Hydrogen Electrolyzer Market Analysis

Global Hydrogen Electrolyzers Market Overview

Hydrogen Electrolyzers Market Size was valued at USD 0.7 Billion in 2022. The Hydrogen Electrolyzers market industry is projected to grow from USD 0.9 Billion in 2023 to USD 5.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 25.00% during the forecast period (2024 - 2032). Expanding policies and initiatives from the government, as well as the rising demand for hydrogen, are the key market drivers boosting the expansion of the market.

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

Hydrogen Electrolyzers Market Trends

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  Growing demand for hydrogen is driving the market growth

  
  

Market CAGR for hydrogen electrolyzers is being driven by the rising demand for hydrogen. A viable technique for producing carbon-free hydrogen from nuclear and renewable sources is electrolysis. The process of electrolysis involves utilizing electricity to divide water into hydrogen and oxygen. This process takes place in an apparatus called electrolyzes. Electrolyze devices use electrolysis to separate oxygen and hydrogen from water. Electrolyzes are composed of an anode, a cathode, and a membrane. Hydrogen is collected on the cathode side and maintained for use in many industries. Either oxygen is released into the atmosphere, or it is retained and used in further industrial operations.

Additionally, concerns about global warming and carbon emissions have been raised. Governments everywhere have passed a plethora of laws and policies requiring a reduction in carbon emissions from various industries. Using electricity electrolyzes separate water into hydrogen and oxygen. This produces hydrogen. Either renewable or nonrenewable resources provide the electricity that is used. Moreover, electrolyzes combined with solar or wind power can be used to create hydrogen. This strategy encourages the creation of green hydrogen that is carbon neutral. Many businesses choose to use on-site electrolyzers with a capacity of 1 to 5 MW in order to lessen their carbon footprint, which has a major positive impact on the growth of the worldwide electrolyzer industry. Electric cars with batteries are powered by hydrogen fuel cells. By limiting carbon emissions, driving an electric automobile lowers air pollution.

The popularity of renewable energy sources has surged due to worries about climate change, the rise in earth's temperature, and the concerning growth in carbon emissions. Many companies have abandoned the conventional method of producing electricity from fossil fuels in favor of using plentiful natural resources like solar, wind, natural gas, and water in order to behave responsibly. Nevertheless, there was a substantial upfront cost associated with establishing such programs. Conversely, a lot of advantageous laws have been passed by the government as a result of technological advancements and vigorous support for the advantages of renewable energy. The cost of renewable energy has come down while maintaining a much smaller carbon footprint. The need for electrolyzers is fueled by these falling prices. For instance, estimates indicate that fossil fuels account for about 95% of the hydrogen produced. Electrolysis produces between 1% and 4% of hydrogen. Utilizing hydrogen as a fuel in industrial applications such as manufacturing, chemistry, and locomotives encourages the use of hydrogen obtained from renewable sources, such as electrolyzers, in light of the growing emphasis on reducing carbon footprints. This stimulates the growth of the electrolyzer market. The demand for hydrogen fuel cells is rising as a result of the growing market for fuel-cell automobiles, which also drives the market for electrolyzers. Thus, result in driving the Hydrogen Electrolyzers market revenue.

Hydrogen Electrolyzers Market Segment Insights

Hydrogen Electrolyzers Product Type Insights

The Hydrogen Electrolyzers Market segmentation, based on Product Type, includes Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, and Solid Oxide Electrolyzer. The alkaline electrolyzer segment dominated the market. When compared to other varieties, alkaline electrolyzes are comparatively more affordable. Because of this, they are a desirable choice in applications where generating hydrogen at a reduced cost is the main objective. Because abundant and affordable materials, including catalysts based on nickel, are used in the electrode construction, alkaline variations are less expensive. They are also quite efficient, which adds to their appeal.

Figure 1: Hydrogen Electrolyzers Market, by Product Type, 2023 & 2032 (USD Billion)

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

Hydrogen Electrolyzers Capacity Insights

The Hydrogen Electrolyzers Market segmentation, based on Capacity, includes Low (<= 150 kW), Medium (150kW - 1mW), High (> 1mW). The Medium (150kW - 1mW) generated the most income. This is because their considerable capacity to satisfy the need for hydrogen across many industries is provided, all while maintaining a controllable amount of installation space, operational needs, and cost. This capacity range also fits in nicely with the requirements of the developing hydrogen economy. As the need for hydrogen keeps increasing, especially in sectors looking to switch to cleaner energy sources and cut carbon emissions.

Hydrogen Electrolyzers Outlet Pressure Insights

The Hydrogen Electrolyzers Market segmentation, based on Outlet Pressure, includes Low (<= 10 Bar), Medium (10 Bar - 40 Bar), High (> 40 Bar). The Low (<= 10 Bar) generated the most income. This is because fuel cell vehicles that utilize hydrogen fueling stations are best suited for electrolyzers with low outlet pressure. In order to support the expanding market for fuel cell vehicles, these electrolyzers create hydrogen at lower pressures that are compatible with vehicle fuelling systems. This allows for the extension of hydrogen refueling infrastructure.

Hydrogen Electrolyzers End-user Insights

The Hydrogen Electrolyzers Market segmentation, based on End-user, includes Ammonia, Methanol, Refining/ Hydrocarbon, Electronics, Energy, Power to Gas, Transport, Metal Production and Fabrication, Pharma and Biotech, Food and Beverages, Glass Industry and Others. The Electronics category generated the most income. Building robust and sustainable supply chains is a priority for the electronics sector as a means of reducing the risks associated with supply chain disruptions, natural disasters, and geopolitical unrest. By diversifying energy sources and lowering reliance on fossil fuels and centralized energy infrastructure, the integration of electrolyzer-based hydrogen generation devices into the electronics manufacturing supply chain improves resilience.

Hydrogen Electrolyzers Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Hydrogen Electrolyzers market area will dominate this market, owing to an increase in the incorporation of renewable electricity into the energy system, which will boost market growth in this region.

Further, the major countries studied in the market report are the US, Germany, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.

Figure 2: Hydrogen Electrolyzers Market Share By Region 2023 (Usd Billion)

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

Europe Hydrogen Electrolyzers market has the second-largest portion of the market due to the Rapid increased by the presence of firms involved in vehicle, construction, textile, power generation. Further, the German Hydrogen Electrolyzers market had the biggest market share, and the UK Hydrogen Electrolyzers market was the European market with the quickest rate of growth.

The Asia-Pacific Hydrogen Electrolyzers Market is anticipated to expand between 2024 and 2032 at the quickest CAGR. This is due to the surge in demand for the rising need for hydrogen. Moreover, China’s Hydrogen Electrolyzers market had the biggest market share, and the Indian Hydrogen Electrolyzers market was the Asia-Pacific region's fastest-growing market.

Hydrogen Electrolyzers Key Market Players & Competitive Insights

Leading market players are putting a lot of money on R&D to expand their product lines, which will help the market for weight reduction products grow. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure in an increasingly cutthroat and dynamic market, the Hydrogen Electrolyzers industry must provide reasonably priced goods.

Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the global Hydrogen Electrolyzers industry to help customers and expand the market segment. In recent years, the Hydrogen Electrolyzers industry has provided some of the biggest benefits to medicine. Major players in the Hydrogen Electrolyzers market, including Nel Hydrogen, Siemens AG, McPhy Energy, ITM Power Plc, Tianjin Mainland Hydrogen Equipment Co. Ltd, Gaztransport & Technigaz, Giner Inc., are engaging in research and development activities in an effort to boost market demand.

Based in Oslo, Nel ASA is a Norwegian firm that was established in 1927. Nel is a multinational corporation that offers solutions for the generation, delivery, and storage of hydrogen using sustainable energy sources. Nel is included in the Oslo Stock Exchange's OBX Index. With a 44.81% interest as of March 2020, Clearstream Banking S.A. is the largest stakeholder. In August 2019, this is an agricultural fertilizer project. NEL provides its own pressurized alkaline electrolyzer, which uses electric current to create a chemical reaction and material conversion that is necessary for the production of fertilizer.

Established in the UK in 2001, ITM Power plc is a firm focused on energy storage and clean fuel. It uses tap water and renewable electricity to create green hydrogen through the design, production, and integration of electrolyzers based on proton exchange membrane (PEM) technology. Electrolysis produces hydrogen, which is used in manufacturing, Power-to-X, and mobility. In December 2023, the business and Shell Deutschland finalized a capacity reservation agreement. The business declared that Shell would be responsible for securing sophisticated electrolyzer stacks with future production capability as per the agreement.

Key companies in the Hydrogen Electrolyzers market include

• Nel Hydrogen


• Siemens AG


• McPhy Energy


• ITM Power Plc


• Tianjin Mainland Hydrogen Equipment Co. Ltd


• Gaztransport & Technigaz


• Giner Inc.


• GreenHydrogen Systems


• iGas Energy GmbH


• Beijing CEI Technology Co., Ltd.


• Next Hydrogen


• Air Liquide

Hydrogen Electrolyzers Industry Developments

January 2022:Edinburgh-based Logan Energy and Green Hydrogen Systems have an agreement in place for the provision of equipment used in the electrolysis process throughout the English region. This electrolytic system will take the shape of a plant and be housed in a 40-foot container.

December 2022:European Energy, a Danish company that develops and operates green energy projects, placed an order with Siemens AG for the delivery of an electrolyzer plant. The business is building a large-scale commercial e-methanol production facility, and Siemens Energy's 50-megawatt (MW) plant will supply the hydrogen.

Hydrogen Electrolyzers Market Segmentation

Hydrogen Electrolyzers Product Type Outlook

• Proton Exchange Membrane Electrolyzer


• Alkaline Electrolyzer


• Solid Oxide Electrolyzer

Hydrogen Electrolyzers Capacity Outlook

• Low (<= 150 kW)


• Medium (150kW - 1mW)


• High (> 1mW)

Hydrogen Electrolyzers Outlet Pressure Outlook

• Low (<= 10 Bar)


• Medium (10 Bar - 40 Bar)


• High (> 40 Bar)

Hydrogen Electrolyzers End-user Outlook

• Ammonia


• Methanol


• Refining/ Hydrocarbon


• Electronics


• Energy


• Power to Gas


• Transport


• Metal Production and Fabrication


• Pharma and Biotech


• Food and Beverages


• Glass Industry


• Others

Hydrogen Electrolyzers Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America