South Korea Electrolyzer Market Overview, 2030

South Korea’s electrolyzer market is gathering momentum as part of the nation’s bold hydrogen economy roadmap targeting carbon neutrality by 2050. The government has enacted the Hydrogen Economy Promotion and Hydrogen Safety Management Law, creating the world’s first clean hydrogen certification system with a threshold of 4 kg CO₂ per kg of H₂ and introducing Clean Hydrogen Portfolio Standards that establish long-term power purchase markets. Ambitious investment pledges from major groups including Hyundai, POSCO, and SK total more than US$38 billion by 2030, while the Ministry of Trade, Industry, and Energy (MOTIE) is advancing a hydrogen power bidding market set to procure 3,000 GWh per year of low-carbon hydrogen-generated power under 15-year contracts. Technological strides are gaining traction research institutions are driving breakthroughs in low-iridium PEM catalysts, cutting platinum-group material use by up to half and reducing cost by 15–20%. Pilot electrolyzer facilities linked to renewable and nuclear sources are emerging, while system architecture innovations including modular high-pressure designs enhancing energy efficiency and reducing compression needs are being tested in hydrogen business zones. The government also plans hydrogen industry hubs in Donghae and Pohang, supported with ₩500 billion for end-to-end infrastructure covering production, storage, and distribution. Certification systems, safety standards, and material localization targets are being developed to ensure reliability and growth.

According to the research report ""South Korea Electrolyzer Market Overview, 2030,"" published by Bonafide Research, the South Korea Electrolyzer market is anticipated to grow at more than 29.17% CAGR from 2025 to 2030. South Korea’s electrolyzer market is propelled by a confluence of factors including industrial decarbonization imperatives, energy security concerns, and export ambitions. Key growth drivers include domestic demand from heavy industry, transport, and power generation, strengthened by a vibrant R&D ecosystem and major corporate backing. Testing of low-carbon hydrogen power generation under the Clean Hydrogen Portfolio Standards continues to evolve via hydrogen-to-power tenders. Pilot projects include nuclear-linked electrolyzer plants like the Uljin hydrogen complex expected to produce over 4 tonnes of clean hydrogen per day by 2027, and urban ""hydrogen cities"" such as Ulsan, featuring hydrogen pipelines, charging stations, and fuel cell infrastructure linked to public transport and apartment heating. South Korea is rapidly expanding its hydrogen infrastructure, with plans to invest US$2.5 billion toward reaching 6.2 million tonnes annual hydrogen output by 2025. The Ulsan Green Hydrogen Town project is a flagship initiative over 188 km of hydrogen pipelines, charging stations for vehicles, ships, and forklifts, plus hydrogen-powered district heating and trams. Industrial capacity is strengthening too, conglomerates continue to invest in catalyst innovation, hydrogen infrastructure, and fuel cell systems. Emerging operational value streams such as hydrogen blending, fuel-cell vehicles, and clean power tenders add revenue potential and system flexibility. Geographically, activity spans strategic corridors from Ulsan to Pohang and Busan, supported by burgeoning free economic zones offering favorable investment conditions. Ongoing R&D, buoyed by clean hydrogen certification systems and tax incentives (up to 50% credits for SMEs), is pushing advances in electrolyzer efficiency, local manufacturing, and integrated systems.

In South Korea, Alkaline Electrolyzers remain an important technology due to their proven reliability, cost-effectiveness, and suitability for large-scale hydrogen production. These electrolyzers operate by using a liquid alkaline electrolyte typically potassium hydroxide)to separate water into hydrogen and oxygen. Their mature technology has been applied in various industrial processes like ammonia production and refining. However, the main limitations include slower response times to fluctuating power inputs and larger physical footprints compared to newer technologies. Meanwhile, Proton Exchange Membrane (PEM) Electrolyzers have been gaining traction in South Korea as a preferred choice for industries requiring high-purity hydrogen and faster response times. PEM electrolyzers utilize a solid polymer membrane to transport protons and generate hydrogen. This design is ideal for fluctuating renewable energy sources like solar and wind, making PEM electrolyzers highly valuable in a market focused on clean energy transition. However, they come with challenges, including the high cost of catalysts such as platinum, and their relatively shorter lifespan compared to alkaline systems. On the other hand, Solid Oxide Electrolyzers (SOECs) are being explored in South Korea for their ability to achieve high-efficiency hydrogen production through high-temperature processes, particularly where waste heat is readily available. This makes them a promising option for industries such as steelmaking and cement production, which require high temperatures. However, the technology is still in the early stages of commercial deployment, with challenges like material stress and long-term durability. Anion Exchange Membrane (AEM) Electrolyzers systems use non-precious metal catalysts and offer the potential for lower-cost hydrogen production, making them attractive for both large-scale industrial applications and smaller-scale deployments, but issues with efficiency and durability still need to be resolved.

South Korea is making significant strides in the application of electrolyzers, especially in Power Plants, where Power-to-Gas (PtG) technologies are being developed to convert surplus renewable electricity into hydrogen. This hydrogen can then be stored, transported, or injected into the national grid, thus helping to balance the grid and integrate renewable energy more effectively. The Energy Storage or Fueling for Fuel Cell Electric Vehicles (FCEVs) is another key application, driven by the country’s push toward green mobility. South Korea has been at the forefront of hydrogen vehicle adoption, with major automakers like Hyundai and Kia developing hydrogen-powered vehicles. Electrolyzers provide the hydrogen necessary for fueling stations, ensuring that infrastructure scales alongside vehicle adoption. For Industrial Gases, electrolyzers are being utilized to produce high-purity hydrogen, which is critical in industries such as petrochemical refining, electronics, and glass manufacturing. In addition, Steel Plants in South Korea are increasingly looking to hydrogen to decarbonize their operations, specifically through Direct Reduction Iron (DRI) processes. This method, which uses hydrogen as a reducing agent instead of coal, is part of South Korea’s broader strategy to reduce emissions in energy-intensive industries like steel production. The Electronics & Photovoltaics sector also relies on electrolyzers to produce ultra-pure hydrogen, which is essential in semiconductor manufacturing and photovoltaic cell production. The emerging applications in others, such as the production of Sustainable Aviation Fuel (SAF), ammonia, and methanol, are gaining attention in South Korea. The country has already initiated several green hydrogen projects, with the aim of becoming a global leader in hydrogen technology. For instance, the Hydrogen Economy Roadmap of South Korea focuses on scaling up hydrogen production for various industrial sectors, positioning the country as a major player in both domestic and international hydrogen markets.

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