Europe US China Electrolyser Market Analysis

Europe, US & China Electrolyser Market Overview

The Europe, US & China Electrolyzer market is expected to grow at a CAGR of 20.15% over the forecast duration of 2023-2030. The Europe, US & China Electrolyzer market was valued at USD 1,260.4 million in 2022 and is expected to reach USD 5,122.7 million by 2030.  An electrolyzer is a device that splits water or other substances into their component elements via electrolysis using electricity.

Electrolysis is a chemical process in which a material breaks down into its constituent parts when an electric current flows through it. When it comes to water electrolysis, an electrolyzer splits water molecules into hydrogen and oxygen gases using an electric current. Either compressed gas or liquefied gas can be used to store hydrogen. Either the produced oxygen is returned to the atmosphere, or it is caught and stored to fuel other industrial operations.

The rapidly increasing demand for hydrogen fuel cells in the current automobile market has helped the companies to record a considerable revenue over the period. The utilization of clean energy has become a recent trend which is foreseen to increase soon and hence emerges as a major growth factor for the market.

The increasing demand for better electric vehicles which can cover a longer range of distance will help the market to produce a considerable return over the period. The active support provided by the government to the key market players for the introduction of clean energy into the society has played a major role to boost the economy of electrolyzer market to a great extent.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Electrolyser Market Trends

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  Development of Green Hydrogen Production Technologies

  
  

The expanding carbon footprint of the atmosphere has led to a recent and ongoing rapid growth in the creation of clean hydrogen. But the production of hydrogen from conventional hydrocarbon sources produces a large amount of CO2 emissions. Nowadays, nearly all the hydrogen available on the market comes from traditional hydrocarbon sources like coal and natural gas. Power generation, cement and steel manufacturing processes, fuel cells for electric cars, heavy transportation like shipping, green ammonia production for fertilizers, cleaning products, refrigeration, and grid stabilization are just a few of the industries where hydrogen's potential uses are expanding.

In order to make the shift to clean energy, carbon dioxide must be captured during the production of hydrogen from fossil fuels and then supplied with more hydrogen through clean power. The techniques of producing hydrogen include electrolysis and carbon capture and storage (CCS) technologies. During the manufacturing process, the carbon dioxide that CCS technology captures and stores in the blue hydrogen is released. Green hydrogen is produced by electrolyzing water using energy derived from renewable sources. Ultimately, the degree of carbon neutrality of the power source determines the carbon intensity; that is, the more renewable energy utilised in the electrical fuel mix, the more environmentally friendly the hydrogen generated. The term "green" refers to electrolysis-produced hydrogen since it uses renewable energy sources "green hydrogen." The most advantageous and in-demand methods for producing hydrogen are green and blue hydrogen, which both meet emission requirements and slow the rate of carbon dioxide emissions into the atmosphere.

Due to falling costs for electrolyzers, increasing efficiency brought about by technology breakthroughs, and dropping costs for renewable energy sources, green hydrogen generation is becoming more commercially viable. If these prices continue to decline, the majority of the globe may produce green hydrogen by 2050 for between $0.70 and $1.60 per kilogram, making it competitive with natural gas. Henceforth, to compete in the green hydrogen market, players are implementing a variety of strategies, such as upgrading and expanding the scope of green hydrogen projects across the globe through partnerships and collaborations, constructing cutting-edge, cleaner energy systems through partnership contract agreements, concentrating on joint venture agreements, and investigating the production of green hydrogen through strategic partnerships. The green hydrogen companies are expanding in emerging markets, focusing on partnerships and collaborations, providing competitively priced offerings, offering value-based pricing, utilizing online marketing, and concentrating on rapidly expanding end-use industries to take advantage of the opportunities. They are also implementing artificial intelligence (AI) technology in production facilities, using internet of things (IoT) technology in hydrogen plants, and implementing smart meters. As a result of the breakthroughs and innovations in green hydrogen production technologies, the Europe, US & China hydrogen industry is expected to benefit from the rise of the green hydrogen market which in turn drives Europe, US & China Electrolyzer market in the forecast period.

Electrolyser Market Segment Insights

Electrolyser by product type Insights

The Europe, US & China Electrolyser Market segmentation, Based on this Product Type, the Europe, US & China electrolyzer market has been classified into Proton Exchange Membrane (PEM) Electrolyzer, Alkaline Electrolyzer, Solid Oxide Electrolyzer, and Anion Exchange Membrane (AEM). The Alkaline Electrolyzer segment dominated the Europe, US & China electrolyzer market; with an expected CAGR of 20.61% during the forecast period. The alkaline electrolyzer is a water electrolysis device that produces hydrogen and oxygen by passing an electric current through water. It utilizes an alkaline electrolyte solution, typically potassium hydroxide, to facilitate ion transport. It operates at a relatively high temperature and is used in large scale application. Alkaline Electrolyzers are known for their cost-effectiveness and long-term stability, making them suitable for steady, continuous hydrogen production. These systems play a vital role in the emerging landscape of green hydrogen production, contributing to sustainable energy solutions and facilitating the integration of renewable resources into the global energy infrastructure.

Analyst Comment: Electrolyzers are the key to unlocking the full potential of green hydrogen. This rapid growth is driven by a potent cocktail of factors such as ambitious climate goals, falling renewable energy costs, and surging demand for green hydrogen across sectors like transportation, industry, and heating. Meanwhile, The Ukraine war has added a new layer of fizz. It's accelerating Europe's quest for energy independence, making green hydrogen a strategic priority. This geopolitical shift is pushing governments and private investors to double down on electrolyzer deployments, creating a fertile ground for market expansion.

Electrolyser By Component Insights

Based on the components, the Europe, US & China electrolyzer market has been classified into Bipolar Plates, Stacks, and others. The stacks segment dominated the Europe, US & China electrolyzer market; with an expected CAGR of 20.52% during the forecast period. This stack refers to a collection of individual electrolysis cells arranged in series or parallel. Each cell contributes to the overall electrolysis process, and the stack design allows for efficient scaling of hydrogen production. Stacks are the core functional units of an electrolyzer system. They receive electrical power from an external source and use it to drive the electrolysis reaction in each cell, collectively producing hydrogen and oxygen gases. Stacks are designed for modularity, allowing for scalability based on the required production capacity.

Electrolyser By End Use

Based on the End Use, the Europe, US & China electrolyzer market has been classified into Chemical/Refining Industry, Electronics, Energy, Transport, Metal Production & Fabrication, Pharma & Biotech, Food & Beverages, and others. The Energy segment dominated the Europe, US & China electrolyzer market; with an expected CAGR of 20.50% during the forecast period. Since, electrolyzers are pivotal in the energy landscape as they facilitate green hydrogen production through electrolysis. By splitting water into hydrogen and oxygen using renewable electricity, electrolyzers offer a sustainable way to store and harness energy.

Electrolyser Regional Insights

In particular, Country-wise Europe, US & China electrolyzer market has been divided into Germany, France, Spain, Italy, UK, US, and China. China held the largest market share in 2022 due to the high availability of raw materials, rapid industrialization, and commercialization in the region, especially with the growth of the consumer goods and automotive industry. The Europe, US & China automobile manufacturers' substantial technological expenditures in the development of fuel cell electric cars are expected to propel the hydrogen fuel cell market. It is anticipated that most top automakers would have introduced fuel cell electric vehicles in the area by 2023, showcasing the practical use of this technology. Several automakers, including Hyundai, Toyota, Honda, Daimler, and BMW, have begun working on fuel cell electric vehicles (FCEVs) that use hydrogen fuel cells. These fuel cells produce heat and water vapor, making them a completely zero-emission locomotive technology. Opportunities for hydrogen fuel cells have been opened by this, which also generates.

Electrolyser Key Market Players & Competitive Insights

The Europe US & China Electrolyzers market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive, with all the players competing to gain maximum market share. Intense competition, frequent changes in government policies, and regulations are key factors that impact market growth. The vendors compete based on cost, product quality, reliability, and aftermarket services. The vendors must provide cost-efficient and high-quality Electrolyzers to sustain their presence in an intensely competitive market environment. Rapid industrialization and economic growth globally are driving the demand for products to meet specific industrial requirements.

Siemens: Siemens is a technology group that is active in nearly all countries of the world, focusing on the areas of automation and digitalization in the process and manufacturing industries, intelligent infrastructure for buildings and distributed energy systems, smart mobility solutions for rail transport, and medical technology and digital healthcare services. The company operates through four segments: Energy, Smart Infrastructure, Mobility, and Digital Industries.

H-TEC SYSTEMS: H-TEC SYSTEMS stands for innovation, sustainability, and a green future. As a technological pioneer, the company develops and manufactures innovative PEM electrolyzers and electrolysis stacks, enabling cost-effective, efficient, and reliable production of green hydrogen. H-TEC SYSTEMS GmbH develops and produces hydrogen electrolyzers. With its products, hydrogen will become the most important energy carrier worldwide and the foundation for a sustainable energy system.

Key Development by the companies

• In, September 2023, Siemens Energy stated that it is suppling 12 electrolyzer, whose total capacity is 200 megawatts, to Normandy. The electrolyzers supplied by Siemens Energy are based on proton exchange membrane technology (PEM electrolysis), which is highly compatible to intermittent renewable energy supply thanks to its short ramp-up time and dynamic controllability, and it is very well suited for the rapid ramp-up of the hydrogen industry due to its high energy density and small footprint and material requirements.


• In July 2023, Plug Power Inc., a global leader in comprehensive hydrogen solutions for the green hydrogen economy is to supply two 5-megawatt (MW) proton exchange membrane (PEM) electrolyzer systems for green hydrogen projects in Tasmania, Australia, under development by Countrywide Hydrogen Pty Ltd, a wholly-owned subsidiary of ReNu Energy Limited (ReNu Energy).

Key Companies in the Electrolyser Market includes.

• Siemens


• H-Tec Systems Gmbh


• Enapter


• Hystar


• Plug Power Inc


• Cummins Inc


• Dana Limited


• Elringklinger Ag


• Others

Electrolyser Market Segmentation:

Electrolyser Product Type Outlook

• Proton Exchange Membrane (PEM) Electrolyzer


• Alkaline Electrolyzer


• Solid Oxide Electrolyzer


• Anion Exchange Membrane (AEM)

Electrolyser Component Outlook

• Bipolar Plates


• Stacks


• Others

Electrolyser End-Use Outlook

• Chemical/Refining Industry


• Electronics


• Energy


• Transport


• Metal Production & Fabrication


• Pharma & Biotech


• Food & Beverages


• Others

Electrolyser Regional Outlook

• Europe, US & China
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Spain
  
  
  • Italy
  
  
  • US 
  
  
  • China