North America Small Capacity Electrolyzer Market - By Product (Residential, Commercial & Industrial, Utility), By Capacity (≤100 kW, >100 kW – 300 kW, > 300 kW – 500 kW), By Application, 2024 – 2032

North America Small Capacity Electrolyzer Market

North America Small Capacity Electrolyzer Market size was valued at USD 2.2 Million in 2023 and is anticipated to grow at a CAGR of 27.8% from 2024 to 2032. An electrolyzer is a device used to split water (H₂O) into its constituent elements, hydrogen (H₂) and oxygen (O₂), through the process of electrolysis. It typically operates at lower production rates compared to industrial-scale electrolyzers and is designed for smaller-scale applications or experimental purposes.
 

Growing emphasis on transitioning to clean and renewable energy sources to mitigate climate change along with efforts to meet targets to reduce greenhouse gas emissions will drive the market growth. For instance, Colorado updated its statutory targets in 2023, which aims to reduce 26% of greenhouse gas emissions by 2025 and 100% by 2050. Moreover, technological advancements in electrolyzer design and materials to improve efficiency, performance, and cost-effectiveness will sway the business statistics.
 

North America Small Capacity Electrolyzer Market Trends

Growing consumer focus in green hydrogen as a clean energy carrier along with shifting trends toward decentralized and distributed energy systems will enable local production, storage, and utilization of energy resources will foster the industry trends. Ongoing government implementation of supportive policies, incentives, and regulations to promote the adoption of renewable energy and hydrogen technologies will strengthen the product demand. For instance, in 2022, federal government in the U.S. announced critical incentives under the Inflation Reduction Act which comprises of a credit to fund manufacturing projects.
 

North America Small Capacity Electrolyzer Market Analysis

Based on product, the market is segmented into alkaline, PEM, and solid oxide. The alkaline small capacity electrolyzer is projected to grow over USD 0.5 million by 2032 on account of lower capital costs combined with advanced product developments including innovative designs and materials by manufacturers to enhance the scalability, reliability, and cost-effectiveness. In addition, upsurge in setting targets for renewable hydrogen production and offering subsidies, grants, tax incentives, and favorable regulatory frameworks will augment the product penetration.
 

Based on capacity, the North America small capacity electrolyzer market is segmented into >100 kW - 300 kW, ≤100 kW and >300 kW - 500 kW. The ≤100 kW market is set to grow at CAGR of more than 0.5% by the year 2032. Key factors including compact size, versatility and cost-effectiveness make them suitable for decentralized energy systems, remote and off-grid locations, and niche markets where larger electrolyzer systems are not economically viable.
 

Further, refueling fuel cell electric vehicles (FCEVs) in regions with limited demand or where space constraints limit the installation of large capacity electrolysis systems, where these compact electrolyzers enable the production of hydrogen on-site, providing a convenient and sustainable refueling solution for FCEV owners, thereby contributing to the overall business scenario.
 

Based on application the North America small capacity electrolyzer market is bifurcated into power generation, transportation, industry energy, industry feedstock and others. Power generation witnessed a market share of over 43% in 2023. Increasing penetration of renewable energy sources comprising wind and solar power coupled with its ability to integrate with renewable energy sources and produce clean fuel including green hydrogen will drive the business outlook.
 

In addition, large scale investments in research and development of electrolyzer technologies in conjunction with growing focus to achieve carbon neutrality goals will complement the industry landscape.
 

U.S. small capacity electrolyzer market is projected to grow over USD 51 million by 2032. Growing government support for green hydrogen infrastructure and electrolyzer deployment along with increasing investment from public and private sectors for hydrogen production will propel the business potential. For instance, in August 2022, the Inflation Reduction Act was introduced which offers several tax credits and grant funding to support hydrogen technologies, which will encourage the electrolyzer deployment across the country.
 

Additionally, capability to convert excess renewable energy into hydrogen and store it for converting it back into electricity or to be used as a clean fuel for transportation and industrial applications will favor the industry dynamics.
 

North America Small Capacity Electrolyzer Market Share

Bloom Energy, Giner Inc., Plug Power Inc., McPhy Energy S.A., ITM Power PLC, and Green Hydrogen Systems hold majority of the industry share. Major energy companies, utilities, technology firms, and investors are making strategic investments and forming partnerships to scale up electrolyzer production, reduce costs, and expand market reach. Collaborations between electrolyzer manufacturers, renewable energy developers, and end-users are driving innovation, cost reduction, and market expansion for small capacity electrolyzers.
 

North America Small Capacity Electrolyzer Market Companies

Key market players operating across the small capacity electrolyzer industry include:

• Bloom Energy
• Cipher Neutron
• Giner Inc.
• Green Hydrogen Systems
• H2B2
• h2e Power
• ITM Power PLC
• LARSEN & TOUBRO LIMITED
• McPhy Energy S.A.
• Plug Power Inc.
   

North America Small Capacity Electrolyzer Industry News:

• In November 2023, H2B2 introduced its SoHyCal, a green hydrogen production facility in North America. The plant will be utilizing PEM technology to produce hydrogen while using renewable energy from solar PV plant. The project aims to contribute to California's rising demand for hydrogen technologies including transportation sector. Therefore, the company will support the carbon reduction targets and enhance its position in the industry.
   
• In July 2023, Cipher Neutron signed an agreement with Ionomr for the development of 250kW AEM hydrogen electrolyzer for the North America market. The collaboration aims to boost hydrogen production and fuel the clean energy transition across the market. The company has significantly enabled the potential for large scale hydrogen generation and solidified its product portfolio.
   

North America Small Capacity Electrolyzer market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in ‘MW & USD Million’ from 2019 to 2032, for the following segments:

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Market, By Product (MW & USD Million)

• Alkaline
• PEM
• Solid Oxide
• Others

Market, By Capacity (MW & USD Million)

• ≤ 100 kW
• > 100 kW – 300 kW
• > 300 kW – 500 kW

Market, By Application (MW & USD Million)

• Power generation
• Transportation
• Industry energy
• Industry feedstock
• Others

The above information has been provided for the following countries:

• U.S.
• Canada