Planar Solid Oxide Fuel Cell Market - Growth, Trends, and Forecasts (2020 - 2025)
The global planar solid oxide fuel cell market is expected to grow at a CAGR of more than 10% over the period of 2020-2025. The rising demand for clean energy over concerns of the environmental impact of energy generation from conventional sources such as coal and natural gas is expected to help grow the planar solid oxide fuel cell market. However, relatively high initial cost and new technology have somewhat hampered the growth of the planar solid oxide fuel cells in the market.
Data centers sector is expected to witness significant growth in the forecast period, owing to various factors such as an increase in investments in data centers, and usage of clean energy source for powering these centers. The use of solid oxide fuel cells in these centers has seen a rise due to the energy efficiency of the fuel cells and rising concerns over greenhouse gas emissions from conventional electricity generation methods.
The increasing demand for electrical energy to sustain global development requires consistent heavy investments in energy-efficient and clean energy sources. This is expected to help the planar solid oxide fuel cell become more reliable and practical through means of research and development, which in turn will increase the usage of planar solid oxide fuel cells.
Asia-Pacific is expected to dominate the market growth with the majority of the demand coming from countries such as China and India, owing to factors like economic growth in the emerging nations, an increasing number of data centers, and rising industrial activities.
Key Market Trends
Data Centers to Dominate the Market Growth
The data center market is expected to grow at a CAGR of over 8% in the forecast period, and along with-it power backup systems market is expected to grow too. 33% of the data centers outage is caused by power outages, and a power outage costs a lot of money to data centers operated.
High efficiency, large capacity, and continuous power generation capability have made planar solid oxide fuel cells a preferable choice for power backup and voltage variations.
India is one of the fastest-growing economies in the world, and it is likely to boost the growth of public cloud-based data centers. The IT industry dominates the Indian market as the largest private-sector employer in the country, where data centers are widely used, thereby propelling the planar solid oxide fuel cells market growth.
There has been a massive increase in research and pilot testing of usage of planar solid oxide fuel cells in data centers.
Therefore, with an increase in internet usage, and ongoing research on planar solid oxide fuel cells, the market is expected to grow in the forecast period.
Asia-Pacific to Dominate the Market
Asia-Pacific has dominated the planar solid oxide fuel cell market growth, in 2019, and is expected to continue its dominance in terms of market growth in the coming years as well. The region is expected to see an unprecedented increase during the forecast period.
Japan is leading in the region with vast applications of fuel cells, ranging from backup services for data centers, combined heat and power for homes, and many more. This is expected to provide a significant market growth for planar solid oxide fuel cell market.
China has also witnessed a rise in its hyper-scale platforms, owing to which providing data center services for Chinese hyper-scale platforms have become necessary.
China has 50 internet users per 100 population, indicating scope for a lot of development and the connectivity ecosystem and thereby driving the planar solid oxide fuel cells market.
Therefore, the aforementioned factors are expected to drive the market in the forecast period, similar to the trend witnessed in recent years.
The planar solid oxide fuel cell market is consolidated. Some of the key players in this market include Aisin Seiki Co Ltd, Bloom Energy Corp., and Hexis S.A.
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