“Global Electrolyzers Market to reach a market value of USD 39.5 Billion by 2030 growing at a CAGR of 55%”
The Global Electrolyzers Market size is expected to reach $39.5 billion by 2030, rising at a market growth of 55% CAGR during the forecast period.
The increasing focus on decarbonization and the transition to clean energy sources has propelled the growth of the energy industry segment in the market. These devices, particularly those powered by renewable energy sources such as wind and solar, offer a sustainable pathway for hydrogen production. Consequently, the industry energy segment woulc acquire nearly 20% of the total market share. Green hydrogen, produced through electrolysis using renewable electricity, has gained attention as a key element in achieving carbon neutrality. Thus, these factors will lead to increased growth in the segment.
The imperative nature of reducing greenhouse gas emissions to mitigate climate change is becoming more evident. Hydrogen is essential for decarbonizing the power generation, transportation, and industry sectors. Moreover, these devices can be strategically located near renewable energy sources, allowing for decentralized production of green hydrogen. This decentralized approach facilitates utilizing locally available renewable resources, minimizing transmission and distribution losses associated with transporting energy over long distances. Thus, these factors will lead to increased demand in the market. Additionally, Governments may provide direct financial support through subsidies and grants to companies involved in developing and deploying electrolyzer projects. These subsidies help offset some initial capital costs associated with installing and operating electrolysis systems, making the technology more economically viable. In addition, some governments implement feed-in tariffs, guaranteeing a fixed payment rate for each unit of green hydrogen produced through electrolysis. This provides a predictable revenue stream for project developers and investors, reducing financial uncertainties associated with fluctuating market conditions. Hence, owing to these aspects, the market will witness increased growth in the coming years.
However, the significant upfront capital investment creates financial barriers for potential adopters, including industries, governments, and businesses looking to integrate these devices into their operations. The high costs may deter potential buyers from investing in electrolyzer systems, especially in regions where financial resources are limited or where competing technologies with lower upfront costs are available. Additionally, other hydrogen production methods or energy storage technologies may present lower upfront costs compared to these devices. In a competitive market, businesses and industries may opt for alternative solutions that offer a more favorable economic proposition. Thus, these aspects can restrain the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Based on technology, the market is segmented into alkaline electrolyzer, proton exchange membrane electrolyzer, solid oxide (SOE) electrolyzer, and anion exchange membrane (AEM) electrolyzer. In 2022, the anion exchange membrane (AEM) electrolyzer segment garnered a significant revenue share in the market. Anion exchange membranes are commonly associated with alkaline electrolyzers. Alkaline electrolyzers using AEM technology have gained interest due to their potential advantages, including high efficiency, low cost, and suitability for various applications, including large-scale industrial hydrogen production. Thus, these factors will assist in the expansion of the segment.
Based on capacity, the market is divided into less than 500 kW, 500 kW to 2 MW, and above 2 MW. In 2022, the above 2 MW segment witnessed a substantial revenue share in the market. These devices with a capacity greater than 2 MW are often deployed in industrial-scale applications. Industries with high energy requirements, such as chemical manufacturing, steel production, and large-scale hydrogen production, increasingly adopt larger electrolyzer units to meet their substantial energy demands. Therefore, these aspects will pose lucrative growth prospects for the segment.
On the basis of application, the market is divided into power generation, industry feedstock, transportation, building heat & power, industry energy, and others. In 2022, the transportation segment witnessed a substantial revenue share in the market. The transportation sector has been exploring hydrogen as a clean and sustainable fuel alternative, and these devices play a crucial role in producing green hydrogen. These devices split water into hydrogen and oxygen using an electrical current, and this green hydrogen can be utilized in fuel cells to power various forms of transportation, including vehicles, buses, trains, and even maritime vessels. Owing to these aspects, the segment will witness increased demand in the coming years.
Free Valuable Insights: Global Electrolyzers Market size to reach USD 39.5 Billion by 2030
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Europe segment acquired the highest revenue share in the market. Several European countries have formulated national hydrogen strategies to accelerate the deployment of hydrogen technologies. These strategies often include targets, incentives, and policies to support the growth of the market and the production of green hydrogen. These factors will lead to increased demand in the segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 1.3 Billion |
| Market size forecast in 2030 | USD 39.5 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 55% from 2023 to 2030 |
| Number of Pages | 242 |
| Number of Tables | 388 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Capacity, Technology, Application, Region |
| Country scope |
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| Companies Included | Asahi Kasei Corporation, John Cockerill S.A., Nel ASA, Plug Power, Inc., Siemens AG, Enapter AG (BluGreen Company Limited), Cummins, Inc., ITM Power PLC, McPhy Energy S.A. and Topsoe A/S |
By Capacity
By Technology
By Application
By Geography
The Market size is projected to reach USD 39.5 billion by 2030.
Growing interest in green hydrogen production are driving the Market in coming years, however, High upfront capital costs for electrolyzer systems restraints the growth of the Market.
Asahi Kasei Corporation, John Cockerill S.A., Nel ASA, Plug Power, Inc., Siemens AG, Enapter AG (BluGreen Company Limited), Cummins, Inc., ITM Power PLC, McPhy Energy S.A. and Topsoe A/S
The expected CAGR of this Market is 55% from 2023 to 2030.
The Alkaline Electrolyzer segment led the Market by Technology in 2022; there by, achieving a market value of $23 Billion by 2030.
The Europe region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; there by, achieving a market value of $13.5 Billion by 2030.
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