India Electrolyzer Market Overview, 2030

The India electrolyzer market has seen a rapid surge in activity, anchored by the National Green Hydrogen Mission launched in early 2023, which targets 5 million metric tons per annum of green hydrogen production by 2030, supported by 125 GW of renewable energy. The government has committed substantial funding approximately ₹17,490 crore under the SIGHT program to promote both electrolyzer manufacturing and green hydrogen production, supplemented by a production-linked incentive (PLI) scheme offering ₹54 per kilowatt in its initial year. The first auction under this framework received bids more than double the capacity on offer, signaling industry confidence. Notably, Greenzo Energy unveiled a 1 MW alkaline electrolyzer entirely developed under India's “Make in India” mandate, and established a manufacturing unit capable of producing up to 250 MW annually. Adani’s commissioning of India’s first fully off-grid 5 MW green hydrogen pilot facility in Gujarat, integrated with solar power and battery storage, sets a new benchmark in operational efficiency and grid independence. Meanwhile, Hyundai, in partnership with IIT Madras and state support, established an HTWO Innovation Centre aimed at designing modular and efficient electrolyzer systems, with advanced test facilities. Regulations are maturing in parallel the schemes require domestic value addition and energy-efficient performance metrics as eligibility criteria, laying the groundwork for safety, quality, and long-term competitiveness. Innovations also include closed-loop control for renewable intermittency and high-pressure operations to reduce downstream compression needs. In May 2024, Nel Hydrogen Electrolyzer AS, a fully owned subsidiary of Nel ASA entered into a technology licensing agreement with Reliance Industries Limited (RIL). The agreement provides RIL with an exclusive license for Nel’s alkaline electrolyzers in India and also allows RIL to manufacture Nel’s alkaline electrolyzers for captive purposes globally.

According to the research report ""India Electrolyzer Market Overview, 2030,"" published by Bonafide Research, the India Electrolyzer market is expected to reach a market size of more than USD 620 Million by 2030. India’s electrolyzer market growth is powered by its renewable energy expansion, industrial decarbonization ambitions, and export potential. The National Green Hydrogen Mission projects that investments exceeding USD 90 billion could generate over 600,000 jobs by 2030, while avoiding nearly 50 million tonnes of carbon emissions. Key industrial projects are already showing traction ACME is setting up a 400,000-tonne green ammonia facility in Odisha’s Tata SEZ to serve export markets like Japan, and L&T is building a green hydrogen plant at Panipat refinery’s expansion, expected to produce 10,000 tonnes annually at competitive pricing. Greenzo Energy secured an order to supply electrolysers and Balance of Plant for a 20 MW facility, further reinforcing the vibrant project pipeline. Demand is emerging beyond ammonia and refining NTPC has commissioned India’s first hydrogen fuel-cell buses in Ladakh, powered by solar-linked electrolyzers operating at altitude, highlighting hydrogen’s utility in mobility and remote power. State policies in Uttar Pradesh, Rajasthan, and Andhra Pradesh offer generous incentives from capital subsidies of up to 40%, to land leases, duty waivers, and grid access facilitation to foster green hydrogen clusters and electrolyzer hubs. Significant projects are underway in industrial corridors and renewable zones, with hubs in Gujarat (Kandla, Mundra), Odisha’s Gopalpur, and Telangana building market depth and scale. On the R&D front, collaborations such as the HTWO Innovation Centre at IIT Madras are advancing local technology and cost norms, while SECI’s auctions continue to drive deployment.

In India’s rapidly expanding electrolyzer market, Alkaline Electrolyzers are the most established and widely used technology, mainly because of their cost-effectiveness and large-scale suitability. These electrolyzers work by passing electricity through an alkaline electrolyte, such as potassium hydroxide (KOH), to split water into hydrogen and oxygen. Alkaline electrolyzers are particularly appealing for large-scale industrial applications due to their simple design and low initial capital costs. They have found applications in industries such as ammonia production, petrochemicals, and refining, where hydrogen demand is high. In contrast, Proton Exchange Membrane (PEM) Electrolyzers are increasingly gaining traction in India due to their ability to produce high-purity hydrogen and operate efficiently with renewable energy sources. PEM electrolyzers use a solid polymer membrane to conduct protons, which allows for a compact design and faster response to fluctuating energy input. This makes them well-suited for sectors like transportation, where hydrogen production needs to quickly adjust to the availability of renewable energy. However, the high cost of catalysts, such as platinum, and shorter lifespans compared to alkaline electrolyzers remain key challenges. Solid Oxide Electrolyzer Cells (SOEC) are another promising technology in India, especially for industries with access to waste heat or high-temperature environments. SOECs operate at elevated temperatures, making them more efficient than traditional electrolyzers, as they can use waste heat for electrolysis. However, they are still in the early stages of commercial deployment, facing challenges related to material stress and durability. Anion Exchange Membrane (AEM) Electrolyzers are an emerging technology with significant potential in India due to their low-cost and relatively high efficiency. AEM electrolyzers use a non-precious metal catalyst and operate under similar principles as PEM, but they are still undergoing technological advancements to improve their durability and overall efficiency.

In India, Power Plants represent a crucial application for electrolyzers, particularly for Power-to-Gas (PtG) solutions. PtG technology helps convert excess renewable electricity especially from solar and wind power into hydrogen, which can be stored and later used for electricity generation or injected into the gas grid. Another key application is Energy Storage and Fueling for Fuel Cell Electric Vehicles (FCEVs). As India increasingly focuses on reducing its dependence on fossil fuels and aims to decarbonize its transportation sector, electrolyzers are playing a vital role in the production of hydrogen for FCEV fueling infrastructure. India’s hydrogen roadmap, which includes setting up refueling stations and investing in hydrogen-powered buses and trucks, drives the demand for electrolyzers. Industrial Gases is another significant sector, with electrolyzers offering a sustainable and cost-effective method of producing high-purity hydrogen for industries like refining, chemicals, and steel manufacturing. Hydrogen is also increasingly being used for decarbonizing steel production, particularly in processes like Direct Reduction Iron (DRI), where hydrogen replaces coal in the iron ore reduction process. The Indian government has already identified the steel industry as a major area for hydrogen adoption, aiming to reduce carbon emissions. In the Electronics and Photovoltaics sectors, electrolyzers are crucial for producing ultra-pure hydrogen, which is used in semiconductor manufacturing and photovoltaic cell production two industries integral to India’s growth as a global tech hub. Others category includes emerging applications like Sustainable Aviation Fuel (SAF), ammonia production, and the use of hydrogen in refineries, all of which are gaining interest in India as part of its green hydrogen mission. These efforts are supported by government policies, such as the National Hydrogen Mission, aimed at making India a leader in clean hydrogen production, further propelling the electrolyzer market.

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