Electrolyzer Market Overview
Electrolyzer Market was valued at US$ 8.3 Billion in 2024 and is projected to grow at a CAGR of 5.30% to reach US$ 13.2 Billion by 2034
An electrolyzer is a device that plays a crucial role in the field of electrochemistry and is used to facilitate a chemical reaction known as electrolysis. Electrolysis is the process of using an electric current to drive a non-spontaneous chemical reaction, which typically involves the breakdown of a compound into its constituent elements or the formation of a new compound from its elements.
Electrolyzer Market Drivers & Restraints
Growing Interest in Hydrogen Economy
The market for electrolyzers is being significantly stimulated by the rising interest in the hydrogen economy. The generation, storage, and use of hydrogen as a clean, flexible energy source are the foundation of the hydrogen economy. Due to its ability to address the problems associated with the environment and energy, this new paradigm has gained popularity. Hydrogen is seen as a solution to reduce greenhouse gas emissions and transition away from fossil fuels. When produced using renewable energy sources, such as wind or solar, hydrogen is considered "green hydrogen" and can be produced with virtually zero emissions. Electrolyzers, especially proton exchange membrane (PEM) electrolyzers, play a vital role in producing green hydrogen by splitting water into hydrogen and oxygen using electricity from renewable sources.
Restrains:
In some regions, natural gas reforming remains a more cost-effective method for hydrogen production. This competition can hinder the adoption of electrolysis, particularly when carbon capture and storage (CCS) technologies are applied to natural gas reforming.
Electrolyzer Market Segmentations & Regional Insights
Electrolyzer Market is segmented based on Technology, Power Rating, Application and Region.
Technology Insight
On the basis of Technology, Electrolyzer Market is segmented into Alkaline Electrolyzer, Solid Oxide Electrolyzer, and PEM Electrolyzer.
Power Rating Insights
On the basis of Power Rating, Electrolyzer Market is segmented into 500 kW - 2 MW, ≤ 500 kW, and Above 2 MW.
Application Insights
On the basis of Application, Electrolyzer Market is segmented into Energy storage for fuel cells, Power plants, Power to gas, Steel plant, Industrial gases, and others.
Electrolyzer Market Regional Insights:
On region the Electrolyzer Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
North America market is estimated to witness a significantly high revenue share over the forecast period due to rising investment and funding. In the United States, the Biden administration has outlined plans to support hydrogen and electrolyzer technologies. There is a growing interest in green hydrogen projects, with initiatives at both the federal and state levels.
Asia Pacific market is estimated to witness a fastest revenue share over the forecast period. The Asia-Pacific region, particularly China, has emerged as a major manufacturing hub for electrolyzer technology. Chinese companies have been producing a significant portion of the world's electrolyzers, contributing to global supply.
Report Scope:
Attribute |
Details |
Base year for estimation |
2023 |
Forecast period |
2024 – 2034 |
Market representation |
Revenue in USD Billion & CAGR from 2024 to 2034 |
Market Segmentation |
By Technology - Alkaline Electrolyzer, Solid Oxide Electrolyzer, and PEM Electrolyzer By Power Rating - 500 kW - 2 MW, ≤ 500 kW, and Above 2 MW By Application - Energy storage for fuel cells, Power plants, Power to gas, Steel plant, Industrial gases, and Others |
Regional scope |
North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
Segments Covered in the Report:
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034.
Electrolyzer Market Competitive Landscape & Key Players
Electrolyzer Market Key Players:
The key players operating the Electrolyzer Market includes, Siemens, Nel Hydrogen, Kobelco Eco-Solutions, Green Hydrogen Systems, H-Tec Systems, Hydrogenics, Next Hydrogen, Teledyne Energy Systems, Shandong Saikesaisi Hydrogen Energy Co., Ltd., and Asahi Kasei.
Electrolyzer Market Recent News
The New Launched Product News,
- In March 2021, Verdagy launches commercial electrolyzer module, demonstrating low-cost green hydrogen at scale. Verdagy is developing the biggest membrane-based electrochemical cells in the world to reduce the cost and energy needed to produce industrial hydrogen. Verdagy operated a demonstration-scale Anion Exchange Membrane (AEM) with a 3200 cm2 20 kW cell continuously for 1,000 hours at a current density that led the industry.
Electrolyzer Market Highlights
FAQs
Electrolyzer Market was valued at US$ 8.3 Billion in 2024 and is projected to grow at a CAGR of 5.30% to reach US$ 13.2 Billion by 2034
Electrolyzer Market is segmented based on Technology, Power Rating, Application and Region.
The market for electrolyzers is being significantly stimulated by the rising interest in the hydrogen economy. The generation, storage, and use of hydrogen as a clean, flexible energy source are the foundation of the hydrogen economy.
In some regions, natural gas reforming remains a more cost-effective method for hydrogen production. This competition can hinder the adoption of electrolysis, particularly when carbon capture and storage (CCS) technologies are applied to natural gas reforming.
North America market is estimated to witness a significantly high revenue share over the forecast period due to rising investment and funding. In the United States, the Biden administration has outlined plans to support hydrogen and electrolyzer technologies.
The key players operating the target market includes, Siemens, Nel Hydrogen, Kobelco Eco-Solutions, Green Hydrogen Systems, H-Tec Systems, Hydrogenics, Next Hydrogen, Teledyne Energy Systems, Shandong Saikesaisi Hydrogen Energy Co., Ltd., and Asahi Kasei.