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The hydrogen electrolyzers market is estimated to increase by USD 94.9 million and grow at a CAGR of 5.65% between 2023 and 2028. The growth of the market depends on several factors, including the integration of renewables with hydrogen electrolyzers, the growing adoption of fuel cell-powered vehicles, and the rising demand for hydrogen electrolyzers from the industrial sector. The market is undergoing significant growth, largely fueled by the incorporation of renewables into electrolyzer systems. This integration plays a crucial role in expanding the market by utilizing electricity sourced from renewable sources such as solar and wind to generate hydrogen and oxygen from water. This approach offers substantial environmental benefits, notably reducing pollution compared to conventional methods reliant on fossil fuels. With enterprises progressively shifting from coal and natural gas to renewable sources, the demand for clean hydrogen is escalating, driving further growth in the market.
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The 500KW-2MW segment will have significant on market growth during the forecast period. Medium-sized electrolyzers, with a capacity of 500 kW to 2 MW, are particularly popular due to their versatility and efficiency. These electrolyzers are often deployed on-site, enabling businesses to produce both electricity and hydrogen directly at their facilities. The electrolysis process involves passing an electric current through water, splitting it into hydrogen and oxygen gases at the anode and cathode, respectively. Membrane technology plays a crucial role in the electrolysis process, allowing the separation of hydrogen and oxygen gases. However, other electrolytes, such as sodium chloride (NaCl), sulfuric acid (H2SO4), and sodium hydroxide (NaOH), are also frequently used. The typical concentration of the electrolyte solution is around one-third of water, which helps to maintain a balance between corrosion resistance and ionic conductivity.
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The 500KW-2MW segment showed a gradual increase in market share from USD 101.90 million in 2018 and continued to grow by 2022. The hydrogen generated through electrolysis can be utilized as industrial energy or as feedstock for producing ammonia, methanol, and other chemicals. Moreover, it can contribute to supply chain resilience by reducing reliance on fossil fuels and enhancing the utilization of renewable electricity. The carbon footprint of hydrogen production can be significantly reduced by using renewable energy sources, making it an attractive option for businesses aiming to achieve net-zero emissions.
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North America is projected to contribute 40% by 2028. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US and Canada were the key leading countries in the market in North America and will remain market leaders, as the adoption are considerably low in other countries in the region. Favorable government initiatives and incentives are the major factors boosting the growth of the market in the US. In the transportation sector, the US has been a key country for fuel-cell electric vehicles (FCEVs), fuel-cell electric buses, and material-handling vehicles. Hence, such factors are driving the market in North America during the forecast period.
A Key Solution for Carbon-free Hydrogen Production Hydrogen electrolyzers play a crucial role in the production of carbon-free hydrogen through the process of electrolysis. This technology involves the use of anode and cathode, separated by a membrane, to electrolyze water and produce hydrogen. Renewable sources, such as wind or solar energy, are used to power the electrolysis process, making it an essential component of sustainable energy. The demand for hydrogen is increasing due to its potential as a sustainable fuel in various sectors, including transportation, industrial operations, power generation, and energy storage. Hydrogen is an energy carrier that can be produced through the electrolysis of water using renewable energy sources, providing a carbon-free alternative to fossil fuels. Electrolyzer technology has gained significant attention in recent years across steel plants due to its potential to produce green ammonia, a carbon-free alternative to traditional nitrogen fertilizer produced from fossil fuels. Fertiglobe, a leading global producer of nitrogen and methanol, is one of the companies investing in hydrogen production through electrolysis. High-quality hydrogen produced through hydrogen electrolyzers is essential for various applications, including industrial processes, power generation, and transportation. The market for hydrogen electrolyzers is expected to grow significantly in the coming years due to the increasing demand for sustainable energy and the need to reduce carbon emissions. Electrolyzer systems are a key solution for producing green hydrogen, contributing to a more sustainable energy future. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The Market is experiencing substantial growth, primarily propelled by the integration of renewables with electrolyzer systems. This integration is a pivotal factor driving market expansion, as it leverages electricity from renewable sources like solar and wind to produce hydrogen and oxygen from water. This process significantly reduces pollution, especially when compared to traditional methods reliant on fossil fuels.
Moreover, as enterprises increasingly replace coal and natural gas with renewables, the demand for clean hydrogen continues to soar, further boosting market growth. Notably, initiatives like Asahi Kasei Corp.'s 10 Megawatt alkaline-water electrolysis system, integrated with a large-scale solar power generation plant, exemplify this trend. With the rising focus on clean energy sources and sustainable solutions for transportation, industrial processes, and energy storage, the Market is poised for continuous expansion in the foreseeable future. Hence, such factors are driving the market during the forecast period.
The increasing number of strategic partnerships for clean hydrogen generation will lead to the growth of the global market. Clean hydrogen generation has become popular amidst the growing concerns over emissions and the imposition of different regional guidelines to address these concerns. These policies focus on increasing the adoption of clean hydrogen generation and have led to the formation of several strategic partnerships among the stakeholders, including end-users and vendors, for the development of clean hydrogen infrastructure.
Moreover, investments, contracts, and agreements have become a clear necessity to create a sustainable, end-to-end ecosystem, maintain market positions, and offer a strong product portfolio to buyers. These strategies will result in the growth of clean hydrogen generation technologies to create a sustainable ecosystem, which will subsequently lead to growth in demand during the forecast period.
The competition from alternative technologies for hydrogen production is a major challenge to the global market growth. Major thermochemical processes include natural gas reforming/SMR, and coal gasification. SMR (steam-methane reforming) is one of the most popular technologies for hydrogen generation and uses high-temperature steam to produce hydrogen from natural gas, which is a methane source. However, these technologies have the potential for sustainable hydrogen production along with low emissions.
Hydrogen can be generated with the help of many technologies, which include electrolysis processes, thermochemical processes, photolytic processes, and biological processes. The electrolysis-based hydrogen generation process faces stiff competition from other alternative processes, especially thermochemical processes, as electrolysis only accounts for one-twenty-fifth of the overall sources of hydrogen generation. Therefore, the presence of mature and cost-efficient alternative hydrogen production technologies may hinder the growth of the market during the forecast period.
The 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.
Market Customer Landscape
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.
Cockerill JingL Hydrogen- The company offers hydrogen electrolyzers such as Ultra-high purity hydrogen generators. Also, this segment focuses on designing, developing, manufacturing, and sales of hydrogen production equipment for various end-user industries.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Demand for Carbon-free Hydrogen through Electrolysis Hydrogen Electrolyzers play a pivotal role in the production of carbon-free hydrogen through the process of Electrolysis. This technology converts water into hydrogen and oxygen using an electrical current, making it a crucial component in the transition towards a sustainable fuel economy. The Anode and Cathode, essential parts of Electrolyze devices, work in tandem with a Membrane to facilitate the separation of hydrogen and oxygen. The hydrogen produced is carbon-free when sourced from Renewable Energy, reducing the Carbon footprint and contributing to the Hydrogen economy.
Hydrogen fuel cells, a significant application of hydrogen, convert hydrogen back into electricity, powering various sectors like Energy, Electronics, automotive and Fuel cell vehicles. Alkaline Electrolyzer and Solid Oxide Electrolyzer are two primary types of electrolyzers used for hydrogen production. The Outlet Pressure and the type of hydrogen produced (Ammonia, Methanol, or refined hydrogen) can vary based on the specific application and the availability of Renewable Electricity. The market is witnessing growth due to the increasing demand for sustainable fuel and the need for Supply chain resilience. Renewable sources like Solar Energy and Wind Energy are essential for the production of Green Hydrogen, further reducing the carbon footprint and contributing to the Net zero goal. Companies like Fertiglobe are investing in Hydrogen production using renewable energy, leading to the growth of the Electrolyzer market. In conclusion, Hydrogen Electrolyzers are a vital technology for the production of carbon-free hydrogen, contributing to the Hydrogen economy and the transition towards a sustainable energy future.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.65% |
Market growth 2024-2028 |
USD 94.9 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.24 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 40% |
Key countries |
US, Germany, Sweden, Japan, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Asahi Kasei Corp., Cockerill JingLi Hydrogen, Cummins Inc., ELTRA GmbH, Enapter S.r.l., Frames Energy Systems BV, Gaztransport and Technigaz SA, Giner Inc., Hitachi Zosen Corp., Idroenergy Spa, ITM Power PLC, Kobe Steel Ltd., McPhy Energy SA, Nel ASA, Shandong Saikesaisi Hydrogen Energy Co., Ltd., Siemens AG, SwissHydrogen SA, Teledyne Technologies Inc., TianJin Mainland Hydrogen Equipment, and Yangzhou Zhongdian hydrogen production |
Market dynamics |
Parent market analysis, Market forecasting , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Capacity
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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