Hydrogen Electrolyzer Market Research Report Information By Product Type (Proton Exchange Membrane, Alkaline Electrolyzer, Solid Oxide Electrolyzer), By Capacity (Upto 150 kw, 151 to 500 kw, 500 to 1000 kw, Above 1000 kw), By Outlet Pressure (Upto 10 Bar, 11-40 Bar, More Than 40 Bar), By End-use (Methanol, Refining, Electronics, Power Gas, Transport, Food and Beverage, Others (Fabrication, Metal Production, etc.)), By Distribution Channel (Direct Sales, Indirect Sales), And By Region (North America, Europe, Asia-Pacific, And Rest of The Wor

Hydrogen Electrolyzer Market Overview:

Hydrogen Electrolyzer Market Size was valued at USD 0.41 Billion in 2022. The Hydrogen Electrolyzer Market industry is projected to grow from USD 0.51 Billion in 2023 to USD 3.11 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 25.20% during the forecast period (2023 - 2032). Increasing demand for green energy, stringent regulations associated with a high carbon footprint, and surging investment to develop the industrial sector globally are expected to be significant market drivers for the Hydrogen Electrolyzer Market.

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

Hydrogen Electrolyzer Market Trends

• 
  

  Increasing investments in power generation and growing demand for hydrogen in the fuel cell-based automobile sector are driving the market growth

  
  

Market CAGR for hydrogen electrolyzer is being driven by the Increasing Investments in Power Generation and Growing Demand for Hydrogen in Fuel Cell-based Automobile Sector. In the Asia Pacific region, countries like India, Singapore, and Malaysia are actively investing in hydrogen production and storage technologies. Hydrogen is increasingly utilized in the power generation and transportation sectors. Notably, China has initiated the development of a hydrogen city in Wuhan, injecting approximately USD 290 million into the project. The government is prioritizing technological advancements in large-scale on-site hydrogen production for environmentally friendly power storage, grid balancing, power-to-gas, and the establishment of Hydrogen Refueling Stations (HRS). Major industry players are facilitating organizations to enhance their market presence, as exemplified by Plug Power's acquisition of United Hydrogen and GINER ELX in June 2020.

The growing demand for fuel cell-based vehicles, including electric vehicles and buses, has been evident in North America and Asia Pacific. Additionally, China, Japan, and South Korea have made significant commitments to reduce reliance on gasoline fuel by investing in fuel cell-based vehicle programs. Recent studies indicate that switching from gasoline vehicles to Fuel Cell Electric Vehicles (FCEVs) in the transportation industry could achieve a 72% reduction in total greenhouse gas emissions. FCEVs are becoming increasingly technologically and economically viable compared to conventional vehicles, and these factors are expected to contribute to the growth of the electrolyzer market in the coming years. As a result, it is anticipated that throughout the projection period, demand for the Hydrogen Electrolyzer Market will increase due to the Increasing Investments in Power Generation and the Growing Demand for Hydrogen in the Fuel Cell-based Automobile Sector. Thus, driving the Hydrogen Electrolyzer Market revenue.

Hydrogen Electrolyzer Market Segment Insights:

Hydrogen Electrolyzer Market Product Type Insights

The Hydrogen Electrolyzer Market segmentation, based on Product Type includes Proton Exchange Membrane, Alkaline Electrolyzer, and Solid Oxide Electrolyzer. The proton exchange membrane segment dominated the market, accounting for 58% of market revenue (0.23 Billion). The proton exchange membrane is expected to be the leading segment, primarily driven by the positive attributes of the product. These include its compact design, rapid startup, flexibility in input fuel, electrolyte solidity, and lightweight nature. These features contribute significantly to the growth of the hydrogen electrolyzer business.

Figure 1: Hydrogen Electrolyzer Market, by Product Type, 2022 & 2032 (USD Billion)

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

Hydrogen Electrolyzer Market Capacity Insights

The Hydrogen Electrolyzer Market segmentation, based on Capacity includes Upto 150 kw, 151 to 500 kw, 500 to 1000 kw, and Above 1000 kw. The above 1000 kw segment dominated the market, accounting for 58% of market revenue. Larger electrolysis systems play a pivotal role in expediting the widespread use of cost-effective, zero-emission hydrogen. Additionally, they are deemed an appealing solution for storing surplus renewable energy efficiently. In instances of energy overproduction, such as when solar generation exceeds grid demand, this excess energy can be directed into an electrolyzer to produce and store hydrogen for extended durations. Subsequently, when energy demand arises, the stored hydrogen can be utilized in a fuel cell, undergoing reverse electrolysis to generate usable electricity.

Hydrogen Electrolyzer Market Outlet Pressure Insights

The Hydrogen Electrolyzer Market segmentation, based on Outlet Pressure includes Upto 10 Bars, 11-40 bars, and More than 40 bars. The 11-40 bar segment dominated the market, accounting for 60% of market revenue. Elevated-pressure hydrogen facilitates more efficient transport and storage. The 11-40 Bar range is commonly regarded as an optimal level for both compressing and storing hydrogen, representing a practical solution for industries and applications with specific requirements for pressurized hydrogen.

Hydrogen Electrolyzer Market End-use Insights

The Hydrogen Electrolyzer Market segmentation, based on End-use includes up to methanol, Refining, Electronics, Power Gas, Transport, Food and beverage, and Others (Fabrication, Metal Production, etc.). The power gas segment dominated the market, accounting for 60% of market revenue. Power-to-gas (P2G) provides valuable support to anaerobic digestion processes, enhancing the breakdown of microorganisms into organic matter for fuel production. Through the addition of hydrogen, known as methanation, the process significantly elevates the conversion rates of carbon dioxide (CO2) to biomethane, increasing efficiency from 60% to 95%. The hydrogen generated using PEM water electrolysis technology plays a crucial role in converting excess electricity from renewable sources into storable methane, enabling its utilization within the conventional natural gas grid. This application aligns with business objectives focused on optimizing energy processes and sustainability practices.

Hydrogen Electrolyzer Market Distribution Channel Insights

The Hydrogen Electrolyzer Market segmentation, based on Distribution Channel includes Direct Sales and Indirect Sales. The direct sales segment dominated the market, accounting for 60% of market revenue. Industries desiring greater control over their hydrogen supply chain and opting for on-site hydrogen production often favor direct procurement. On-site hydrogen storage finds applications in central hydrogen production facilities, transport terminals, and end-use sites. Contemporary storage alternatives encompass insulated liquid tanks and gaseous storage tanks. This strategy enables the seamless integration of electrolyzers into facilities, facilitating efficient and on-demand hydrogen generation

Hydrogen Electrolyzer Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Hydrogen Electrolyzer market in North America can be attributed to several key factors. North America has become the leading market for electrolyzers due to the demand across various applications, particularly in manufacturing processes. The extensive use of hydrogen in the power industry within this region contributes significantly to substantial revenue generation over time. The robust manufacturing infrastructure in North America actively supports market growth. The region has played a substantial role in market expansion, driven by substantial investments in refining, exploration, and production, leading to increased demand for hydrogen gas on a large scale.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Hydrogen Electrolyzer Market Share By Region 2022 (USD Billion)

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

Europe's Hydrogen Electrolyzer Market accounts for the second-largest market share as the regional electrolyzers market is on an upward trajectory, propelled by prominent electrolyzer providers such as thyssenkrupp nucera (Germany), Nel ASA (Norway), Siemens Energy (Germany), Enapter S.r.l. (Italy), and H-TEC SYSTEMS GmbH (Germany). Across Europe, several large-scale projects focused on electrolyzers and green hydrogen production are underway, showcasing the practicality and scalability of green hydrogen technology and thereby fueling market expansion. Notably, sectors such as mobility, chemicals, and heavy industry in Europe are actively considering green hydrogen as a viable alternative, leading to increased demand for electrolyzers. Further, the German Hydrogen Electrolyzer Market held the largest market share, and the UK Hydrogen Electrolyzer Market was the fastest-growing market in the European region

The Asia-Pacific Hydrogen Electrolyzer Market is expected to grow at the fastest CAGR from 2023 to 2032. China presents robust competition to Europe, as national hydrogen strategies gain momentum globally, with the Asia Pacific region following suit. The imperative to mitigate greenhouse gas emissions has spurred numerous countries into action for economic decarbonization. China, in particular, is vigorously propelling hydrogen and fuel cell development, poised to surpass the expansion rates observed in Europe and the United States. The focus in China is notably on hydrogen buses and trucks. In 2020, China's share of global electrolyzer capacity for dedicated hydrogen production was under 10%, mainly in small demonstration projects. However, by 2022, China's installed capacity had surged to over 200 MW, constituting 30% of global capacity, inclusive of the world's largest electrolysis project at 150 MW. Local authorities in China are actively implementing plans to further boost the sector. Moreover, China’s Hydrogen Electrolyzer Market held the largest market share, and the Indian Hydrogen Electrolyzer Market was the fastest-growing market in the Asia-Pacific region.

Hydrogen Electrolyzer Market Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Hydrogen Electrolyzer market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Hydrogen Electrolyzer industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Hydrogen Electrolyzer industry to benefit clients and increase the market sector. In recent years, the Hydrogen Electrolyzer industry has offered some of the most significant advantages to the advancement of sustainable energy solutions and the reduction of carbon emissions. Major players in the Hydrogen Electrolyzer Market, including Siemens Energy, Nel Hydrogen, Bloom Energy, Giner Inc., Plug Power, McPhy, Pure Energy Centre, Idroenergy, Star Gate Hydrogen, and Enapter are attempting to increase market demand by investing in research and development operations.

Siemens Energy AG, an energy technology company, engages in the development, manufacturing, sale, and installation of multi-megawatt wind turbines, gas turbines, gas engines, steam turbines, and comprehensive systems. The company provides a diverse range of products and services covering power generation, renewable energy, power transmission, power distribution, automation, smart grid, compression and expansion, and mechanical drives. Siemens Energy is also involved in solutions related to the production, conversion, and transportation of primary fuels, as well as oil and gas operations. Integrated hydrogen power plants are among its operational endeavors. The company caters to various industries, including air separation, building complexes, ceramics, chemicals and pharmaceuticals, food and beverage, manufacturing, marine, metals, power, oil and gas, pulp and paper, sugar, and textiles. Siemens Energy, headquartered in Munich, Bavaria, Germany, unveiled plans on March 31, 2022, to commence hydrogen electrolyzer production at a manufacturing plant in Huttenstrasse, Berlin. The establishment of new production lines for the electrolyzers is currently in progress within a 2,000-square-meter facility.

Bloom Energy Corp (Bloom Energy) operates as a renewable energy company, specializing in a solid oxide fuel cell-based power generation platform. The company's technology is capable of generating both electricity and hydrogen. Bloom Energy's diverse applications encompass biogas energy, electrolyzers, hydrogen fuel cells, certified gas, microgrids, heat capture, carbon capture, marine fuel cells, and primary power. The utilization of fuel cell energy technology enables the production of air and fuel from electricity generated by solar panels. Additionally, Bloom Energy is engaged in the development of solid oxide fuel cell technology, converting fuel into electricity through an electrochemical process. The company caters to various sectors, including technology, logistics, manufacturing, and real estate. Bloom Energy collaborates with partners such as SK Ecoplant Co., Ltd., AECOM, and ENGIE Insight Services Inc. It is headquartered in San Jose, California, in the United States.

Key companies in the Hydrogen Electrolyzer Market include

• Siemens Energy


• Nel Hydrogen


• Bloom Energy


• Giner Inc.


• Plug Power


• McPhy


• Pure Energy Centre


• Idroenergy


• Star Gate Hydrogen


• Enapter

Hydrogen Electrolyzer Industry Developments

January 2023:On January 25, 2023, NewHydrogen, a U.S.-based company, unveiled its prototype for a green hydrogen generator. The prototype is expected to serve as a foundation for the integration of additional innovations in electrolyzer components by the company.

June 2022:On June 28, 2022, Rolls-Royce outlined its intention to manufacture mtu hydrogen electrolyzers. This entry into the hydrogen electrolyzer market involves acquiring a 54% stake in Hoeller Electrolyzer, a specialist in electrolysis stacks.

Hydrogen Electrolyzer Market Segmentation:

Hydrogen Electrolyzer Market Product Type Outlook

• Proton Exchange Membrane


• Alkaline Electrolyzer


• Solid Oxide Electrolyzer

Hydrogen Electrolyzer Market Capacity Outlook

• Upto 150 kw


• 151 to 500 kW


• 500 to 1000 kW


• Above 1000 kw

Hydrogen Electrolyzer Market Outlet Pressure Outlook

• Upto 10 Bar


• 11-40 Bar


• More than 40 Bar

Hydrogen Electrolyzer Market End-use Outlook

• Methanol


• Refining


• Electronics


• Power Gas


• Transport


• Food and beverage


• Others (Fabrication, Metal Production, etc.)

Hydrogen Electrolyzer Market Distribution Channel Outlook

• Direct Sales


• Indirect Sales

Hydrogen Electrolyzer Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America