Electrolyzer Market: Powering the Green Hydrogen Revolution

The electrolyzers are used for the electrolysis of water. Through electrolysis, water is split into hydrogen and oxygen, which are further collected separately for use in industrial processes, automotive, power, and chemical industries. The electrolyzers are available in various sizes and have different methods of electrolysis.

Electrolyzer Market size was valued at USD 1.58 Billion in 2023 and is poised to grow from USD 1.91 Billion in 2024 to USD 5.18 Billion by 2032, growing at a CAGR of 21.2% during the forecast period (2025-2032).

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Key Market Drivers

• Decarbonization Initiatives: Governments worldwide are implementing policies to reduce carbon emissions, positioning green hydrogen as a pivotal solution for sectors like transportation, industry, and energy storage.
• Technological Advancements: Innovations in electrolyzer technologies, including Proton Exchange Membrane (PEM), Alkaline, and Solid Oxide Electrolyzers, are enhancing efficiency and reducing costs, making green hydrogen production more viable .
• Industrial Demand: Industries such as steel manufacturing, ammonia production, and refineries are transitioning from fossil-fuel-based hydrogen to green hydrogen, increasing the demand for electrolyzers .

The electrolyzers are used for the electrolysis of water. Through electrolysis, water is split into hydrogen and oxygen, which are further collected separately for use in industrial processes, automotive, power, and chemical industries. The electrolyzers are available in various sizes and have different methods of electrolysis. Most of the electrolyzers used are alkaline electrolyzers. Unlike fossil fuels, electrolyzers do not generate emissions due to this it is being used to generate electricity this ability of electrolyzers, is facilitating the growth of the market. Increased electricity consumption, along with the increasing deployment of green hydrogen generation systems, will further drive market growth in the upcoming years.

Market Segmentation

By Technology:

• Proton Exchange Membrane (PEM) Electrolyzers: Leading the market with over 63% share, favored for their efficiency and compact design .
• Alkaline Electrolyzers: Gaining traction, especially in Europe, due to their cost-effectiveness and established technology .
• Solid Oxide Electrolyzers (SOE): Emerging technology with high efficiency at elevated temperatures.

By Application:

• Industrial: Dominant application segment, including chemical production and refining processes.
• Energy: Utilization in power generation and combined heat and power (CHP) systems.
• Mobility: Growing use in fuel cell electric vehicles (FCEVs) and hydrogen fueling infrastructure.

Regional Insights

• North America: Leading the market, accounting for approximately 43% of global demand by 2025, driven by strong decarbonization commitments and presence of key manufacturers .
• Europe: Significant growth anticipated, supported by government initiatives to expand electrolyzer manufacturing capacity and promote green hydrogen .
• Asia-Pacific: Expected to witness rapid growth due to increasing investments in renewable energy projects and adoption of electric vehicles in countries like China, Japan, South Korea, and India .

The Analysis of the Global Electrolyzer Market is done across the region of North America, the Asia Pacific, Latin America, and the Middle East & Africa. Among all the regions, the North American region led the market in the year 2021. This is due to the rising demand for hydrogen in various manufacturing sectors such as the power industry and others. Europe stands second in the Global Electrolyzer Market due to the European Government initiatives regarding decarbonization. Whereas, the Asia Pacific region is expected to grow at a faster rate in upcoming years due to the wide acceptance of electric vehicles in countries like China, Japan, South Korea, and India. As the government of different countries is on a quest to find alternative source and reduce fuel dependency, the Global Electrolyzer Market will grow significantly through the forecast period of 2024-2031.

Key Players

Prominent companies in the electrolyzer market include:

• thyssenkrupp nucera
• John Cockerill
• Nel ASA
• Plug Power Inc.
• Siemens Energy
• Linde plc
• Suzhou Green Hydrogen Energy Co., Ltd.
• Air Products Inc.
• Cummins Inc.
• Sunfire GmbH
• Next Hydrogen
• Green Hydrogen
• ErreDue spa
• Cockerill Jingli Hydrogen
• Idroenergy
• ITM Power PLC
• Air Liquide
• Enapter AG

These companies are focusing on technological advancements, strategic partnerships, and expanding their global presence to meet the growing demand for electrolyzers .

Electrolyzer Market Recent Developments

• In June 2022, The European Commission launched an initiative on June 16 to increase the European Union’s green hydrogen electrolyzer manufacturing capacity tenfold by 2025. The Electrolyzer Partnership, first announced in May, will bring together manufacturers and component suppliers to ramp up the production of electrolyzers — the technology used to produce renewable-powered hydrogen — to 17.5 GW per year from an estimated 1.75 GW today.
• In June 2022, France’s TotalEnergies signed an agreement with Adani Enterprises to acquire 25% of its new energy arm, Adani New Industries Ltd. The joint venture platform, ANIL, will be integrated across the value chain to drive down green hydrogen production costs. It aims to develop a green hydrogen production capacity of 1 million tons per annum by 2030.

Electrolyzer Key Market Trends

• Increased trends of clean hydrogen electrolyzers: Clean hydrogen generation has emerged as a major source of focus due to the increasing gas emission issue. The government is adopting policies regarding clean Hydrogen Generation worldwide focusing on a sustainable hydrogen economy. Further, rising hydrogen demand across industries such as chemical, glass, mining, food, beverage, and semiconductor industries is configured to frame the growth of the market in the future.

Future Outlook

The electrolyzer market is poised for substantial growth, underpinned by the global shift towards sustainable energy solutions. As technological innovations continue to improve efficiency and reduce costs, electrolyzers will play a crucial role in the transition to a green hydrogen economy.

For a comprehensive analysis, refer to the full report: https://www.skyquestt.com/report/electrolyzer-market

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