Solid Oxide Electrolysis Cell Market– Forecast (2025-2030)

Overview

The solid oxide electrolysis cell market size is forecast to reach USD 654.70 million by 2030, after growing at a CAGR of 25.62% during 2025-2030. SOECs offer several advantages over traditional hydrogen production methods. They are highly efficient and capable of converting electrical energy into hydrogen with an efficiency of up to 80%. This makes SOECs one of the most efficient electrolysis technologies for hydrogen production. Additionally, SOECs are flexible in operation, as they can function both in electrolysis mode for hydrogen production and in fuel cell mode for generating electricity. This dual functionality enhances their potential for integrated energy systems.

Report Coverage

The report “Solid Oxide Electrolysis Cell Market– Forecast (2025-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the solid oxide electrolysis cell market.

By Type: Oxygen Ion Conducting SOEC, Proton Conducting SOEC.

By Configuration: Tubular, Planar.

By Application: Hydrogen Production, Industrial Process, Others.

By End-user: Power Plants, Steel Plants, Electronics and Photovoltaics, Industrial Gases, Others.

By Geography:  North America, South America, Europe, Asia-Pacific, RoW

Key Takeaways

•  On 26 September 2024, The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) announced up to $4 million in federal funding to help make clean hydrogen a more accessible and cost-effective fuel for electricity generation, industrial decarbonization, and transportation. This funding will support research and development (R&D) projects aimed at enhancing the versatility and applicability of solid oxide fuel cell (SOFC) technology, which provides efficient, low-cost electricity from hydrogen or natural gas.

•    On April 26, 2024, The Korea Institute of Energy Research (KIER) advanced the development of a solid oxide electrolysis cell (SOEC) stack that incorporates a specialized separator plate to optimize the flow of hydrogen and oxygen during water splitting. In collaboration with Samsung Electro-Mechanics and Bumhan Industries, KIER is working to enhance manufacturing processes for this technology. The institute has also developed an 8 kW SOEC capable of producing over 5 kg of hydrogen daily. 

•    One key market driver for Solid Oxide Electrolysis Cells (SOEC) is their growing adoption in large-scale green hydrogen projects, as demonstrated by the Nujio’qonik project in Canada. Announced on May 22, 2023, Bloom Energy Corporation is supplying its advanced SOEC technology to this pioneering $4.5 billion green hydrogen commercialization effort, led by World Energy GH2. The project, set to produce green hydrogen and ammonia in Newfoundland and Labrador by 2025 and 2026, will combine SOEC and Proton Exchange Membrane (PEM) electrolyzers to use wind power for water electrolysis. Bloom Energy’s SOECs, operating at temperatures around 700°C, offer a significant advantage by requiring less electricity to produce hydrogen compared to other electrolyzer technologies. 

By Type- Segment Analysis

Proton Conducting SOEC dominated the solid oxide electrolysis cell market in 2024. Proton Conducting SOECs typically operate at lower temperatures (around 500-700°C) compared to oxygen-conducting SOECs, which makes them more suitable for integration with existing industrial infrastructure that may not be optimized for high-temperature operations. This makes them attractive for applications where waste heat is not available or where moderate temperatures are preferred.

For instance, in February 2024, The U.S. Department of Energy (DOE) funded $1,070,000 to Dong Ding and Idaho National Laboratory to demonstrate Proton Conducting Solid Oxide Electrolysis Cells (P-SOECs) with specific performance goals, such as a degradation rate of ≤5 mV/khr, fuel efficiency (FE) >90%, and a current density of >1.0 A cm² at 1.3 V (with ≥50% steam and ≤600°C), is a significant step in advancing the Proton Conducting SOEC market.

By Configuration- Segment Analysis

Tubular dominated the solid oxide electrolysis cell market in 2024. Tubular SOECs are known for their high-power density due to their geometry. The tubular design allows for better heat management, with more surface area available for reactions, enabling higher current densities. This makes them ideal for large-scale applications where maximizing energy output is critical.
Tubular SOECs are highly scalable. Their modular design means they can be stacked or combined in series or parallel configurations, enabling large-scale production of hydrogen. By using multiple tubular cells, manufacturers can scale the system to meet the required hydrogen production capacity without significant redesigns of the core technology.

By Application- Segment Analysis

Hydrogen Production dominated the solid oxide electrolysis cell market in 2024. SOECs are one of the most efficient technologies for hydrogen production through electrolysis, particularly compared to traditional alkaline and PEM (proton exchange membrane) electrolysis. SOECs operate at high temperatures (typically 600–900°C), which allows them to achieve higher efficiency in splitting water into hydrogen and oxygen, reducing the energy required for the electrolysis process. This increased efficiency is a significant factor in making hydrogen production more economically viable.
In August 2024, Thermax, a prominent provider of energy and environmental solutions and a reliable partner in the energy transition announced a strategic partnership with Ceres Power Holdings plc (CWR.L), a leading innovator in clean energy technology. The two companies have entered into a non-exclusive, global licensing agreement, enabling Thermax to manufacture, sell, and service stack array modules (SAM) that utilize Ceres' advanced solid oxide electrolysis (SOEC) technology. This partnership represents a major milestone in speeding up the adoption of SOEC technology both in India and globally, paving the way for the cost-effective production of green hydrogen.

By End-User- Segment Analysis

Power Plants dominated the solid oxide electrolysis cell market in 2024.  SOECs operate at high temperatures (typically 600–900°C), making them more efficient in hydrogen production compared to other electrolyzer technologies. This is particularly beneficial in power plants where high-temperature heat can be effectively utilized, resulting in less energy being wasted. The increased efficiency in hydrogen production makes SOECs an attractive option for power plants looking to produce hydrogen at scale for energy storage, grid balancing, and industrial uses.
For example, in April 2024, Mitsubishi Heavy Industries (MHI) began operating a 400 kW test module of its Solid Oxide Electrolysis Cell (SOEC) technology at the Takasago Hydrogen Park in Japan. This move highlights the increasing role of SOEC technology in the power plant sector. By utilizing high-efficiency SOECs for hydrogen production, MHI is contributing to the development of cleaner, more sustainable energy systems in power generation.

By Geography - Segment Analysis

APAC dominated the solid oxide electrolysis cell market in 2024. APAC countries like China, Japan, and South Korea are investing heavily in green hydrogen to achieve carbon neutrality, driving SOEC adoption. Government initiatives such as Japan’s "Hydrogen Society" and South Korea's "Hydrogen Economy Roadmap" provide incentives for renewable energy and SOEC deployment.  

On April 26, 2024, The Korea Institute of Energy Research (KIER) advanced the development of a solid oxide electrolysis cell (SOEC) stack that incorporates a specialized separator plate to optimize the flow of hydrogen and oxygen during water splitting. In collaboration with Samsung Electro-Mechanics and Bumhan Industries, KIER is working to enhance manufacturing processes for this technology. The institute has also developed an 8 kW SOEC capable of producing over 5 kg of hydrogen daily. These breakthroughs, driven by improvements in SOEC efficiency and production capacity, are expected to significantly propel the growth of the solid oxide electrolysis cell market, as the technology offers a promising solution for scalable and sustainable hydrogen production.

Drivers – Solid Oxide Electrolysis Cell Market

•    Growing Demand for Green Hydrogen Production

Governments and industries worldwide are prioritizing green hydrogen production to achieve net-zero carbon emissions. SOEC technology, with its high electrical efficiency and ability to use renewable energy, is well-suited for producing green hydrogen. Policies like Europe’s REPowerEU plan, targeting 10 million tons of domestic green hydrogen production by 2030, are propelling investments in SOEC technology. Furthermore, SOECs are uniquely positioned to capitalize on the rising investments in hydrogen infrastructure and renewable energy integration. Their ability to co-electrolyze water and carbon dioxide into syngas expands their utility beyond hydrogen production, supporting Power-to-X applications for creating synthetic fuels and chemicals. This versatility aligns with the circular carbon economy model, where carbon emissions are captured and repurposed rather than released into the atmosphere.

According to the China Hydrogen Alliance, China expects a jump in hydrogen demand, reaching 35 million tons by 2030, accounting for at least 5% of the country's energy supply. This demand is expected to increase further, reaching 60 million tons (10% of the energy supply) by 2050 and finally 100 million tons (20% of the energy supply) by 2060. The hydrogen industry is estimated to produce CNY 1 trillion (USD 157.44 billion) by 2025.

•    The Increasing Emphasis on Decarbonization and the Adoption of Renewable Energy Solutions

By 2050, up to 18% of global energy demand may come from hydrogen, according to the International Energy Agency (IEA), highlighting the importance of SOECs in the energy sector. Many factors are crucial in this changing industry. The deployment of SOEC technology is being propelled by the growing emphasis on decarbonization and the use of renewable energy sources.
Traditional fossil-energy-based energy systems have generated a slew of serious problems in human life, including excessive energy use and environmental contamination. As a result, the global focus on clean and renewable energy is growing the market share of solid oxide electrolysis cells. Wind and solar energy, both sustainable energy sources, are currently widely used and will eventually become the dominant energy source. However, an important aspect of these renewable energy sources is intermittent availability. Wind energy is dependent on climatic conditions, as sunshine and tides cycle throughout the day. To address these challenges, energy conversion and storage technologies are critically needed. Electrolytic cell technology has gained popularity due to its high efficiency, environmental friendliness, and widespread uses.

Challenges – Solid Oxide Electrolysis Cell Market

•  Raw Material Availability

The dependence on high-purity and rare materials presents a significant challenge for the growth and scalability of the Solid Oxide Electrolysis Cell (SOEC) market. Per megawatt, a ‘generic’ SOEC will require 150–200 kg of nickel, approximately 40 kg of zirconium, approximately 20 kg of lanthanum, and up to 5 kg of yttrium. Some SOEC designs may also require tens of kilograms of ceria and smaller quantities (single-digit kilograms) of scandium and gadolinium. 

As demand for SOECs rises, driven by global decarbonization goals and initiatives, the strain on the supply chain becomes evident. For instance, according to the Electrolyser Partnership Declaration in 2021, reaching REPowerEU objectives of 10 million tons of domestic clean hydrogen production by 2030 would require around 100GW of installed electrolyzer capacity in Europe. Basic chemical components and high-end performance materials are essential for electrolyzers.

Market Landscape

Technology launches and R&D activities are key strategies adopted by players in the Solid Oxide Electrolysis Cell market. In 2024, Major players in Solid Oxide Electrolysis Cell are American Express, Apple, Google Inc, Visa, Amazon, Paypal, Mastercard, Thales Group (Gemalto NV), IBM Corporation, and SAP SE, among others.

Developments:

•     In October 2024, FuelCell Energy, Inc. and Korea Hydro & Nuclear Power Co., Ltd. (KHNP) have announced their collaboration to explore hydrogen energy business opportunities, formalized through a memorandum of understanding (MOU). The partnership will focus on developing and deploying advanced energy solutions that integrate FuelCell Energy’s solid oxide electrolysis hydrogen platform with KHNP’s nuclear power plants, under applicable laws and regulations.
•     In July 2024, Elcogen, a European manufacturer specializing in technology for efficient and affordable green hydrogen and emission-free electricity, is excited to announce a collaboration with global technology company AVL. The partnership aims to develop solid oxide electrolyzer cell (SOEC) stack modules for megawatt-scale hydrogen production plants. This initiative combines the research and development efforts of both companies within their respective IPCEI (“Important Project of Common European Interest”) Hy2Tech programs in Estonia/Finland and Austria.
   

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