Market Research Future (MRFR) has published a cooked research report on the “Electrolyzers Market” that contains information from 2018 to 2032. The Electrolyzers Market is estimated to register a CAGR of 80.80% during the forecast period of 2023 to 2032.
MRFR recognizes the following companies as the key players in the global Electrolyzers Market— Nel Hydrogen (Norway), Asahi Kasei (Japan), Hydrogenics (Canada), Shandong Saikesaisi Hydrogen Energy Co., Ltd. (China), Teledyne Energy Systems (U.S.), Siemens (Germany), Kobelco Eco-Solutions (U.S.), Green Hydrogen Systems (Denmark), Next Hydrogen (Canada), H-Tec Systems (Germany)
The global Electrolyzers Market is accounted to register a CAGR of 80.80% during the forecast period and is estimated to reach USD 206.43 billion by 2032.
Positive government regulations supporting hydrogen infrastructure development, combined with its expanding role as an industrial resource, will drive industry growth. Ongoing technological advancements and reduced production costs will further encourage the adoption of hydrogen.
The global electrolyzers market has been segmented based on type, and application.
Based on type, the market is segmented into Traditional Alkaline Electrolyzer and PEM Electrolyzer. Traditional Alkaline Electrolyzer is expected to be the largest segment during the forecast period. The significant market share of this segment can be primarily attributed to the increasing industrial demand for green hydrogen and collaborative efforts among market players to fulfill the global green hydrogen demand.
Based on Application, the Electrolyzers Market has been segmented into Power Plants, Steel Plant, Electronics and Photovoltaics, Industrial Gases, Energy Storage or Fueling for FCEVs, Power to Gas, and Others. Power Plants are expected to be the largest segment during the forecast period. The market for this specific segment has seen significant growth due to increased power demand in various industries like steel production, photovoltaics, electronics, and industrial gases. Additionally, the production of electric fuel cells has surged, driven by the rapid adoption of electric vehicles over traditional fuel-powered ones. This segment involves the integration of hydrogen with power generation equipment to yield higher energy output.
Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Electrolyzers Market Outlook
The global Electrolyzers Market, based on region, has been divided into North America, Europe, Asia-Pacific, and Rest of the World. North America consists of the US and Canada. The European electrolyzers Market comprises of Germany, France, the UK, Italy, Spain, and the rest of Europe. The Electrolyzers Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World Electrolyzers Market comprises of Middle East, Africa, and Latin America.
The largest market share for Electrolyzers Market was maintained by the North American regional sector. North America has played a significant role in driving market growth by making substantial investments in refining, exploration, and production activities, leading to a substantial increase in the demand for hydrogen gas. Key industry leaders are anticipating substantial growth in green hydrogen production. As per the World Economic Forum, the United States represents a significant portion, accounting for 13% of the worldwide demand for green hydrogen. Notably, both Canada and the United States have made substantial financial commitments to advance clean hydrogen projects. In 2021, the US federal government allocated $8 billion in funding to the Department of Energy (DOE) to bolster clean hydrogen initiatives. Similarly, Canada has pledged a comparable amount to support its Net Zero Accelerator Initiative, aimed at achieving net-zero emissions by 2050. These investments underscore the growing importance and potential of the clean hydrogen sector. As green hydrogen gains prominence, the demand for high-capacity electrolyzers will surge to facilitate large-scale production. In 2022, the United States introduced crucial incentives through the Inflation Reduction Act (IRA), including funding credits for manufacturing projects. These IRA provisions are beginning to yield positive results, with a rising number of announcements regarding the establishment of new electrolyzer manufacturing facilities in the country.
Moreover, the Europe market has been persistently growing over the forecast period. Substantial investments by key market players in the European region have significantly contributed to the market's revenue growth. The presence of adequate infrastructure has provided substantial support to market expansion. In 2022, the European Union witnessed a noteworthy installation of electrolyzers of approximately 80 MW, more than double the installations in the previous year. Additionally, in July 2022, the Commission approved EUR 5.4 billion in funding to endorse its inaugural hydrogen-related Important Project of Common European Interest (IPCEI) named Hy2Tech. This IPCEI focuses on hydrogen technologies, including incentives for electrolyzer manufacturers.
Asia-Pacific dominates the market, primarily due to its strong emphasis on regulatory policies aimed at advancing hydrogen infrastructure and the expanding use of electrolyzers across various industrial applications. In the Asia-Pacific region, notably in China and India, two of the world's most populous nations with substantial energy demands, the hydrogen gas market is witnessing remarkable growth. China, in particular, has taken a dominant position in the global hydrogen market, driven by a series of strategic initiatives. One significant development occurred in March 2022 when the Chinese government unveiled its inaugural long-term hydrogen plan, which spans from 2021 to 2035. This comprehensive program outlines a phased strategy aimed at nurturing a thriving domestic hydrogen industry while concurrently achieving mastery of critical technologies and manufacturing capabilities. These investments are likely to trickle down to the electrolyzer market as governments incentivize the development and adoption of electrolysis technologies. Additionally, government-led initiatives addressing climate change, substantial investments in clean energy technologies, and the region's increasing energy demand collectively foster significant market growth.
Furthermore, the rest of the world's Electrolyzers Market is divided into the Middle East, Africa, and Latin America. These regions are experiencing industrial growth and urbanization, which is leading to increased energy consumption. Industries are looking for reliable and sustainable energy sources, and hydrogen produced using electrolyzers can meet these requirements.
Key Findings of the Study