Hydrogen Electrolyzer Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global hydrogen electrolyzer market size was estimated at a value of USD 2.21 Billion in 2024 and is expected to grow at a CAGR of 28.70% in the forecast period of 2025-2034 to reach a value of approximately USD 27.55 Billion by 2034. The development of clean energy systems and their increasing adoption across various end-use sectors is driving the market growth.

Key Insights and Trends

• Latin America is expected to grow at a 33.0% CAGR over the forecast period, due to supportive policies, large-scale hydrogen pilot projects, and renewable capacity expansions.
• The United States hydrogen electrolyzer market accounted for 12.6% of the North American market share.
• By type, solid oxide electrolyzer exhibits a CAGR of 32.7% over the forecast period, due to high efficiency and integration with waste heat recovery systems.
• By end use, energy is expected to register 31.6% CAGR over the forecast period.

Market Size & Forecast

• Market Size in 2024: USD 2.21 Billion
• Projected Market Size in 2034: USD 27.55 Billion
• CAGR from 2025 to 2034: 28.70%
• Fastest-Developing Regional Market: Latin America

Increasing Demand for Hydrogen Electrolyzers from Various End Use Sectors to Boost the Industry Growth

The wide applications of hydrogen across various industries, the development of clean energy systems and their increasing adoption across various end-use sectors is driving the industry growth. Moreover, in geographies where hydrogen transportation from long distances is not feasible, or the cost of hydrogen production from natural gas is comparatively higher, end-users are increasingly adopting small scale electrolyzers for on-site hydrogen generation. On-site generation of hydrogen provides benefits like overall reduction in transportation costs, reduced carbon dioxide emissions during transportation, and reduction in storage cost, thus, providing various environmental and economic advantages.

Currently, North America and Europe occupy significant shares in the global market for hydrogen electrolyzer. The growing demand for energy and the presence of stringent environmental regulations in these regions are supporting the growth of the market. The United States, along with other countries in western Europe, is witnessing a robust adoption of these electrolyzers. Meanwhile, the Asia-Pacific is expected to witness a healthy growth over the forecast period due to the rising environmental concern and the growing utilisation of hydrogen across various end-use industries, such as glass, pharmaceuticals and biotechnology, electronics, and metal fabrication, among others.

Hydrogen Electrolyzer: Market Segmentation

Electrolysis is the process in which electricity is utilised to disintegrate water into hydrogen and oxygen. This process is carried out in a unit called an electrolyzer. Electrolyzers are available in various sizes, ranging from small, appliance-size equipment to large-scale, central production facilities for hydrogen production that could be connected directly to renewable or other non-greenhouse-gas-emitting forms of electricity production. Electrolysis is seen as a promising option for hydrogen production from renewable resources.

Based on type, the market is divided into:

• PEM Electrolyzer
• Alkaline Water Electrolyzer
• Solid Oxide Electrolyzer

Based on end use, the industry can be segmented into:

• Chemicals
• Automobile
• Energy
• Glass
• Metal
• Others

The regional markets for the product include:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Rising Environmental Concern and Growing R&D Activities to Bolster the Hydrogen Electrolyzer Industry Growth

The rising environmental concern and the growing need to adopt sustainable approach are driving the demand for hydrogen electrolyzers globally. Hydrogen production through the process of electrolysis can provide opportunities for synergy with variable power generation, which is characteristic of some renewable energy technologies. Therefore, the growing focus to reduce the dependence on non-renewable resources and the increasing installation of renewable energy technologies are aiding the industry. Further, the growing investments by the key players to enhance the efficiency of electrolyzers will further propel the industry growth. The key areas of R&D include increasing the efficiency and operating life of the electrolyzer system as a whole, reducing costs (especially material costs), and deploying pressurised systems to prevent the need for subsequent compression of the H2 produced. Thus, the rapid technological advancements and growing R&D activities are expected to boost the demand for hydrogen electrolyzers over the forecast period.

Key Industry Players in the Global Hydrogen Electrolyzer Market

The report gives a detailed analysis of the following key players in the global hydrogen electrolyzer market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• Enapter S.r.l.
• MVS Engineering Pvt. Ltd
• Pure Energy Centre
• Cummins Inc.
• ITM Power plc
• McPhy Energy S.A
• Others

The comprehensive report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.