Electrolyzers Market

Market Overview

The global electrolyzers market is experiencing substantial growth, emerging as a significant player in the renewable energy sector. Electrolyzers serve as crucial devices, facilitating the conversion of electricity into hydrogen or other gases through the process of water electrolysis. This method holds considerable importance in generating green hydrogen, a clean and sustainable energy carrier. The increasing emphasis on decarbonization and the shift towards green energy solutions is driving the demand for electrolyzers, positioning them as pivotal components in the worldwide energy transition. As governments and industries globally prioritize the reduction of carbon emissions, electrolyzers play a vital role in tapping into renewable energy sources and promoting the establishment of a sustainable hydrogen economy. The market is marked by notable technological advancements, strategic partnerships, and a rise in investments, underscoring its instrumental role in shaping the trajectory of clean energy.

Electrolyzers Market Size

Report	Details
Market Size Value	USD 5.41 billion in 2024
Market Size Value	USD 2.91 billion by 2030
CAGR	25.7%
Forecast Period	2024-2032
Base Year	2023
Historic Data	2020

Major Players In Electrolyzers Market Include: Siemens AG, ITM Power PLC, Nel Hydrogen, McPhy Energy S.A., Ballard Power Systems Inc., Plug Power Inc., ABB Ltd., Hydrogenics Corporation, Toshiba Energy Systems & Solutions Corporation, ELB Elektrolysetechnik GmbH, Proton OnSite, Giner ELX, Enapter AG, Green Hydrogen Systems, Areva H2Gen and Others.

Growing financial commitments to expansive green hydrogen initiatives

The surge in investments in green hydrogen projects has stimulated the growth of the electrolyzers market. Presently, there is a revived interest in green hydrogen initiatives due to its expanding applications across various sectors, encompassing power generation, industrial processes like steelmaking and cement production, fuel cells for electric vehicles, heavy transport including shipping, green ammonia production for fertilizers, cleaning products, refrigeration, and electricity grid stabilization. With the establishment of more projects, companies are strategizing to integrate green hydrogen into their value chains, creating lucrative opportunities for electrolyzer utilization. This trend is expected to attract new players and innovative firms, driving technological advancements. Regions such as Asia, Europe, and Australia are taking the lead in the development of green hydrogen and associated technologies. Furthermore, as project sizes grow, so does the requisite investment.

Market Dynamics

Drivers:

• Reduced costs of renewable energy sources
• Growing need for green ammonia production through electrolyzers for fertilizer manufacturing
• Increasing demand for vehicles operated with hydrogen fuel cells

Opportunities:

• Developing new electrolyzer technologies
• Growing investment in hydrogen infrastructure

Increasing need for on-site hydrogen fueling stations utilizing electrolyzers

The need for the establishment of hydrogen refueling stations is on the rise due to the increasing utilization of fuel cell vehicles. Vehicle emissions contribute to over 15% of global greenhouse gas emissions, prompting governments globally to seek alternative power sources for the transportation sector. Anticipating a surge in the adoption of fuel cell vehicles (FCVs) in the near future, given their lack of CO2 emissions during operation, numerous automotive manufacturers are making significant investments to integrate FCVs into their product portfolios. Fuel cell electric vehicles (FCEVs) convert stored hydrogen into electricity for the electric motor's power. Despite higher fuel and purchase costs, the ownership and operational expenses of FCEVs exceed those of electric vehicles. However, various countries worldwide are introducing fuel cell-powered public buses and garbage trucks due to their environmentally friendly nature. FCEVs have been commercially available since 2014, and according to the International Energy Agency (IEA), the number of FCEVs increased by 40% in 2020.

The market for Electrolyzers is dominated by North America.

In 2023, the Electrolyzers market in North America secured a prominent share. North America has become the predominant market for electrolyzers, driven by the demand for diverse applications in manufacturing processes. The region's power industry extensively utilizes hydrogen, contributing significantly to the market's sustained revenue growth. The robust infrastructure supporting manufacturing activities in North America plays a pivotal role in fueling market expansion. Rapid investments in refining, exploration, and production further amplify the demand for hydrogen gas, establishing North America as a significant contributor to the market's overall growth trajectory.

On the other hand, Europe is anticipated to dominate the electrolyzers market in the foreseeable future, holding the largest market share. The analysis of the European market includes a focus on countries such as Germany, the UK, France, Denmark, Austria, Spain, the Netherlands, Norway, and the Rest of Europe. Presently, hydrogen contributes to less than 2% of Europe's energy consumption, primarily employed in the production of plastics and fertilizers, with 96% originating from natural gas, resulting in substantial CO2 emissions. The growth trajectory of the European electrolyzers market is characterized by an upswing in the production of green electricity for small-scale applications in rural areas and the escalating demand for green fuel, driven by the increased adoption of fuel cell vehicles.

The > 500 kW - 2 MW Segment is Anticipated to Hold the Largest Market Share During the Forecast Period

Based on capacity, the market is segmented Less than 500 kW, 500 kW to 2 MW and Above 2 MW. In 2023, the Electrolyzer segment falling within the range of > 500 kW - 2 MW is anticipated to exhibit accelerated growth compared to other capacity categories. This surge is attributed to ongoing government electrification programs and the swift pace of urbanization in both underdeveloped and developing nations. Additionally, government initiatives promoting sustainable building development are expected to contribute to heightened product demand. Simultaneously, increased investments in fuel cell infrastructure development will play a pivotal role in fostering growth within the < 500 kW capacity segment.

Major Segmentations Are Distributed as follows:

• By Type
  • Alkaline Electrolyzer (AE)
  • Proton Exchange Membrane (PEM)
  • Others
• By Capacity
  • Less than 500 kW
  • 500 kW to 2 MW
  • Above 2 MW
• By Application
  • Power Generation
  • Transportation
  • Industry Energy
  • Industry Feedstock
  • Building Heat & Power
  • Others
• By Region
  • North America
    • US
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
    • Chile
    • Peru
    • Rest of Latin America
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • U.K.
    • BENELUX
    • CIS & Russia
    • Nordics
    • Austria
    • Poland
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Thailand
    • Indonesia
    • Malaysia
    • Vietnam
    • Australia & New Zealand
    • Rest of Asia Pacific
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa
    • Nigeria
    • Egypt
    • Israel
    • Turkey
    • Rest of MEA

Recent Developments

• In March 2023, Siemens Energy has inked a deal with HIF Global to provide polymer electrolyte membrane (PEM) electrolyzers for the eFuels plant in Texas owned by HIF Matagorda. The electrolyzer is slated to facilitate the production of 300 thousand tons of green hydrogen annually. This strategic agreement not only enables Siemens Energy to highlight its prowess in electrolyzer manufacturing and design but also strengthens its foothold in the U.S. market.
• In March 2023, Plug Power Inc. got selected by Uniper SE to manufacture the electrolyzer technology for Uniper SE’s Maasvlakte Energy Hub in Netherlands. According to which, the company will deliver 10 prefabricated proton exchange membrane (PEM) electrolyzer series for the project. This partnership will strengthen the company’s presence in Europe for bringing much-needed energy security to market.

Answers to Following Key Questions:

• What will be the Electrolyzers Market’s Trends & growth rate? What analysis has been done of the prices, sales, and volume of the top producers of Electrolyzers Market?
• What are the main forces behind worldwide Electrolyzers Market? Which companies dominate Electrolyzers Market?
• Which companies dominate Electrolyzers Market? Which business possibilities, dangers, and tactics did they embrace in the market?
• What are the global Insight Engines industry's suppliers' opportunities and dangers in Electrolyzers Market?
• What is the Insight Engines industry's regional sales, income, and pricing analysis? In the Electrolyzers Market, who are the distributors, traders, and resellers?
• What are the main geographic areas for various trades that are anticipated to have astounding expansion over the Electrolyzers Market?
• What are the main geographical areas for various industries that are anticipated to observe astounding expansion for Electrolyzers Market?
• What are the dominant revenue-generating regions for Electrolyzers Market, as well as regional growth trends?
• By the end of the forecast period, what will the market size and growth rate be?
• What are the main Electrolyzers Market trends that are influencing the market's expansion?
• Which key product categories dominate Electrolyzers Market? What is Electrolyzers Market’s main applications?
• In the coming years, which Electrolyzers Market technology will dominate the market?

Reason to purchase this Electrolyzers Market Report:

• Determine prospective investment areas based on a detailed trend analysis of the global Electrolyzers Market over the next years.
• Gain an in-depth understanding of the underlying factors driving demand for different Electrolyzers Market segments in the top spending countries across the world and identify the opportunities each offers.
• Strengthen your understanding of the market in terms of demand drivers, industry trends, and the latest technological developments, among others.
• Identify the major channels that are driving the global Electrolyzers Market, providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion.
• Channelize resources by focusing on the ongoing programs that are being undertaken by the different countries within the global Electrolyzers Market.
• Make correct business decisions based on a thorough analysis of the total competitive landscape of the sector with detailed profiles of the top Electrolyzers Market providers worldwide, including information about their products, alliances, recent contract wins, and financial analysis wherever available.