Electrolyzer Market to Record CAGR of 57.43% Over 2025-2032; Increasing Focus on Achieving Decarbonization Objectives to Support Market Growth

The global electrolyzer market size was valued at USD 5.77 billion in 2024 and is predicted to reach USD 7.60 billion in 2025. The market is anticipated to touch USD 182.38 billion, recording a CAGR of 57.43% over 2025-2032.

Fortune Business Insights™ presents this information in its latest report titled “Electrolyzer Market Size, Share & Industry Analysis, By Type (PEM Electrolyzer, Traditional Alkaline Electrolyzer, and Others), By Application (Power Plants, Steel Plant, Electronics and Photovoltaics, Industrial Gases, Energy Storage or Fueling for FCEV, Power to Gas, and Others), and Regional Forecast, 2025-2032”.

Electrolyzers are essential for producing green hydrogen, as they use electricity to split water into hydrogen and oxygen. The global market is driven by the increasing demand for clean energy alternatives and the urgent need to reduce carbon emissions, which is leading to a greater emphasis on renewable energy sources. Green hydrogen is a key component of decarbonization efforts, as it is generated through the process of electrolysis, powered by renewable energy.

LONGi Hydrogen Partnered with Vision Grid Energy to Develop Green Hydrogen-Based Solutions

In June 2023, LONGi Hydrogen, a leading company specializing in large-scale electrolyzers and green hydrogen production solutions, partnered with Vision Grid Energy to promote the development and implementation of green hydrogen solutions. Together, they will focus on establishing green hydrogen production sites in Spain and creating innovative technological solutions to meet the evolving energy demands of transportation, industries, and other sectors.

Increasing Focus on Achieving Decarbonization Objectives to Support Market Growth

The steel, chemical, and transportation sectors are concentrating on achieving decarbonization goals to reach carbon neutrality. Green hydrogen, produced through electrolyzers, is an ideal solution for this objective. These industries are intensifying their efforts to meet environmental, social, and governance (ESG) criteria by incorporating electrolyzers, which is significantly increasing the demand for hydrogen. Additionally, the demand for hydrogen-powered vehicles and Fuel Cell Electric Vehicles (FCEVs) is increasing sharply. The transportation industry is expected to witness substantial growth in product adoption, with companies investing heavily in hydrogen infrastructure and supportive regulations being put in place.

However, factors limiting the electrolyzer market growth include strong fossil fuel-based practices, advancements in alternative technologies, government regulations, and infrastructure challenges.

Leading Companies Offer Electrolyzers with PEM and Service Agreements to Diversify Their Offerings

The global market is highly consolidated, featuring several leading companies. Among these are Siemens, Nel Hydrogen, and Asahi Kase. Siemens is well-known for its comprehensive hydrogen value chain. The company provides electrolyzers, including PEM (Proton Exchange Membrane) technology, as well as service agreements that range from basic maintenance to premium services with advanced data analysis. These services can be customized according to the client's specific needs.

Notable Industry Development

• January 2025: Nel Hydrogen US, a division of Nel ASA, secured a contract worth approximately USD 7 million to supply two containerized PEM electrolyzer units. Each electrolyzer has a capacity of 2.5 megawatts and will be used for hydrogen production at a new steel mill in the U.S.

List of Key Companies Profiled in the Report

• Nel Hydrogen (Norway)
• Asahi Kasei (Japan)
• Accelera (U.S.)
• Shandong Saikesaisi Hydrogen Energy Co., Ltd. (China)
• Teledyne Energy Systems (U.S.)
• Siemens Energy (Germany)
• LONGi (China)
• Green Hydrogen Systems (Denmark)
• Next Hydrogen (Canada)
• H-Tec Systems (Germany)
• Plug Power Inc (U.S.)

To get a detailed report summary and research scope of this market, click here

https://www.fortunebusinessinsights.com/electrolyzer-market-103919

Further Report Findings

• The North American region currently holds the largest electrolyzer market share, driven by several key factors. These include significant investments from major players to establish new manufacturing plants, supportive government regulations, and a growing global demand for green hydrogen. In the U.S., the market is expanding due to the increasing product use in hydro-processing within refineries.
• Asia Pacific is the largest consumer of hydrogen globally, particularly for industrial applications such as ammonia and methanol production. China and India are leading hydrogen consumers, highlighting the need for electrolyzers to produce low-carbon hydrogen. Additionally, the rising adoption of Fuel Cell Electric Vehicles (FCEVs) is further boosting demand in this region.
• Based on type, traditional alkaline electrolyzer is the most prominent segment in the global market. Their growth can be attributed to factors such as cost-effectiveness, long shelf life, flexibility, and a strong technological infrastructure.

Table of Segmentation