"Actionable Insights to Fuel Your Growth"

Electrolyzer Market Size, Share & Industry Analysis, By Type (Traditional Alkaline Electrolyzer, PEM Electrolyzer), By Application (Power Plants, Steel Plant, Electronics and Photovoltaics, Industrial Gases, Energy Storage or Fueling for FCEVs, Power to Gas, Others), and Regional Forecast, 2024-2032

Last Updated: November 11, 2024 | Format: PDF | Report ID: FBI103919

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global electrolyzer market size was valued at USD 443.95 million in 2023 and is projected to grow from USD 471.87 million in 2024 to USD 717.50 million by 2032, exhibiting a CAGR of 5.38% during the forecast period. North America dominated the electrolyzer market with a market share of 52.81% in 2023. The Electrolyzer market in the U.S. is projected to grow significantly, reaching an estimated value of USD 306.91 million by 2032, driven by the growing demand for green hydrogen and environmental concern for sustainable future.


Hydrogen gas is a highly proficient, clean-burning fuel mainly used to produce chemicals such as ammonia and methanol. Ammonia (NH3) is a quintessential part of fertilizers used in agriculture industries. In contrast, hydrogen is used in the hydrocracking process to produce gasoline, diesel, and other petroleum products in the petroleum industry. Newly commercialized hydrogen applications, such as fuel cells, are opening new opportunities in transportation and other energy-related industries. The gas has already been utilized as a fuel for cooling power plant generators and provides a promising means for electrical grid stabilization. Hydrogen gas is mainly created from the coal gasification process, the steam methane reforming process, or electrolyzers, which involve water electrolysis.


These systems utilize electricity to split the water molecule into hydrogen and oxygen in a process called electrolysis. An external voltage is applied to the electrolysis cell electrodes, which is usually in the range of 1.6 V - 2 V. Accelerated by the catalytic effect of the metal electrodes, water supplied to the anode is split through which oxygen, free electrons, and positively charged hydrogen ions are produced.


The worldwide health emergency caused by the sudden outbreak of COVID-19 significantly affected numerous verticals. Nearly all countries have witnessed a huge expansion in affected cases since 2020. The pandemic's outcome also hampered the economies of many fast-growing developing countries. This market was also immediately affected accordingly by the COVID-19 outbreak.


Different emerging economies that largely focus on integrating clean power energy generation technologies have also witnessed a setback by the outbreak of deadly diseases. For example, China and India are the major countries participating in global clean energy installation. Renewable energy sources, such as hydrogen generation, are rising, and many manufacturers will continue to invest in them.


Electrolyzer Market Trends


Growing Utilization of Hydrogen as a Green Fuel to Propel Market Growth


Green hydrogen is a clean energy source that only releases water vapour and leaves no residue, unlike oil and coal. Hydrogen plays a major role as a fuel for several applications. This gas has been used to fuel cars, airships, and spaceships for decades. The rising clean hydrogen adaptation is driving the market for electrolyzers as hydrogen production is done via only electrolysis process.


In addition, factors, such as 100 % sustainability, versatility, and energy consumption are driving hydrogen production. This is ultimately boosting the demand for the electrolysis process.


For Instance, in February 2024, Bharat Petroleum Corporation (BPCL) invited bids to build a refueling station and green hydrogen plant at the 100% solar-powered Cochin International Airport, Kerala. In addition, the planned facility, to be used to refuel hydrogen vehicles, will have the volume to produce 100 normal cubic meters per hour (Nm3/hr) of green hydrogen using a 500-kW electrolyzer system.


Growing Peak Energy Demand Coupled with Favorable Policy Framework to Compliment Industry Outlook


The growing population worldwide combined with growing initiatives to expand rural electrification has given rise to the peak energy demand. Additionally, the increased rate of urbanization and the coming up of new big valued infrastructure projects have increased the power supply-demand from utilities. Encouraging regulatory policies introduced by different authorities to promote low carbon technologies have positively propelled the market size. For instance, on April 3rd, 2020, the Japanese company, Asahi Kasei installed an alkaline water electrolysis system at the Fukushima Hydrogen Energy Research Field (FH2R), Japan.


Request a Free sample to learn more about this report.


Electrolyzer Market Growth Factors


Increasing Investments for Power Generation in Asia Pacific to Favor Overall Market Growth


In Asia Pacific, India, Singapore, and Malaysia have begun putting resources into hydrogen production and its storage technologies. Hydrogen is being utilized in the region's power generation and transportation industry. Besides, China started the construction of a hydrogen city in Wuhan, contributing around USD 290 million to the project. The government is focused on technological advancements of large-scale on-site hydrogen production for environment-friendly power storage, grid balancing, power to gas, and Hydrogen Refueling Stations (HRS). Many central participants are letting organizations to upgrade their industry presence to drive the business situation. For example, in June 2020, Plug Power finished the acquisition of United Hydrogen and GINER ELX.


Growing Demand for Hydrogen in Fuel Cell-based Automobile Sector to Promote Market Growth


The surging demand for fuel cell-based automobiles, such as electric vehicles and buses, in North America and Asia Pacific has already been witnessed. Additionally, China, Japan, and South Korea have proposed strong commitments to reduce the growing dependency on gasoline fuel by investing in fuel cell-based vehicle programs. According to recent studies, it is reported that a 72% reduction in total GHG emissions can be obtained by switching from gasoline vehicles to FCEVs in the transportation industry and that they are becoming both technologically and economically viable compared with incumbent vehicles. These factors are expected to contribute to the electrolyzer market growth in the forthcoming years.


RESTRAINING FACTORS


High Cost of Electricity Required for Electrolysis to Impede Market Growth


The cost of electricity is the most significant factor, which increases the cost of producing hydrogen through the electrolytic process.


Energy from renewable sources, which is key to producing green hydrogen through electrolysis, is more expensive to produce, making hydrogen more expensive to obtain and process. In addition, the making of hydrogen overall and green hydrogen in particular needs more energy than other fuels, which also costs a lot of money for the progression.


Furthermore, recent sharp declines in solar and wind power costs have reduced the real and expected prices of renewable hydrogen. For example, utility-scale solar photovoltaic (PV) capital costs are 75% lower than in 2010, and electricity from onshore wind is around one-quarter cheaper today than 10 years ago. This has led more potential end-users to look closely at whether renewable hydrogen is becoming a competitive way to meet their needs and reduce their environmental impact.


Electrolyzer Market Segmentation Analysis


By Type Analysis


Traditional Alkaline Segment to Dominate Market


Based on type, the global market is classified into traditional alkaline electrolyzer and Polymer Electrolyte Membrane (PEM) electrolyzer. The traditional alkaline electrolyzer segment accounted for the major electrolyzer market share in 2021. These systems use nickel-based catalysts in an alkaline electrolyte solution such as potassium hydroxide and a diaphragm to separate electrodes and transport hydroxide ions. Demand for these systems is rapidly increasing due to their longer durability. It is extensively used in many industrial applications, including electronics and photovoltaics of plastics, power-producing plants, steel manufacturing units, and others.


PEM type held a significant portion of the global market in 2021. When used with intermittent renewable power sources (wind and solar), these systems are the most common hydrogen generators due to their high efficiencies and ability to cycle rapidly.


By Application Analysis


To know how our report can help streamline your business, Speak to Analyst


Power Plants Segment is Aided by Growing Demand for Hydrogen to Produce Electricity


Based on application, the global market is categorized into power plants, steel plants, electronics & photovoltaics, industrial gases, energy storage or fueling for FCEVs, power to gas, and others.


The power plants segment accounted for the major share of 26.71% in the global market in 2021. Hydrogen production and storage are combined with power generation equipment, including fuel cells, reciprocating engines, combustion turbines, and steam turbines, resulting in a storage device to time-shift delivery of electricity for electric grid applications.


The electronics & photovoltaics segment occupied a significant portion of the market in 2021, as electrolysis systems are primarily used in photovoltaic (PV), solar thermal (STC), and hybrid photovoltaic/thermal (PV/T) systems. The steel manufacturing industry is also a key market segment. The increasing utilization of hydrogen fuel as a solution to decarbonize the industry has been receiving an increasing amount of attention.


REGIONAL INSIGHTS


Based on geography, the market is analyzed across Europe, North America, Asia Pacific, and the Rest of the World.


North America Electrolyzer Market Size, 2023 (USD Million)

To get more information on the regional analysis of this market, Request a Free sample


North America accounted for the majority share in value and volume in 2023, owing to the increasing demand for hydrogen in various applications in the manufacturing sector, power industry, and others. North America has established manufacturing infrastructures for various global brands and is witnessing a growing interest in energy storage or fueling for FCEVs operations. Additionally, the region has witnessed noticeable investment in the production, exploration, and refining sector, which is anticipated to propel the demand for hydrogen gas extensively in the coming years.


Furthermore, Europe's market size is favored by increasing investments. It plans to expand and fortify the grid infrastructure networks to support the increasing renewable energy installation, which is anticipated to further propel the industry. Besides, a positive outlook with a supporting regulatory structure to mandate energy security across establishments is set to add to the market growth. For example, in November 2019, the government of Germany approved the National Innovation Programme for Hydrogen and Fuel Cell Technologies for another 10 years with USD 1.54 billion of funding, including subsidies for publicly accessible hydrogen refueling stations, fuel cell vehicles, and micro co-generation purchases, complemented by USD 3.4 billion of private investment.


In Asia Pacific, the rising awareness of clean energy, government-aided financial support, and the need to fulfill demand & supply mismatch will complement the industry outlook. Continuous building of new domestic & commercial spaces and the setup of new industrial gas facilities augmented the adoption of these systems in the region.


List of Key Companies in Electrolyzer Market


Siemens Focuses on Attaining New Contracts through its Subsidiaries to Strengthen its Position 


The global market for these systems has observed many manufacturers fortifying their position by providing a wide range of systems & their services to customers. The industry also witnessed intense involvement of key regional and global players alomg with many small & medium-scale system integrators.


A German company, Siemens, dominates the current global market with its solid electrolysis products & solutions assortment for many hydrogen utilizing sectors across the globe. For example, in March 2022, Siemens Energy announced that it secured an order from European Energy to deliver a 50MW electrolyzer plant for a large-scale commercial e-methanol production facility. Also, in September 2019, Cummins Inc. announced the acquisition of fuel cell and hydrogen production technologies provider, Hydrogenics Corporation. The acquisition was completed for USD 15.00 per share, representing an enterprise value of approximately USD 290 million, and follows the approval of hydrogenics shareholders.


Other major players also include Nel Hydrogen, Asahi Kasei, and Hydrogenics, among others, leading in delivering various types of advanced systems & solutions. The demand for such electrolytic systems is increasing sharply in food & beverage, power generation, water & wastewater, chemical & petrochemical industries, and other sectors.


LIST OF KEY COMPANIES PROFILED:



  • Nel Hydrogen (Norway)

  • Asahi Kasei (Japan)

  • Hydrogenics (Canada)

  • Shandong Saikesaisi Hydrogen Energy Co., Ltd. (China)

  • Teledyne Energy Systems (U.S.)

  • Siemens (Germany)

  • Kobelco Eco-Solutions (U.S.)

  • Green Hydrogen Systems (Denmark)

  • Next Hydrogen (Canada)

  • H-Tec Systems (Germany)


KEY INDUSTRY DEVELOPMENTS:



  • February 2024 - Gensol-Matrix Gas consortium engineering specializes in solar EPC and O&M services, and it won the hydrogen electrolyzer manufacturing project under PLI. The project has been awarded under the Sustainable Hydrogen Innovation & Green Hydrogen Technologies PLI scheme's Tranche-I as part of the National Green Hydrogen Mission.

  • February 2024 - H-TEC SYSTEMS, which develops and produces PEM electrolyzers, will deliver PEM electrolyzers to SailH2 - Comprehensive management of green hydrogen projects. The demo project will be the first commercial hub of green hydrogen in Andalucía and will be located at the industrial site in the district of Sevilla. H-TEC SYSTEMS will provide the electrolyzer in September 2024, though the overall site building works will be finalized by 3Q24.

  • June 2023 - As per the data of the Indian government, the first phase of the National Hydrogen Mission will develop about 1.5 gigawatts (Gw) of electrolyzer manufacturing, with 0.3 Gw of original capacity soon.

  • March 2022– Man Energy Solutions announced that it would invest up to USD 500 million in H-Tec Systems, its subsidiary, to transform the hydrogen specialist into a mass-producer of PEM systems as quickly as possible. H-Tec will benefit from a global sales network and the experience that Man Energy Solutions has in major projects. It will also have direct access to the expertise and experience of the Volkswagen Group, especially in matters relating to production scaling and the supplier-based series production business.

  • January 2022– Green Hydrogen Systems signed an agreement with Edinburgh-based Logan Energy to supply electrolysis equipment for a project in England. The electrolytic systems will be deployed in a 40 ft container as a complete green hydrogen plant as part of plans to develop a regional hydrogen economy in Dorset, England. These systems are manufactured by Green Hydrogen Systems and operated by Logan Energy. The order includes the supply of two GHS HyProvide A90 systems with a capacity combination of 0.9 MW to produce green hydrogen from renewable energy.


REPORT COVERAGE


The market research report offers a qualitative and quantitative in-depth industry analysis of the global market. It further provides details on the adoption of these systems across several regions. The report provides a detailed competitive landscape by presenting information on key players and their strategies in the market. Information on electrolyzer market trends, drivers, opportunities, threats, and market restraints can further help stakeholders gain valuable insights into the market.


An Infographic Representation of Electrolyzer Market

To get information on various segments, share your queries with us



Report Scope & Segmentation
















































ATTRIBUTE



DETAILS



Study Period



2019-2032



Base Year



2023



Estimated Year



2024



Forecast Period



2024-2032



Historical Period



2019-2022



Growth Rate



CAGR of 5.38% from 2024-2032



Unit



Volume (MW) and Value (USD Million)



Segmentation



By Type



  • Traditional Alkaline Electrolyzer

  • PEM Electrolyzer



By Application



  • Power Plants

  • Steel Plant

  • Electronics and Photovoltaics

  • Industrial Gases

  • Energy Storage or Fueling for FCEVs

  • Power to Gas

  • Others



By Geography



  • North America (By Type, By Application, By Country)


    • U.S. (By Type)

    • Canada (By Type)


  • Europe (By Type, By Application, By Country)


    • U.K. (By Type)

    • Germany (By Type)

    • France (By Type)

    • Italy (By Type)

    • Rest of Europe (By Type)


  • Asia Pacific (By Type, By Application, By Country)


    • China (By Type)

    • Japan (By Type)

    • India (By Type)

    • South Korea (By Type)

    • South East Asia (By Type)

    • Rest of Asia Pacific (By Type)


  • Rest of the World (By Type, By Application)






Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 443.95 million in 2023.

In 2023, the region stood at USD 234.48 million.

Registering a CAGR of 5.38%, the market is projected to exhibit staggering growth during the forecast period (2024-2032).

The traditional alkaline electrolyzer segment is anticipated to hold the leading share in this market during the forecast period.

The growing demand for hydrogen in the fuel cell-based automobile sector and rising peak energy demand coupled with a favorable policy framework are some of the major factors driving the market growth.

Siemens Energy, Nel Hydrogen, Asahi Kasei, and Hydrogenics are the key players operating across the industry.

North America dominated the market in terms of share in 2023.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts
Speak to an Expert
  • 2019-2032
  • 2023
  • 2019-2022
  • 209
Multi-report Purchase Plan
    A Customized Plan Will be Created Based on the number of reports you wish to purchase
Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X