and efficiency. Adoption will speed up with shift of policy environments and commercial viability improves, but will be more tailored for SOFC and SOEC systems. This will increase the market potential while strengthening the technologies’ foundations in the transition to cleaner, resilient energy systems globally.
SOFC and SOEC Market Driver and Challenges
Decisions in the economy, technology, and policies have an impact on the SOFC and SOEC market. The key drivers include the need for hydrogen, government support, enhanced system efficiency, increasing demand for renewables, and the need for system decarbonization. These factors are fostering the uptake of the high-temperature electrochemical technologies in several industries. Nonetheless, some issues remain in the form of elevated capital costs, material limitations, and system integration difficulties. Comprehending these in conjunction with the challenges is critical to formulating strategic investments and ensuring effective commercial deployment of SOFC and SOEC technologies in global energy transition efforts.
The factors responsible for driving the SOFC and SOEC market include:
1. International Requirements for Decarbonization: Countries worldwide are implementing net-zero emissions policies. This has increased the development of clean energy technologies such as SOFC and SOEC. Their role as a carbon footprint mitigator in power generation and hydrogen production serves the remaining sustainability objectives. Support for these technologies through funds, subsidies, carbon pricing, and green hydrogen initiatives accelerates projects development and investment. This driver guarantees sustained demand and improves market outlook, thereby ensuring public and private investment into SOFC and SOEC systems.
2. Boosting Investments in Hydrogen Economy: With the development of hydrogen roadmaps, SOECs are notable for their high efficiency in hydrogen production. The investment in green hydrogen infrastructure, particularly in Europe and Asia, is increasing the demand for SOEC systems. This driver is important for industrial decarbonization and increases the competitiveness of SOECs against high-temperature electrolysis technology.
3. Breakthrough in Material Science and Manufacturing: Advancements in ceramic materials, SOFC catalysts, and stacking architectures are making SOFC and SOEC systems more durable, efficient, and scalable. The same goes for some processes, such as automation and additive manufacturing, causing a decrease in production price and mass production capabilities. Such changes improve the economic potential and help in the primary market deployment of these systems in vital operations.
4. Fuels Flexibility and Systems Integration: SOFC that run on hydrogen, methane, biogas, and ammonia have the capacity of changing the fuel source, providing flexibility in energy and better integration with the pre-existing systems. This type of support is important for transitional energy systems and is consistent with the gradual decarbonization approach many countries are employing.
5. Encouraging Policies and Funding Framework: The most vital elements are public funding initiatives combined with friendly regulations. Projects like Horizon Europe by the EU and some offered by the US Department of Energy provides crucial uncaptured R&D funding and de-risking strategies, which builds the other framework of regulation. Those frameworks are critical in assisting developing the efficient builders to speed up innovation making for easier navigation through commercialization.
Challenges in the SOFC and SOEC market are:
1. Operational and Capital Cost: As compared to conventional alternatives, the costs associated with SOFC and SOEC systems remain priced at a premium. The requirements for special, high-temperature materials, complex manufacturing, and expensive materials increment such costs. This is especially problematic in low-sponsorship cost markets.
2. Sustainability and Performance Over Time: Achieving milestones in performance, long-term sustainability and real-world endurance, remain an ongoing hurdle. System life is reduced and the need for maintenance increases due to material degradation, thermal cycling stress, performance decay, and system life limits. These factors, ultimately, increase the total cost of ownership.
3. Integration with Infrastructure and Limitations of the System: Finishing the entire cycle of incorporating SOFC and SOEC into existing systems of energy infrastructure requires SOFC and SOEC engineering alongside support system technologists. The insufficient building block policy and scarce hydrogen infrastructure in most areas further create integration bottlenecks that delay deployment.
Mark my words: the SOFC and SOEC market are prime for innovation due to the strong focus on innovations that target decarbonization, the growth of the hydrogen economy, and relentless innovations. Adoption across critical sectors are improving, as are the technologies’ value propositions to the market. That being said, the market still has hurdles to overcome such as infrastructural readiness, performance durability, and the ever-so troubling high costs. Investments in R&D, manufacturing, and broad policy frameworks will allow these markets to thrive. Without a doubt, SOFC and SOEC technologies have the potential to transform clean energy on a global scale.
List of SOFC and SOEC Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies SOFC and SOEC companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the SOFC and SOEC companies profiled in this report include-
• Bloom Energy
• Aisin Seiki
• Mitsubishi Power
• Ceres
• SolydEra
• Sunfire GmbH
• Convion
• Special Power Sources (SPS)
• Topsoe
• Redox Power Systems
SOFC and SOEC Market by Segment
The study includes a forecast for the global SOFC and SOEC market by type, application, and region.
SOFC and SOEC Market by Type [Value from 2019 to 2031]:
• Planar
• Tubular
• Others
SOFC and SOEC Market by Application [Value from 2019 to 2031]:
• Stationary
• Transportation
• Portable & Military
SOFC and SOEC Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the SOFC and SOEC Market
The SOFC and SOEC are growing in importance as the world moves toward clean, sustainable energy. They can be used for stationary power production, industrial decarbonization, and green hydrogen generation given their high efficiency and flexibility toward fuels. Investments in SOFC and SOEC technologies are increasing as countries try to reach climate targets and lessen reliance on fossil fuels. The United States, China, Germany, India, and Japan are spearheading the efforts by offering various policies that support research, manufacturing, and infrastructure integration into the national energy system.
• United States: With help from the Department of Energy (DOE), the United States is maintaining its lead in SOFC and SOEC R&D. Current efforts are directed toward marketing and deploying these systems in data centers, microgrids, and hydrogen hubs. The DOE supports many projects focused on lowering the cost of green hydrogen produced through SOECs. Bloom Energy and Ceres Power are increasing their presence in the United States, which is a sign of the growing private investment. Public-private partnerships backed by funding for demonstration projects are also faster adopting SOFC and SOEC technologies commercially. There is also domestic clean energy manufacturing being pushed under the Inflation Reduction Act which supports growth in this area.
• China: Through state-funded programs and industrial cooperation, China is quickly enhancing its SOFC and SOEC technology capabilities. Important national research institutes like the Chinese Academy of Sciences are developing high-efficiency systems that align with the country’s hydrogen economy goals. SOFC and SOEC technologies are being accelerated in readiness for commercialization and domestic deployment due to aggressive state policies on technology cultivation and fuel cell standardization. Pilot initiatives in coal-based steelmaking, ammonia synthesis, and distributed power systems are emerging supporting the country’s energy security objectives and carbon neutrality targets. Domestic firms are also putting resources into SOFC for CHP systems located in metropolitan areas.
• Germany: Germany is the leading SOFC and SOEC innovator in Europe, capitalizing on its SOFC and SOEC industrial engineering prowess and green hydrogen strategy. The country is investing in large-scale electrolysis projects like H2Giga and H2Mare which assist in industrial decarbonization using SOECs. Sunfire and other companies are pioneering cost-effective hydrogen production through high-temperature electrolysis. Federal Ministry for Economic Affairs and Climate Action of Germany is supporting R&D projects and infrastructure development. GermanyÄX%$%Xs energy independence objectives and their participation in EU hydrogen initiatives places them at the forefront of adopting SOFC and SOEC technologies for industrial purposes.
• India: India is growing its engagement with SOFC and SOEC technologies due to its aspirations for clean energy leadership. Initiatives from the government like the National Green Hydrogen Mission are gaining traction toward the adoption of electrolyzes, including those based on SOEC technology. IITs and other domestic research institutions are forming partnerships with foreign companies which is boosting the domestic capability. Pilot initiatives are being implemented in fertilizer and oil refining, which are important Industries for India. Even though the market is still in its initial stages, IndiaÄX%$%Xs policies around renewable energy and SOFC and SOEC adoption, in addition to the country’s vast resources, encourage the development of these technologies.
• Japan: Japan is among the earliest adopters of SOFC technology, particularly for residential fuel cell systems in the ENE-FARM program. The focus from the government along with major corporates like Panasonic and Mitsubishi is now directed toward industrial grade SOECs for hydrogen manufacturing and carbon capturing. Japan’s hydrogen roadmap places decarbonization solid oxide technologies at the forefront of their strategy. Some of the latest activities have been demo projects of nuclear and renewable powered SOECs. Japan is also strengthening their collaboration with Europe and North America to boost technological partnerships. Japan’s fuel cell SOFC and SOEC policies along with research and development offer an integrated approach that leads the world.
Features of the Global SOFC and SOEC Market
Market Size Estimates: SOFC and SOEC market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: SOFC and SOEC market size by type, application, and region in terms of value ($B).
Regional Analysis: SOFC and SOEC market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the SOFC and SOEC market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the SOFC and SOEC market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for SOFC and SOEC market?
Answer: The global SOFC and SOEC market is expected to grow with a CAGR of 29.6% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the SOFC and SOEC market?
Answer: The major drivers for this market are the growing investment in hydrogen production, the increase in energy efficiency requirement, and the rising demand for clean energy solution.
Q3. What are the major segments for SOFC and SOEC market?
Answer: The future of the SOFC and SOEC market looks promising with opportunities in the stationary, transportation, and portable & military markets.
Q4. Who are the key SOFC and SOEC market companies?
Answer: Some of the key SOFC and SOEC companies are as follows:
• Bloom Energy
• Aisin Seiki
• Mitsubishi Power
• Ceres
• SolydEra
• Sunfire GmbH
• Convion
• Special Power Sources (SPS)
• Topsoe
• Redox Power Systems
Q5. Which SOFC and SOEC market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, planar is expected to witness higher growth over the forecast period.
Q6. In SOFC and SOEC market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the SOFC and SOEC market by type (planar, tubular, and others), application (stationary, transportation, and portable & military), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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