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The hydrogen electrolyzers market is estimated to grow at a CAGR of 7.24% and the size of the market is forecast to increase by USD 119.34 million between 2022 and 2027. 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.
This report extensively covers market segmentation by type (alkaline electrolyzers and PEM electrolyzers), capacity (500 kW to 2 MW, less than 500 kW, and above 2 MW), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 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 integration of renewables with hydrogen electrolyzers is the key factor driving the global hydrogen electrolyzers market growth. Hydrogen electrolyzers require electricity to produce oxygen and hydrogen from water. The process of hydrogen generation reduces pollution if the electricity used for electrolysis is generated through renewables, like solar PV and wind energy. Owing to the advantage of hydrogen generation with zero emissions, many enterprises continue to replace fossil fuels such as coal or natural gas with renewables, which has emerged as a major driving factor for the growth of the market.
Asahi Kasei Corp. started the operation of its 10 Megawatt (MW) single-stack alkaline-water electrolysis system, which is integrated with a large-scale solar power generation plant. The electrolyzer plant started operations in the autumn of 2019 and became fully functional by the summer of 2020. Therefore, owing to the rising demand for clean hydrogen, the growing shift toward integrating hydrogen electrolyzers with renewables will continue to drive the market's growth during the forecast period.
The increasing number of strategic partnerships for clean hydrogen generation will lead to the growth of the global hydrogen electrolyzers. 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. 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 the demand for hydrogen electrolyzers during the forecast period.
The competition from alternative technologies for hydrogen production is a major challenge to the global hydrogen electrolyzers 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.
Global Hydrogen Electrolyzers Market Customer Landscape
Vendors 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.
Jinglihydrogen - 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 vendors, 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 alkaline electrolyzers segment will have significant on market growth during the forecast period. Alkaline hydrogen electrolyzers are required to produce hydrogen through low-temperature electrolysis. The electrolyte used in alkaline hydrogen electrolyzers is generally a solution of aqueous potassium hydroxide (KOH). 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 alkaline electrolyzers segment showed a gradual increase in market share from USD 124.04 million in 2017 and continued to grow by 2021. Alkaline hydrogen electrolyzers can operate efficiently at a temperature range of 77°F to 212°F (20°C-100°C) and at pressures of up to 30 bar. In an alkaline hydrogen electrolyzer, the reaction takes place between the two electrodes in the presence of a liquid solution consisting of water and the electrolyte. When electricity is passed between the two electrodes, H2 and OH ions are formed at the cathode. The OH ions travel through the electrolyte solution toward the anode, where they combine and lose the extra electron to form O2, water, and electrons. The clean hydrogen generated through this process is then used for various applications in different industries with the aim of reducing carbon emissions. Non-noble metal catalysts are used in alkaline hydrogen electrolyzers. Thus, alkaline hydrogen electrolyzers are priced much lower than PEM hydrogen electrolyzers
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North America is projected to contribute 41% by 2027. 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 hydrogen electrolyzers market in North America and will remain market leaders, as the adoption of hydrogen electrolyzers are considerably low in other countries in the region. Favourable 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.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Hydrogen Electrolyzers Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.24% |
Market growth 2023-2027 |
USD 119.34 million |
Market structure |
Fragmented |
YoY growth (%) |
5.1 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 41% |
Key countries |
US, Canada, Japan, Germany, and Sweden |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Asahi Kasei Corp., Cockerill JingL Hydrogen, Cummins Inc., ELTRA GmbH, Enapter Srl, Frames Energy Systems BV, Giner Inc., Hitachi Zosen Corp., Idroenergy Spa, ITM Power plc, Kobe Steel Ltd.McPhy Energy SA, Nel ASA, Shandong Saikesaisi Hydrogen Energy Co., and Teledyne Technologies Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the 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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