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Small Capacity Electrolyzer Market Size By Electrolyzer Product (Alkaline, PEM, Solid Oxide), By Capacity, By Application (Power Generation, Transportation, Industry Energy, Industry Feedstock) & Forecast, 2024 – 2032

  • Report ID: GMI5698
  • Published Date: May 2023
  • Report Format: PDF

Small Capacity Electrolyzer Market Size

Small Capacity Electrolyzer Market was valued at USD 217.7 million in 2023 and is anticipated to expand at 5.1% CAGR from 2024 to 2032. The market for electrolyzer is projected to cross USD 78 billion during the forecast period.

Small Capacity Electrolyzer Market

The demand for low-carbon energy systems has significantly increased because of risings efforts to reduce GHG emissions. The global adoption of renewable energy technology has significantly advanced due to ongoing regulatory efforts to minimize carbon footprints. For instance, in July 2020, the EU adopted the hydrogen plan to examine the potential for renewable hydrogen. It also encouraged the installation of renewable hydrogen electrolyzers in the EU from 2020 to 2024 in order to support the renewable hydrogen generation and complement the commercial outlook.

Large initial investments and a lack of suitable infrastructure, including equipment and storage, are some of the challenges preventing  small capacity electrolyzer market expansion. The need for high capital and start-up costs are impacting the entry of new players in the industry. However, with the high need for these electrolyzers, in the coming years, companies are expected to inject considerable funds in order to fulfill the high demand.

COVID-19 Impact

The COVID-19 pandemic influenced the small capacity electrolyzer industry growth due to stringent lockdown restrictions, shortage of raw materials, trade cycle disruptions, and more. Many sectors like oil, chemical, and steel were significantly affected by the pandemic. However, new investments by government authorities in industrial projects are expected to improve the demand for small-capacity electrolyzers by 2032.

Small Capacity Electrolyzer Industry Trends

The small capacity electrolyzer market will benefit from ongoing product development as well as attractive private and public sector investments to introduce improved hydrogen generation technologies. Rising product innovations and continued efforts by large corporations to construct hydrogen production facilities will improve the market outlook over the coming years. The rising demand to electrify rural areas across developing countries is expected to influence product demand in the future.

Small Capacity Electrolyzer Market Analysis

Small Capacity Electrolyzer Market, By Product, 2021 - 2032 (USD Million)

The PEM segment is projected to observe 5.5% growth during 2023-2032. PEM electrolyzers have become popular due to their high current densities, compact system design, and quick responsiveness to voltage changes. For instance, in August 2022, LARSEN & TOUBRO LIMITED launched a 420kW PEM electrolyzer-based green hydrogen production facility in Gujarat, India. The product rollout by big businesses complements the commercial potential, driving product demand.

Small Capacity Electrolyzer Market Share, By Capacity, 2022

The ≤ 100 kW small capacity electrolyzer market is set to witness 0.4% growth rate till 2032. Demand for product deployment will rise as more funds are invested into building fuel cell infrastructure and chemical factories. These systems continue to spread to trains and other forms of transportation which will fuel the product adoption by end of 2032.

The industry feedstock segment is poised to cross a valuation of USD 174 million by 2032. The development of hydrogen is consistent due to its enduring potential as a clean energy source. In the coming years, corporate growth will be fueled by rising demand for hydrogen as a feedstock across the chemical and other industries, as well as a positive forecast for the progression of the industrial base in developing nations. Furthermore, the refining, glass, metal processing, food and beverage, and petrochemical industries are increasingly accepting hydrogen as a feedstock.

Europe Small Capacity Electrolyzer Market Size, 2021-2032 (USD Billion)

Europe small capacity electrolyzer market amassed USD 43 million revenue in 2022. The increasing international trade in the region will be possible by improving the electrolyzer infrastructure already in place to transport the fuels and by enhanced efforts from numerous stakeholders to shift the focus to the development of hydrogen infrastructure. For instance, in May 2022, the European Commission and regional manufacturers of electrolyzers set the goal of increasing the capacity of electrolyzer production by 2025. The EU will be able to create 10 million tons of renewable hydrogen annually, improving the region’s sustainable and secure energy supply and improving the industry scenario by 2032.

Small Capacity Electrolyzer Market Share

The ongoing strategic collaborations, mergers, and acquisitions among companies in the small capacity electrolyzer industry will increase product demand. Technical strategic alliances are being formed by businesses to strengthen their consumer base and innovate their current product line. :

  • Giner Inc.
  • Sunfire GmbH
  • Green Hydrogen Systems
  • Bloom Energy
  • Ostermeier H2ydrogen Solutions GmbH
  • ITM Power PLC
  • McPhy Energy S.A.

and h2e Power are a few of the well-known companies in the market.

Small Capacity Electrolyzer Industry News:

  • In April 2022, Bloom Energy announced the installation of 130 kW high-temperature solid oxide electrolyzers in Gumi, South Korea, in April 2022. With water as the input, the Bloom Electrolyzer should run at 46 kw-hr/kg of hydrogen and with steam at 40.4 kw-hr/kg of hydrogen. The deployment will help the nation achieve its decarbonization objectives and leave a positive mark on the provision of sustainable energy options. With this purchase, the business widened its market reach.
  • In April 2022, The Swiss Gaznat Innovation Lab placed an order for Green Hydrogen Systems' electrolysis machinery. For the production of renewable hydrogen, the company will provide HyProvide A90 electrolyzers with a capacity of roughly 0.5 MW. Under the terms of the three-year contract, the company also agreed to on-site maintenance and remote monitoring of several new initiatives. By forming this strategic alliance, the corporation broadened its service offering throughout the nation and is anticipated to increase its market share throughout the foreseeable future.


This small capacity electrolyzer market research report includes in-depth coverage of the industry with estimates & forecasts in terms of “kW” and “USD Million” from 2019 to 2032 for the following segments:

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Market, By Product

  • Alkaline Electrolyzer
  • PEM Electrolyzer
  • Solid Oxide Electrolyzer
  • Others

Market, By Capacity

  • ≤ 100 kW
  • > 100 kW - 300 kW
  • > 300 kW - 500 kW

Market, By Application

  • Power Generation
  • Transportation
  • Industry Energy
  • Industry feedstock
  • Building Heating & 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
    • Japan
    • India
    • Australia
  • Rest of World


Authors: Ankit Gupta, Srishti Agarwal

Frequently Asked Questions (FAQ) :

The market size of small capacity electrolyzer surpassed USD 217.7 million in 2023 and is anticipated to register over 5.1% CAGR from 2024 to 2032, explains GMI report.

The < 100 kW small capacity electrolyzer industry size will observe 0.4% growth during 2023 to 2032 as more investments are made into building fuel cell infrastructure and chemical factories.

Europe small capacity electrolyzer industry was worth USD 43 million in 2022 and will increase further due to rising international trade in the region.

Giner Inc., Sunfire GmbH, Green Hydrogen Systems, Bloom Energy, Ostermeier H2ydrogen Solutions GmbH, ITM Power PLC, McPhy Energy S.A., and h2e Power are a few of the well-known companies in the market.

Small Capacity Electrolyzer Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 11
  • Tables & Figures: 472
  • Countries covered: 12
  • Pages: 350
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