Industry Overview
The Global Electrolyzers Market is projected to grow from USD 0.7 billion in 2023 to USD 59.3 billion in 2030 at a CAGR of 96.4% during the forecast period from 2025 to 2030.
An electrolyzer is an equipment that is used to break down water into hydrogen and oxygen through the process of electrolysis. It is made up of an anode, a membrane and a cathode. Hydrogen is gathered on the cathode side and stored for usage in a variety of industries. Oxygen is either discharged into the atmosphere or gathered and used in other industrial operations.
Electrolysis capacity for hydrogen production has been growing since past few years, requires a significant acceleration to get on track with the Net Zero Emissions (NZE) Scenario. Electrolyzer market is boosting because of advantageous government regulations that provide subsidies and other advantages. The market for electrolyzers is projected to expand as the government takes a few steps to encourage healthy energy generation like exempting electrolyzers from taxes, grid fees and levies, granting access to limited electricity and acknowledging the value and cost of green hydrogen.
Market Segmentation
Insight by Technology
On the basis of technology, the Global Electrolyzers Market is segregated into alkaline electrolyzer, anion exchange membrane (AEM) electrolyzer, proton exchange membrane (PEM) electrolyzer and solid oxide electrolyzer. The alkaline electrolyzer dominated the electrolyzer market during the forecast period.
Insight by Application
According to the application, The Global Electrolyzers Market is segregated into industry energy, building heat & power, power generation, industry feedstock, transportation and others. The power generation application dominates the market as it uses a variety of sources ranging from fossil fuels like coal and oil to renewable sources like wind and solar. Hydrogen produced is stored in fuel cells that is further used to power vehicles. Fuel cell vehicles (FCVs) are available in form of material handling, buses, heavy & light duty trucks, unmanned aerial vehicle, rail and marine transportation. Germany already has rails running on fuel cells, and now Japan and South Korea are ready to install the same. Such application of hydrogen in fuel cells produced from electrolysis is driving the electrolyzer market growth.
Insight by Power Rating
The Global Electrolyzers Market based on power rating is divided into less than 500kW, 500kW to 2 MW and above 2 MW. The above 2 MW electrolyzers are projected to dominate during the forecast period as these electrolyzers are used in projects that require huge amounts of hydrogen like the applications in fertilizers manufacturing, aerospace activities, chemical processing and food & beverage industries.
Global Electrolyzers Market Report Coverage
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Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2023
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U.S.D. 0.7 Billion
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Revenue Forecast in 2030
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U.S.D. 59.3 Billion
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Growth Rate
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96.4%
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Segments Covered in the Report
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By Technology, By Application, By Power Rating
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America, Europe, Asia-Pacific and Rest of the World
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Industry Dynamics
Growth Drivers
The electrolyzers market is propelling due to decline in the costs of renewable energy. The growing concerns about climatic change, renewable energy sources have become increasingly popular. Many companies are switching from using fossil fuels to more abundant natural resources including solar, wind, natural gas, and water bodies to generate power. The initial cost for the creation of such enterprises is very high. On the other hand, due to technological developments and strong advocacy for its benefits, various government regulations have been created in support of renewable energy. The cost of renewable energy has decreased with the added benefit of a smaller carbon impact. Hence electrolyzer demand is driven by these declining costs. Another factor boosting the growth of this market is the growing market for IoT, energy as a service and smart cities. Electrolyzers play vital role in the development of smart cities, where IoT devices and sensors enable real-time monitoring and control of energy usage. New business opportunities in the electrolyzers market are because of the rise of energy-as-a-service models, where companies provide energy management solutions as a service.
Restraints
The main restraint of the Global Electrolyzers Market is the Global warming and carbon emissions. Now-a-days governments across the world have put in place a number of policies and directives that demand a decrease in carbon emissions from a range of industries. Expansion of factory size and rising production volumes shall lower the investment cost for all electrolyzer technologies. Also, the market expansion is hampered by the limited supply of electrolyzers. Furthermore, the expansion of the electrolyzer market is restricted by the delay in the grants from respective governments. Technological advancements may present a profitable opportunity for business expansion due to government policies that encourage the use of electric vehicles in the near future. High initial costs along with data security threat and privacy concerns also hinder the electrolyzers market growth.
Geographic Overview
- Europe
- North America
- Asia Pacific (APAC)
- Rest of the World
The Europe region dominated the market growth and is further projected to maintain its dominance during the forecasted period. Due to the presence of leading providers of electrolyzer like Siemens Energy (Germany), Thyssenkrup Nucera (Germany), H-TEC Systems GmBh, Enapter S.r.l (Italy).
Competitive Insights
The major players are actively investing in new product launches, research and development, partnerships, expansions and acquisitions.
Cummins Inc. designs, manufactures and distributes engines, filtration and power generation products based out of America.
Thyssenkrupp nucera is a world-leader in providing technologies for high-efficiency electrolysis plants. The company has also in-depth knowledge in the construction, procurement and engineering of electrochemical plants. The company offers solutions on industrial scale for green value chains with its water electrolysis technology to produce green hydrogen.
Key Players Covered in the Report
Some of the key players in this market are Cummins, Inc., Thyssenkrupp Nucera, Nel ASA, Siemens AG, H-TEC Systems GmBh, Enapter S.r.l, Toshiba Corporation, Air Liquide, Plug Power Inc., McPhy Energy, ITM Power, Iberdrola S.A., and Bloom Energy.
Recent developments by Key Players
Cepsa (Spanish energy company) has awarded the electrolyzer specialist a contract to provide a basic engineering design package to Thyssenkrupp nucera (one of the world’s leading supplier of high-efficiency alkaline water electrolysis technology).
Toshiba Group shall invest Rs 500 crore to increase the capacity of producing power transmission and distribution equipment in India.
The global Electrolyzers Market report offers a comprehensive market segmentation analysis along with estimation for the forecast period 2023–2030.
Segments Covered in the Report
- By Technology
- Alkaline Electrolyzer
- Proton Exchange Membrane (PEM) Electrolyzer
- Anion Exchange Membrane (AEM) Electrolyzer
- Solid Oxide Electrolyzer
- By Application
- Power Generation
- Transportation
- Industry Feedstock
- Building Heat & Power
- Industry energy
- Others
- By Power Rating
- Less than 500kW
- 500 kW to 2 MW
- Above 2 MW
Region Covered in the Report
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- South Korea
- India
- Australia
- Rest of APAC
- Rest of the World
- Brazil
- Saudi Arabia
- South Africa
- U.A.E
- Other Countries
.png "Electrolyzers Market Size")
Source: VynZ Research
Source: VynZ Research
