Electrolyzer Market Research Report Information by Technology (Proton Exchange Membrane (PEM) Electrolyzer, Alkaline Electrolyzer , Solid Oxide Electrolyzer Cell, Anion Exchange Membrane (AEM) Electrolyzer), by Power Rating(<500KW, 500-2000 KW, >2,000 KV), by Application(Hydrogen Production, Energy Storage, Ammonia Production, Methanol Production, Metallurgical Processes, Others) and Region (North America, Europe, Asia-Pacific, South America, Middle East & Africa) - Forecast till 2035

Electrolyzers Market Summary

As per Market Research Future Analysis, the Global Electrolyzers Market was valued at 1.36 USD Billion in 2024 and is projected to grow to 4.82 USD Billion by 2035, with a CAGR of 14.4% from 2025 to 2035. The market is driven by rising investments in green hydrogen production, government initiatives, and technological advancements in electrolyzer efficiency. The increasing demand for sustainable energy solutions is propelling the adoption of electrolyzers across various industries, including transportation, manufacturing, and energy storage.

Key Market Trends & Highlights

Key trends driving the Electrolyzers Market include advancements in technology and increasing environmental awareness.

• Electrolyzers Market Size in 2024: 1.36 USD Billion; Expected to reach 4.82 USD Billion by 2035.
• Alkaline Electrolyzers projected to grow from 0.85 USD Billion in 2024 to 14.5 USD Billion by 2035.
• Proton Exchange Membrane Electrolyzers expected to rise from 0.7 USD Billion in 2024 to 11.0 USD Billion by 2035.
• Government initiatives are crucial, with the EU aiming for 1 million tons of renewable hydrogen by 2024.

Market Size & Forecast

2024 Market Size: USD 1.36 Billion

2025 Market Size: USD 1.69 Billion

2035 Market Size: USD 4.82 Billion

CAGR (2025-2035): 14.4%

Largest Regional Market Share in 2024: Europe.

Major Players

Thyssenkrupp AG, ITM Power, American Electric Power, Siemens Energy, Hydrogenics, Linde plc, McPhy Energy, Air Products and Chemicals, Plug Power, Nel ASA, Ballard Power Systems, Green Hydrogen Systems, H2B2 Electrolysis Technologies, Ceres Media, Enapter.

The push towards reducing carbon emission, increase in use of electric vehicles and increasing use in metallurgical processes are driving the growth of the Electrolyzer Market.

As per the Analyst at MRFR, the electrolyzer market is witnessing substantial growth owing to its rising usage across various applications. The increasing push towards reducing carbon emission and rising use of electric vehicles are some of the key factors driving the growth of electrolyzer market. 

Further, growing application of electrolyzer in energy storage and increasing green hydrogen projects are creating significant opportunities for the electrolyzer market, which will further positively influence its market demand in the estimated timeframe. However, fluctuation in the prices of raw material may hamper the market growth of the electrolyzer.

FIGURE 1: ELECTROLYZER MARKET VALUE (2019-2035) USD BILLION

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Electrolyzer Market Opportunity

Announcement of Large Capacity Green Hydrogen Projects

Renewable hydrogen is rapidly emerging as a key enabling technology with significant potential to decarbonize various sectors, in line with global efforts to meet net zero emission targets. Renewable hydrogen is hydrogen produced using renewable energy sources via electrolysis, a process that splits water molecules into hydrogen and oxygen. This hydrogen can be stored, transported, or used on-site as a clean and flexible fuel for a wide range of applications. 

Thus, its demand and usage are witnessing significant growth. The increasing hydrogen projects all over the world is creating high growth opportunities for the electrolyzer market. In 2022, more than 112 million tonnes of new low-carbon hydrogen capacity was announced, mainly in the US, Denmark, Egypt, Canada and Portugal. 

Hydrogen strategies are being developed and implemented worldwide, for instance, the Chinese government has laid out a medium- and long-term development plan for hydrogen (2021-2035), with the goals of bringing 50,000 fuel cell electric vehicles on the road by 2025; producing green hydrogen using renewables to reach 100,000 to 200,000 tonnes annually by 2025; and using clean hydrogen in energy storage, electricity generation and industry. 

Further, in 2021, India announced a National Hydrogen Energy Mission to develop a roadmap for using hydrogen as an energy source; the aims are to create a global hub for the manufacturing of hydrogen technologies; to facilitate demand creation in industries such as fertilizers, steel and petrochemicals; and to demonstrate the use of hydrogen in transport applications.

Electrolyzer Market Segment Insights

Global Electrolyzer by Technology Insights

Based on Technology, the Electrolyzer Market is Segmented into:Proton Exchange Membrane (PEM) Electrolyzer, Alkaline Electrolyzer, Solid Oxide Electrolyzer, Anion Exchange Membrane (AEM) Electrolyzer. The Alkaline Electrolyzer segment dominated the global market in 2024, while the Solid Oxide Electrolyzer Cell segment is projected to be the fastest–growing segment during the forecast period. Alkaline Electrolyzers are the most mature and widely used electrolyzer technology. They operate using a liquid alkaline electrolyte, typically potassium hydroxide (KOH) or sodium hydroxide (NaOH), to facilitate the electrolysis of water. 

This technology is characterized by its simplicity, reliability, and long operational life. Alkaline electrolyzers are cost-effective, especially for large-scale hydrogen production, though they tend to be less efficient than PEM electrolyzers in terms of response time and hydrogen purity. These electrolyzers are commonly used in industrial settings where hydrogen demand is high, such as for ammonia production, petroleum refining, and chemical manufacturing.

Global Electrolyzer by Power Rating Insights

Based on power rating, the electrolyser market is segmented into: <500KW, 500-2000 KW, >2,000 KV. The 500-2000 KW segment dominated the global market in 2024, while >2,000 KV segment is projected to be the fastest–growing segment during the forecast period. This mid-range power category is the most popular for industrial-scale hydrogen production. Electrolyzer in this range are capable of producing significant amounts of hydrogen, typically for medium-sized projects such as those in chemical industries, large-scale renewable energy storage, or regional transportation hubs. 

They serve as the ideal solution for scaling up hydrogen production without requiring massive infrastructure investments. In addition, they are often integrated into renewable energy plants (wind and solar) to produce hydrogen via electrolysis when excess power is available. With higher capacity than <500 kW systems, these Electrolyzer can offer more competitive economics while maintaining relatively smaller footprints compared to the largest systems, making them attractive for both developers and operators in a variety of sectors.

FIGURE 2: ELECTROLYZER MARKET SHARE BY POWER RATING 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Global Electrolyzer by Application Insights

Based on applications, the electrolysers market is segmented into: Hydrogen Production, Energy Storage, Ammonia Production, Methanol Production, Metallurgical Processes, Others. The Hydrogen Production segment dominated the global market in 2024, while the Energy Storage segment is projected to be the fastest–growing segment during the forecast period. Electrolysers are extensively used in the production of hydrogen, which is a key component in the transition to clean energy. 

In the process of electrolysis, water is split into hydrogen and oxygen using electricity. This method is highly attractive because it allows the production of "green hydrogen" when powered by renewable energy sources, helping to reduce carbon emissions. Hydrogen is vital for various applications, including fuel cells, industrial processes, and as a clean energy source for transportation and power generation. The growing focus on decarbonization is driving the demand for Electrolyzer in hydrogen production.

Global Electrolyzer Regional Insights

Based on the Region, the global Electrolyzer is segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. The Europe dominated the global market in 2024, while the Asia Pacific is projected to be the fastest–growing segment during the forecast period. Major demand factors driving the Europe market are Europe is a leader in the electrolyzer market, with several countries investing heavily in hydrogen technologies as part of their transition to a low-carbon economy. 

Countries like Germany, France, and the Netherlands are leading the way, with robust government policies, ambitious hydrogen roadmaps, and strategic investments. The European Union's Green Deal and the Hydrogen Strategy for a climate-neutral Europe are key drivers, creating demand for electrolyzers, particularly for green hydrogen production. Additionally, Europe’s mature renewable energy sector and its emphasis on energy security contribute to the strong growth of the electrolyzer market.

FIGURE 3: ELECTROLYZER MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Mexico, Germany, France, UK, Spain, Italy, Rest of Europe, China, India, Japan, South Korea, Rest of Asia Pacific, Brazil, Argentina, Rest of South America, Saudi Arabia, South Africa, Rest of Middle East & Africa and others.

Global Electrolyzer Key Market Players & Competitive Insights

Many global, regional, and local vendors characterize the Electrolyzer Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.

The major competitors in the market are Nel Asa, Plug Power Inc, John Cockerill, ENAPTER S.R.L, Cummins Inc, ITM Power Plc, MCPHY Energy S.A, Longi Hydrogen Technology Co., Ltd, HYGREEN Energy, HYDROGENPRO are among others. The Electrolyzer Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Electrolyzer Market include

• Nel Asa
• Plug Power Inc
• John Cockerill
• ENAPTER S.R.L
• Cummins Inc
• ITM Power Plc
• MCPHY Energy S.A
• Longi Hydrogen Technology Co., Ltd
• HYGREEN Energy
• HYDROGENPRO

Electrolyzers Market Developments

• August 2025: Mitsubishi Chemical Holdings Corporation unveiled a next-generation high-durability membrane for PEM electrolyzers, enabling longer operational life and reduced maintenance costs for large-scale hydrogen projects. Mitsubishi Chemical Holdings Corporation announced a new high-durability membrane for PEM electrolyzers, designed to extend operational life and reduce maintenance costs in large-scale hydrogen production applications.
• July 2025: BASF SE introduced a novel catalyst coating for alkaline electrolyzers, improving hydrogen output efficiency by up to 15% while lowering operational costs for industrial plants. BASF SE launched a new catalyst coating for alkaline electrolyzers, which increases hydrogen output efficiency by up to 15% and reduces operational costs for industrial users.
• June 2025: Arkema S.A. announced advancements in high-performance ionomer materials designed to enhance conductivity and water management in PEM electrolyzers, boosting overall system efficiency. Arkema S.A. revealed new high-performance ionomer materials that improve conductivity and water management in PEM electrolyzers, enhancing system efficiency.
• May 2025: Hitachi Chemical Co., Ltd. launched an automated stack assembly technology that cuts production time by 30%, enabling faster deployment of large-scale electrolyzer systems. Hitachi Chemical Co., Ltd. introduced automated stack assembly technology for electrolyzers, reducing production time by 30% and supporting faster deployment of large-scale systems.
• Early 2025: BASF SE completed the acquisition of a specialty catalyst manufacturer in early 2025 to strengthen its hydrogen electrolyzer component supply capabilities. BASF SE acquired a specialty catalyst manufacturer to enhance its supply capabilities for hydrogen electrolyzer components.
• April 2025: Asens Hydrogen Energy delivered one 1,000 Nm³/H alkaline electrolyzer to Australia last week, while Xibei Hydrogen Energy delivered one 1,000 Nm³/H unit to a green hydrogen project in Jilin. Asens Hydrogen Energy shipped a 1,000 Nm³/H alkaline electrolyzer to Australia, and Xibei Hydrogen Energy delivered a similar unit to a green hydrogen project in Jilin, China.
• April 2025: HydroVolta delivered one 50 Nm³/h PEM electrolyzer unit to Europe last week. HydroVolta completed delivery of a 50 Nm³/h PEM electrolyzer to a European customer.
• April 2025: The bid winner for the third batch of auxiliary equipment (hydrogen production system) procurement project of the 2x1,000MW ultra-supercritical unit project of Shaanxi Coal Xinyang was announced. The bid winner is Beijing Power Equipment Group, with the winning product being one 1,000 Nm³ alkaline electrolyzer. Beijing Power Equipment Group won the bid to supply a 1,000 Nm³ alkaline electrolyzer for Shaanxi Coal Xinyang's 2x1,000MW ultra-supercritical unit project.
• April 2025: LONGi Hydrogen recently signed a supply agreement with Saudi Arabia's NEOM for the world's largest single green hydrogen project, confirming at least one 2,000 Nm³ alkaline electrolyzer. LONGi Hydrogen signed a supply agreement with NEOM in Saudi Arabia to provide at least one 2,000 Nm³ alkaline electrolyzer for the world's largest single green hydrogen project.

Electrolyzer Market Segmentation

Electrolyzer by Technology Outlook

• Proton Exchange Membrane (PEM) Electrolyzer
• Alkaline Electrolyzer
• Solid Oxide Electrolyzer Cell
• Anion Exchange Membrane (AEM) Electrolyzer

Electrolyzer by Power Rating Outlook

• <500KW
• 500-2000 KW
• >2,000 KV

Electrolyzer by Application Outlook

• Hydrogen Production
• Energy Storage
• Ammonia Production
• Methanol Production
• Metallurgical Processes
• Others

Electrolyzer Regional Outlook

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • Rest of MEA

Report Attribute/Metric	Details
Market Size 2024	USD 1.36 Billion
Market Size 2025	USD 1.69 Billion
Market Size 2035	USD 4.82 Billion
Compound Annual Growth Rate (CAGR)	14.4% (2025-2035)
Base Year	2024
Forecast Period	2025-2035
Historical Data	2019-2023
Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Technology, By Power Rating, By Application
Geographies Covered	North America, Europe, Asia Pacific, South America, Middle East & Africa
Countries Covered	The US, Canada, Mexico, Germany, France, UK, Spain, Italy, Rest of Europe, China, India, Japan, South Korea, Rest of Asia Pacific, Brazil, Argentina, Rest of South America, Saudi Arabia, South Africa, Rest of Middle East & Africa
Key Companies Profiled	Nel Asa, Plug Power Inc, John Cockerill, ENAPTER S.R.L, Cummins Inc, ITM Power Plc, MCPHY Energy S.A, Longi Hydrogen Technology Co., Ltd, HYGREEN Energy, HYDROGENPRO
Key Market Opportunities	·         Announcement of large capacity green hydrogen projects ·         Growing application in energy storage
Key Market Dynamics	·         Push towards reducing carbon emission ·         Increase in use of electric vehicles