Electrolyzers Market

Electrolyzers Market Overview

The global Electrolyzers Market size was valued at USD 2.60 billion in 2023 and is predicted to reach USD 15.55 billion by 2030 with a CAGR of 29.1% from 2024-2030. Electrolyzers refer to the segment that deals with the manufacturing and distribution of equipments used to split water into hydrogen and oxygen through the process of electrolysis. These production devices are instrumental in the progression of renewable energy technologies, especially in the manufacture of green hydrogen. The market consists of the various types of electrolyzers such as the conventional alkaline electrolyzers, Proton Exchange Membrane (PEM) electrolyzers, and solid oxide electrolyzers catering to a range of industries and energy sectors. This has led to the increased prioritization from governments, industries and even investors, towards the exploitation of electrolytic equipment as one of the most efficient technologies in the decarbonization process and the shift towards sustainable energy.

Market Dynamics and Trends

The global electrolyzers market is experiencing significant growth driven by the rising global interest in green hydrogen as an environmentally friendly energy solution. These devices are essential players in the production of green hydrogen, as they utilize renewable energy sources to create clean fuel. As governments worldwide prioritize the transition to green energy, they're implementing strategies to ramp up green hydrogen production.

For instance, In March 2022 the Chinese government published a Green Hydrogen Energy Plan, aiming to produce 200,000 tonnes of green hydrogen annually by 2025. Such initiatives create a conducive environment for the market, thereby propelling the electrolyzers market forward.

Also, the growing chemical industry that uses green ammonia to decarbonize its operations is increasing the electrolyzers market demand. Electrolyzers play a pivotal role in the production of green ammonia, making them indispensable technology in this shift towards sustainability. As the demand for green ammonia rises, companies across various sectors increasingly embrace strategies to ramp up green ammonia production. 

For instance, in November 2023, Adani Power collaborated with Japanese engineering firms IHI and Kowa-Japan to launch a pilot project at its Mundra plant in India. This project aims to co-fire up to 20% of green ammonia, thereby accelerating the energy transition in India and reducing carbon emissions before 2030. 

Moreover, the worldwide rising electrolyzer manufacturing further drives the market by increasing production capacity, improving technology, and reducing costs. According to the International Energy Agency (IEA), electrolyzer manufacturing capacity grew by over 25% from 2021, reaching nearly 11 GW annually in 2022. This expansion in manufacturing boosts the availability of these devices and also supports technological improvements and cost reductions. 

However, the high initial investment costs for energy storage systems limit widespread adoption and deployment of the technology among potential buyers, thereby acting as a barrier to the electrolyzers market growth. On the contrary, novel hydrogen generation designs including AEM technology is expected to create future opportunities in the electrolyzers market trends by enhancing efficiency, lowering operating costs, and improving durability compared to traditional options. These advancements are expected to accelerate the adoption of electrolysis for green hydrogen production, energy storage, and industrial applications.

Market Segmentations and Scope of the Study 

The electrolyzers market report is segmented on the basis of technology, capacity, end-users, and region. On the basis of technology, the market is segmented into Alkaline Electrolyzer (AE), Proton Exchange Membrane (PEM), Solid Oxide Electrolyzer (SOE), and Anion Exchange Membrane (AEM). On the basis of capacity, the market is divided into Less than 500 kW, 500 kW to 2 MW, and Above 2 MW. On the basis of end-users, the market is classified into renewable energy sector, chemical industry, food and beverage industry, transportation sector, steel plant, and other end-users. The regional breakdown includes regions such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Geographical Analysis

Asia Pacific dominates the electrolyzers market share and is expected to continue its dominance during the forecast period. This is attributed to the expanding solar projects across countries such as India and China. Electrolytic equipment facilitates the conversion of surplus solar energy into green hydrogen through electrolysis. As these nations invest heavily in solar energy infrastructure, the demand for these devices is on the rise. 

For instance, in January 2024, Tata Power Renewable Energy successfully installed a 1,000 KW bifacial solar project in India. The installation of bifacial solar systems highlights the growing need for electrolyzers to convert surplus solar energy into storable green hydrogen. This further emphasizes the vital role these devices play in advancing sustainable energy solutions in the Asia Pacific region.

Moreover, the growing awareness within the chemical industry towards adopting green hydrogen as a feedstock and fuel for various chemical processes, is further boosting the electrolyzers market expansion. Green hydrogen serves as the reactant in production of numerous chemical products, enabling the decarbonization of the entire chemical manufacturing sector. 

According to the data published the European Chemical Industry Council (Cefic) in 2023, China dominates chemical sales globally, holding over 40% of global sales, that amounts to around USD 2,549 billion. As the chemical industry continues to expand across the Asia-Pacific region, the demand for electrolysis for hydrogen production rises. 

On the other hand, in the European region, the electrolyzers market is steadily growing, propelled by the increasing adoption of fuel-cell electric vehicles (FCEVs) throughout the region. Green hydrogen, produced with the help of these devices serves as a clean and sustainable fuel for these vehicles. 

For instance, Toyota plans to increase the number of FCEVs in Paris, aiming to escalate from 100 to 10,000 vehicles by 2024. This commitment underscores the growing demand for FCEVs and consequently, the need for hydrogen production through electrolysis. Also, the increased focus on the green future drives the electrolyzer market demand, as it is a key technology enabling the production of clean and sustainable energy, particularly hydrogen.

As per the World Economic Forum, 16 European nations topped the list in the Green Future Index, with Iceland leading the 2022 edition of the index followed by Sweden for generating higher amount of electricity from sustainable sources. As European countries continue to prioritize clean energy initiatives, the need for decarbonization strategy rises, driving the industry expansion in the region.

Competitive Landscape

Various market players operating in the electrolyzers industry include Nel ASA, John Cockerill, Plug Power Inc., Siemens AG, Cummins Inc., ITM Power plc, Sunfire GmbH, Poonawalla Group, Asahi Kasei Corporation, Bloom Energy, and others. These companies continue to adopt various market development strategies including acquisitions, agreements, and others to maintain their dominance in the sector.

For instance, in October 2023, John Cockerill Hydrogen acquired manufacturing facility in Baytown, Houston, Texas, for a new gigafactory. The facility is expected to produce 1 GW per year of electrolyzers, creating 200 jobs and strengthening Houston's position as a hydrogen hub.

Additionally, in July 2023, Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA, entered into a contract with Hyd’Occ for the supply of 20 MW of alkaline electrolyzer equipment to Hyd’Occ for its project in Port-La-Nouvelle, France. This project is expected to be a significant hub for hydrogen flows in the Mediterranean and represents a key step in the development of the hydrogen ecosystem in the region.

Also, in October 2022, Cummins Inc.  build its new gigawatt electrolyzer manufacturing plant in Guadalajara, Castilla-La Mancha, Spain. This reaffirms the company's commitment to expand the green hydrogen economy in Europe and around the world.

Key Benefits

• The report provides quantitative analysis and estimations of the electrolyzers industry from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future electrolyzers market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the electrolyzers industry is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the roles of stakeholders.

Electrolyzers Market Key Segments

By Technology

• Alkaline Electrolyzer (AE) 

• Proton Exchange Membrane (PEM) 

• Solid Oxide Electrolyzer (SOE) 

• Anion Exchange Membrane (AEM)

By Capacity

• Less than 500 kW 

• 500 kW to 2 MW 

• Above 2 MW

By End-Users

• Renewable Energy Sector

• Chemical Industry

• Food and Beverage Industry

• Transportation Sector

• Steel Plant

• Other End-Users

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 2.60 Billion
Revenue Forecast in 2030	USD 15.55 Billion
Growth Rate	CAGR of 29.1% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	The rising global interest in green hydrogen is propelling the market growth. The growing chemical industry which uses green ammonia to decarbonize its operations is driving the market Growing production of electrolyzes boost the market growth
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

Key Players

• Nel ASA

• John Cockerill

• Plug Power Inc.

• Siemens AG

• Cummins Inc.

• ITM Power plc

• Sunfire GmbH

• Poonawalla Group

• Asahi Kasei Corporation

• Bloom Energy