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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Electrolyzer Market Size:

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. The market is primarily driven by the increasing demand for green hydrogen and favorable government policies promoting renewable energy. Additionally, rapid technological innovations for improving efficiency and costs and rising investments in hydrogen infrastructure are also contributing to the market growth, further supporting global decarbonization goals and energy transition initiatives.

Report Attribute
Key Statistics
Base Year
2023
Forecast Years
2024-2032
Historical Years
2018-2023
Market Size in 2023 US$ 505.6 Million
Market Forecast in 2032 US$ 1,017.7 Million
Market Growth Rate 2024-2032 7.8%


Electrolyzer Market Analysis:

  • Major Market Drivers: The major drivers for the electrolyzer market include increasing government initiatives and funding for green hydrogen projects, growing emphasis on reducing carbon emissions, advancements in electrolyzer technologies improving efficiency and cost-effectiveness, the rising demand for renewable energy sources, and the expanding use of hydrogen across various sectors, such as transportation, industrial processes, and power generation.
  • Key Market Trends: Key trends in the electrolyzer market include the integration of renewable energy sources like wind and solar with electrolyzer systems to produce green hydrogen, technological advancements leading to higher efficiency and lower costs, increased investment and collaborations among industry players, scaling up of electrolyzer capacities for large-scale hydrogen production, and the development of innovative storage and distribution solutions. Furthermore, the rise of hydrogen fueling stations and the adoption of hydrogen in various industrial applications are notable trends.
  • Geographical Trends: According to the electrolyzer market forecast, Europe is anticipated to dominate the market due to its strong commitment to decarbonization and achieving climate goals, substantial government funding and supportive policies for hydrogen projects, and the presence of advanced infrastructure for renewable energy integration. The European Union’s hydrogen strategy, aimed at boosting green hydrogen production and utilization, along with strategic partnerships and collaborations among key industry players, further strengthens Europe’s position as a leader in the electrolyzer market. Additionally, Europe’s focus on technological innovation and research contributes to its market leadership.
  • Competitive Landscape: Some of the major market players in the electrolyzer industry 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, and Toshiba Corporation, among many others.
  • Challenges and Opportunities: According to the electrolyzer market overview, significant opportunities in the market include the growing demand for green hydrogen as a clean energy source, driven by global decarbonization efforts and the shift towards sustainable energy solutions. Advancements in electrolyzer technology, leading to increased efficiency and reduced costs, are also creating new market prospects. Furthermore, increasing investments in hydrogen infrastructure by governments and private entities are fostering market expansion. However, the market faces several challenges, such as the high initial costs of electrolyzer systems, which can be a barrier to adoption. Technical complexities related to large-scale hydrogen production and storage also present difficulties. The need for extensive infrastructure development, coupled with regulatory and standardization issues and the availability of renewable energy resources, pose significant hurdles to the market's growth.
     

Electrolyzer Market


Electrolyzer Market Trends:

Increasing Demand for Green Hydrogen

The push toward sustainable energy has significantly boosted the demand for green hydrogen, produced using electrolyzers powered by renewable energy sources. Green hydrogen is a clean energy carrier that can decarbonize various sectors, including transportation, industry, and power generation. This shift is driven by global efforts to reduce carbon emissions and combat climate change, making green hydrogen a pivotal component in achieving long-term environmental sustainability. For instance, in March 2023, Cummins Inc. launched Accelera by Cummins, a new brand within its New Power business unit, to advance zero-emissions solutions. Accelera aims to help industries transition to sustainable practices with its diverse portfolio, including battery electric and fuel cell electric solutions. The launch supports Cummins' Destination Zero strategy, which focuses on achieving zero emissions across its products. Accelera will also undertake major projects, including a 90MW electrolyzer system in Quebec and a fleet of 1,000 electric school buses in the US.

Significant Technological Advancements

The electrolyzer market revenue is steadily increasing primarily due to innovations in electrolyzer technology, which have enhanced efficiency, reduced operational costs, and improved durability. Advances such as higher electrolytic efficiency, better catalyst materials, and improved system integration have made electrolyzers more viable for large-scale hydrogen production. For instance, in March 2023, Toyota developed an electrolyzer using technology from its Mirai fuel cell vehicle, set to be implemented at DENSO Fukushima plant as a project subsidized by the New Energy and Industrial Technology Development Organization (NEDO). This electrolyzer, producing 8 kg of hydrogen per hour, will support local hydrogen consumption and reduce CO2 emissions. These technological improvements make electrolyzers more attractive for industrial applications and energy storage, supporting the broader adoption of hydrogen as a clean energy source and contributing to the electrolyzer market growth pivotally.

Government Incentives and Policies

Governments worldwide are implementing policies and providing financial incentives to promote the adoption of green hydrogen and electrolyzer technology. These include subsidies, tax credits, and research grants aimed at accelerating the development and deployment of hydrogen infrastructure. According to industry reports, India aims to become energy independent by 2047 and achieve Net Zero by 2070. The National Green Hydrogen Mission supports this goal by promoting renewable energy use and green hydrogen. Objectives include making India a leading producer of green hydrogen, reducing fossil fuel dependence, developing local manufacturing, attracting investment, creating jobs, and supporting R&D. By 2030, the mission aims for at least 5 MMT annual green hydrogen production, 125 GW of renewable energy capacity, over ₹8 lakh crore in investments, and significant reductions in fossil fuel imports and greenhouse gas emissions. Such support is crucial for overcoming initial cost barriers, fostering innovation, and creating a favorable regulatory environment, thereby driving the growth of the electrolyzer market.

Electrolyzer Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 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 accounts for the majority of the market share

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 account for the majority of the electrolyzer market share due to their long-established technology, cost-effectiveness, and reliability. They have been used for decades, providing a proven track record of performance. Alkaline electrolyzers operate efficiently at lower temperatures and pressures, which reduces operational costs. Additionally, they use widely available and inexpensive materials, further enhancing their economic viability. Their durability and scalability make them suitable for large-scale hydrogen production, meeting the growing demand for green hydrogen. For instance, in July 2023, Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA, signed a €9 million contract to supply 20 MW of alkaline electrolyser equipment to Hyd’Occ for its project in Port-La-Nouvelle, France. The electrolyser will produce renewable hydrogen for local industry and transportation, positioning Port-La-Nouvelle as a key Mediterranean hydrogen hub. This, in turn, is driving the alkaline electrolyzer segment, thereby enhancing the electrolyzer market value.

Breakup by Capacity:

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

500 kW to 2 MW holds the largest share of the industry

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.

The 500 kW to 2 MW segment dominates the electrolyzer market share due to its suitability for a wide range of applications, balancing scale and flexibility. This capacity range is ideal for industrial applications, renewable energy integration, and transportation fuel production, providing an efficient solution for medium-scale hydrogen generation. It offers an optimal blend of cost-effectiveness and operational efficiency, making it attractive for various end-users. Additionally, the electrolyzer market report highlights significant technological advancements that have improved the efficiency and durability of electrolyzers within this range, further driving their adoption. The scalability and adaptability of 500 kW to 2 MW electrolyzers position them as a preferred choice in the evolving hydrogen economy.

Breakup by Application:

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

Power generation represents the leading market segment 

The electrolyzer research 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 electrolyzer market research report, power generation represented the largest segment.

Power generation represents the leading market segment due to the growing emphasis on renewable energy sources and the need for efficient energy storage solutions. Electrolyzers enable the conversion of excess renewable energy, such as solar and wind, into green hydrogen, which can be stored and later used to generate electricity during periods of high demand or low renewable output. This capability enhances grid stability and reliability. Additionally, green hydrogen produced by electrolyzers can be used in fuel cells to generate clean electricity, supporting the transition to a low-carbon energy system. The integration of electrolyzers into power generation aligns with global decarbonization goals and energy sustainability initiatives, further creating a positive electrolyzer market outlook.

For instance, in February 2024, Cochin International Airport Ltd (CIAL) and Bharat Petroleum Corporation Ltd (BPCL) announced that they have signed an MoU to establish the world's first airport-based green hydrogen plant and fueling station at Cochin Airport, Kerala. The plant will produce hydrogen from water using renewable energy to support airport vehicle operations. BPCL will oversee technology and operations, while CIAL will provide land, water, and green energy resources.

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 leads the market, 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. According to the report, Europe represents the largest regional market for electrolyzer.

Europe dominates the electrolyzer market due to its strong commitment to decarbonization and renewable energy adoption. The region's robust policy framework, including the European Green Deal and various national hydrogen strategies, supports the development and deployment of hydrogen technologies. For instance, according to the official website of the European Commission, the government approved up to €1.4 billion in State aid from seven Member States for the fourth Important Project of Common European Interest (IPCEI) in the hydrogen value chain. Named IPCEI Hy2Move, the project will support research, innovation, and the first industrial deployment of hydrogen technologies to reduce emissions in the mobility and transport sectors, contributing to the EU’s climate-neutral goals by 2050. The initiative is expected to unlock €3.3 billion in private investments and create around 3,600 direct jobs.

Moreover, significant investments in research and development (R&D), coupled with substantial government funding and subsidies, have accelerated technological advancements. Additionally, Europe's well-established renewable energy infrastructure provides a reliable source for green hydrogen production. Collaborative efforts between governments, industry, and research institutions further drive innovation and market growth, positioning Europe as a leader in the global electrolyzer market. For instance, in January 2023, the Clean Hydrogen Partnership launched its 2023 call for proposals, allocating €195 million to develop clean hydrogen technologies, support projects for renewable hydrogen production, and stimulate the use of low-emission hydrogen in hard-to-abate sectors.

Competitive Landscape:

  • The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the electrolyzer industry 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, and Toshiba Corporation.

    (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
     
  • The competitive landscape of the electrolyzer market is characterized by a mix of established companies and emerging startups, all vying for market share in a rapidly growing industry. Key players are focusing on technological advancements, improving efficiency, and reducing costs to gain a competitive edge. Strategic partnerships, mergers, and acquisitions are common as companies seek to expand their capabilities and market presence. Innovations in product offerings, such as scalable and modular electrolyzer systems, is a significant trend. Additionally, electrolyzer companies are increasingly collaborating with renewable energy providers to ensure a steady supply of green electricity for hydrogen production, further enhancing their competitive positions.
  • In March 2023, thyssenkrupp nucera and Unigel signed a Memorandum of Understanding to expand Unigel’s green hydrogen plant in Bahia, Brazil, from 60 MW to 240 MW. This facility, the first industrial-scale green hydrogen plant in Brazil, will produce 10,000 tons/year of green hydrogen and 60,000 tons/year of green ammonia.


Electrolyzer Market News:

  • In October 2023, John Cockerill, a leading electrolyzer manufacturer, announced its expansion into the US hydrogen market with a new gigafactory in Baytown, Houston, Texas. The facility will produce 1GW of electrolyzers annually, create 200 jobs, and bolster Houston's position as a hydrogen hub, while ecpanding electrolyzer demand across the globe.
  • In February 2024, H-TEC SYSTEMS announced that they will deliver a 1 MW PEM electrolyzer to SailH2 for the "HUB LA ISLA H2" project in Sevilla, Andalusia. This €25 million project aims to produce and distribute green hydrogen, initially generating 136 tons of H2 annually using a 1.5 MW PV plant. The electrolyzer will support mobility applications and a hydrogen refueling station. Phase 2, starting in 2025, will expand production to 680 tons of H2, targeting industrial decarbonization with 5 MW electrolysis power. The project expects to cut regional CO2 emissions by over 3,500 tons.


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 Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future 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, etc.
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 market?
  • Who are the key players/companies in the global electrolyzer market?


Key Benefits for Stakeholders:

  • IMARC’s industry 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 report 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 assists 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.
  • The competitive landscape allows stakeholders to understand their competitive environment and provides 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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