Electrolyzers Market Size 2024-2028
The electrolyzers market size is forecast to increase by USD 1,003.29 million, at a CAGR of 26.71% between 2023 and 2028. The market growth is driven by the rising demand for hydrogen production as a clean energy source and advancements in electrolyzer technology. Increasing investments in renewable energy projects and government incentives for green hydrogen are also boosting market expansion. The market is witnessing a growing demand for the growing focus on using clean hydrogen in refineries, the increasing partnerships and collaboration among market players, and the rising investments in electrolyzers. Additionally, growing industrial applications for electrolyzers in energy storage and fuel cell technologies further support market growth. The electrolyzers market report includes historic market data from 2018 - 2022.
Market Overview :
- Energy is the fastest-growing segment during the forecast year
- Energy was the largest segment and was valued at USD 101.89 million in 2018.
- APAC is is most dominating region during the forecast period
- It also includes an in-depth analysis of the upsurge in decarbonization initiatives globally, the growing focus on using clean hydrogen in refineries, and the high cost of production using electrolyzers.
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Largest-Growing Segments
Energy
The energy segment is estimated to witness significant growth during the forecast period. This segment is one of the primary applications fuelling the growth of the global market. In addition, with the increasing focus on sustainable and clean solutions, electrolyzers, including hydrogen electrolyzers, play a pivotal role in the production of green hydrogen. Furthermore, this is produced through water electrolysis, where renewable power sources such as solar, wind, or hydroelectric power are used to generate electricity to power the electrolysis process.
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Moreover, this ensures that the production of this gas is entirely free from carbon emissions, making it an environmentally friendly power carrier. In addition, the produced green hydrogen has versatile applications in the power sector. In addition, one major application is as a fuel for fuel cell systems. Fuel cell technology utilizes these gases to produce electricity through an electrochemical process, with the only byproduct being water vapor. Furthermore, excess electricity generated from renewable sources during peak production periods can be used to power electrolyzers, converting water into hydrogen. Hence, such factors are fuelling the growth of this segment, which in turn drives the market growth during the forecast period.
Regional Analysis
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APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is home to some of the fastest-growing markets in the world, such as solar and wind power. In addition, the abundant and relatively low cost of these resources in the region makes APAC an attractive market for electrolyzers, as electrolyzers can utilize renewable electricity to produce this gas. Moreover, many countries in APAC, including Japan, South Korea, China, and Australia, have announced these strategies and policies to promote the adoption of electrolyzers and green hydrogen production. Furthermore, these policies include subsidies, incentives, and targets for electrolyzer deployment and production. In addition, electrolyzers can help industries in APAC reduce their dependence on imported fossil fuels by producing this from domestically available sources such as solar and wind power. Hence, such factors are driving the market growth in APAC during the forecast period.
Electrolyzers Market Dynamics
Major Market Trends
A growing focus on using clean hydrogen in refineries is an emerging electrolyzers market trend. Refineries are under pressure to decarbonize their operations to align with global climate goals and address increasing concerns about air pollution and greenhouse gas emissions. In addition, electrolyzers enable refineries to produce this gas with zero or low emissions when powered by renewable electricity.
Moreover, by replacing fossil fuel-derived with this gas, refineries can significantly reduce their carbon footprint and environmental impact. In addition, the refining industry is one of the major users of this gas. Refineries require large quantities of this for various processes, such as hydrocracking, hydrotreating, and catalytic reforming. Hence, such factors are driving electrolyzers market growth during the forecast period.
Key Market Drivers
Upsurge in decarbonization initiatives globally is notably driving the market growth. There is a rising global focus on reducing carbon emissions, resulting in a surge in demand for these gases. In addition, electrolyzers, particularly PEM and alkaline electrolyzers, are crucial for producing this gas from renewable energy sources such as wind and solar.
Moreover, as the demand for this gas increases, there is a trend toward scaling up electrolyzer capacity. In addition, manufacturers are investing in larger electrolyzer systems to meet the needs of industries such as transportation, chemical production, and power storage. Furthermore, these gases are widely used in the transport industry owing to its numerous environmental benefits, including the elimination of urban air pollution and the reduction of overall carbon dioxide emissions into the atmosphere. Hence, such factors are driving electrolyzers market growth during the forecast period.
Significance Market Challenges
The high cost of hydrogen production using electrolyzers is a major challenge hindering market growth. This is coupled with renewables, is considered a potentially key fuel source for replacing fossil fuels across power systems. In addition, the widespread usage of this gas as a fuel could reduce emissions from the power, industrial, and transport sectors, which are the major contributors to global emissions. However, a majority of production currently is obtained from processes that emit CO2.
Moreover, owing to their non-polluting nature, electrolyzers are one of the most efficient methods of hydrogen production among all other available technologies. However, electrolysis technology incurs a higher cost than other technologies, including SMR or biomass gasification. Hence, such factors are negatively impacting electrolyzers market growth. Therefore, it is expected to hinder market growth during the forecast period.
Customer Landscape
The electrolyzers market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Major Electrolyzers Market Companies
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Asahi Kasei Corp: The company offers electrolyzers such as Electrolyzer Acilyzer, which has Catholyte side nickel, Anolyte side titanium, Cell tightening device, Catholyte terminal call frame, hydraulic cylinder, and more.
The electrolyzers market forecast research report also includes detailed analyses of the competitive landscape of the market and information about 27 market companies, including:
- Advanced Ionics
- Air Liquide SA
- ALFA LAVAL
- Bloom Energy Corp.
- Brise Chemical Pvt. Ltd.
- Cummins Inc.
- DENSO Corp.
- ELECTRIC HYDROGEN
- Enapter S.r.l.
- General Electric Co.
- ITM Power plc
- John Cockerill
- Kobe Steel Ltd.
- LONGi Green Energy Technology Co. Ltd.
- MAN Energy Solutions SE
- McPhy Energy SA
- Nel ASA
- Ohmium International Inc.
- Plug Power Inc.
- Siemens AG
- Sunfire GmbH
- Sungrow Power Supply Co. Ltd.
- Teledyne Technologies Inc.
- thyssenkrupp AG
- Topsoe AS
- Verdagy
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Segment Overview
The electrolyzers market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028.
- Application Outlook
- Energy
- Mobility
- Industrial
- Grid injection
- Technology Outlook
- Alkaline electrolyzers
- Proton exchange membrane
- Solid oxide
- Anion exchange membrane
- Region Outlook
- North America
- The U.S.
- Canada
- Europe
- The U.K.
- Germany
- France
- Rest of Europe
- APAC
- China
- India
- South America
- Chile
- Argentina
- Brazil
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- North America
Market Analyst Overview
The electrolyzers market is witnessing a surge in demand driven by the urgent need for low-carbon energy solutions and the growing focus on green hydrogen production. Electrolyzer-based green ammonia production is gaining traction, particularly in fertilizer production, as it offers a pathway to carbon-free ammonia. Market dynamics are influenced by the increasing adoption of these gas and green ammonia technologies, leveraging excess renewable energy to produce clean fuels. However, challenges persist due to the intermittency of power sources, which depend on factors like weather conditions, time of day, and geographical location.
Electrolyzer systems play a crucial role in harnessing solar and wind power to produce green hydrogen and oxygen. The market's growth depends on power availability, hydrogen production rates, and productivity. Moreover, as nations strive for net zero emissions and intensify emissions reduction efforts, electrolyzers emerge as pivotal components in mitigating greenhouse gases. Various stakeholders, including educational institutions, cities, financial institutions, and the Race to Zero initiative, are driving investment in electrolyzer infrastructure to support these markets and build resilient support structures for a sustainable future.
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Electrolyzers Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 26.71% |
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Market Growth 2024-2028 |
USD 1,003.29 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
25.05 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 41% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Advanced Ionics, Air Liquide SA, ALFA LAVAL, Asahi Kasei Corp., Bloom Energy Corp., Brise Chemical Pvt. Ltd., Cummins Inc., DENSO Corp., ELECTRIC HYDROGEN, Enapter S.r.l., General Electric Co., ITM Power plc, John Cockerill, Kobe Steel Ltd., LONGi Green Energy Technology Co. Ltd., MAN Energy Solutions SE, McPhy Energy SA, Nel ASA, Ohmium International Inc., Plug Power Inc., Siemens AG, Sunfire GmbH, Sungrow Power Supply Co. Ltd., Teledyne Technologies Inc., thyssenkrupp AG, Topsoe AS, and Verdagy |
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Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Electrolyzers Market Research Report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the market between 2023 and 2028
- Precise estimation of the market size and its contribution to the market in focus on the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the market across APAC, Europe, North America, South America, and the Middle East and Africa
- Thorough market growth and forecasting analysis of the market’s competitive landscape and detailed information about companies
- Comprehensive market research and growth analysis of factors that will challenge the growth of market companies
We can help! Our analysts can customize this electrolyzers market research report to meet your requirements.
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