Global Electrolysers Market Size, Trend & Opportunity Analysis Report, by Technology (Alkaline Electrolyser, Proton Exchange Membrane, Solid Oxide Electrolyser, Anion Exchange Membrane), and Forecast, 2024–2035

Market Definition and Introduction

The global electrolysers market was valued at USD 954.76 million in 2024 and is anticipated to reach USD 1,513,785.60 million by 2035, expanding at a CAGR of 95.40% during the forecast period (2024–2035). As the world races toward a net-zero future, electrolysers have come into the limelight as the critical enablers of the green hydrogen economy. From a once-niche industrial process, this technology now finds itself in the spotlight with unprecedented commitments to decarbonising hard-to-abate sectors like steelmaking, aviation, shipping, and heavy-duty transport by governments, corporations, and energy front-runners alike. Policy frameworks such as the European Green Deal, the U.S. Inflation Reduction Act, and Japan's Hydrogen Roadmap have opened massive funding pipelines, laying down tax credits and subsidies that are changing the very foundations of commercial viability for large-scale electrolyser deployment. These much-needed electrolysers are gaining an extra bull-gallop because of a surge in renewable power installations worldwide, especially in solar and wind. The systems directly convert surplus renewable electricity into hydrogen, making it a flexible and dispatchable energy carrier.

Concurrently, industrial end-users are accelerating integration with electrolysers in chemical production, refinery operations, and ammonia synthesis to sever reliance on fossil-fuel-based hydrogen, which still accounts for over 95% of the global supply. The strong need to transition from grey hydrogen to green hydrogen has put immense pressure on manufacturers of electrolysers to ramp up production capabilities, increase efficiency, and decrease the capital expenditure per megawatt installed. At the same time, the rapid evolution of technologies across different electrolyser types—alkaline, PEM, solid oxide, and anion exchange membrane—is diversifying and specialising applications, starting from decentralised on-site hydrogen generation for mobility to gigawatt-scale projects attached to export-oriented hydrogen hubs.

The competitive landscape has emerged as a hotly dynamic affair, wherein established engineering giants and nascent start-ups are bidding for supremacy in a market characterised not just by specifications but also by aspects like bankability, durability, and integration with renewable ecosystems. Strategic alliances, mergers, and partnerships have pretty much become the modus operandi as players try to capture the biggest share of this fast-growing market. The symptom of a transformation in which opportunity and disruption walk side by side, therefore carving the spaces necessary for the emergence of a new global energy paradigm, will be whether the supply chain can scale up for critical components like membranes, catalysts, and power electronics.

Recent Developments in the Industry

Siemens Energy Inaugurates Hydrogen Electrolyser Gigafactory in Berlin

In November 2023, one of the largest electrolyser factories in Europe, located in Berlin, was inaugurated by Siemens Energy with an annual capacity of 1 GW. This factory will manufacture PEM (proton exchange membrane) electrolysers that will allow for scalable hydrogen production projects within Germany and elsewhere.

Nel ASA Expands U.S. Manufacturing Capacity with Michigan Facility

In the month of May 2024, Nel ASA issued the announcement of the opening of its new electrolyser manufacturing plant in Michigan, USA, with an intended capacity of 4 GW per year. This investment falls under the Incentives of the U.S. Inflation Reduction Act, ensuring localised hydrogen supply chains.

Plug Power Signs Long-Term Hydrogen Supply Deal with Amazon

In January 2024, Plug Power concluded a significant contract for the provision of green hydrogen to Amazon for the latter's logistics operations. The deal exploits Plug's own PEM electrolyser technology bolted onto renewable projects throughout North America.

ITM Power Gets UK Government Funding for Electrolyser Innovation

In February 2024, ITM Power received £30 million in funding from the UK Net Zero Hydrogen Fund to develop next-generation electrolyser stacks that have improved efficiency and less dependence on rare metals.

ThyssenKrupp and ADNOC Announce Green Ammonia Partnership in UAE

In March 2024, ThyssenKrupp and Abu Dhabi National Oil Company (ADNOC) went into a strategic partnership to install large-scale alkaline electrolysers for green ammonia production fed to export markets in Asia.

McPhy Energy Commissions New Hydrogen Production Site in France

In April 2023, McPhy Energy inaugurated a hydrogen production site in Belfort, France, using its proprietary alkaline electrolyser technology. The project will cater for mobility and industrial sectors across Europe.

Bloom Energy Introduces Solid Oxide Electrolyser for Offshore Wind Integration

In July 2024, Bloom Energy announced commercial deployment of its solid oxide electrolysers linked to offshore wind farms in South Korea. The high-temperature electrolyser offers efficiency gains by directly utilising renewable heat and electricity.

Enapter AG Scales Up AEM Electrolyser Production at Italian Facility

In August 2023, Enapter AG increased the production of its patented anion exchange membrane (AEM) electrolysers at its facility in Pisa, thus positioning itself to serve decentralised hydrogen projects on a global scale.

Toshiba Energy Systems Launches Compact Hydrogen Solutions In Japan

In October 2023, Toshiba launched the small-scale, modular electrolyser units to support localised hydrogen generation for energy resilience in remote communities across Japan.

Cummins Inc. Partners with Indian Oil for Electrolyser Deployment

In December of 2023, Cummins announced a partnership with Indian Oil Corporation for the joint deployment of large-scale electrolysers in India to enhance the nation's hydrogen mission for mobility and industrial decarbonization.

Market Dynamics

Global impetus for decarbonisation translates to massive installations of electrolysers worldwide.

The urgency to achieve net zero has risen to an unprecedented level and is driving the adoption of electrolysers in a way that has never happened before, alongside industries and governments striving toward solutions in green hydrogen. A move towards large-scale electrolysers by energy-intensive industries like steel, ammonia, and refining replaces fossil-fuel-based hydrogen with electrolytic hydrogen, whereas decentralised hydrogen systems provide infrastructure for the mobility sector.

Reinvented technology transforms the dimensions of efficiency, durability, and economics of systems.

Investment by electrolyser manufacturers in stack lifetime improvements, low-cost catalysts, and renewable system optimisation is attracting billions of dollars. Innovations in proton exchange membrane (PEM) and anion exchange membrane (AEM) technology are improving performance parameters, while solid oxide electrolysers become attractive for high-efficiency applications that can be fed with waste heat.

Policy frameworks activate market momentum but also create disparities across regions.

Financing projects across Europe, the United States, and Asia from generous grants leaves emerging regions somewhat behind. Policy instruments, including the U.S. Inflation Reduction Act and Europe's Green Deal, offer a significant first-mover advantage, while lagging regulatory support in parts of Africa and Latin America limits deployment.

Supply chain constraints and dependence on raw materials are structural challenges.

The critical components, membranes, catalysts, and iridium-based materials, remain bottlenecks in scaling electrolyser production. The inherent price volatility of platinum group metals, coupled with a limited recycling infrastructure, gives rise to the risk of supply disruption, prompting manufacturers to explore alternatives like nickel-based catalysts, advanced coatings, and closed-loop recycling for long-term scalability.

Green hydrogen opens new commercial frontiers through cross-sector integration.

Electrolysers offer new business models by linking renewable microgrids, ammonia plants, and hydrogen refuelling stations. Beyond energy-using sectors such as food processing and pharmaceuticals, semiconductor manufacturing will start experimenting with applications of green hydrogen, opening vast new opportunities for electrolyser penetration.

Attractive Opportunities in the Market

Green Hydrogen Expansion – Government-backed renewable integration projects spur large-scale electrolyser demand globally.
Offshore Wind Synergy – Linking electrolysers with offshore wind farms creates resilient, large-scale hydrogen hubs.
Industrial Decarbonisation Push – Steel, cement, and ammonia industries accelerate green hydrogen substitution for fossil fuels.
Electrolyser Cost Reduction – Scaling production and advancing materials science drive sharp cost-competitiveness improvements.
Decentralised Hydrogen Systems – Modular electrolysers enable on-site production for mobility and energy resilience.
Asia-Pacific Manufacturing Boom – Rapid industrialisation and clean energy policies propel hydrogen infrastructure expansion.
Strategic M&A Activity – Partnerships, acquisitions, and joint ventures boost technology portfolios and project pipelines.
Solid Oxide Potential – High-temperature electrolysers gain traction for industrial processes needing waste-heat integration.
Eco-Certifications Growth – Hydrogen produced via certified green pathways commands premium market adoption.
Digitalised Hydrogen Platforms – AI-enabled monitoring and predictive maintenance optimise electrolyser efficiency and uptime.

Report Segmentation

By Technology: Alkaline Electrolyser, Proton Exchange Membrane, Solid Oxide Electrolyser, Anion Exchange Membrane

By End Use: Industrial Applications, Power Generation, Transportation, Energy Storage

By Region: North America (U.S., Canada, Mexico), Europe (UK, Germany, France, Spain, Italy, Spain, Rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, Rest of Asia-Pacific), LAMEA (Brazil, Argentina, UAE, Saudi Arabia (KSA), Africa Rest of Latin America)

Key Market Players

Nel ASA, Plug Power Inc., ITM Power, Siemens Energy, Cummins Inc., McPhy Energy, Bloom Energy, Enapter AG, Toshiba Energy Systems & Solutions Corporation, and ThyssenKrupp AG.

Report Aspects

Base Year: 2024
Historic Years: 2022, 2023, 2024
Forecast Period: 2024-2035
Report Pages: 293

Dominating Segments

At present, alkaline electrolysers have gained significant importance for large-scale hydrogen production applications globally.

Taking into consideration their maturity, scalability, and costs, alkaline electrolysers are expected to be the largest in terms of their scope of application. Continuing with projects where hydrogen is required at the lowest cost per kg, alkaline technology has become the leader of those processes. Alkaline systems are still the preferred system for large-scale hydrogen production and have been widely adopted in the chemical industries and refineries. Its long life and demonstrated reliability make it possible for use in projects where the cost per kilogram of hydrogen is a critical metric.

PEM electrolysers, on the other hand, are moving fast towards the assignment of mobility applications and flexible power

The fast-emerging segment of PEM electrolysers is attributed primarily to high efficiency, speed response, and small size. These systems find greatest application in mobility, such as hydrogen refuelling stations and smaller energy projects, requiring careful management of variable renewable energy inputs. The dynamic ramping ability of PEM electrolysers makes their integration into intermittent renewable sources like solar and wind more effective. Higher costs are still driven by iridium and platinum catalyst dependencies, but innovative advances in material science continue to push them toward wider commercial use.

Solid oxide electrolysers carve a niche for versatile high high-efficiency, high-temperature industrial applications.

Solid oxide electrolysers (SOECs) are gradually evolving to be the preferred technology for connecting industries having high-temperature waste heat, such as glass, steel, and cement production. These electrolysers enjoy the maximum efficiency among all types because they convert both thermal and electrical energy losses very little into hydrogen. SOECs are in earlier commercial phases but attract significant R&D investments as they promise an entirely new approach to reducing electricity consumption per kilogram of hydrogen produced. The fact that the technology makes it possible to co-electrolyse CO2 into syngas makes it even more appealing for synthetic fuels and chemicals applications.

Anion exchange membrane electrolysers are the next new cost disruptors to turn heads out of glass.

AEM could not yet be labelled as the next generation in this respect; rather, it is typically regarded as under development but exhibiting great promise. In terms of reducing costs, AEM certainly borrows some low-cost material advantages from alkaline systems and the efficiency of PEM systems, now advertised as a hybrid means of scaling hydrogen production without heavy reliance on critical rare metals such as iridium and platinum. Indeed, challenges remain in terms of durability and commercial scalability; however, increasing funding from both start-ups and large companies indicates the potential that AEM electrolysers have to redefine the cost structure in the long term.

Key Takeaways

Alkaline Strength – Cost-effective technology ensures dominance in large-scale industrial hydrogen generation.
PEM Growth – Fast adoption in mobility and decentralised applications owing to efficiency and flexibility.
Solid Oxide Efficiency – Integration with waste-heat industries provides a unique competitive advantage.
AEM Potential – Low-cost hybrid systems emerging as disruptors for long-term hydrogen affordability.
Policy Push – Strong subsidies and incentives accelerate deployment across advanced economies.
Industrial Integration – Steel, cement, and ammonia sectors drive commercial electrolyser demand.
Supply Chain Risk – Dependence on rare catalysts poses bottlenecks for rapid capacity expansion.
Regional Divergence – North America, Europe, and Asia-Pacific surge ahead with robust policy support.
M&A Expansion – Strategic partnerships shape innovation pipelines and broaden electrolyser portfolios.
Green Hydrogen Wave – Electrolysers at the centre of global decarbonisation and energy transition.

Regional Insights

North America Pushes Ahead, Electrolyser Hubs, and Supporting Policies

The United States dominates the market for electrolysers in North America, with hydrogen hubs constructed under the Hydrogen Shot Initiative of the U.S. Department of Energy. Such favourable legislation, Inflation Reduction Act tax incentives and state mandates-located with large-scale industrial applications and mobility applications- drive North American hydrogen developments. Canada and Mexico are also expanding the adoption of electrolysers, with Canada, for instance, using its renewable-rich provinces to produce green hydrogen for export.

Europe leads in technology innovations and stringent compliance frameworks for green hydrogen.

Europe leads the world in the development of electrolysers with strong policy instruments like the European Green Deal, REACH standards, and an ambitious hydrogen import-export strategy. Germany, France and the Netherlands aggressively invest in electrolyser manufacturing capacity while developing hydrogen projects offshore with wind power. With strict eco-certification requirements and circular economy principles, Europe remains the trendsetter in electrolyser technology innovation.

Asia-Pacific surfaces as the most rapidly growing electrolyser market with large-scale industrial requirements.

The region will see massive growth in the coming years, driven by immense investments in renewable energy and decarbonising the heavy industries. China is building several gigawatt-scale green hydrogen projects while Japan and South Korea are integrating electrolysers into their national hydrogen roadmaps, focusing on mobility and energy resilience. India is making inroads too with its National Green Hydrogen Mission, stimulating domestic manufacturing and deployment of electrolysers in oil refineries and fertiliser plants.

LAMEA speeds up hydrogen acquisition by providing export-led opportunities and strategic partnerships.

The LAMEA region, particularly the Middle East, is set to capitalise on its extensive solar reserve in establishing green hydrogen and ammonia export hubs. The UAE and Saudi Arabia have tied up with many global players for the construction of a large-scale electrolyser to target Asian and European markets. Brazil and Argentina are also investigating avenues linked with hydro and wind resources towards harnessing renewable hydrogen in Latin America, while African nations are beginning to attract pilot projects in hydrogen production for domestic and export markets.

Core Strategic Questions Answered in This Report

What is the expected growth trajectory of the electrolysers market from 2024 to 2035?

The global electrolysers market is projected to grow from USD 954.76 million in 2024 to USD 1,513,785.60 million by 2035, registering a CAGR of 95.40%. This exceptional growth is driven by massive green hydrogen demand, expanding renewable integration, and robust government policy frameworks worldwide.

Which key factors are fuelling the growth of the electrolysers market?

Several key factors are propelling market growth:

Global decarbonisation targets driving large-scale green hydrogen adoption
Strong government incentives and regulatory frameworks supporting deployment
Technological advancements are improving efficiency and lowering electrolyser costs
Expansion of industrial hydrogen applications in steel, ammonia, and refining
Growing hydrogen demand in mobility, energy storage, and export markets

What are the primary challenges hindering the growth of the electrolysers market?

Major challenges include:

Dependence on rare and expensive catalyst materials such as iridium and platinum
Supply chain bottlenecks in membranes, power electronics, and balance-of-plant equipment
High capital expenditure for scaling gigawatt-level manufacturing facilities
Regional disparities in hydrogen policy support and market maturity
Durability and efficiency challenges in emerging technologies like AEM and SOEC

Which regions currently lead the electrolysers market in terms of market share?

North America currently leads the electrolysers market owing to its hydrogen hubs and federal policy support. Europe closely follows with leadership in technology innovation and eco-compliance standards, while Asia-Pacific is emerging as the fastest-growing region driven by industrial hydrogen demand and national hydrogen missions.

What emerging opportunities are anticipated in the electrolysers market?

The market is ripe with new opportunities, including:

Deployment of electrolysers in offshore wind-powered hydrogen hubs
Decentralised hydrogen generation for mobility and microgrids
Scaling of solid oxide electrolysers for high-temperature industrial processes
Growing green ammonia and synthetic fuels production for global trade
Advanced material science breakthroughs reducing rare-metal dependence

Key Benefits for Stakeholders

The report offers a quantitative assessment of market segments, emerging trends, projections, and market dynamics for the period 2024 to 2035.
The report presents comprehensive market research, including insights into key growth drivers, challenges, and potential opportunities.
Porter's Five Forces analysis evaluates the influence of buyers and suppliers, helping stakeholders make strategic, profit-driven decisions and strengthen their supplier-buyer relationships.
A detailed examination of market segmentation helps identify existing and emerging opportunities.
Key countries within each region are analysed based on their revenue contributions to the overall market.
The positioning of market players enables effective benchmarking and provides clarity on their current standing within the industry.
The report covers regional and global market trends, major players, key segments, application areas, and strategies for market expansion. Show more