Electrolyzers Global Market Report 2024

Electrolyzers are devices designed to utilize electricity for the purpose of separating hydrogen and oxygen molecules within water through a chemical process known as electrolysis. This process effectively generates hydrogen as a byproduct. Electrolyzers are employed in processes that involve the separation of water into its constituent elements, hydrogen and oxygen.

The primary types of electrolyzers are alkaline electrolyzers, PEM (Proton Exchange Membrane) electrolyzers, and solid oxide electrolyzers. Alkaline electrolyzers typically operate within a temperature range of 80–160 °C. Electrolyzer capacities are categorized into less than 500 kW, 500 kW to 2 MW, and above 2 MW. These electrolyzers find applications in various sectors, including power plants, steel plants, electronics and photovoltaics, industrial gases, energy storage, fueling for Fuel Cell Electric Vehicles (FCEV), power-to-gas processes, and other related applications.

The electrolyzers market research report is one of a series of new reports that provides electrolyzers market statistics, including electrolyzers industry global market size, regional shares, competitors with an electrolyzers market share, detailed electrolyzers market segments, market trends and opportunities, and any further data you may need to thrive in the electrolyzers industry. This electrolyzers market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electrolyzers market size has grown strongly in recent years. It will grow from $0.33 billion in 2023 to $0.36 billion in 2024 at a compound annual growth rate (CAGR) of 9.9%. The expansion observed in the historical period can be attributed to several factors, including the growing demand for hydrogen as a clean energy carrier, government incentives and subsidies supporting the hydrogen industry, increased environmental awareness driving interest in sustainable energy solutions, the expansion of renewable energy sources, and the initiation of early adopter programs and pilot projects across various industries. These elements collectively contributed to the overall growth observed during that timeframe.

The electrolyzers market size is expected to see strong growth in the next few years. It will grow to $0.51 billion in 2028 at a compound annual growth rate (CAGR) of 9.2%. The anticipated growth in the forecast period can be attributed to several key factors, including the emergence of applications in the aviation and maritime sectors, the global expansion of hydrogen infrastructure, the integration of electrolyzers with renewable energy projects, the rise in regulations targeting carbon emissions reduction, and the increasing adoption of power-to-gas systems. Noteworthy trends expected in this period encompass the production of green hydrogen, decentralized hydrogen production, ongoing technological advancements in electrolyzer technology, the production of green ammonia, and the utilization of hydrogen in transportation. These trends are poised to significantly impact and contribute to the projected growth and evolution of the hydrogen industry in the forecasted period.

The escalating demand for fuel cell-based automotive vehicles has emerged as a significant catalyst for the growth observed in the electrolyzers market. These vehicles, powered by hydrogen through fuel cells that generate electricity, rely on electrolyzers to supply the necessary hydrogen for fuel. Notably, the sales of passenger electric vehicles, including fuel cell vehicles, experienced a remarkable 140% increase in 2021 compared to the figures from two years prior. This surge in demand for fuel cell-based automotive solutions is a primary driver propelling the expansion of the electrolyzers market.

Anticipated growth in the production of green electricity is poised to be a pivotal factor driving the electrolyzer market in the foreseeable future. Green electricity, derived from renewable and environmentally sustainable sources, has gained prominence due to its lower environmental impact and reduced greenhouse gas emissions compared to conventional fossil fuel-based power generation. Electrolyzers play a crucial role in facilitating the storage and utilization of surplus electricity generated by renewable sources, aligning with the global shift towards more eco-friendly and renewable energy solutions. In September 2022, renewable energy accounted for 24% of utility-scale electricity generation in the United States, marking a significant increase from the previous year's 21%. This surge in green electricity production is a key driver propelling the electrolyzer market forward.

A noteworthy trend influencing the electrolyzers market is the ongoing technological advancements within the industry. These advancements represent the evolution of knowledge and capabilities in technology. For instance, in November 2022, Bloom Energy Corporation, a publicly traded U.S.-based firm specializing in solid oxide fuel cells, introduced a high-volume commercial electrolyzer line at its Newark facility. This expansion doubled the company's electrolyzer production capacity to two gigatons. The innovative Bloom Electrolyzer, built on a proven solid oxide technology platform used for energy generation, stands out as an exceptionally energy-efficient solution for clean hydrogen production. This development not only streamlines the manufacturing process for larger-volume electrolyzer production but also positions Bloom Energy Corporation to better meet the growing demands of the market.

Key players in the electrolyzer market are strategically focusing on product innovations, such as the development of solid oxide electrolyzers, to better cater to the demands of their existing customer base. A solid oxide electrolyzer (SOE) is an electrochemical device that converts electrical power into chemical energy using solid oxide materials. Functioning similarly to a fuel cell in reverse, it employs electricity to drive a chemical process, generating hydrogen gas (H2) and oxygen gas (O2) from water (H2O), rather than producing power from a chemical reaction. In April 2022, Bloom Energy Corporation, a U.S.-based electrolyzer manufacturer, announced the international deployment of its high-temperature solid oxide electrolyzer. Following the commercial success of the Bloom Electrolyzer in 2021, the installation in Gumi, South Korea, marked a significant step in Bloom Energy's pursuit of a hydrogen-fueled economy. The high-temperature electrolyzer offers more efficient on-site hydrogen production compared to lower-temperature PEM and alkaline electrolyzers. Operating at high temperatures, it requires less energy to break water molecules and create hydrogen, enhancing the economics of hydrogen generation and promoting adoption.

Rolls-Royce Limited, a UK-based luxury automobile and aero-engine manufacturing company, made a strategic move in June 2022 by acquiring a 54% majority stake in Hoeller Electrolyzer GmbH, a Germany-based electrolyzer manufacturing company. The acquisition, conducted for an undisclosed amount, positions Rolls-Royce Limited to enter the hydrogen manufacturing market. This strategic investment enables Rolls-Royce Limited to offer comprehensive hydrogen solutions, contributing significantly to climate protection. Clients will benefit from Rolls-Royce Limited's solutions, allowing them to store renewable energy in the form of hydrogen for various applications, including on-demand usage, further processing, or resale. This acquisition aligns with Rolls-Royce Limited's commitment to expanding its presence in the evolving hydrogen market.

Major companies operating in the electrolyzers market include Nel ASA, Asahi Kasei Corporation, Hydrogenics, Areva H2gen, Siemens AG, McPhy Energy S.A., ITM Power PLC, Erredue SpA, Enapter, Next Hydrogen Solutions Inc., Tianjin Continental Hydrogen Equipment Co. Ltd., Toshiba Corporation, Air Liquide S.A, Plug Power Inc., H-TEC SYSTEMS GmbH, Hysata Pty. Ltd., Supercritical Solutions, SunGreenH2, Hydrogen Pro, Iberlyzer, Bloom Energy, Cummins Inc., Green Hydrogen Systems A/S, Topsoe A/S, John Cockerill, LONGi Green Energy Technology Co. Ltd., MAN Energy Solutions SE, Ohmium International Inc., Sunfire GmbH, Sungrow Power Supply Co. Ltd., thyssenkrupp nucera AG & Co KgaA, AMEA Power LLC, Air Products and Chemicals Inc.

Western Europe was the largest region in the electrolyzers market in 2023. Asia-Pacific is expected to be the fastest-growing region in the electrolyzers market during the forecast period. The regions covered in the electrolyzers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the electrolyzers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The electrolyzes market consists of sales of direct methanol fuel cell, solid oxide fuel cells (SOFC). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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