Saudi Arabia Electrolyzer Market Overview, 2030

Saudi Arabia’s electrolyzer market is emerging as a central pillar in the nation’s transition toward a diversified, low-carbon energy future under Vision 2030 and its hydrogen export ambition. The landmark NEOM Green Hydrogen Project exemplifies this trend. With investment surpassing $8 billion, the project integrates 3.9 GW of solar, wind, and storage capacity to power a massive electrolyzer, designed to produce 600 tonnes of green hydrogen per day translating to approximately 1.2 million tonnes of green ammonia annually by 2026. This facility is now over 60% complete and stands to reduce carbon emissions equivalent to removing thousands of heavy trucks from the roads annually. Saudi Aramco and ACWA Power, along with global collaborators like Thyssenkrupp and Air Products, are not only deploying world-scale electrolyzer technology but also pioneering innovation and localization. A recent agreement with Hysata will test ultra-high-efficiency capillary-fed electrolyzers, achieving industry-leading energy consumption rates of just 41.5 kWh per kilogram. Simultaneously, national hydrogen targets targeting over 15% of global blue-hydrogen production are supported via sweeping energy strategies that aim to source half of the nation’s electricity from renewables by 2030, funded by multibillion-dollar clean energy investments. Regulatory and safety frameworks are advancing, supported by research partnerships with universities and innovation centers focused on electrolyzer technology efficiency, standardization, and algorithmic grid integration using advanced control systems. These developments ranging from policy clarity and massive scale deployment to tech innovation and infrastructure design are positioning Saudi Arabia as a global leader in electrolyzer-based hydrogen production, blending strategic ambition with industrial execution to enable low-cost, efficient, and export-ready hydrogen solutions.

According to the research report ""Saudi Arabia Electrolyzer Market Overview, 2030,"" published by Bonafide Research, the Saudi Arabia Electrolyzer market is anticipated to grow at more than 27.96% CAGR from 2025 to 2030. Saudi Arabia’s electrolyzer sector is buoyed by strategic drivers including renewable energy abundance, targeted export ambitions, and the operational mobilization of national champions. Key catalysts include the NEOM gigafactory-scale electrolyzer facility set to produce green hydrogen at cost parity and the Kingdom’s goal to capture 15% of the blue hydrogen exports market. ACWA Power recently signed agreements with TotalEnergies, Edison, EnBW, and Siemens Energy to develop hydrogen and renewable transmission corridors to Europe bolstering cross-border commercial viability. NEOM’s electrolyzer contract, awarded to Thyssenkrupp, adds scale and technical credibility, while Aramco-backed projects ensure midstream demand through blue hydrogen and ammonia pipelines. The plant will be powered entirely by solar and wind energy, with a 2.2-gigawatt electrolyzer designed for continuous hydrogen production. Construction is progressing rapidly, with over 60 percent of key infrastructure completed, including the hydrogen processing plant, solar facility, and wind farm. Operational value addition is emerging, green hydrogen will be used in heavy transport and industrial ammonia, while modular high-pressure design trials and grid balancing demonstrations are underway. Geographic strategy is evident in the development of hydrogen zones around NEOM and Sudair, securing renewable resource leverage, industrial siting, and port access for exports. Research ecosystems partnering NEOM’s Innovation Center with KAUST are accelerating electrolyzer efficiency, low-rare-metal catalyst development, and system integration. Despite capital-intensive infrastructure and evolving certification needs, cost drivers are favorable Saudi Arabia's renewable energy prices are among the lowest globally, driving levelized hydrogen production costs as low as $1–2 per kilogram, with blue hydrogen costs estimated at $1.13 per kilogram.

Saudi Arabia’s electrolyzer market is becoming increasingly important as the country moves towards achieving its ambitious vision for a hydrogen-powered economy. Among the prominent technologies used for hydrogen production in the Kingdom is the Alkaline Electrolyzer. This technology relies on a liquid alkaline electrolyte (typically potassium hydroxide) to generate hydrogen through the electrolysis of water. Alkaline electrolyzers are favored for their cost-effectiveness, scalability, and long-established operational principles. This makes them ideal for large-scale, industrial applications, which is key in a country like Saudi Arabia that seeks to establish a dominant role in global hydrogen production. On the other hand, Proton Exchange Membrane (PEM) Electrolyzers are gaining traction in Saudi Arabia due to their flexibility and rapid response to fluctuations in renewable energy supply, making them ideal for applications reliant on intermittent renewable sources such as wind or solar. PEM electrolyzers operate using a solid polymer membrane that conducts protons and produces high-purity hydrogen. The main disadvantage of PEM electrolyzers, however, is their higher capital and operating costs, largely due to the need for precious metal catalysts like platinum, which can also reduce the lifespan of the system. Solid Oxide Electrolyzers (SOEC) are also being explored, especially in industrial settings. SOECs are highly efficient at converting water into hydrogen at high temperatures, using solid ceramic materials as the electrolyte. This allows SOECs to leverage waste heat from industrial processes, a critical factor in Saudi Arabia's energy-intensive industries. Anion Exchange Membrane (AEM) electrolyzers are still in the early stages in the region, but they offer the potential for low-cost hydrogen production, blending cheaper materials with the flexibility to scale efficiently. While still under development, AEM electrolyzers may eventually become an important part of Saudi Arabia’s hydrogen infrastructure.

Saudi Arabia's strategic focus on renewable energy, including wind and solar, is propelling the demand for electrolyzers across a variety of applications, especially in Power Plants. Hydrogen is increasingly seen as a key solution for balancing power grids and integrating renewable energy. The use of electrolyzers in Energy Storage and Fueling for Fuel Cell Electric Vehicles (FCEVs) is another key driver for the market. Saudi Arabia has set ambitious goals to reduce carbon emissions and diversify its energy sources, and hydrogen-powered transportation offers a viable path. Hydrogen fueling stations are emerging, with plans to integrate more FCEVs into the Kingdom's vehicle fleets. Additionally, the Industrial Gases sector in Saudi Arabia is a major area for hydrogen use, especially in refining, petrochemical, and ammonia production. Hydrogen produced through electrolysis is being utilized for high-purity applications, which are increasingly essential for meeting the growing demand for industrial gases in the Kingdom. Power to Gas (PtG) is also being explored, where electrolyzers are used to convert excess renewable energy into hydrogen, which can be stored and injected into the gas grid or used for synthetic methane production. This application is crucial for enhancing energy security and reducing carbon emissions in Saudi Arabia’s energy-intensive sectors. In the Steel Plant sector, electrolyzers are being investigated for use in the decarbonization of steel production, particularly through direct reduction iron (DRI) processes. The Kingdom’s steel industry is exploring hydrogen as a clean alternative to traditional carbon-based methods. Similarly, the Electronics and Photovoltaics industries rely on ultra-pure hydrogen produced by electrolyzers for semiconductor manufacturing and solar panel production. As Saudi Arabia increasingly becomes a hub for solar panel manufacturing and high-tech industries, electrolyzers will be integral to these sectors. The Other Applications, such as hydrogen use in aviation for sustainable aviation fuel, refineries, and methanol production, are emerging.

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