UAE Electrolyzer Market Overview, 2030

The UAE’s electrolyzer market is rapidly advancing, fueled by the National Hydrogen Strategy launched in 2023, which targets the production of 1.4 million tonnes per annum of low-carbon hydrogen by 2031 rising to an ambitious 15 million tonnes by 2050. The strategy aligns with the broader Energy Strategy 2050 and Net-Zero 2050 goals and includes plans to establish hydrogen oases clusters for hydrogen production, demand, and infrastructure with at least two operational by 2031 and up to five by mid-century. Bold public investment underpins this vision the UAE intends to invest between AED 150 to 200 billion by 2030 in clean energy initiatives, with landmark projects like the solar-powered green hydrogen pilot at Mohammed bin Rashid Al Maktoum Solar Park already generating 20 kg of hydrogen per hour and powering fuel-cell transport and power generation. Technology development is robust, with Masdar leading innovation through partnerships including Siemens Energy to trial modular electrolyzer designs and efficiency enhancements, and ADNOC piloting the region’s first high-speed green hydrogen refueling station, demonstrating high-pressure delivery for mobility applications. For instance, Abu Dhabi, the UAE's capital city, is actively producing hydrogen for ammonia and industrial applications, primarily using grey hydrogen. ADNOC's ambitious plan to increase carbon capture capacity from 0.8 million tons to 5 million tons by 2030, ramping up its production from 300 kt per year of hydrogen for industrial use in its downstream facilities to 500 kt annually of Hydrogen production. Regulatory frameworks are being actively shaped the country is developing a dedicated low-carbon hydrogen regulatory framework to build investor confidence, streamline certification, and ensure safe, standardized deployment.

According to the research report ""United Arab Emirates (UAE) Electrolyzer Market Overview, 2030,"" published by Bonafide Research, the United Arab Emirates (UAE) Electrolyzer market is anticipated to grow at more than 29.37% CAGR from 2025 to 2030. The UAE’s electrolyzer market is driven by factors of renewable energy abundance, strategic export positioning, and industrial decarbonization needs. The nation seeks to capture up to 25% of the global hydrogen market by leveraging its low-cost solar capacity, established energy infrastructure, and geographical advantage for export. The hydrogen strategy’s production goals (1.4 MTPA by 2031, 15 MTPA by 2050) are underpinned by multiple ongoing initiatives landmark developments include the Green Hydrogen Project at the MBR Solar Park and hydrogen oases planned in KEZAD and Abu Dhabi, designed for cluster-based production and distribution. At the Mohammed bin Rashid (MBR) solar park, a pilot project aims to generate approximately 20.5 kg/h of hydrogen with a peak power capacity of 1.25MWe. Corporate players are advancing deployment, with Masdar forming partnerships for green hydrogen facilities domestically and abroad, and ADNOC launching H2GO, a refueling station targeting fuel-cell mobility. Operational value creation is expanding through export supply chains, blending into industrial refineries, and support for hydrogen-powered regional logistics. Geographically, electrolyzer infrastructure is focusing on renewable-rich zones and trade hubs such as Dubai, Abu Dhabi’s industrial zones, and strategic seaports. Research and development efforts are increasingly supported via public-private alliances, aiming to reduce electrolyzer costs and improve modular, high-pressure systems. Grid integration and energy efficiency are central to ongoing projects, with several leveraging hydrogen to balance intermittent renewable supply and enable virtual power generation during non-peak solar hours.

In the UAE, the Alkaline Electrolyzer technology is well-established, particularly in large-scale industrial applications. Alkaline electrolyzers work by using a liquid alkaline electrolyte, typically a potassium hydroxide solution, to separate water into hydrogen and oxygen. This technology is well-suited for the UAE's focus on large-scale hydrogen production due to its cost-effectiveness and established operational principles. The alkaline electrolyzer’s strength lies in its mature and robust design, which is capable of handling large volumes of hydrogen production, making it ideal for industrial applications, including chemical and petrochemical industries. However, its major drawbacks include slower response times to fluctuations in renewable energy input and a bulkier, less flexible design, which makes it less suited for integration with renewable energy sources that require rapid adjustments. In contrast, the Proton Exchange Membrane (PEM) Electrolyzer is gaining traction in the UAE market for its ability to operate efficiently with fluctuating renewable energy inputs such as solar and wind. PEM electrolyzers use a solid polymer membrane that conducts protons to produce high-purity hydrogen. This technology offers rapid response times, making it ideal for fluctuating renewable energy sources. It is, however, more expensive due to the need for precious metal catalysts like platinum and suffers from a shorter operational lifespan compared to alkaline electrolyzers. The Solid Oxide Electrolyzer (SOEC) is also being considered in the UAE market due to its high-temperature efficiency, particularly for industrial integration. SOECs use solid ceramic electrolytes that allow for the efficient conversion of water into hydrogen at high temperatures, which makes them highly compatible with waste heat from industrial processes. The Anion Exchange Membrane (AEM) electrolyzer is in its early stages of development in the UAE, but it offers promising features, combining low-cost materials with greater flexibility in hydrogen production.

In the UAE, Power Plants are increasingly adopting electrolyzers to support grid balancing and renewable energy integration. Electrolyzers are used in power plants to convert surplus renewable energy into hydrogen, which can be stored and later used for power generation, thus addressing issues related to grid stability and the intermittency of renewable energy. The Energy Storage or Fueling for Fuel Cell Electric Vehicles (FCEVs) application is also gaining momentum in the UAE as part of the country's move towards decarbonizing its transport sector. Hydrogen produced by electrolyzers is being used to fuel hydrogen-powered vehicles, reducing dependence on fossil fuels and improving air quality. The UAE has launched initiatives like the ""Hydrogen Roadmap"" to support the development of a hydrogen infrastructure, including refueling stations for FCEVs. The Industrial Gases sector is another major area where electrolyzers are making a significant impact. Hydrogen produced through electrolysis is used in a variety of industrial processes, including refining, ammonia production, and petrochemical manufacturing. In the Power to Gas (PtG) sector, electrolyzers are used to convert surplus renewable electricity into hydrogen that can be injected into the existing gas grid or used for methanation to produce synthetic natural gas. This application is particularly relevant in the UAE's strategy to leverage hydrogen as a storage medium for excess renewable energy. Additionally, the Steel Plants industry is exploring the use of hydrogen in direct reduction iron (DRI) processes to decarbonize steel production. Although still in early stages, this technology holds great promise in reducing emissions from one of the most carbon-intensive industries. The Electronics & Photovoltaics sectors also use hydrogen in ultra-pure form for semiconductor manufacturing and solar panel production. Other Applications in the UAE include emerging industries like aviation (through the use of hydrogen for sustainable aviation fuel) and ammonia/methanol production.

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