The hydrogen electrolyzer market is projected to be worth USD 651.6 million in 2024. The market is anticipated to reach USD 5,709.8 million by 2034. The market is further expected to surge at a CAGR of 24.2% during the forecast period 2024 to 2034.
Key Market Trends and Highlights
There is a growing number of large scale projects focused on hydrogen production and utilization across various industries. The projects involve the deployment of electrolyzers with high capacities to meet the growing demand for hydrogen as a clean energy source.
| Attributes | Key Insights |
|---|---|
| Hydrogen Electrolyzer Market Estimated Size in 2024 | USD 651.6 million |
| Projected Market Value in 2034 | USD 5,709.8 million |
| Value-based CAGR from 2024 to 2034 | 24.2% |
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The scope for hydrogen electrolyzer rose at a 20.3% CAGR between 2019 and 2023. The global market is anticipated to grow at a moderate CAGR of 24.2% over the forecast period 2024 to 2034. The market experienced initial growth driven by increasing awareness of hydrogen as a clean energy carrier and early government initiatives to support hydrogen technology development, during the historical period.
Significant advancements in electrolyzer technology, including improvements in efficiency, scalability, and cost effectiveness, also occurred during this period. The advancements contributed to the expansion of the market by making electrolyzers more competitive with traditional hydrogen production methods.
The demand for green hydrogen produced from electrolyzers is expected to surge during the forecast period. Key sectors such as transportation, industry, and power generation are likely to drive significant demand growth for electrolyzer technology.
Electrolyzer manufacturers are anticipated to scale up production facilities to meet growing demand and achieve economies of scale. Investments in manufacturing capacity expansion and supply chain optimization are expected to drive down costs and increase the affordability of electrolyzer systems.
The market is anticipated to witness the emergence of new applications and use cases for hydrogen across various sectors. Innovations in hydrogen storage, transportation, and utilization technologies are expected to open up opportunities for electrolyzer manufacturers to explore new markets and partnerships.
There is a growing global interest in green hydrogen production as part of efforts to decarbonize various sectors such as transportation, industry, and power generation. Electrolyzers play a crucial role in producing green hydrogen through electrolysis of water using renewable energy sources like wind and solar power.
The upfront capital costs associated with installing electrolyzer systems can be substantial, particularly for larger scale installations. High initial investment requirements may deter potential buyers, especially in sectors where cost competitiveness is critical.
The below table showcases revenues in terms of the top 5 leading countries, spearheaded by Japan and China. The countries are expected to lead the market through 2034.
| Countries | Forecast CAGRs from 2024 to 2034 |
|---|---|
| The United States | 20.9% |
| The United Kingdom | 20.4% |
| China | 26.0% |
| Japan | 26.7% |
| Korea | 18.9% |
The hydrogen electrolyzer market in the United States expected to expand at a CAGR of 20.9% through 2034. The government in the country has been increasingly supportive of hydrogen technologies as part of its efforts to decarbonize the economy and promote clean energy.
Federal agencies, such as the Department of Energy, offer funding opportunities, grants, and incentives to support research, development, and deployment of hydrogen electrolyzers and related infrastructure.
The United States is witnessing the emergence of hydrogen infrastructure, including hydrogen refueling stations, industrial hydrogen production facilities, and hydrogen pipelines. Investments in hydrogen infrastructure by public and private stakeholders create opportunities for electrolyzer manufacturers to supply equipment for hydrogen production and distribution.
The hydrogen electrolyzer market in the United Kingdom is anticipated to expand at a CAGR of 20.4% through 2034. The country has committed to achieving net zero carbon emissions by 2050, requiring significant decarbonization across various sectors, including industry, transportation, and power generation. Hydrogen produced from electrolyzers using renewable energy sources plays a critical role in decarbonizing these sectors, driving demand for electrolyzer technology.
The United Kingdom has abundant offshore wind resources and has been investing in expanding its offshore wind capacity. Electrolyzers can utilize excess offshore wind energy to produce hydrogen through electrolysis, providing a means of energy storage and grid balancing. The integration of electrolyzers with offshore wind farms is expected to boost the growth of the hydrogen electrolyzer market in the country.
Hydrogen electrolyzer trends in China are taking a turn for the better. A 26.0% CAGR is forecast for the country from 2024 to 2034. The country aims to promote the adoption of hydrogen fuel cell vehicles as part of its strategy to reduce vehicle emissions and enhance energy security.
Electrolyzers are essential for producing hydrogen fuel to support the growing fleet of FCVs and expanding the hydrogen refueling infrastructure across the country, driving demand for electrolyzer technology.
Industries in the country, including steel, chemicals, and electronics, have significant hydrogen demand for various processes. There is growing interest in green hydrogen produced from electrolyzers as a sustainable alternative to hydrogen derived from fossil fuels, as industries seek to decarbonize and reduce emissions. The demand for green hydrogen is expected to drive the adoption of electrolyzers in industrial applications.
The hydrogen electrolyzer market in Japan is poised to expand at a CAGR of 26.7% through 2034. Japan has a vision to become a hydrogen society, by utilizing hydrogen as a key energy carrier for various applications, including transportation, industry, and power generation.
The commitment of the government to realizing this vision drives investments in hydrogen infrastructure, research, and technology development, fostering growth in the hydrogen electrolyzer market.
Japan is committed to reducing greenhouse gas emissions and addressing climate change. Hydrogen produced from electrolyzers using renewable energy sources offers a clean and sustainable alternative to fossil fuels, supporting the climate change mitigation goals and driving demand for hydrogen electrolyzer technology in the country.
The hydrogen electrolyzer market in Korea is anticipated to expand at a CAGR of 18.9% through 2034. Korea is investing in research and innovation in hydrogen technologies to enhance the efficiency, reliability, and cost effectiveness of electrolyzers.
Government funding, research grants, and collaboration with academia and industry support advancements in electrolyzer technology, fostering innovation and market growth.
Korea is a global leader in fuel cell technology, with companies such as Hyundai, Kia, and Doosan leading the development and commercialization of fuel cell vehicles and systems. The expertise and experience in fuel cell technology provide a strong foundation for the growth of the hydrogen electrolyzer market in Korea.
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The below table highlights how proton exchange membrane electrolyer segment is projected to lead the market in terms of product type, and is expected to account for a share of 52.6% in 2024. Based on outlet pressure, the low segment is expected to account for a share of 62.0% in 2024.
| Category | Market Shares in 2024 |
|---|---|
| Proton Exchange Membrane Electrolyzer | 52.6% |
| Low | 62.0% |
Based on product type, the proton exchange membrane electrolyzer segment is expected to continue dominating the hydrogen electrolyzer market. PEM electrolyzers are known for their high efficiency and performance compared to other electrolyzer technologies.
They operate at relatively low temperatures and can achieve high current densities, resulting in efficient hydrogen production with minimal energy losses. The superior efficiency of these electrolyzers makes them attractive for various applications, driving demand for this segment.
The electrolyzers have fast response times, allowing for rapid adjustments in hydrogen production to match fluctuating renewable energy inputs. The capability is particularly valuable for integrating these electrolyzers with renewable energy sources such as wind and solar power, enabling grid balancing and energy storage applications.
In terms of outlet pressure, the low segment is expected to continue dominating the hydrogen electrolyzer market, attributed to several key factors. Electrolyzers with low outlet pressure capabilities are well suited for a wide range of applications, including hydrogen refueling stations, industrial processes, and energy storage systems.
Their flexibility and compatibility with diverse end use applications make them highly desirable for customers seeking versatile hydrogen production solutions.
The expansion of hydrogen refueling infrastructure, particularly for fuel cell electric vehicles drives the demand for electrolyzers capable of producing hydrogen at low outlet pressures. Low pressure electrolyzers are essential for on site hydrogen production at refueling stations, enabling convenient and efficient refueling experiences for FCEV drivers.
The competitive landscape of the hydrogen electrolyzer market is characterized by a mix of established players, emerging companies, and technological innovators vying for market share and leadership positions.
The competition within the electrolyzer market intensifies, as the demand for clean hydrogen continues to rise globally, driven by decarbonization efforts and the transition to renewable energy sources.
Company Portfolio
| Attribute | Details |
|---|---|
| Estimated Market Size in 2024 | USD 651.6 million |
| Projected Market Valuation in 2034 | USD 5,709.8 million |
| Value-based CAGR 2024 to 2034 | 24.2% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | Value in USD million |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa |
| Key Market Segments Covered | Product Type, Capacity, Outlet Pressure, End User, Region |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, France, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel |
| Key Companies Profiled | Nel Hydrogen; Siemens AG; McPhy Energy; ITM Power Plc; Tianjin Mainland Hydrogen Equipment Co. Ltd; Gaztransport & Technigaz; Giner Inc.; GreenHydrogen Systems; iGas Energy GmbH; Beijing CEI Technology Co., Ltd.; Next Hydrogen; Air Liquide; Ballard Power Systems; Enapter; Plug Power Inc.; Bloom Energy; Pure Energy Centre; Shandong Saikesaisi Hydrogen Energy Co Ltd.; Idroenergy; Erredue S.p.A; SwissHydrogen SA |
The hydrogen electrolyzer market is projected to reach a valuation of USD 651.6 Million in 2024.
The hydrogen electrolyzer industry is set to expand by a CAGR of 24.2% through 2034.
The hydrogen electrolyzer market is forecast to reach USD 5,709.8 Million by 2034.
Japan is expected to be the top performing market, exhibiting a CAGR of 26.7% through 2034.
PEM segment is preferred, and is expected to account for a share of 52.6% in 2024.
| Market Value (2024) | USD 145 million |
|---|---|
| Anticipated Market Value (2034) | USD 800 million |
| Estimated CAGR (2024 to 2034) | 11.50% |
| Industry Size (2023) | USD 831 Million |
|---|---|
| Industry Forecast Value (2033) | USD 12,558.5 Million |
| Industry CAGR (2023 to 2033) | 31% |
| Market Value (2023) | USD 18.22 Billion |
|---|---|
| Market Anticipated Value (2033) | USD 46.31 Billion |
| Projected CAGR (2023 to 2033) | 9.78% |
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