Electrolyzers Market by Type, Capacity (Less than 500 kW, 500 kW to 2 MW, More than 2 MW), Application (Mobility, Industrial Applications, Chemical Production, Other Applications) and Geography—Global Forecasts to 2030

The Electrolyzers Market is projected to reach $4.27 billion by 2030 from an estimated $1.11 billion in 2023, at a CAGR of 21.2% during the forecast period. The growth of this market is driven by the proliferation of renewable and nuclear technologies for electricity generation, increasing investments in green energy initiatives, and the growing government focus on hydrogen technologies. However, the shortage of raw materials restrains the growth of the global electrolyzers market.

The increasing affordability of electrolyzers is expected to create growth opportunities for the players operating in this market. However, the high energy requirements of electrolyzers are a major challenge for market growth.

Impact of COVID-19 on the Electrolyzers Market

The COVID-19 pandemic adversely impacted most economies around the globe. Governments enforced countrywide lockdowns to limit the spread of the infection. Restrictions were imposed on social and economic activities—particularly mobility—with a severe decline in energy use. These factors affected the electrolyzers market due to halted investments in the advancement of clean energy technologies.

The economic crisis following the COVID-19 pandemic delayed the adoption and commercial roll-out of clean hydrogen production technologies across industries, impacting the clean hydrogen sector. As a result, market players suffered a major liquidity shortage due to a steep drop in revenues. Large companies planning to invest in clean hydrogen production technology abandoned or scaled down plans, and investors became less inclined to finance the hydrogen sector.

Despite such challenges, climate change and environmental impacts remain major concerns globally. Various governments are undertaking initiatives to support the deployment of clean hydrogen technologies. For instance, as per Hydrogen Europe, the European Commission provided EUR 450–500 million (USD 431.7- 539.6 million) as financial support to Europe’s energy and transport sectors and energy-intensive industries with a strong commitment to decarbonization. In addition, the EC offers various incentives for the deployment of green hydrogen production technologies to commercial markets under the (RED II) Renewable Energy Directive. It is also undertaking initiatives to increase renewable energy share quotas and enable regulation to supply green power through grids. Thus, rising investments and government support are expected to drive the adoption of electrolyzers during the forecast period.

The global electrolyzers market is segmented by type, capacity, application, and geography. The study also evaluates industry competitors and analyses the country and regional-level markets.

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Proliferation of Renewable and Nuclear Technologies for Electricity Generation

The world’s electricity markets are experiencing the profound impacts of climate change. Heatwaves, cold snaps, droughts, and floods have become more frequent and intense, resulting in unstable and unreliable electricity supply. Grid operators are increasingly using renewable or nuclear technologies for electricity generation due to their viability for hydrogen production via electrolysis. Despite remarkable growth in the generation of renewable energy, electricity production from coal and gas has hit record levels, with coal accounting for 70% of all production in the energy & power sector. As a result, in 2021, carbon dioxide (CO2) emissions from power generation rose by 7%, reaching a record high after declining during 2019 and 2020.

Electricity is the major cost component in the production of green hydrogen. Therefore, there is a growing focus on nuclear and renewable energy sources such as wind, solar, hydro, and geothermal due to cost savings and zero greenhouse gas emissions in electricity production. Electricity generated from renewable sources is also economical due to advances in technology. Low installation costs are one of the major factors for the falling Levelized Cost of Electricity (LCOE) for solar and wind power.

Hydrogen production via electrolysis offers opportunities for intermittent power generation, a characteristic of some renewable energy technologies. However, electricity generation from renewable resources is expected to increase from 18% in 2018 to 31% in 2050. Various governments are also investing in technologies for hydrogen production. For instance, the U.S. Department of Energy has invested USD 750 million in advancing electrolysis technologies, driving down clean hydrogen fuel cell costs, and providing long-term support for hydrogen hubs and other industry deployments. These factors are boosting the demand for electrolyzers globally, driving the growth of the electrolyzers market.

Key Findings in the Electrolyzers Market Study:

The Polymer Electrolyte Membrane Electrolyzers Segment is Projected to Register the Highest CAGR During the Forecast Period

Based on type, the global electrolyzers market is segmented into polymer electrolyte membrane (PEM) electrolyzers, alkaline electrolyzers, and solid oxide electrolyzers. The polymer electrolyte membrane electrolyzers segment is projected to register the highest CAGR during the forecast period. The growth of this segment is attributed to due to growing demand for large hydrogen plants and continuous product development by key players.

The Less than 500 kW Segment is Projected to Register the Highest CAGR During the Forecast Period

Based on capacity, the global electrolyzers market is segmented into less than 500 kW, 500 kW to 2 MW, and more than 2 MW. The less than 500 kW segment is projected to register the highest CAGR during the forecast period due to the trend toward smaller capacities in applications such as fuel cells for batteries in mobility.

The Industrial Application Segment is Projected to Register the Highest CAGR During the Forecast Period

Based on application, the global electrolyzers market is segmented into mobility, industrial applications, chemical production, and other applications. The industrial application segment is projected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the capability of green hydrogen to replace fossil fuels and the growing use of green hydrogen across all industries.

Asia-Pacific: Slated to Register the Highest CAGR During the Forecast Period

Based on geography, the global electrolyzers market is segmented into Asia-Pacific, Europe, North America, Latin America, and the Middle East & Africa. Asia-Pacific is slated to register the highest CAGR during the forecast period. The growth of this market is mainly attributed to the rising focus on regulatory policies toward the development of hydrogen networks and their increasing applicability in industrial applications. Moreover, rising government initiatives to tackle climate change, investments in clean energy technologies, and growing energy consumption further boost market growth.

Key Players

The key players operating in the global electrolyzers market are Plug Power Inc. (U.S.), CUMMINS INC. (U.S.), ITM Power PLC (U.K.), Siemens Energy AG (Germany), thyssenkrupp nucera AG & CO. KGAA. (Germany), Nel ASA (Norway), McPhy Energy (France), BLOOM ENERGY CORPORATION (U.S.), Green Hydrogen Systems A/S (Denmark), Asahi Kasei Corporation (Japan), Sunfire GmbH (Germany), H-TEC SYSTEMS GmbH (Germany), ELOGEN SAS (France), Pure Energy Centre (U.K.), and Shannxi Hele Titanium Technology Co.,Ltd (China).

Scope of the Report:

Electrolyzers Market, by Type   

• Alkaline Electrolyzers
• Polymer Electrolyte Membrane (PEM) Electrolyzers
• Solid Oxide Electrolyzers

Electrolyzers Market, by Capacity

• More than 2 MW
• 500 kW to 2 MW
• Less than 500 kW

Electrolyzers Market, by Application

• Industrial Applications
  • Refineries
  • Steel Industry
  • Glass Plants
  • Semiconductor Industry
  • Natural Gas Plants
  • Other Industrial Applications
• Chemical Production
  • Ammonia Production
  • Methanol Production
  • Other Chemical Production
• Mobility
• Other Applications

Electrolyzers Market, by Geography      

• Asia-Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia-Pacific
• Europe
  • Germany
  • U.K.
  • France
  • Spain
  • Italy
  • Netherlands
  • Rest of Europe
• North America
  • U.S.
  • Canada
• Latin America
• Middle East & Africa

Key Questions Answered in the Report: