The global electrolyser market reached a value of D 461.85 Million in 2024. The market is further estimated to grow at a CAGR of 27.30% in the forecast period of 2025-2034 to reach a value of around USD 5.16 billion by 2034.
The initiatives taken by manufacturers towards offering PEM electrolysers with high delivery pressure, which is suitable for on-site storage, and the availability of mega-Watt scale PEM are aiding the electrolyser market growth. Over the forecast period, substantial research to improve the PEM water electrolysis components for more cost-effectiveness, coupled with the rapid developments in PEM water electrolysis technology including high performance electrocatalysts, is likely to stimulate the market growth.
The rising energy consumption worldwide is resulting in the emerging need for clean energy sources like hydrogen, which, in turn, is increasing the use of hydrogen production methods like water electrolysis. There is a rising application of hydrogen produced from electrolysers in hydrogen fuel cells to generate electricity with zero emissions and reduce the dependency on fossil fuels. Additionally, the rapid adoption of electric vehicles to decarbonise the economy is resulting in the utilisation of hydrogen to generate electricity, thereby benefitting the market. The availability of different electrolysers of varied sizes and functions that can meet the needs of small industrial plants to large-scale centralised production facilities is contributing to the market expansion. The increasing government efforts to support the development of a green hydrogen economy are also favouring the electrolyser market growth. For instance, in September 2021, the Government of India decided to develop a production-linked incentive (PLI) scheme to bolster the indigenous manufacturing of electrolysers and meet the target of establishing 10 gigawatts of domestic manufacturing capacity for green hydrogen. Over the forecast period, the expanding research activities to develop improved electrolyser technology are expected to aid the market growth.
Rising Demand for PEM Electrolysers for Hydrogen Production to Aid the Market Growth
Based on product, the increasing demand for proton exchange membrane (PEM) electrolysers, owing to their exceptional benefits, is supporting the market growth. It offers several advantages over other electrolyser systems, such as fast response, high pressure, and pure hydrogen production. Additionally, proton exchange membrane provides benefits, such as lower gas permeability, high proton conductivity, lower thickness, and high-pressure operations. It offers compact design, high current density, small footprint, and can operate under lower temperatures. Further, the ease with which PEM electrolysis plants can be balanced makes them more attractive for a range of industrial applications.The initiatives taken by manufacturers towards offering PEM electrolysers with high delivery pressure, which is suitable for on-site storage, and the availability of mega-Watt scale PEM are aiding the electrolyser market growth. Over the forecast period, substantial research to improve the PEM water electrolysis components for more cost-effectiveness, coupled with the rapid developments in PEM water electrolysis technology including high performance electrocatalysts, is likely to stimulate the market growth.
Market Segmentation
The electrolyser is a system that uses electricity to break water into hydrogen and oxygen molecules. The hydrogen gas obtained through electrolysis is either compressed or liquefied for use as a green energy source, and the oxygen is released into the atmosphere, or is used to carry out industrial processes or for medical applications. The components of an electrolyser include a cathode, an anode, a membrane, pumps, vents, storage tanks, and a separator, among others.Market Breakup by Product
- Alkaline Electrolyser
- Solid Oxide Electrolyser
- PEM Electrolyser
Market Breakup by Capacity
- Less than 500 kW
- 500 kW - 2 MW
- Above 2 MW
Market Breakup by Application
- Transportation
- Power Generation
- Industry Feedstock
- Industry Energy
- Building Heating and Power
- Others
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
The rising energy consumption worldwide is resulting in the emerging need for clean energy sources like hydrogen, which, in turn, is increasing the use of hydrogen production methods like water electrolysis. There is a rising application of hydrogen produced from electrolysers in hydrogen fuel cells to generate electricity with zero emissions and reduce the dependency on fossil fuels. Additionally, the rapid adoption of electric vehicles to decarbonise the economy is resulting in the utilisation of hydrogen to generate electricity, thereby benefitting the market. The availability of different electrolysers of varied sizes and functions that can meet the needs of small industrial plants to large-scale centralised production facilities is contributing to the market expansion. The increasing government efforts to support the development of a green hydrogen economy are also favouring the electrolyser market growth. For instance, in September 2021, the Government of India decided to develop a production-linked incentive (PLI) scheme to bolster the indigenous manufacturing of electrolysers and meet the target of establishing 10 gigawatts of domestic manufacturing capacity for green hydrogen. Over the forecast period, the expanding research activities to develop improved electrolyser technology are expected to aid the market growth.
Key Players in the Global Market for Electrolyser
The report gives a detailed analysis of the following key players in the global electrolyser market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:- Cummins, Inc.
- Nel ASA
- Siemens AG
- McPhy Energy S.A.
- ITM Power PLC
- Others
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Global Electrolyser Market Analysis
6 North America Electrolyser Market Analysis
7 Europe Electrolyser Market Analysis
8 Asia Pacific Electrolyser Market Analysis
9 Latin America Electrolyser Market Analysis
10 Middle East and Africa Electrolyser Market Analysis
11 Market Dynamics
12 Competitive Landscape
Companies Mentioned
- Cummins, Inc.
- Nel ASA
- Siemens AG
- McPhy Energy S.A.
- ITM Power PLC
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 165 |
| Published | July 2025 |
| Regions Covered | Global |
| No. of Companies Mentioned | 5 |
