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Solid Oxide Electrolyzer Cells Market

The market for Solid Oxide Electrolyzer Cells was estimated at $335 million in 2025; it is anticipated to increase to $2.43 billion by 2030, with projections indicating growth to around $17.69 billion by 2035.

Report ID:DS2404005
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Green Energy
Solid Oxide Electrolyzer Cells
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Report Summary
Market Data
Methodology
Table of Contents

Global Solid Oxide Electrolyzer Cells Market Outlook

Revenue, 2025

$335M

Forecast, 2035

$17.69B

CAGR, 2026 - 2035

48.7%

The Solid Oxide Electrolyzer Cells (SOECs) industry revenue is expected to be around $497.6 million in 2026 and expected to showcase growth with 48.7% CAGR between 2026 and 2035. This projected expansion positions Solid Oxide Electrolyzer Cells as a central pillar in global decarbonization strategies, particularly across energy-intensive industries and integrated power-to-X value chains. Strong policy support for emissions reduction, rising demand for green hydrogen, and the need for advanced renewable energy integration are accelerating high-temperature electrolysis deployments across major economies. Hydrogen production and energy storage together account for about 75.0% of current market revenues, underlining the role of Solid Oxide Electrolyzer Cells in grid balancing, long-duration energy storage, and industrial hydrogen supply. Within the technology landscape, Planar Technology Type dominated the Solid Oxide Electrolyzer Cells industry revenue with $208.8 million sales in 2025, reflecting its superior stack manufacturability, compact system design, and suitability for large-scale, utility-grade and industrial projects.

Solid Oxide Electrolyzer Cells are high-temperature electrochemical devices that typically operate between 650°C and 850°C, using a solid oxide ceramic electrolyte to convert electricity and steam, or steam and carbon dioxide, into hydrogen or synthesis gas with high electrical efficiency. Key features such as high-temperature operation, potential reversible operation with solid oxide fuel cell technology, and the ability to leverage industrial waste heat make SOEC systems particularly attractive for integrated green hydrogen production facilities. Major applications include centralized hydrogen production for refineries, ammonia and methanol plants, synthetic fuels and e-fuels, as well as energy storage solutions that transform surplus renewable power into storable chemical energy for later reconversion or direct industrial use. Recent trends driving demand encompass the scale-up of multi-megawatt SOEC projects, growing adoption by chemical and steel producers, continuous improvements in stack durability and planar stack design, and system-level optimization that is progressively lowering the levelized cost of hydrogen and enhancing the overall competitiveness of the SOEC market.

Solid Oxide Electrolyzer Cells market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Solid Oxide Electrolyzer Cells Market Outlook

Market Key Insights

  • The Solid Oxide Electrolyzer Cells market is projected to grow from $334.6 million in 2025 to $17.69 billion in 2035. This represents a CAGR of 48.7%, reflecting rising demand across Hydrogen Production, Energy Storage, and Power-to-Gas.

  • Bloom Energy, Elcogen AS, and Fuel Cell Energy are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Germany are the top markets within the Solid Oxide Electrolyzer Cells market and are expected to observe the growth CAGR of 46.8% to 68.2% between 2025 and 2030.

  • Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 36.5% to 50.6%.

  • Transition like The Emergence of Green Hydrogen Production is expected to add $487 million to the Solid Oxide Electrolyzer Cells market growth by 2030.

  • The Solid Oxide Electrolyzer Cells market is set to add $17.4 billion between 2025 and 2035, with manufacturer targeting Energy Storage & Syngas Production Application projected to gain a larger market share.

  • With

    rising global hydrogen demand coupled with government incentives for green energy transition, and

    Emergence of Hydrogen Economy, Solid Oxide Electrolyzer Cells market to expand 5186% between 2025 and 2035.

solid oxide electrolyzer cells market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Solid Oxide Electrolyzer Cells - Country Share Analysis

Opportunities in the Solid Oxide Electrolyzer Cells

Rapid growth of logistics, mining, and port operations in Asia-Pacific is also creating unmet demand for on-site hydrogen, where SOECs can supply distributed hydrogen for heavy-duty truck and equipment fleets. High-temperature SOEC technology can be coupled with local renewable power and waste heat from industrial sites, lowering fuel costs and emissions simultaneously. Tubular SOEC units are expected to grow most in this use case, rising from about $84.66 million to $565.45 million by 2030 as operators prioritize durability.

Growth Opportunities in Europe and Asia-Pacific

In Europe, Solid Oxide Electrolyzer Cells adoption is primarily driven by stringent climate policy, carbon pricing, and industrial decarbonization mandates, making Hydrogen Production the most relevant application, particularly for refineries, steel, and chemical complexes seeking high-efficiency green hydrogen production from abundant wind and solar resources. SOEC technology benefits from high-temperature electrolysis and access to industrial waste heat, enabling superior electrical efficiency versus low-temperature systems and unlocking differentiated power-to-X routes such as synthetic fuels, while also supporting grid balancing by coupling flexible operation with variable renewables. Competition is intensifying as incumbent alkaline and PEM electrolyzer suppliers extend their portfolios into solid oxide electrolysis and as regional OEMs, EPC contractors, and power utilities build vertically integrated hydrogen value chains, pushing SOEC vendors to compete on lifetime efficiency, stack durability, and integration engineering rather than hardware alone. Strategic opportunities lie in positioning Solid Oxide Electrolyzer Cells as the reference solution for large-scale, baseload Hydrogen Production clusters co-located with industrial loads, in developing turnkey, MW–100 MW modular systems optimized for waste-heat integration, and in prioritizing investment into local manufacturing, service networks, and bankable project references to meet regional content rules and accelerate project finance approval.
In Asia-Pacific, Solid Oxide Electrolyzer Cells are emerging as a strategic option for countries seeking energy security and lower-carbon heavy industry, with Syngas Production expected to hold the highest relevance due to the region’s extensive petrochemical, coal-to-chemicals, and methanol capacities that can integrate high-temperature electrolysis for co-electrolysis of steam and CO2. SOEC technology enables efficient solid oxide electrolysis that can retrofit into existing synthesis gas and hydrogen networks, supporting e-methanol, low-carbon fuels, and ammonia production while leveraging low-cost renewable power and process waste heat from large industrial sites. Competitive dynamics feature strong domestic manufacturers of conventional electrolyzers, large engineering firms, and state-backed demonstration projects that can quickly scale once technology is validated, requiring SOEC suppliers to differentiate on integration with brownfield assets, robust lifetime performance under industrial duty cycles, and total cost of ownership at scale. The top opportunities involve positioning Solid Oxide Electrolyzer Cells as the preferred solution for integrated syngas and Hydrogen Production hubs in coastal industrial clusters, forming joint ventures with local EPCs and state-owned enterprises to localize stack assembly and balance-of-plant, and targeting investments into flagship industrial decarbonization projects that showcase renewable hydrogen and power-to-X pathways for export-oriented synthetic fuels.

Market Dynamics and Supply Chain

01

Driver: Rising Global Hydrogen Demand Coupled with Government Incentives for Green Energy Transition

A primary driver for solid oxide electrolyzer cells is also the simultaneous surge in hydrogen demand for industrial and energy applications and growing government support for green energy initiatives. Industrial sectors such as ammonia production, steel manufacturing, and refineries are also increasingly adopting hydrogen to decarbonize operations, driving demand for high-efficiency electrolyzers. SOECs, with their ability to leverage high-temperature steam electrolysis, offer superior efficiency over conventional PEM and alkaline electrolyzers, making them attractive for large-scale green hydrogen projects. On the policy front, governments in Europe, North America, and Asia are also offering subsidies, tax incentives, and research grants to accelerate the adoption of clean hydrogen technologies. These incentives reduce upfront capital costs for industrial players and enhance project feasibility, encouraging investment in SOEC deployments. The intersection of industrial demand and policy support fosters rapid adoption of SOEC technologies, positioning them as a cornerstone for decarbonization and sustainable energy strategies worldwide, while promoting technological innovation in high-temperature electrolysis systems.
Technological Advancements in High-Temperature Electrolysis Enhancing Efficiency and Scalability

Another key driver is also the continuous innovation in high-temperature SOEC technology, which significantly improves energy efficiency and operational scalability. also advances in cell materials, sealing techniques, and stack design reduce degradation and allow prolonged high-temperature operation, boosting hydrogen output per unit of electricity. Enhanced modular designs enable scalable deployment from pilot plants to industrial-scale hydrogen production, while improved thermal integration with renewable energy sources increases overall system efficiency. These technological improvements reduce operational costs, increase reliability, and expand the application of SOECs in energy storage, power-to-gas, and industrial hydrogen supply chains, making them a preferred choice for modern decarbonization strategies.

02

Restraint: High Capital Costs and Complex System Integration Hinder Adoption and Scale‑Up

A major restraint for solid oxide electrolyzer cells is the high upfront capital cost paired with complex system integration requirements, which slows commercial uptake and limits project financing. SOEC systems involve costly materials like ceramic electrolytes and require sophisticated thermal management and balance‑of‑plant systems, making initial investments significantly higher than conventional alkaline or PEM electrolyzers. For instance, industrial project developers may postpone or downsize SOEC projects due to uncertain return on investment, reducing market revenue and slowing deployment rates. Additionally, integrating high‑temperature SOECs with renewable energy sources or industrial processes often demands specialized engineering and longer commissioning timelines, further discouraging adoption among energy producers and industrial end users. These financial and technical barriers constrain demand, especially in emerging markets with limited access to capital and engineering expertise, restraining broader market expansion.
03

Opportunity: Solid Oxide Electrolyzer Cells for synthetic aviation e-fuels in Europe and Solid Oxide Electrolyzer Cells for green ammonia and refining in Europe

High integration of renewables with aviation fuel producers in Europe is opening a niche for Solid Oxide Electrolyzer Cells to drive power-to-X synthetic fuels. By feeding captured carbon dioxide with SOEC-based green hydrogen production, refineries can deliver e-kerosene that meets tightening lifecycle emissions rules. Monolithic SOEC designs are positioned to grow fastest in this segment, expanding from around $41.16 million in 2025 to $344.14 million by 2030, supported by their compact electrolysis stacks and high-temperature efficiency and long operating lifetimes for continuous aviation fuel synthesis.
Surging demand for low-carbon ammonia and cleaner refining in Europe is unlocking a major market for Solid Oxide Electrolyzer Cells, using high-temperature electrolysis to supply cost-competitive green hydrogen directly to industrial clusters. SOEC technology with ceramic electrolytes integrates with curtailed wind and solar, cutting electricity use per kilogram of hydrogen in industrial decarbonization value chains. Planar SOEC systems should grow fastest here, scaling from about $208.80 million to $1,523.13 million by 2030, as large electrolysis stacks are standardized for brownfield plant retrofits.
04

Challenge: Durability Concerns and Material Degradation Limit Long‑Term Performance and Commercial Viability

Another key restraint is material degradation and durability limitations in high‑temperature operation, which negatively impact the reliability and lifetime of SOEC systems. Operating at elevated temperatures accelerates degradation in ceramic cells, seals, and interconnects, leading to frequent maintenance and higher lifecycle costs. For example, early commercial SOEC stacks have shown performance decline after extended use, prompting end users to favor more mature electrolyzer technologies with proven longevity. These durability issues also complicate warranty and financing arrangements, as investors and project owners factor in replacement costs and downtime risks. Consequently, industry players are cautious in committing to large‑scale SOEC installations, which dampens market demand and slows commercialization. Continued breakthrough research is needed to improve materials and longevity to support long‑term revenue growth and competitive positioning.

Supply Chain Landscape

1

Ceramic Materials

Elcogen ASOxEon Energy LLC
2

Stack Assembly

Redox Power SystemsFuel Cell Energy
3

System Integration

Bloom EnergyFuel Cell Energy
4

End-User Markets

Green hydrogen productionIndustrial process decarbonizationPower-to-X synthetic fuels
Solid Oxide Electrolyzer Cells - Supply Chain

Use Cases of Solid Oxide Electrolyzer Cells in Hydrogen Production & Power-to-Gas

Hydrogen Production : In hydrogen production, planar solid oxide electrolyzer cells are widely used for converting steam and electricity into high‑purity green hydrogen for industrial use and energy transition projects. SOECs offer significantly higher electrical efficiency than low‑temperature electrolyzers by leveraging high‑temperature operation and thermal integration, making them ideal for large‑scale hydrogen generation for refineries, ammonia synthesis, steel decarbonization, and synthetic fuel feedstocks. Their ability to integrate with renewable electricity supports cleaner hydrogen output and aligns with global decarbonization goals. Leading technology providers such as Bloom Energy, Sunfire, Mitsubishi Power, and Topsoe are advancing commercial SOEC deployments and announcing major hydrogen projects that capitalize on this efficiency advantage and drive market growth across industrial and energy sectors.
Energy Storage : For energy storage, SOECs serve as a bridge between intermittent renewable generation and grid reliability by converting surplus electricity into storable hydrogen or syngas. When paired with wind or solar assets, SOEC systems can absorb excess generation during low‑demand periods and later reconvert the stored hydrogen to electricity or use it as chemical feedstock, enhancing grid balancing and renewable penetration. The high conversion efficiency and scalability of SOEC technologies attract utilities and independent power producers seeking to mitigate renewable intermittency while increasing energy security. Players like Bloom Energy and Sunfire are key contributors to this space with solutions designed for hybrid power plants and microgrids that leverage SOECs for both storage and dispatchable power roles.
Power-to-Gas : In power‑to‑gas applications, SOECs enable the conversion of electrical energy into hydrogen and synthetic gases such as methane via subsequent methanation, offering a method to store and distribute renewable energy through existing natural gas infrastructure. By co‑electrolyzing steam and captured CO2, SOEC systems produce syngas that feeds into power‑to‑X value chains, including e‑fuels and chemicals, supporting carbon utilization strategies. This capability opens pathways for decarbonizing sectors like transportation and industrial fuels while maximizing the use of renewable electricity. Technology leaders like Topsoe and Sunfire are actively expanding SOEC modules and projects that facilitate power‑to‑gas integrations in Europe and other regions with advanced energy markets.

Recent Developments

Recent developments in the solid oxide electrolyzer cells market highlight rapid progress in high‑temperature electrolysis and green hydrogen production technologies. A key trend is the integration of advanced ceramic materials and thermal system optimization, which boosts efficiency and durability for industrial hydrogen generation and power‑to‑gas applications. Strategic partnerships and pilot projects between energy companies and electrolyzer manufacturers are accelerating commercial scale‑up. These moves support cleaner renewable energy storage, strengthen energy transition strategies, and expand SOEC adoption across utilities, refineries, and heavy industry.

August 2024 : Bloom Energy demonstrated its world’s largest and most efficient solid oxide electrolyzer at NASA’s Ames Research Center, highlighting commercial readiness of its SOEC technology for clean hydrogen. This operational milestone reinforces Bloom’s position in high‑temperature hydrogen production systems.
November 2024 : Bloom Energy announced a major contract to deliver its solid oxide fuel cell systems to an 80 MW installation in South Korea in partnership with SK Eternix. The project, expected to begin operations in 2025, underscores Bloom’s ability to scale solid oxide technologies and serve large energy transition projects.
September 2025 : Elcogen AS officially opened its ELCO I high‑volume manufacturing facility in Tallinn, Estonia, increasing production capacity from 10 MW to 360 MW for solid oxide fuel cell and solid oxide electrolysis cell components. This capacity expansion strengthens Elcogen’s role in supplying high‑efficiency SOEC/SOFC technology for green hydrogen production and distributed energy systems globally.

Impact of Industry Transitions on the Solid Oxide Electrolyzer Cells Market

As a core segment of the Green Energy industry, the Solid Oxide Electrolyzer Cells market develops in line with broader industry shifts. Over recent years, transitions such as The Emergence of Green Hydrogen Production and Advancements in Material Science have redefined priorities across the Green Energy sector, influencing how the Solid Oxide Electrolyzer Cells market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

The Emergence of Green Hydrogen Production

The rapid emergence of green hydrogen production is transforming the SOECs market from a niche technology to a high-growth enabler of large-scale decarbonization, with this transition alone projected to add $487 million to market growth by 2030. Leveraging high-temperature electrolysis and superior electrolyzer efficiency, SOEC solutions convert surplus renewable power into low-carbon hydrogen, strengthening renewable energy integration and grid flexibility. This positions SOEC market participants at the center of the evolving hydrogen value chain, particularly in power-to-gas and hard-to-abate industrial applications. As policy support and corporate net-zero commitments accelerate, SOECs become a strategic asset for industrial decarbonization, unlocking premium opportunities in long-duration energy storage, green fuels, and low-carbon feedstocks while structurally expanding addressable demand across energy, chemicals, and heavy industry.
02

Advancements in Material Science

Advancements in material science are transforming the SOECs market by significantly improving durability, efficiency, and industrial applicability. The integration of advanced ceramics and novel electrode materials has enhanced the operational lifespan of SOECs while allowing stable high-temperature performance, reducing maintenance and downtime. These improvements have had a notable impact on the energy and manufacturing sectors, where reliable and efficient hydrogen production and power-to-gas systems are increasingly critical. Industrial players are now adopting SOECs for large-scale hydrogen generation, energy storage, and decarbonization projects, benefiting from lower operational costs and higher output consistency. Companies like Sunfire, Bloom Energy, and Mitsubishi Power are leveraging these material innovations to expand commercial deployments, enabling cleaner and more resilient energy solutions that support sustainability targets and industrial efficiency goals.