Electrolyzers Market Size was valued at USD 1 Billion in 2022. The Electrolyzers Market industry is projected to grow from USD 1.80 Billion in 2023 to USD 206.43 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 80.80% during the forecast period (2023 - 2032). Rising investments in sustainable energy projects and heightened government emphasis on hydrogen-related technologies are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for the electrolyzers is being driven by the growing government focus on reducing carbon footprints and expanding hydrogen capacities. The growing government focus on reducing carbon footprints and expanding hydrogen capacities is a driving force behind the growth in market revenue.
Increasing government investments in advancing hydrogen technologies are poised to bolster the Electrolyzers market. Notably, the U.S. Congress passed the Bipartisan Infrastructure Law in June 2021, allocating grants for hydrogen hubs and incentives to spur hydrogen infrastructure and electrolyzer manufacturing. Moreover, the U.S. Department of Energy finalized a $504 million loan guarantee for a large-scale hydrogen storage project. Similarly, the European Commission approved €5.4 billion in July 2022 for its inaugural hydrogen-related Important Project of Common European Interest (IPCEI), with a focus on hydrogen technologies. Additionally, nations are progressively committing resources to develop stringent approaches for measuring and managing carbon emissions. Germany, for instance, plans to invest €9 billion to bolster its renewable hydrogen capacity to 5 GW by 2030 and 10 GW by 2040. Meanwhile, France has earmarked €7 billion to achieve 6.5 GW of renewable hydrogen capacity by 2030. Consequently, the growing government dedication to reducing carbon footprints and expanding hydrogen capabilities is anticipated to stimulate electrolyzer demand, driving market growth.
As a result, it is anticipated that throughout the projection period, demand for Electrolyzers Market will increase due to the growing government focus on reducing carbon footprints and expanding hydrogen capacities. Thus, driving the Electrolyzers Market revenue.
The Electrolyzers Market segmentation, based on Type includes Traditional Alkaline Electrolyzer and PEM Electrolyzers. The traditional alkaline electrolyzer segment dominated the market, accounting for 58% of market revenue (0.6 billion). Large-scale power generation plants extensively employ this system for energy production. Furthermore, industries involved in photovoltaic plastics rely heavily on this system for their operations. The electronics sector is a major user of the traditional alkaline system for a wide range of applications.
Figure 1: Electrolyzers Market by Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Electrolyzers Market segmentation, based on Application, includes Power Plants, Steel Plant, Electronics and Photovoltaics, Industrial Gases, Energy Storage or Fueling for FCEVs, Power to Gas, and Others. The power plants segment dominated the market, accounting for 55% of market revenue (0.6 Billion). A key driver for the widespread adoption of Electrolyzers in the power generation sector is the growing emphasis on integrating renewable energy sources. Electrolyzers play a vital role by efficiently converting surplus renewable energy into hydrogen during periods of high generation. This stored hydrogen serves as a flexible and eco-friendly energy resource, ensuring a dependable power supply even when renewable energy availability is variable. It facilitates the seamless integration of renewable energy sources with hydrogen production, ultimately enhancing the sustainability and reliability of power generation systems.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. North America has established itself as the primary market for Electrolyzer, driven by the demand across diverse manufacturing applications. The region's robust power industry extensively utilizes hydrogen, resulting in substantial revenue generation. In 2021, the electric power sector played a substantial role in the United States' renewable energy landscape, accounting for approximately 59% of the nation's total renewable energy consumption. Furthermore, renewable energy sources contributed significantly to the electricity generation mix, constituting roughly 20% of the total electricity generated in the United States during that year. Electrolyzers can play a crucial role in storing excess energy during periods of high renewable energy production. When renewable energy generation exceeds demand, electrolyzers can convert this surplus electricity into hydrogen or other energy storage mediums, making it available for use when renewable energy generation is low. This enhances the reliability and stability of the energy grid. Furthermore, the well-developed manufacturing infrastructure in North America significantly contributes to market growth.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Electrolyzers Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Electrolyzers market accounts for the second-largest market share as Europe is actively promoting renewable energy adoption and striving for decarbonization, aligning with its goal to reduce greenhouse gas emissions and transition to cleaner energy solutions. This commitment to sustainability has cultivated a conducive ecosystem for the advancement and utilization of Electrolyzers, critical for integrating renewable energy and hydrogen generation. Numerous European countries have implemented supportive policies, including incentives like feed-in tariffs, subsidies, and carbon pricing mechanisms, to drive technology adoption and stimulate the growth of the hydrogen sector. On July 14, 2021, the Commission unveiled Europe's updated climate targets for 2030, which included a proposed amendment to the Renewable Energy Directive. This proposal aimed to elevate the existing target of 32% to a more ambitious goal of at least 40% for renewable energy sources within the EU's overall energy composition by 2030. As of January 2022, Eurostat's renewable energy statistics indicated that the EU not only met but exceeded its 2020 target by achieving a substantial 22% share of gross final energy consumption derived from renewable sources. The increased focus on renewable energy sources necessitates the production of green hydrogen, which can be achieved through electrolysis of water using renewable electricity. As the EU strives to incorporate more renewables into its energy mix, there will be a rising demand for electrolyzers to produce green hydrogen, driving growth in the Electrolyzer Market. Further, the German Electrolyzers Market held the largest market share, and the UK Electrolyzers Market was the fastest-growing market in the European region
The Asia-Pacific Electrolyzers Market is expected to grow at the fastest CAGR from 2023 to 2032. Governments across the Asia Pacific are increasingly recognizing the importance of hydrogen and electrolysis technology in achieving clean energy goals and reducing carbon emissions. To support these efforts, many countries in the region are launching initiatives, offering incentives, and investing in the development of hydrogen infrastructure. These government-driven efforts are bolstering the growth of the Electrolyzers Market. Moreover, China’s Electrolyzers Market held the largest market share, and the Indian Electrolyzers Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Electrolyzers Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive, Electrolyzers industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Electrolyzers industry to benefit clients and increase the market sector. In recent years, the Electrolyzers industry has offered some of the most significant advantages to various types of advanced systems and solutions. Major players in the Electrolyzers Market, including Nel Hydrogen (Norway), Asahi Kasei (Japan), Hydrogenics (Canada), Shandong Saikesaisi Hydrogen Energy Co., Ltd. (China), Teledyne Energy Systems (U.S.), Siemens (Germany), Kobelco Eco-Solutions (U.S.), Green Hydrogen Systems (Denmark), Next Hydrogen (Canada), H-Tec Systems (Germany), are attempting to increase market demand by investing in research and development activities to improve technologies, enhance efficiency, increase durability, and reduce costs.
Siemens is a global technology company specializing in electrification, automation, and digitalization solutions. The company engages in the design, development, and manufacture of products, as well as the implementation of complex systems and projects tailored to specific needs. Siemens' core areas of focus encompass power generation, distribution, intelligent building infrastructure, and distributed energy systems. They also provide innovative solutions for transportation, medical technology, and digital healthcare services. Siemens boasts an extensive network of research and development facilities, production plants, warehouses, and sales offices worldwide, catering to a diverse customer base spanning industries like energy, healthcare, infrastructure, manufacturing, and more. Headquartered in Munich, Bavaria, Germany, Siemens partnered with Air Liquide S.A. in 2022 to establish a joint venture aimed at producing large-scale renewable hydrogen Electrolyzers in Europe. This collaboration includes a commitment to collaborative research and development to advance next-generation technologies within the scope of the partnership.
Nel Hydrogen, an established industry leader, has a strong track record with over 3,500 dependable and cost-effective Electrolyzers deployed worldwide. Specializing in Alkaline and Proton Exchange Membrane (PEM) water electrolysis, the company has been at the forefront since its inception in 1927. Persistent investment in research and development has driven ongoing enhancements in Electrolyzer technology, establishing a gold standard in the industry. Nel Hydrogen's electrolysis technology is widely acknowledged for its durability, reliability, and energy efficiency, making it a respected choice in the market. In May 2022, Nel ASA marked a significant milestone by inaugurating a state-of-the-art 20 MW PEM electrolyzer facility in Spain, and Europe. This advanced plant is dedicated to the production of green hydrogen, a key component in reducing carbon dioxide (CO2) emissions associated with fertilizer manufacturing.
May 2022:In May 2022, Siemens AG successfully secured a significant contract from European Energy, a prominent Danish firm specializing in green energy projects. The contract entails the supply and installation of an advanced electrolyzer plant. This plant will be instrumental in supporting European Energy's ambitious endeavor to establish a large-scale commercial e-methanol production facility. Siemens Energy, through its 50-megawatt (MW) plant, will provide the essential hydrogen component for this pioneering project. This collaboration marks a pivotal milestone in the ongoing global transition toward sustainable practices, particularly in the context of decarbonizing the shipping industry.
January 2022:In January 2022, Logan Energy, headquartered in Edinburgh, successfully entered into a strategic agreement with Green Hydrogen Systems for the supply of specialized electrolysis equipment to be deployed in the region of England. This equipment, crucial for the electrolysis process, will be housed within a 40-foot container, effectively functioning as a compact and efficient hydrogen production plant.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 1 Billion |
| Market Size 2023 | USD 1.80 Billion |
| Market Size 2032 | USD 206.43 Billion |
| Compound Annual Growth Rate (CAGR) | 80.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Nel Hydrogen (Norway), Asahi Kasei (Japan), Hydrogenics (Canada), Shandong Saikesaisi Hydrogen Energy Co., Ltd. (China), Teledyne Energy Systems (U.S.), Siemens (Germany), Kobelco Eco-Solutions (U.S.), Green Hydrogen Systems (Denmark), Next Hydrogen (Canada), H-Tec Systems (Germany) |
| Key Market Opportunities | Increasing demand for electric vehicles |
| Key Market Dynamics | Push towards reducing carbon emissions and growing use of hydrogen in electric vehicles. |
Frequently Asked Questions (FAQ) :
The Electrolyzers Market size was valued at USD 1 Billion in 2022.
The Electrolyzers Market is projected to grow at a CAGR of 80.80% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are Nel Hydrogen (Norway), Asahi Kasei (Japan), Hydrogenics (Canada), Shandong Saikesaisi Hydrogen Energy Co., Ltd. (China), Teledyne Energy Systems (U.S.), Siemens (Germany), Kobelco Eco-Solutions (U.S.), Green Hydrogen Systems (Denmark), Next Hydrogen (Canada), H-Tec Systems (Germany).
The Traditional Alkaline Electrolyzer type dominated the market in 2022.
The Power Plants had the largest share in the global market.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
