Europe Electrolyzer Market - Growth, Trends, and Forecast to 2030

The Europe electrolyzer market was valued at EUR 254 million in 2023 and is expected to reach around EUR 9.5 billion by 2030. The major factors contributing to this growth are favorable government policies, ambitious green hydrogen production targets, carbon taxation, energy security issues, and the demand from hard-to-abate industries to substitute conventional hydrogen with green hydrogen.

However, the slow deployment of renewable energy projects, regulatory uncertainties, high capital requirements, immature hydrogen infrastructure, and competition from other renewable energy sources.

Current Market Scenario

In 2023, the worldwide deployment of electrolysis capacity surged by an impressive 60% compared to the previous year, soaring to a total of 1.1 GW from the prior 700 MW. Within this capacity, Europe contributed significantly, accounting for 220 MW of the installed electrolyzer capacity, which translates to approximately 30 kilotons per year of renewable hydrogen supply.

Germany, Spain, and Sweden are leading the region in electrolysis capacity additions, which added around 25 MW of capacity each.

Currently, Europe has the world's second-largest electrolyzer manufacturing capacity, trailing only behind China. Majority of the operational manufacturing capacity is based of alkaline technology but PEM technology dominates in the announced electrolyzer manufacturing projects.

With current announcements and developments, the region is poised to maintain this prominent position in the global electrolyzer manufacturing landscape.

Drivers

Increasing Government Initiatives to Develop Hydrogen Economy

The national hydrogen strategies have emerged as key tools for driving the growth of the European electrolyzer market. These strategies, developed by individual European countries, outline ambitious goals, targets, and policies for clean hydrogen deployment.

They provide a roadmap for electrolyzer capacity expansion, hydrogen production scaling, and infrastructure development, fostering collaboration between governments, industry stakeholders, and research institutions to realize the full potential of green hydrogen as a clean energy carrier and energy storage system.

The renewable energy directive is one such regulation which has been the driving force behind developing renewable energy in the EU. With the EU's increased climate ambitions for 2030, aiming to become the first carbon-neutral continent by 2050, the directive underwent revisions as part of the Fit for 55 package in 2021 and later under the REPowerEU Plan in 2022, culminating in its adoption in Fall 2023.

One notable aspect of the revised directive, known as RED III, is its emphasis on renewable fuels of non-biological origin (RFNBOs), with hydrogen being a primary focus. By 2030, a combined sub-target of 5.5% for advanced fuels and RFNBOs in the transport sector has been set, with a minimum requirement of 1% from RFNBOs. This target aims to bolster the Europe green hydrogen market and drive the adoption of green hydrogen as a sustainable energy solution in the region's transportation sector.

The region has also established financial mechanisms to power the development of hydrogen infrastructure. For instance, in November 2023, the European Commission announced that it had earmarked EUR 2.2 billion in hydrogen funding for the spring of 2024. Similarly, the commission has approved funds for clean hydrogen projects in various member countries in the region.

Segment Analysis

By Electrolyzer Type

Currently, alkaline electrolyzers (ALK) dominate the electrolyzer manufacturing landscape in the European Union, accounting for approximately 58% of the total capacity. Following closely behind, Proton Exchange Membrane (PEM) technology represents 41% of the manufacturing capacity. However, Anion Exchange Membrane (AEM) technology and Solid Oxide (SO) technology are still in nascent stages of development.

Recent Trends and Developments

• European region is increasingly prioritizing polymer electrolyte membrane (PEM) electrolysis technology, over alkaline electrolysis technology.
• In April 2024, Denmark launched a 6 GW offshore wind tender with focus on production of green hydrogen and e-fuels.
• French hydrogen producer and supplier Lhyfe has launched Europe’s first OTC online marketplace for renewable hydrogen to bring together producers and consumers.
• In March 2024, Italy announced its plans to launch a new EUR 1.1 billion subsidy programme to support green manufacturing in the country, which could see manufacturers of water electrolysis equipment in line for grants of hundreds of millions of euros.
• In February 2024, the European Commission approved around 4.6 billion euros in German government funding for 24 German hydrogen projects. These projects will focus on green hydrogen production, transport and storage infrastructure to make the fuel available for industrial use.

Opportunities

• Rapid Growth in Renewable Energy: Europe is witnessing a rapid growth in renewable energy sources, such as wind and solar power. This presents an opportunity for electrolyzer manufacturers to capitalize on the increasing availability of low-cost renewable electricity for green hydrogen production.
• Hydrogen Infrastructure Investment: The establishment of hydrogen infrastructure, including hydrogen refueling stations, pipelines, power generation, and storage facilities, is gaining momentum in Europe. This infrastructure development presents opportunities for electrolyzer manufacturers to supply hydrogen production equipment and technology.
• Industrial Decarbonization:Industries across Europe are under pressure to decarbonize their operations to meet emissions reduction targets. Electrolyzers offer a clean and sustainable solution for hydrogen generation, making them attractive options for industries seeking to reduce their carbon footprint.

The new report from Blackridge Research on the Europe Electrolyzer Market comprehensively analyzes the electrolyzer market and provides deep insight into the current and future state of the industry.

The market research report examines the drivers, restraints, and key market trends influencing Europe electrolyzer market demand and growth.

The report also addresses present and future market opportunities, market dynamics, and the impact of Russia-Ukraine conflict on the Europe electrolyzer market, as well as important commercial developments, trends, regions, and segments poised for the fastest growth, competitive landscape, and electrolyzer market share of key players.

Further, the report will also provide Europe electrolyzer market size, demand forecast, and growth rates.

What do we Cover in the Report?

Europe Electrolyzer Market Drivers & Restraints

The study covers all the major underlying forces that help the market develop and grow, and the factors that constrain growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will function as a guide for you to analyze the degree of impact.

Europe Electrolyzer Market Analysis

This report discusses market overview, the latest updates, important commercial developments and structural trends, and government policies and regulations.

Europe Electrolyzers Market Size and Demand Forecast

The report provides Europe electrolyzer market size and demand forecasts until 2029, including year-on-year (YoY) growth rates and CAGR.

Europe Electrolyzer Market Analysis

The report examines the critical elements of the Europe electrolyzer industry supply chain, its structure, and the participants.

Using Porter's five forces framework, the report covers an assessment of the Europe electrolyzer industry's state of competition and profitability.

Europe Electrolyzer Market Segmentation & Forecast

The report dissects the Europe electrolyzer market into segments based on product type. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth.

Regional Market Analysis

The report covers detailed profiles of major countries across the region. Each country's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.

Key Company Profiles

This report presents detailed profiles of key companies in the Europe electrolyzer industry, such as Nel ASA, Plug Power Inc., ITM Power plc, Cummins Inc., Siemens Energy AG, McPhy Energy SA, Bloom Energy Corp., etc.

Generally, each company profile includes a company overview, relevant products and services, financial performance, recent developments, and company's business strategy.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

The executive summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an executive summary chapter and ends with conclusions and recommendations.

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