Global Electrolyzers Market Size, Share & Trends Analysis Report By Capacity, By Technology, By Application (Power Generation, Industry Feedstock, Transportation, Building Heat & Power, Industry Energy, and Others), By Regional Outlook and Forecast, 2023

Global Electrolyzers Market Size, Share & Trends Analysis Report By Capacity, By Technology, By Application (Power Generation, Industry Feedstock, Transportation, Building Heat & Power, Industry Energy, and Others), By Regional Outlook and Forecast, 2023 - 2030

The Global Electrolyzers Market size is expected to reach $39.5 billion by 2030, rising at a market growth of 55% CAGR during the forecast period.

The increasing focus on decarbonization and the transition to clean energy sources has propelled the growth of the energy industry segment in the market. These devices, particularly those powered by renewable energy sources such as wind and solar, offer a sustainable pathway for hydrogen production. Consequently, the industry energy segment woulc acquire nearly 20% of the total market share. Green hydrogen, produced through electrolysis using renewable electricity, has gained attention as a key element in achieving carbon neutrality. Thus, these factors will lead to increased growth in the segment.

The imperative nature of reducing greenhouse gas emissions to mitigate climate change is becoming more evident. Hydrogen is essential for decarbonizing the power generation, transportation, and industry sectors. Moreover, these devices can be strategically located near renewable energy sources, allowing for decentralized production of green hydrogen. This decentralized approach facilitates utilizing locally available renewable resources, minimizing transmission and distribution losses associated with transporting energy over long distances. Thus, these factors will lead to increased demand in the market. Additionally, Governments may provide direct financial support through subsidies and grants to companies involved in developing and deploying electrolyzer projects. These subsidies help offset some initial capital costs associated with installing and operating electrolysis systems, making the technology more economically viable. In addition, some governments implement feed-in tariffs, guaranteeing a fixed payment rate for each unit of green hydrogen produced through electrolysis. This provides a predictable revenue stream for project developers and investors, reducing financial uncertainties associated with fluctuating market conditions. Hence, owing to these aspects, the market will witness increased growth in the coming years.

However, the significant upfront capital investment creates financial barriers for potential adopters, including industries, governments, and businesses looking to integrate these devices into their operations. The high costs may deter potential buyers from investing in electrolyzer systems, especially in regions where financial resources are limited or where competing technologies with lower upfront costs are available. Additionally, other hydrogen production methods or energy storage technologies may present lower upfront costs compared to these devices. In a competitive market, businesses and industries may opt for alternative solutions that offer a more favorable economic proposition. Thus, these aspects can restrain the growth of the market.

By Capacity Analysis

Based on capacity, the market is divided into less than 500 kW, 500 kW to 2 MW, and above 2 MW. In 2022, the above 2 MW segment witnessed a substantial revenue share in the market. These devices with a capacity greater than 2 MW are often deployed in industrial-scale applications. Industries with high energy requirements, such as chemical manufacturing, steel production, and large-scale hydrogen production, increasingly adopt larger electrolyzer units to meet their substantial energy demands. Therefore, these aspects will pose lucrative growth prospects for the segment.

By Technology Analysis

Based on technology, the market is segmented into alkaline electrolyzer, proton exchange membrane electrolyzer, solid oxide (SOE) electrolyzer, and anion exchange membrane (AEM) electrolyzer. In 2022, the anion exchange membrane (AEM) electrolyzer segment garnered a significant revenue share in the market. Anion exchange membranes are commonly associated with alkaline electrolyzers. Alkaline electrolyzers using AEM technology have gained interest due to their potential advantages, including high efficiency, low cost, and suitability for various applications, including large-scale industrial hydrogen production. Thus, these factors will assist in the expansion of the segment.

By Application Analysis

On the basis of application, the market is divided into power generation, industry feedstock, transportation, building heat & power, industry energy, and others. In 2022, the transportation segment witnessed a substantial revenue share in the market. The transportation sector has been exploring hydrogen as a clean and sustainable fuel alternative, and these devices play a crucial role in producing green hydrogen. These devices split water into hydrogen and oxygen using an electrical current, and this green hydrogen can be utilized in fuel cells to power various forms of transportation, including vehicles, buses, trains, and even maritime vessels. Owing to these aspects, the segment will witness increased demand in the coming years.

By Regional Analysis

By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Europe segment acquired the highest revenue share in the market. Several European countries have formulated national hydrogen strategies to accelerate the deployment of hydrogen technologies. These strategies often include targets, incentives, and policies to support the growth of the market and the production of green hydrogen. These factors will lead to increased demand in the segment.

List of Key Companies Profiled

• Asahi Kasei Corporation
• John Cockerill S.A.
• Nel ASA
• Plug Power, Inc.
• Siemens AG
• Enapter AG (BluGreen Company Limited)
• Cummins, Inc.
• ITM Power PLC
• McPhy Energy S.A.
• Topsoe A/S

Global Electrolyzers Market Report Segmentation

By Capacity

• 500 kW to 2 MW
• Less than 500 kW
• Above 2 MW

By Technology

• Alkaline Electrolyzer
• Proton Exchange Membrane Electrolyzer
• Solid Oxide (SOE) Electrolyzer
• Anion Exchange Membrane (AEM) Electrolyzer

By Application

• Power Generation
• Industry Feedstock
• Transportation
• Building Heat & Power
• Industry Energy
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA