Hydrogen Electrolyzer Market Size - By Product Type [Polymer Electrolyte Membrane (PEM) Electrolyzer, Alkaline Water Electrolyzer, Solid Oxide Electrolyzer), By Capacity [Low, Medium, High), By Output Pressure, By Application, By Region & Forecast, 2024 – 2032

Hydrogen Electrolyzer Market Size

Hydrogen Electrolyzer Market was valued at over USD 588 million in 2023 and is estimated to register at a CAGR of over 26.5% between 2024 and 2032. Hydrogen electrolyzers are experiencing a remarkable rise in demand, driven by an expanding range of applications across many industries.
 

Hydrogen produced through electrolysis is emerging as a versatile and clean energy carrier for a variety of applications including transportation, industrial operations, power generation, and energy storage. This diversity in applications is propelling the demand for advanced electrolyzer systems capable of producing high-quality hydrogen efficiently. The public and commercial sectors are making considerable investments in electrolyzer technology, acknowledging its critical role in the transition to a sustainable energy future. These investments promote innovations and accelerate the commercialization of electrolyzer systems. The key industry participants are forming strategic alliances and collaborations to create synergies, share expertise, and co-develop cutting-edge electrolyzer solutions.

The transition from coal to hydrogen as a source of renewable energy comes with significant obstacles that must be overcome to achieve its full potential. One of the major challenges is the variable nature of renewable energy sources, such as solar and wind power, which electrolysis relies on. Fluctuations in energy availability can interrupt electrolyzer operations, reducing efficiency & dependability and posing hurdles to steady hydrogen generation.
 

Furthermore, the wide deployment of hydrogen demands significant infrastructure construction such as storage facilities, distribution networks, and refueling stations. The lack of infrastructure is an obstacle to industry expansion, especially in areas with limited hydrogen infrastructure. Scaling up electrolyzer technology to meet the rising demand creates technological and logistical challenges. Supply chain restrictions, production scalability, and system integration issues must all be solved for increased electrolyzer adoption.
 

Hydrogen Electrolyzer Market Trends

As manufacturers increase output to meet the rising demand, the electrolyzer industry stands to gain from economies of scale. Larger production quantities allow enterprises to improve manufacturing processes, benefit from bulk purchasing discounts, and negotiate better terms with suppliers. These cost savings result in lower unit costs for electrolyzer systems, making them more competitive against traditional hydrogen generation technologies. Furthermore, as the cost of renewable energy continues to fall, electrolysis-based hydrogen production is likely to become even more cost-competitive.
 

Manufacturers are increasing their production capacity to satisfy increased product demand across a wide range of applications including industrial hydrogen production, energy storage, and transportation. This is expected to reduce prices and enable greater adoption of electrolyzers on a larger scale.
 

Recent years have witnessed considerable advancements in electrolyzer technology, resulting in increased efficiency, durability, and cost-effectiveness. Innovations, such as high-pressure electrolysis, solid oxide electrolysis, and enhanced Proton Exchange Membrane (PEM) electrolysis, are propelling the development of more efficient & adaptable electrolyzer systems, accelerating market growth. Furthermore, there has been an increase in green hydrogen projects worldwide, particularly in areas with available renewable energy resources. These initiatives use electrolysis powered by solar and wind energy to generate hydrogen, lowering carbon emissions and promoting decarbonization in major industries such as transportation, chemicals, and power generation.
 

Together, these developments indicate the growing momentum for electrolyzer technology and its critical role in the transition to a more sustainable and carbon-neutral energy future. With increasing investments, continuous technological developments, and rising green hydrogen projects, hydrogen electrolyzers will witness long-term growth and wide use across a variety of industries around the world.
 

Hydrogen Electrolyzer Market Analysis

Based on product type, the polymer electrolyte membrane segment accounting for over USD 267 million in 2023 and expected to reach USD 2.03 billion by 2032. PEM electrolyzers are known for their high efficiency and fast response times, making them suitable for applications requiring rapid hydrogen production and dynamic operation. Demand for PEM electrolyzers is driven by industries seeking efficient and reliable hydrogen generation solutions, such as transportation, energy storage, and grid balancing. PEM electrolyzers feature a compact and modular design, enabling installation flexibility and space-saving advantages. Demand from industries with space constraints, including automotive, aerospace, and mobile applications, drives the adoption of PEM electrolyzers for on-site hydrogen production.
 

Based on category, the medium capacity hydrogen electrolyzers held the dominant market share of 41.2% in 2023. Medium-capacity electrolyzers serve a wide range of industrial applications requiring higher hydrogen production volumes, such as chemical manufacturing, refining, metallurgy, and electronics production. Demand from industrial users for bulk hydrogen supply drives the adoption of medium-sized electrolysis systems. Medium-capacity electrolyzers play a key role in renewable energy integration by converting surplus electricity from renewable sources (e.g., wind, solar) into hydrogen for energy storage, grid balancing, and power-to-gas applications. Demand is driven by the growing emphasis on renewable energy storage and grid flexibility.
 

North America held around 29% share of the hydrogen electrolyzer market in 2023 and is anticipated to grow 29.4% by 2032. North America is experiencing rapid growth in renewable energy deployment, including wind, solar, and hydroelectric power. Hydrogen electrolyzers play a crucial role in integrating renewable energy sources by converting surplus electricity into hydrogen through electrolysis. Government incentives, renewable portfolio standards, and decarbonization goals drive the demand for electrolyzers as part of renewable energy storage and grid-balancing solutions.

North America has a diverse industrial base with sectors such as refining, chemicals, steel, and transportation relying on hydrogen for various processes. Hydrogen electrolyzers provide a cost-effective and environmentally friendly solution for industrial hydrogen production, replacing conventional methods such as steam methane reforming (SMR). Demand from industrial users seeking to reduce emissions, enhance energy efficiency, and secure a reliable hydrogen supply drives the adoption of electrolyzers in North America.
 

Hydrogen Electrolyzer Market Size

Hydrogen electrolyzers industry seem to be moderately fragmented in nature due to presence of numerous local and global players across the globe. In 2023, the market players like •   Air Liquide, Ballard Power Systems, Beijing CEI Technology Co., Ltd., Enapter, Gaztransport & Technigaz, Giner Inc., GreenHydrogen Systems and iGas Energy GmbH collectively held around substantial 15%-20% market share. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions, facility expansions & collaborations, to expand their product portfolios, extend their reach to a broader customer base, and strengthen their market position.
 

Hydrogen Electrolyzer Market Companies

Some key players profiled in the hydrogen electrolyzer industry include:

• Air Liquide
• Ballard Power Systems
• Beijing CEI Technology Co., Ltd.
• Enapter
• Gaztransport & Technigaz
• Giner Inc.
• GreenHydrogen Systems
• iGas Energy GmbH
• ITM Power Plc
• McPhy Energy
• Nel Hydrogen
• Next Hydrogen
• Plug Power Inc.
• Siemens AG
• Tianjin Mainland Hydrogen Equipment Co. Ltd
   

Hydrogen Electrolyzer Industry News

• In January 2023, NewHydrogen, a company based in the U.S., unveiled its prototype for a green hydrogen generator. The prototype serves as a foundation for integrating further advancements in electrolyzer components in the future.
   
• In June 2022, Rolls-Royce announced its intention to produce MTU hydrogen electrolyzers, marking its entry into the hydrogen electrolyzer industry by acquiring a 54% majority stake in Hoeller Electrolyzer, a specialist in electrolysis stack technology.
   

This hydrogen electrolyzer market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and volume (Million Units) from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Product Type

• Polymer Electrolyte Membrane (PEM) electrolyzer
• Alkaline water electrolyzer
• Solid oxide electrolyzer

Market, By Capacity

• Low (<500 kW)
• Medium (500 kW to 2 MW)
• High (Above 2 MW)

Market, By Output Pressure

• Low (Upto 10 Bar)
• Medium (10 Bar – 40 Bar)
• High (More than 40 Bar)

Market, By Application

• Ammonia
• Methanol
• Refinery industry
• Electronics
• Energy
• Power to gas
• Other (Transport, Metal production & fabrication, etc.)

 The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA