Electrolyzer Market Report by Product (Alkaline Electrolyzer, PEM Electrolyzer, Solid Oxide Electrolyzer), Capacity (Less than 500 kW, 500 kW to 2 MW, Above 2 MW), Application (Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heat and Power, and Others), and Region 2024-2032

Electrolyzer Market Report by Product (Alkaline Electrolyzer, PEM Electrolyzer, Solid Oxide Electrolyzer), Capacity (Less than 500 kW, 500 kW to 2 MW, Above 2 MW), Application (Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heat and Power, and Others), and Region 2024-2032

Report Format: PDF+Excel | Report ID: SR112024A4752
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Market Overview:

The global electrolyzer market size reached US$ 505.6 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,017.7 Million by 2032, exhibiting a growth rate (CAGR) of 7.8% during 2024-2032. Numerous government initiatives promoting renewable energy, the growing demand for hydrogen in various sectors, an enhanced focus on sustainable development and continual advancements in technologies are some of the major factors propelling the market.

Report Attribute
Key Statistics
Base Year
Forecast Years
Historical Years
Market Size in 2023 US$ 505.6 Million
Market Forecast in 2032 US$ 1,017.7 Million
Market Growth Rate 2024-2032 7.8%

An electrolyzer is a device that utilizes an electrochemical process known as electrolysis to split water or other compounds into their constituent elements. It consists of an electrolyte solution and two electrodes, typically made of conductive materials such as metals or metal oxides. When an electric current is passed through the electrolyte, it triggers chemical reactions at the electrodes. They play a crucial role in the production of hydrogen, which is considered a clean and versatile energy carrier. By utilizing renewable electricity, they can produce green hydrogen, which has significant potential in applications such as fuel cells, energy storage, transportation, and industrial processes.

Electrolyzer Market

The integration of renewable energy sources is a significant driving factor for the market. Renewable energy, such as solar and wind power, exhibits intermittent generation patterns. Electrolyzers provide a solution for converting excess renewable energy into hydrogen through water electrolysis during periods of high generation. This process allows for energy storage and grid balancing, effectively addressing the intermittency challenge of renewables. Moreover, the growing interest in utilizing hydrogen as a fuel for transportation, heating, and power generation is creating a positive outlook for the market. Additionally, various applications like steel production, ammonia production, and synthetic fuels are exploring the integration of hydrogen to reduce carbon emissions, which is propelling the market growth. Continual advancements in technologies are further contributing to the expansion of the global market.

Electrolyzer Market Trends/Drivers:

Favorable Government Initiatives and Policies

The implementation of numerous favorable government initiatives and policies have a significant impact on the market. Various countries around the world are actively promoting the adoption of renewable energy sources and decarbonization strategies, and electrolyzers play a crucial role in these efforts. Governments are implementing supportive policies such as subsidies, grants, tax incentives, and favorable regulations to accelerate the deployment of electrolyzers and the production of hydrogen. These initiatives aim to stimulate investment in electrolysis technologies, encourage research and development, and create a conducive market environment. The presence of robust government support provides stability and confidence for investors and stakeholders, fostering the growth of the market.

Growing Demand for Hydrogen

The increasing demand for hydrogen is another key factor driving the market. Hydrogen is gaining attention as a clean and versatile energy carrier with the potential to decarbonize various sectors such as transportation, industry, and power generation. They are essential for the production of hydrogen, especially green hydrogen, which is generated through electrolysis using renewable energy sources. The rising demand for hydrogen as a fuel for fuel cells, a feedstock for industrial processes, and a storage medium for renewable energy is creating a significant market opportunity for manufacturers. The growing interest in hydrogen as a sustainable energy solution is driving investments in technologies and contributing to the expansion of the market.

Technological Advancements and Cost Reduction

Technological advancements and cost reduction is majorly driving the market growth. Over the years, significant progress has been made in technologies, leading to improved efficiency, scalability, and durability. Research and development efforts have focused on enhancing catalyst materials, membrane technologies, electrode designs, and system integration. These advancements have resulted in higher performance, increased system lifetimes, and reduced maintenance requirements. As the costs of systems continue to decline, they become more economically viable and attractive to a wider range of applications and industries. Continual technological advancements and cost reduction efforts are augmenting market competitiveness, thereby expanding the market globally.

Electrolyzer Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global electrolyzer market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on product, capacity and application.

Breakup by Product:

Electrolyzer Market

  • Alkaline Electrolyzer
  • PEM Electrolyzer
  • Solid Oxide Electrolyzer

Alkaline electrolyzer represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the product. This includes alkaline, PEM, and solid oxide electrolyzers. According to the report, alkaline electrolyzer represented the largest segment.

Alkaline electrolyzers are relatively cost efficient as compared to other types. This makes them an attractive option for applications where the primary focus is on producing hydrogen at a lower cost. The cost advantage of alkaline variants stems from the use of abundant and inexpensive materials, such as nickel-based catalysts, in the electrode construction. They also have high efficiency levels, contributing to their popularity. They can achieve high current densities, resulting in greater hydrogen production rates per unit of size. This efficiency makes them suitable for applications with high hydrogen demand, such as industrial processes and large-scale energy storage. Furthermore, their enhanced reliability and durability are contributing to their increased uptake. Their robust design and simpler operation make them less prone to performance issues and easier to maintain.

Breakup by Capacity:

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

500 kW to 2 MW accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the capacity. This includes Less than 500 kW, 500 kW to 2 MW, and Above 2 MW. According to the report, 500 kW to 2 MW represented the largest segment.

Electrolyzers within the 500 kW to 2 MW range are considered suitable for a wide range of applications, including industrial processes, energy storage, and hydrogen production for fueling stations. They offer a significant capacity to meet the demand for hydrogen in various sectors while remaining manageable in terms of installation space, operational requirements, and cost. Additionally, this capacity range aligns well with the needs of the emerging hydrogen economy. As the demand for hydrogen continues to grow, particularly in industries aiming to reduce carbon emissions and transition to cleaner energy sources, products in the 500 kW to 2 MW range provide a viable solution. They can cater to mid-sized hydrogen production requirements and contribute to the scaling up of hydrogen infrastructure.

Breakup by Application:

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

Power generation represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the application. This includes power generation, transportation, industry energy, industry feedstock, building heat and power, and others. According to the report, power generation represented the largest segment.

One of the main drivers for the significant product adoption in the power generation sector is the increasing focus on renewable energy integration. By utilizing excess renewable energy during periods of high generation, electrolyzers can convert and store it as hydrogen. This stored hydrogen can then be used as a flexible and clean energy source for power generation when renewable energy supply is low or intermittent. They enable the coupling of renewable energy sources with hydrogen production, thereby contributing to a more sustainable and reliable power generation system. Additionally, They offer a potential solution for the long-term storage of renewable energy. As renewable energy sources are subject to fluctuations and seasonal variations, electrolyzers can store the surplus energy during periods of high production and convert it into hydrogen, which can be stored for an extended period. This stored hydrogen can then be utilized during times of high demand or low renewable energy availability, ensuring a stable and continuous power supply.

Breakup by Region:

Electrolyzer Market

  • North America
    • United States
    • Canada
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Russia
    • Others
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East and Africa

Europe exhibits a clear dominance, accounting for the largest electrolyzer market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. 

Europe is continually making efforts to encourage renewable energy adoption and decarbonization. The region aims to reduce greenhouse gas emissions and transition to cleaner energy sources. This focus on sustainability has created a favorable environment for the development and deployment of electrolyzers, which are essential for renewable energy integration and hydrogen production. Several countries in this region have implemented supportive policies, such as feed-in tariffs, subsidies, and carbon pricing mechanisms, to incentivize the adoption of technologies and promote the growth of the hydrogen economy.

Moreover, Europe has a well-developed infrastructure and market for hydrogen. The region has made significant investments in hydrogen refueling stations, hydrogen-powered transportation, and hydrogen utilization in industrial processes. This existing infrastructure provides a solid foundation for the expansion of electrolyzer installations and the wider adoption of hydrogen as an energy carrier.

Competitive Landscape:

Top companies in the market are investing in research and development activities to improve technologies, enhance efficiency, increase durability, and reduce costs. R&D efforts focus on developing advanced materials, catalysts, and membrane technologies to optimize performance and address key challenges in the industry. They are continually developing and commercializing new models with improved features and capabilities. This includes developing products with higher production capacities, better integration with renewable energy sources, enhanced control systems, and improved safety features. The aim is to meet the evolving demands of various industries and applications. Apart from this, these major players are also forming partnerships and collaborations with other industry players, research institutions, and energy companies to leverage expertise, share knowledge, and accelerate technology development. Collaborations enable companies to access new markets, jointly conduct research projects, and facilitate the integration of products into broader hydrogen value chains.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

  • Air Liquide S.A.
  • Air Products and Chemicals Inc.
  • Asahi Kasei Corporation
  • Cummins Inc.
  • ITM Power plc
  • Linde plc
  • McPhy Energy S.A.
  • Nel ASA
  • Plug Power Inc.
  • Siemens AG
  • Titanium Tantalum Products Limited
  • Toshiba Corporation

Recent Developments:

  • In 2022, Siemens AG secured an order from European Energy, a Danish developer and operator of green energy projects, for the delivery of an electrolyzer plant. The company is developing a large-scale commercial production facility of e-methanol, wherein the hydrogen will be provided by the 50 mega-watt (MW) plant by Siemens Energy. This is a crucial moment in the green transition as these companies aim to move forward with the decarbonization of the shipping industry.
  • Cummins Inc. announced the launch of Accelera by Cummins, a new brand for its New Power business unit, in 2023. It is expected to provide a diverse portfolio of zero-emissions solutions while empowering customers to accelerate their transition to a sustainable future. This will assist the company in achieving industry-wide decarbonization across diverse applications. 
  • Air Liquide S.A. and Siemens AG formed a joint venture in 2022 for the European production of large-scale renewable hydrogen electrolyzers. Both the companies have agreed to offer R&D capacities to the co-development of next generation technologies within the framework of the partnership.

Electrolyzer Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Million
Scope of the Report Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
  • Product
  • Capacity
  • Application
  • Region
Products Covered Alkaline Electrolyzer, PEM Electrolyzer, Solid Oxide Electrolyzer
Capacities Covered Less than 500 kW, 500 kW to 2 MW, Above 2 MW
Applications Covered Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heat and Power, Others
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered Air Liquide S.A., Air Products and Chemicals Inc., Asahi Kasei Corporation, Cummins Inc., ITM Power plc, Linde plc, McPhy Energy S.A., Nel ASA, Plug Power Inc., Siemens AG, Titanium Tantalum Products Limited, Toshiba Corporation
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Questions Answered in This Report:

  • How has the global electrolyzer market performed so far, and how will it perform in the coming years?
  • What are the drivers, restraints, and opportunities in the global electrolyzer market?
  • What is the impact of each driver, restraint, and opportunity on the global electrolyzer market?
  • What are the key regional markets?
  • Which countries represent the most attractive electrolyzer market?
  • What is the breakup of the market based on the product?
  • Which is the most attractive product in the electrolyzer market?
  • What is the breakup of the market based on the capacity?
  • Which is the most attractive capacity in the electrolyzer market?
  • What is the breakup of the market based on the application?
  • Which is the most attractive application in the electrolyzer market?
  • What is the competitive structure of the global electrolyzer market?
  • Who are the key players/companies in the global electrolyzer market?

Key Benefits for Stakeholders:

  • IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the electrolyzer market from 2018-2032.
  • The research study provides the latest information on the market drivers, challenges, and opportunities in the global electrolyzer market.
  • The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
  • Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the electrolyzer industry and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

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Electrolyzer Market Report by Product (Alkaline Electrolyzer, PEM Electrolyzer, Solid Oxide Electrolyzer), Capacity (Less than 500 kW, 500 kW to 2 MW, Above 2 MW), Application (Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heat and Power, and Others), and Region 2024-2032
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