Solid Oxide Electrolysis Cell (SOEC) Market Size, Share, Growth, and Industry Analysis, By Type (Planar and Tubular), By Application (Industrial and Energy storage), and Regional Forecast to 2033

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SOLID OXIDE ELECTROLYSIS CELL (SOEC) MARKET OVERVIEW

The global Solid Oxide Electrolysis Cell (SOEC) market size valued at approximately USD 1.14 billion in 2024 and is expected to reach USD 1.97 billion by 2033, growing at a compound annual growth rate (CAGR) of about 7% from 2025 to 2033.

In the recent years, the SOEC market has gained tremendous growth.The emphasis globally on sustainable energy solutions and transition towards green hydrogen production is creating the impetus for growth in this market.SOEC operates at high temperatures and employs ceramic oxide electrolyte layers that efficiently split water into hydrogen and oxygen.The main benefits of high-temperature operation for this method over others, including Proton Exchange Membrane (PEM) and Alkaline Exchange Membrane (AEM) electrolyzers, lie in the employment of non-platinum group materials as catalysts and in high-purity hydrogen production

GLOBAL CRISES IMPACTING SOLID OXIDE ELECTROLYSIS CELL (SOEC) MARKET

Solid Oxide Electrolysis Cell (SOEC) Industry Had a Positive Effect Due to supply chain disruption during COVID-19 Pandemic

The pandemic made the urgent necessity of resilient and sustainable energy systems very apparent and hastened investments in clean energy technologies.  This strategic decision not only developed hydrogen infrastructure but also intensified competition worldwide in the hydrogen sector. This made the pandemic an enabler that pushed the acceptance and development of SOEC technologies by countries seeking greener and stronger energy systems after the disaster. 

LATEST TRENDS

Growing innovation to Drive Market Growth

Innovation s make SOECs perform better, decrease production costs, and cut the timeframe for production with higher commercial feasibility. Secondly, more attention has been given to the integration of SOECs with renewable sources to produce green hydrogen, which is in line with broader global decarbonization goals. Foremost is the escalating demand for green hydrogen as a clean energy carrier, driven by global decarbonization efforts and the transition to zero-emission vehicles.

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SOLID OXIDE ELECTROLYSIS CELL (SOEC) MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Planar and Tubular

• Planar: Planar SOECs are the most widely researched and deployed type due to their simple design, ease of fabrication, and high efficiency in electrolysis processes. These SOECs consist of thin electrolyte layers sandwiched between electrodes, forming a compact and efficient structure. Their key advantage lies in their ability to operate at high current densities, making them suitable for large-scale hydrogen production and integration with industrial applications.
   
• Tubular: Tubular SOECs differ from their planar counterparts in terms of structural design, featuring a cylindrical configuration that enhances mechanical stability and thermal shock resistance. These SOECs exhibit superior durability and longevity, making them particularly attractive for applications requiring long-term continuous operation. Their robust structure minimizes issues related to sealing and thermal expansion, which are common concerns in planar SOECs.

By Application

Based on application, the global market can be categorized into Industrial and Energy storage

• Industrial: One of the primary applications of SOEC technology is large-scale hydrogen production for industrial processes. Industries such as ammonia production, petrochemical refining, and steel manufacturing require vast amounts of hydrogen, traditionally sourced from fossil fuels.

• Energy storage: SOEC technology plays a crucial role in energy storage and grid stability by enabling the conversion of surplus electricity into hydrogen. Renewable energy sources such as wind and solar power often generate excess electricity during peak production periods, which can be stored as hydrogen through SOEC electrolysis. This stored hydrogen can later be utilized in fuel cells or other applications to generate electricity when needed, effectively addressing intermittency issues in renewable energy systems.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions. 

Driving Factors

Increasing efficiency to Boost the Market

Hydrogen produced via SOECs is increasingly viewed as a sustainable alternative to fossil fuels, particularly in hard-to-decarbonize sectors such as heavy industry and transportation. In addition to the high electrical efficiency of converting electricity to hydrogen, SOECs can operate with waste industrial heat, giving it an upper hand. Market growth is enhanced operate with waste industrial heat, giving it an upper hand. Market growth is enhanced by government policies and incentives directed toward clean energy technologies, prompting investment in the research, development, and implementation of SOECs.

Restraining Factor

High operating temperatures to Potentially Impede Market Growth

The SOEC market has multiple factors that threaten to hinder growth despite the attractive prospect. High operating temperatures demand the use of specific materials, which are more expensive to produce and maybe less durable. The technology of SOEC is still in the early stages, and manufacturing at large scales is still in its development phase. This limits the economies of scale and makes unit costs relatively higher.

Opportunity

Collaborations To Create Opportunity for the Product in the Market

The changing energy landscape provides many opportunities for the SOEC market. With the increasing emphasis on hydrogen as a primary component of future energy systems, opportunities for SOEC applications are being opened in the power generation, transportation, and industrial processes sectors. Innovations are being fostered through collaborations between research institutions and industry players, which are leading to advancements in SOEC technology and reductions in production costs. For example, partnerships aimed at improving manufacturing processes and scaling up production capacity are paving the way for broader adoption of SOECs. Supportive government policies and funding for clean energy projects also create a conducive environment for the growth of the SOEC market.

Challenge

Durability Could Be a Potential Challenge for Consumers

There are various challenges that the SOEC market has to face before realizing its true potential. Material durability and system integration related technical challenges must be addressed for higher reliability and longevity of SOEC systems. The initial high capital expenditure associated with SOEC deployment will prove a hurdle for most organizations in the absence of well-established financial incentives or subsidies.

Additionally, the competitive landscape, with alternative hydrogen production technologies such as PEM and AEM electrolyzers, requires continuous innovation and cost reduction efforts within the SOEC sector. The challenge will be met by the collaborative efforts of stakeholders along the value chain, from researchers to manufacturers, policymakers, and end-users.

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SOLID OXIDE ELECTROLYSIS CELL (SOEC) MARKET REGIONAL INSIGHTS

• North America

The market of SOECs is booming in North America, particularly the United States SOEC market owing to heavy investment in clean energy technologies and significant efforts in greenhouse gas emissions. The initiatives undertaken by the government, coupled with funding programs on hydrogen production and utilization, promote the adoption of SOECs. Collaborations between research institutions and industry players are also contributing to technological advancements and the establishment of pilot projects, positioning the region as a significant player in the SOEC market.

• Europe

Europe currently leads the SOEC market, accounting for approximately 39.89% of the global market share in 2023. The region's stringent environmental regulations and ambitious decarbonization targets have accelerated the adoption of green hydrogen technologies, including SOECs.
Germany and the United Kingdom are leading the pack with a good number of markets and investments targeting scaling up SOEC deployment.

Instrumental to this is the conducive policy environment within the European Union, coupled with funding mechanisms, thus driving innovation and commercialization of SOEC technologies. 

• Asia

The Solid Oxide Electrolysis Cell (SOEC) market is growing consistently in Aisa especially in countries like China, India and Japan. Since these are developing countries they pose lots of the opportunities for the market. These countries also have a significant Solid Oxide Electrolysis Cell (SOEC) market share in the region.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

The solid oxide electrolysis cell market is growing at a rapid pace. This is largely because of active involvement from significant industry players in driving innovation while scaling up expansion in the market. They are aggressively employing technologies to accelerate the commercialization of SOEC technology through strategic alliances and government help up expansion in the market.
They are aggressively employing technologies to accelerate the commercialization of SOEC technology through strategic alliances and government help. Sunfire, for example, has developed next-generation high-temperature SOECs capable of achieving conversion efficiencies of over 85%, making them one of the most efficient electrolysis technologies available. By optimizing electrode materials, electrolyte compositions, and stack configurations, these companies are pushing the boundaries of what SOECs can achieve in terms of hydrogen production capacity and operational stability.

The most important innovation in this regard is the integration of co-electrolysis capabilities, where SOECs do not only split water into hydrogen and oxygen but also process carbon dioxide to produce syngas, a very important feedstock for synthetic fuels. This innovation has been advocated by companies like Solid Power from Italy and AVL from Austria. It has new possibilities for the production of carbon-neutral fuels as an alternative to conventional fossil fuel-based industrial processes.
The company is using automation and advanced manufacturing techniques to reduce costs and improve scalability.


Strategic Collaborations and Government Support This growing recognition of the role of hydrogen in achieving carbon neutrality has brought increased funding and policy support to the development of SOECs. Industry leaders are taking advantage of this trend by forming strategic alliances with governments, research institutions, and industrial partners. Sunfire, for example, has been actively cooperating with the German government on national hydrogen initiatives and has secured funding to further develop and commercialize its SOEC technology. Similarly, AVL (Austria) has collaborated with European industrial majors to integrate SOECs into large-scale hydrogen production projects to ensure the viability of the technology at an industrial level. The European Union's Hydrogen Strategy has been crucial in facilitating these collaborations, providing both financial incentives and regulatory frameworks that encourage investment in SOEC infrastructure. Solid Power (Italy) is intensively developing SOECs optimized for CCU applications, giving industries the chance to produce synthetic fuels from CO₂ emissions that are captured. In addition, some companies are shifting from selling hardware to "SOEC-as-a-service" business models, where industries can lease SOEC systems and pay for hydrogen production as a service rather than investing in expensive infrastructure upfront. This model, pioneered by firms like FuelCell Energy, lowers the entry barriers for industries looking to transition to green hydrogen, further accelerating market adoption.

Key industry players are shaping the SOEC market through relentless innovation, large-scale production expansion, and strategic partnerships. Improving efficiency, reducing costs, and collaborating with governments and industrial partners will accelerate the commercialization of SOEC technology. As demand for green hydrogen and sustainable energy solutions continues to grow, these market leaders will drive growth and adoption of SOECs worldwide.

The coming years are expected to see further improvements in efficiency, scalability, and integration with renewable energy, to make SOECs a keystone technology of the global transition to clean energy.

List of Top Solid Oxide Electrolysis Cell (Soec) Companies

• Sunfire (Germany)
• Haldor Topsøe (Denmark)
• Bloom Energy (USA)
• FuelCell Energy (USA)
• AVL (Austria)
• Solid Power (Italy)
• Convion (Finland)
• Mitsubishi Power (Japan)
• Kyocera Corporation (Japan)
• Elcogen (Estonia)

KEY INDUSTRY DEVELOPMENTS

April 2024: Mitsubishi Heavy Industry commenced operations of its 400 kW SOEC test module at the Takasago Hydrogen Park. This initiative represents a significant step toward next-generation hydrogen production technologies, aiming to advance hydrogen solutions for power generation.

March 2024: Topsoe successfully completed testing of its SOEC module, which comprises 12 running stacks and 1,200 cells, delivering a total power output of 350 kW.

REPORT COVERAGE

The study takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth. Despite all these challenges, advances in material science and stack design are raising the performance and lifetime of planar SOECs, helping further spread them in renewable hydrogen production projects.

Tubular SOECs Tubular SOECs differ from planar ones in terms of structural design as tubular one possesses a cylindrical configuration enhancing its mechanical stability and resistance to thermal shocks. In general, durability and lifetime of the tubular SOECs are higher and hence are preferable for usage that requires long-term continuous operations.

Their thick structure reduces the problems of sealing and thermal expansion, which are the major drawbacks in planar SOECs. However, they have some drawbacks in the form of low power densities and higher manufacturing costs, which has limited their large-scale commercialization.