Electrolyzer Market Size - By Product (Alkaline, PEM, Solid Oxide), By Capacity (≤ 500 kW, > 500 kW – 2 MW, Above 2 MW), By Application (Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heat & Power) & Global Forecast, 2023 – 2032

Electrolyzer Market Size

Electrolyzer Market size surpassed USD 2.8 billion in 2022 and is anticipated to expand at a staggering CAGR of 24.5% from 2023 to 2032 owing to the increasing focus toward environmental-friendly power generation solutions in line with the rising electricity demand.
 

Rising deployments of clean hydrogen generation methods will boost the business scenario. The rising consumer shift toward environmental security coupled with the large-scale integration of renewables will sway the industry trend. Significant measures and laws to reduce carbon emissions along with the introduction of various projects by government authorities will boost the industry growth.
 

Growing electricity demand across various industrial and commercial facilities along with an increasing focus on alternative power sources will augment the electrolyzer market landscape. Lack of appropriate infrastructure along with high initial investment are some of the challenges obstructing the business growth. However, favorable government policies, incentives, and norms for probable infrastructure growth and growing consumer inclination toward the acceptance of sustainable energy sources will foster the industry trends.

COVID- 19 Impact

The COVID- 19 pandemic on the overall sector may affect the installation of electrolyzer systems on account of delay in completion of ongoing projects. In addition, the demand for these plants may onlook a marginal decline owing to supply chain interruptions, minimum on-site operations, and lower availability of workforce. However, as the nations are lifting the lockdown and commercial and industrial activities are starting with the minimal operations the industry will witness an upsurge in the installation.

Electrolyzer Market Analysis

Alkaline electrolyzer market is expected to grow at a rate of 20% till 2032. Shifting trends toward development of hydrogen generation capacity addition along with declining product cost will strengthen the business scenario. Furthermore, growing demand of hydrogen as a feedstock across chemical, glass, mining, food & beverage and semiconductor industry will strengthen the industry growth. Also, these systems find wide application across large scale projects owing to their technological superiority and extensive consumer awareness.

Increasing investment by leading manufacturers toward technological advancements and research & development activities to enhance the capacity to large scale multi-MW systems will fuel the PEM electrolyzer industry size. In addition, ongoing investments toward large scale on-site hydrogen production for renewable energy storage, hydrogen refueling stations (HRS), grid balancing and power to gas stations will provide favorable growth opportunities.

≤ 500 kW electrolyzer market is expected to cross a valuation of USD 3.7 billion in 2032. Increasing electricity demand across various industrial establishments will positively influence the product deployment. In addition, growing demand across wide array of applications including small scale CHP plants, mobility and off gird electricity supply will complement the product installation. Furthermore, shifting trends toward sustainable power generation sources along with stringent regulatory policies toward emission reduction will stimulate the industry statistics. The market value of small capacity electrolyzer is likely to cross USD 329.5 million by 2032.

Ongoing research & development activities along with growing demand for large scale hydrogen production systems will boost the above 2 MW capacity. However, this capacity finds wide applications across the chemical industry for processing chemicals and for generating sustainable power in the remote areas. For instance, NEDO, Iwatani Corporation, Toshiba and Tohoku Electric Power Company have opened the Fukushima Hydrogen Energy Research Field in Japan. The project has the capacity of 10 MW and will provide hydrogen for power generation, chemical industry and in powering hydrogen vehicles will further bolster the industry size.

Transportation accounted for more than USD 271 million by 2022. Growing investments toward innovation and research & development activities along with increasing demand for FCEV as an alternative to conventional automobiles will strengthen the electrolyzer market adoption in the transportation applications. In addition, promising regulatory norms toward low carbon emission vehicles have instigated the leading vehicle manufacturers to adopt renewable fuels. The increasing demand of hydrogen driven automobiles followed by zero carbon footprint directives has also favored the product deployment.

Europe electrolyzer industry size is estimated to depict 29% growth between 2023 and 2032. Paradigm shift toward hydrogen economy is being effectively prioritized in Europe, thereby paving the way for wide-scale product adoption. Hydrogen-based technologies are emerging as a key to empower a feasible energy transition enabling zero emissions across power, transport, and heating industry. In addition, technological advancement along with favorable government policies has also paved profitable scenario for the business players.

Electrolyzer Market Share

Ongoing acquisitions and mergers by leading manufacturing players to enhance their industry presence will drive the business scenario. In addition, prevailing forward and backward integration across the value chain has also provided favorable opportunities for the industry players to expand. Key players operating across the electrolyzer market includes:

• Hydrogenics
• Nel
• Proton Onsite
• Siemens
• Toshiba
• Air Liquide
• Plug Power
• McPhy Energy
• ITM Power
• Idroenergy
• Asahi Kasei
• Kobelco Eco-solutions
• Erredue
• Green Hydrogen
• Areva H2Gen
• IHT
• Next Hydrogen
• Acta
   

Electrolyzer Industry News

• In March 2023, Siemens Energy entered into an agreement with HIF Global for the supply of polymer electrolyte membrane (PEM) electrolyzers for HIF Matagorda’s eFuels plant in Texas. The electrolyzer will support in the product of 300 thousand tons of green hydrogen annually. This agreement has allowed the company to showcase its manufacturing & designing strength in the electrolyzer industry while reinforcing its position across the U.S.
   
• 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.
   

This market research report on electrolyzer includes in-depth coverage of the industry with estimates & forecast in terms of ‘MW and USD Million’ from 2023 to 2032 for the following segments:

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Market, By Product

• Alkaline
• PEM
• Solid Oxide
• Others

Market, By Capacity

• ≤ 500 kW
• > 500 kW – 2 MW
• Above 2 MW

Market, By Application

• Power Generation
• Transportation
• Industry Energy
• Industry Feedstock
• Building Heat & Power
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Denmark
  • Spain
  • Norway
• Asia Pacific
  • China
  • Australia
  • Japan
• Rest of World