Hydrogen Electrolyzer Market

Hydrogen Electrolyzer Market Outlook from 2024 to 2034

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.

• Hydrogen produced from electrolyzers can be used in a wide range of applications, including transportation, industrial processes, power generation, and energy storage. The expanding use cases for hydrogen across different sectors are driving the demand for electrolyzer systems.
• The electrolyzer market is witnessing significant investments from both public and private sectors. Key players are forming strategic partnerships and collaborations to develop and commercialize electrolyzer technologies, driving innovation and market growth.
• Standardization of electrolyzer technologies and components is gaining traction, facilitating interoperability and reducing costs. Economies of scale can drive down unit costs, as manufacturers scale up production, making electrolyzers more competitive compared to conventional hydrogen production methods.

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%

2019 to 2023 Historical Analysis vs. 2024 to 2034 Market Forecast Projections

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.

Hydrogen Electrolyzer Market Key Drivers

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.

• Many governments worldwide are implementing policies and incentives to promote the adoption of hydrogen as a clean energy carrier. Subsidies, grants, tax credits, and regulatory frameworks are being put in place to support the development of hydrogen infrastructure, including electrolyzers.
• Ongoing research and development efforts are leading to advancements in electrolyzer technology, resulting in more efficient, reliable, and cost effective systems. Innovations such as improved catalysts, membrane materials, and system designs are driving down the overall cost of electrolysis.
• Electrolyzers can be integrated with renewable energy sources such as wind and solar power to produce green hydrogen. Electrolyzers can help balance supply and demand fluctuations by converting excess electricity into hydrogen, which can be stored and used when needed, as the penetration of renewable energy increases.

Challenges in the Hydrogen Electrolyzer Market

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 lack of comprehensive hydrogen infrastructure, including storage, transportation, and distribution networks, can constrain the growth of the electrolyzer market. Without a well developed infrastructure, the market for hydrogen as an energy carrier may remain fragmented and geographically limited.
• Despite advancements, electrolyzer technology still faces certain technical challenges such as limited efficiency, durability, and reliability. Addressing these challenges requires ongoing research and development efforts, which could slow down the pace of market growth.
• Electrolyzers rely on renewable energy sources such as wind and solar power for hydrogen production. The intermittent nature of these energy sources can pose challenges in maintaining a consistent supply of electricity for electrolysis, affecting the reliability and availability of hydrogen production.

Country-wise Insights

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%

Government Support and Funding Driving the Market in the United States

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.

Net Zero Carbon Emissions Target to Accelerate Market Growth in the United Kingdom

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.

Transportation Sector Transformation Spearhead the Market in China

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.

Hydrogen Society Vision Fueling the Market in Japan

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.

Research and Innovation Investments Driving the Demand in Korea

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.

Category-wise Insights

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%

PEM Electrolyzer Claims High Demand for Hydrogen Electrolyzer

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.

Low Segment to Hold High Demand for Hydrogen Electrolyzer

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.

Competitive Landscape

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

• McPhy Energy is a leading provider of hydrogen production and storage solutions, specializing in electrolysis technology. The company offers a comprehensive portfolio of electrolyzer products tailored to various applications, including industrial, energy, and mobility sectors.
• ITM Power is a global leader in proton exchange membrane electrolyzer technology, offering a range of electrolyzer products for renewable hydrogen production, energy storage, and grid balancing applications. The electrolyzer portfolio of the company includes modular and stackable electrolyzer systems designed for both centralized and decentralized hydrogen production.

Key Coverage in the Hydrogen Electrolyzer Industry Report

• Renewable Energy Electrolyzers
• Proton Exchange Membrane (PEM) Technology
• Alkaline Electrolysis Systems
• Decentralized Hydrogen Generation
• Electrolyzer Efficiency Optimization
• Hydrogen Refueling Infrastructure
• Off-Grid Electrolysis Solutions
• Fuel Cell Technologies Market
• Hydrogen Infrastructure Market

Report Scope

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

Segmentation Analysis of the Hydrogen Electrolyzer Market

By Product Type:

• Proton Exchange Membrane Electrolyzer
• Alkaline Electrolyzer
• Solid Oxide Electrolyzer

By Capacity:

• Low (<= 150 kW)
• Medium (150kW - 1mW)
  • 150 - 400 kW
  • 400 - 750kW
  • 750 - 1mW
• High (> 1mW)
  • 1 - 10 mW
  • 10 - 20 mW
  • Above 20 mW

By Outlet Pressure:

• Low (<= 10 Bar)
• Medium (150 Bar - 40 Bar)
• High (> 40 Bar)

By End Use:

• Ammonia
• Methanol
• Refining/ Hydrocarbon
• Electronics
• Energy
• Power to Gas
• Transport
• Metal Production and Fabrication
• Pharma and Biotech
• Food and Beverages
• Glass Industry
• Other Industrial

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• The Middle East and Africa

Frequently Asked Questions

What is the anticipated value of the Hydrogen Electrolyzer market in 2024?

The hydrogen electrolyzer market is projected to reach a valuation of USD 651.6 Million in 2024.

What is the expected CAGR for the Hydrogen Electrolyzer market until 2034?

The hydrogen electrolyzer industry is set to expand by a CAGR of 24.2% through 2034.

How much valuation is projected for the Hydrogen Electrolyzer market in 2034?

The hydrogen electrolyzer market is forecast to reach USD 5,709.8 Million by 2034.

Which country is projected to lead the Hydrogen Electrolyzer market?

Japan is expected to be the top performing market, exhibiting a CAGR of 26.7% through 2034.

Which is the dominant product type in the Hydrogen Electrolyzer domain?

PEM segment is preferred, and is expected to account for a share of 52.6% in 2024.