China Electrolyzer Market Overview, 2030

China's electrolyzer market has emerged as the global leader in both production and deployment of electrolyzer technology, underpinned by the nation’s medium- and long-term hydrogen energy roadmap covering 2021 to 2035. The government has made hydrogen a strategic priority in its 14th Five-Year Plan, backed by multiple national agencies, prompting rapid advances in deployment and manufacturing. By the end of 2023, installed electrolyzer capacity in China reached about 1 gigawatt accounting for over 50 percent of global capacity. Production capacity has also dramatically expanded, with manufacturing capability estimated at 25 gigawatts annually roughly 60 percent of the global total. This scale advantage is supported by a mature, vertically integrated supply chain rooted in decades of expertise in alkaline electrolyzers. Cost efficiencies are pronounced China’s controlled production processes and automation have driven down investment costs significantly, with pressurized alkaline electrolyzers cutting total project expenditure by nearly half compared to counterparts. Regulatory innovation has begun to take shape as well new national energy efficiency standards mandate that alkaline electrolyzer energy consumption must not exceed 4.3 kilowatt-hours per normal cubic meter, and provide discounted electricity pricing for off-grid hydrogen projects. To ensure quality, manufacturers are increasing their focus on testing, reliability, and safety. Projects like Sinopec’s solar-powered hydrogen facility in Xinjiang capable of producing 20,000 tons annually demonstrate operational scale and integration with renewables. China is also pushing forward with infrastructure, including hydrogen pipelines linking Inner Mongolia to Beijing and broader transport networks. However, challenges remain market demand still lags behind excess manufacturing capacity, and international trade barriers and export scrutiny are growing.

According to the research report ""China Electrolyzer Market Overview, 2030,"" published by Bonafide Research, the China Electrolyzer market is anticipated to grow at more than 26.54% CAGR from 2025 to 2030. China’s electrolyzer market is powered by a blend of ambitious climate goals, abundant renewable energy, and expansive industrial capacity. Key market drivers include national carbon-neutral ambitions, a stark push to pivot away from grey hydrogen, and government support across R&D, infrastructure, and venture investment. Real-world developments reflect this momentum China is projected to produce over 220,000 tonnes of green hydrogen per year, exceeding its initial 2025 targets. Major nodes like Xinjiang and Inner Mongolia are being built up with solar and wind generation capacity, fueling flagship projects such as a 1-megawatt solar-electric hydrogen plant in Xinjiang, and a landmark 260-megawatt solar-to-hydrogen facility in Kuqa that aims for tens of thousands of tons of production. Industrial heavyweights are actively reshaping the market, Sinopec recently launched a 5-billion-yuan hydrogen energy venture capital fund to seed upstream technologies, materials, and infrastructure rollout. Domestic innovation and manufacturing especially in automated alkaline electrolyzer production have enabled price reductions, with unit prices falling toward the limits of profitability amid demand constraints. Cross-sector integration is also a growing focus extensive hydrogen piping infrastructure and refueling stations support expanding fuel-cell vehicle rollout, including hydrogen buses and trucks, with China leading global vehicle deployment. Yet, the market still faces hurdles low-carbon hydrogen demand remains suppressed by cost differentials with fossil-based hydrogen, and export markets are tightening due to regulatory scrutiny abroad. Still, domestic geographic strengths in renewable-rich provinces and industrial corridors offer significant platform potential. Parallel private and public R&D continues to push next-gen electrolyzer improvements, especially around efficiency and integration with intermittent energy.

In China’s electrolyzer market, Alkaline Electrolyzers are the most established technology, driven by their cost-effectiveness and scalability. These electrolyzers rely on alkaline solutions, like potassium hydroxide, to conduct electricity through water to produce hydrogen. Due to their mature technology, they are widely used in large-scale industrial applications, such as ammonia production and chemical processing. On the other hand, Proton Exchange Membrane (PEM) Electrolyzers are gaining traction in China due to their ability to provide high-purity hydrogen and their suitability for environments with fluctuating energy input, such as wind and solar power. PEM electrolyzers use a solid polymer membrane for proton conduction, making them highly efficient and responsive to rapid changes in electricity supply. However, the primary drawback of PEM is the high cost of catalysts, such as platinum, which increases the upfront investment. Despite this, PEM electrolyzers are widely considered crucial for China’s hydrogen ambitions, particularly for use in fuel cells for transportation and in areas with renewable energy integration. Solid Oxide Electrolyzers (SOEC) are also emerging in China as a promising technology due to their high-temperature operation, which allows for higher efficiency in hydrogen production. These electrolyzers use heat (often sourced from industrial waste heat) to facilitate the electrolysis of water, thereby reducing energy consumption. However, SOECs face challenges in terms of material durability and have not yet reached widespread commercial deployment. Finally, Anion Exchange Membrane (AEM) Electrolyzers offer a cost-effective alternative to PEM systems. AEM technology, while still in its early stages, is being explored for its ability to reduce catalyst costs and enhance flexibility. The AEM market in China is expected to grow as research and development efforts focus on improving durability and performance.

Power Plants play a key role in hydrogen production for grid balancing and renewable energy integration. Hydrogen produced via electrolysis is used to store excess renewable energy, especially from wind and solar, and can be converted back to electricity when needed. As part of its push towards decarbonizing the transport sector, China has become a leader in Energy Storage and Fueling for Fuel Cell Electric Vehicles (FCEV) adoption. Hydrogen fueling stations are expanding rapidly, supported by electrolyzer technologies to produce green hydrogen for FCEVs, reducing dependency on fossil fuels. In the Industrial Gases sector, China has been a long-time leader in the production of hydrogen for various applications, including refining, petrochemical, and fertilizer industries. Electrolyzers provide a clean, on-site solution to produce high-purity hydrogen for these industrial applications, ensuring a stable and sustainable supply. Power-to-Gas (PtG) applications are gaining momentum as China focuses on developing hydrogen infrastructure and integrating it with natural gas systems. Electrolyzers in PtG systems can convert excess renewable energy into hydrogen, which is then injected into the natural gas grid for storage or used in various sectors. The Steel Plant industry is also seeing a rise in electrolyzer deployment, especially for the direct reduction of iron (DRI) processes. The use of hydrogen in DRI offers a path for decarbonizing steel production, a major carbon emitter in China. Electronics & Photovoltaics is another growing application for hydrogen in China, where ultra-pure hydrogen is required for the production of semiconductors and solar panels. Additionally, emerging applications such as hydrogen production for aviation (sustainable aviation fuel or SAF), refineries, and ammonia/methanol production are gaining attention, with China leading some of the world's most ambitious green hydrogen projects, aligning with global efforts to reduce emissions.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Electrolyzer Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• Alkaline Electrolyzer
• Proton Exchange Membrane (PEM)
• Solid Oxide Electrolyzer (SOE)
• Anion Exchange Membrane (AEM)

By Application
• Power Plants
• Energy Storage or Fueling for FCEV's
• Industrial Gases
• Power to Gas
• Steel Plant
• Electronics & Photovoltaics
• Others Show more