North America Small Capacity Electrolyzer Market Analysis

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.