Electrolyzer Market Size, Share, Growth, and Industry Analysis, By Type (Traditional Alkaline Electroliser and PEM Electroliser), By Application (Power Plants, Steel Plant, Electronics and Photovoltaics, Industrial Gases, Energy Storage or Fueling for FCEV's, Power to Gas and Others) and Regional Forecast to 2032

• 

  Request a Free sample to learn more about this report

ELECTROLYZER MARKET OVERVIEW

Global Electrolyzer Market size was valued at approximately USD 3.99 billion in 2024 and is expected to reach USD 68.24 billion by 2033, growing at a compound annual growth rate (CAGR) of about 37.09% from 2025 to 2033.

An electrolyzer is a device which uses some electrical energy to produce a chemical transformation of dividing water into hydrogen, and oxygen. This is referred to as electrolysis This is the [act of passing an electrical current through water and consequently the bonds of hydrogen and oxygen molecules dissolve. Thus, the produced hydrogen can be used as a source of chemically clean and relatively free energy, and for this reason, it is an essential component of the electrolyzers in the constructions of clean energy systems.

COVID-19 IMPACT

Electrolyzer Industry Had a Negative Effect Due to Disruptions of Supply Chain during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

In the stock market instability that char common during the rushing moment of the pandemic, shut ins made most of the global supply chains suffer a big blow in supplying some vital parts of electrolyzers like precious metals which include platinum used in PEM electrolyzers and other hard to obtain equipment that are not readily available. Both of them contributed to extending lead time or the production time hence the rate at which development could happen In the market was slow.

LATEST TREND

Green Hydrogen Adoption to Drive Market Growth

The electrolyzer market has been experiencing a major embracing of green hydrogen. Green hydrogen is generated from water using electricity obtained from renewable resources such as wind, light or hydro energy. This one employs electrolyzers to decompose water into hydrogen and oxygen and therefore it is an environmentally friendly fuel. Thus, as governments and industries aim at the development of the decarbonization pathway, green hydrogen has gained importance as the vital solution to tackling net-zero targets.

Request a Free sample to learn more about this report

ELECTROLYZER MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Traditional Alkaline Electrolyzer and PEM Electrolyzer.

• Traditional Alkaline Electrolyzer- Alkaline electrolyzers have been developed for over forty years and are the most researched type. They employ a liquid alkaline electrolyte which preferentially combines potassium hydroxide, KOH, to carry out the electrolysis process.

• PEM Electrolyzer- PEM electrolyzers can be seen as more innovative, and adaptable. Some of the more commonly used types of sensors incorporate a solid polymer membrane that works as the electrolyte; these give high efficiency and quick response. The membrane only allows the passage of protons (H⁺) and this makes the system much more compact and sensitive to variations in renewable electricity production.

By Application

Based on application, the global market can be categorized into Power Plants, Steel Plant, Electronics and Photovoltaics, Industrial Gases, Energy Storage or Fueling for FCEV's, Power to Gas and Others.

• Power Plants- The electrolyzers are beginning to be installed in power plants to enable the production of green hydrogen from renewable power.

• Steel Plant-Iron and steel makers are among the largest emitters of carbon dioxide and electrolyzers are currently seen as a potential low carbon solution.

• Electronics and Photovoltaics- In the electronics sector, electrolyzers are applied to supply ultra-pure hydrogen for the formation of semiconductors as well as other processes that require highly purified gases.

• Industrial Gases- Because electrolyzers are vital to the production of hydrogen for industrial use, the elements and compounds produced by hydrogen, including ammonia, methanol, and others, are significant for industrial gas production.

• Energy Storage or Fueling for FCEV’s- Electrolyzers are at the core of hydrogen production for energy storage and to fuel Fuel Cell Electric Vehicles (FCEVs).

• Power to Gas- Power-to-gas (PtG) technology employs electrolyzers to convert surplus renewable electric power into hydrogen which can be fed directly into natural gas pipelines or utilized later.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Rising demand for green hydrogen to Boost the Market

A factor in the Electrolyzer market growth is the Rising demand for green hydrogen. The rising demand for green hydrogen is expected to be the main growth enabler for the electrolyzers market. Renewable and useable electrolysis hydrogen to extract water to produce green hydrogen, is gradually replacing the conventional fossil fuel energy in the energy, transportation and heavy industries. Due to their endeavours to reduce the quantities of carbon emission within industries, green hydrogen has come to be an indispensable component of the global decarbonization strategies.

Advancements in electrolyzer technology to Expand the Market

Development in Electrolyzer is a key driver to the electrolyzer market growth due to increased efficiency, durability and scalability of electrolyzers for large-scale hydrogen production.Advancements in designs such as, the PEM electrolyser and the Solid Oxide Electrolysis Cells (SOEC) have improved the standard of electrolyzers to increase their effectiveness in the process of producing hydrogen from renewable electricity.

Restraining Factor

High Capital Costs to Potentially Impede Market Growth

Electrolyzers often entail capital intensive expenditures especially those used to produce green hydrogen. The pricey nature of the electrolyzers, and the capital intensive equipment that would be necessary to support large scale hydrogen production may make it extremely expensive for many potential users. However, costs are still considerably high hindering wide deployment particularly in developing countries or insecure business regions or industries that can attract little or no investment or incentives.

Opportunity

Decarbonization and Renewable Energy Integration for the Product in the Market

In the process of reducing emissions, electrolyzers have become one of the most promising technological tools that industries and Governments want to adopt. As a result, electrolyzers help make green hydrogen from renewable sources and reduce carbon emission sectors such as transportation, steel, and chemicals industries. The efforts to increase the share of renewable energy sources in electricity generation also open new applications of electrolyzer to storing energy and improving the stability of the grid.

Challenge

Energy Availability and Cost Could Be a Potential Challenge for Consumers

Electrolyzers need a dependable source of renewable electricity to generate green hydrogen at scale economically. In some locations, where renewable power is scarce or unpredictable, the cost of deploying electrolyzers for green hydrogen is not as competitive. Moreover, possible volatility of energy prices, or shortage of energy, compromises hydrogen availability and turns the use of electrolyzer financially unprofitable.

• Request a Free sample to learn more about this report

•  

ELECTROLYZER MARKET REGIONAL INSIGHTS

• North America

North America is also growing, especially the United States and Canada will pay much attention to hydrogen as one of the clean energy sources. Although it is a developing market North America is still inferior to Europe and Asia Pacific in terms of the market share and infrastructure for smart grids.

• Europe

Europe is the second region in looking forward to green hydrogen and regions like Germany, which are already leaders in production and innovative technology. Hydrogen has been identified by the European Union as among critical technologies and systems that will see it achieve carbon neutrality by the year 2050.

• Asia

Asia Pacific has emerged as the most dominant region in the Electrolyzer market share due to a convergence of factors that propel its leadership in this dynamic industry. This is because countries in the Asia Pacific region such as China, Japan and South Korea amongst others, are the biggest investors in electrolyzer technologies and drumming up support for increased deployments of green hydrogen.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Electrolyzer Market Through Innovation and Market Expansion

Key enterprise players are shaping the Electrolyzer marketplace through strategic innovation and marketplace growth. Marketplace leaders are the key players influencing Electrolyzer through strategic innovation as well as the growth of the marketplace. Current and potential market leaders include Nel ASA, Siemens Energy, Plug Power, and ITM Power which are investing a lot of effort into improving electrolyzers and making them less costly. These companies are using capital to conduct research and develop ways of enhancing the productivity of the product and at the same time contributing to ways of decreasing the cost of making hydrogen. For instance, Siemens Energy is developing technologies of PEM (Proton Exchange Membrane) electrolyzers that are trending for the generation of green hydrogen.

List of Top Electrolyzer Companies

• Teledyne Energy Systems(U.S.)
• Siemens(Germany)
• Suzhou Jingli(China)
• TianJin Mainland(China)
• Cummins(U.S.)

KEY INDUSTRY DEVELOPMENTS

Feb 2024: Gensol-Matrix Gas is a consortium of engineering that prides itself in the provision of solar EPC and O&M services and it has won the hydrogen electrolyzer manufacturing under the PLI. Under the Sustainable Hydrogen Innovation & Green Hydrogen Technologies PLI scheme falling under the National Green Hydrogen Mission Tranche-I has been awarded.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.