Europe Soft Tissue Repair Market Outlook, 2030

The Asia-Pacific electrolyzer market is emerging as the world’s most dynamic hub for green hydrogen production, shaped by a unique blend of industrial cultures where large-scale state-led planning in countries like China, Japan, and South Korea coexists with agile private-sector innovation in regions such as Australia, India, and Southeast Asia. This cultural mix fosters rapid deployment but also results in fragmented value chains driven by differing domestic policy goals, manufacturing capacities, and export commitments. In February 2024, Toshiba Energy Systems and Solutions Corporation ("Toshiba") and Bekaert formed a global alliance that encompasses a strategic cooperation agreement and a manufacturing technology license for Membrane Electrode Assemblies (MEA), an essential element for Proton Exchange Membrane (PEM) electrolyzers, which will assist in speeding up progress toward green hydrogen production. This agreement solidifies the recent partnership to utilize the technological, manufacturing, and commercial capabilities of both companies since the signing of a Memorandum of Understanding (MoU) in September 2023. Rapid urbanization in the region, with growing megacities and vast industrial corridors, is significantly boosting hydrogen demand by concentrating energy-intensive sectors such as refining, ammonia production, steelmaking, heavy transportation, and backup power solutions in close proximity, thereby reducing logistics costs and enabling the establishment of large-scale, city-adjacent electrolyzer facilities. In July 2025, Petronas entered into a strategic partnership with national utility Tenaga Nasional Berhad (TNB) and state-owned investor Terengganu Inc. to launch a floating solar-powered green hydrogen project in eastern Malaysia. However, the market must navigate a complex policy and regulatory landscape where national hydrogen strategies vary widely in definitions of “green” hydrogen, incentive structures, and safety or permitting requirements, creating uncertainty for investors and complicating cross-border trade. Certification frameworks for carbon intensity, renewable energy guarantees of origin, and equipment standards are developing but remain inconsistent across the region, presenting both opportunities for first movers in certified exports and challenges in the form of higher compliance costs for multi-jurisdiction projects.

According to the research report "Asia-Pacific Electrolyzer Market Outlook, 2030", the Asia-Pacific Electrolyzer market is anticipated to grow at more than 27.49% CAGR from 2025 to 2030. Asia-Pacific is uniquely positioned to dominate green hydrogen exports, especially to Europe, where demand is rising for clean energy imports. The establishment of large-scale hydrogen valleys and industrial hubs in China’s Inner Mongolia, India’s Gujarat, and Australia’s Western regions illustrates the market’s shift toward integrated supply chains that combine production, storage, and end-use applications. For example, China aims to have 1 million fuel cell vehicles on the road by 2030, while Japan plans to establish a "hydrogen society" by 2050. These goals are driving substantial investments in electrolyzer technology and manufacturing capacity. The rapid decline in electrolyzer costs due to advancements in manufacturing processes, economies of scale, and increased competition among key players, making green hydrogen production more economically viable. In September 2024, The Japanese technology firm Asahi Kasei entered into a Memorandum of Understanding (MOU) with De Nora, an Italian multinational corporation recognized for its leadership in sustainable technologies, as well as a producer of electrolyzer cells, small-scale electrolyzers, and various components needed for the green hydrogen production process via water electrolysis. The MOU pertains to the collaborative development, investigation, assessment, and marketing of small-scale pressurized alkaline water electrolyzers. Supporting events, such as the Tokyo 2020 Olympics showcasing hydrogen-powered buses and the deployment of fuel-cell trains in Japan, have amplified public and investor confidence in hydrogen technologies. Ohmium International's Indian subsidiary was chosen as a PEM electrolyzer partner for NTPC Renewable Energy Limited (NTPC REL), a subsidiary of India's NTPC. Ohmium's electrolyzers will be used in up to 400 MW projects across various sectors, with the agreement lasting until May 2025.

Market Drivers

• National Hydrogen Strategies and Decarbonization Goals: Countries across the Asia-Pacific particularly China, Japan, South Korea, Australia, and India are actively implementing national hydrogen strategies to achieve carbon neutrality targets. Japan and South Korea are pioneering hydrogen roadmaps for mobility and industrial use, while China is investing heavily in domestic electrolyzer manufacturing to support both domestic projects and exports. Australia is positioning itself as a green hydrogen export leader, targeting markets in Japan and South Korea through renewable-powered electrolyzer mega-projects. These government-led initiatives provide clear policy direction, funding support, and technology R&D investment, creating strong momentum for electrolyzer adoption.
• Growing Industrial and Export Demand for Green Hydrogen: Asia-Pacific has some of the world’s largest industrial hydrogen consumers, especially in refining, ammonia, methanol, and steel production. With increasing pressure to cut emissions, industries are exploring green hydrogen as a cleaner alternative to fossil fuel-based hydrogen. Additionally, export demand is rising as Japan, South Korea, and Singapore plan to import large volumes of green hydrogen and ammonia for power generation and transport. This export-driven market dynamic is accelerating the deployment of electrolyzers in resource-rich countries like Australia, India, and China.

Market Challenges

• High Production Costs and Renewable Energy Price Variability: While Asia-Pacific offers abundant renewable energy potential, the cost of electrolyzer-based hydrogen production remains high compared to fossil fuel-based hydrogen. In some countries, renewable energy tariffs are still relatively expensive or unstable due to seasonal variations, making large-scale hydrogen projects less competitive without subsidies. High capital costs for advanced electrolyzer technologies, particularly PEM and SOEC, also create financial barriers for widespread adoption.
• Infrastructure and Supply Chain Limitations: Many Asia-Pacific countries lack adequate hydrogen storage, transportation, and refueling infrastructure, slowing the transition from pilot projects to large-scale commercialization. In addition, the electrolyzer manufacturing supply chain though rapidly expanding in China is uneven across the region. This creates logistical bottlenecks and increases costs for countries dependent on imports of critical components like membranes, catalysts, and specialized power electronics.

Market Trends

• Rise of Mega-Scale Renewable-Integrated Electrolyzer Projects: Asia-Pacific is seeing a surge in gigawatt-scale projects that integrate electrolyzers with vast renewable energy resources. Examples include Australia’s Asian Renewable Energy Hub and Western Green Energy Hub, India’s green hydrogen projects in Gujarat and Rajasthan, and China’s Inner Mongolia wind-solar-hydrogen hubs. These projects are designed for both domestic use and large-scale exports, with the goal of achieving cost parity with fossil fuels by the early 2030s.
• Increasing Regional and International Hydrogen Trade Partnerships: A clear trend in the Asia-Pacific is the establishment of long-term hydrogen trade agreements. Japan and South Korea are signing MOUs with Australia, the Middle East, and Southeast Asian nations to secure future hydrogen and ammonia imports. Similarly, China is exploring export partnerships while scaling domestic electrolyzer manufacturing to dominate the global supply chain. These collaborations are expected to create a tightly connected regional hydrogen market over the next decade.

Anion Exchange Membrane (AEM) technology is moderately growing in the Asia-Pacific electrolyzer industry due to its balance of cost-efficiency and improving performance, attracting gradual adoption in emerging hydrogen markets.

The moderate growth of Anion Exchange Membrane (AEM) electrolyzers in the Asia-Pacific region can be attributed to a combination of technological advancements, economic factors, and regional energy transition strategies. AEM technology represents a relatively new class of electrolyzers that combines some advantages of both alkaline and proton exchange membrane (PEM) systems, offering lower capital costs than PEM electrolyzers while maintaining higher current densities and better efficiency than traditional alkaline systems. In Asia-Pacific, countries such as Japan, South Korea, China, and Australia are increasingly investing in green hydrogen projects as part of broader decarbonization and renewable energy initiatives, creating a conducive environment for AEM adoption. The technology’s ability to operate with less expensive catalysts compared to PEM systems is particularly appealing in markets where cost reduction is crucial to make hydrogen production economically viable. Moreover, AEM electrolyzers can utilize deionized water or less purified feedwater, reducing operational complexity and lowering maintenance requirements, which is an important factor for industrial players and utilities in emerging markets. Despite these advantages, the technology is still relatively young, and challenges such as membrane stability, long-term durability, and scale-up limitations have tempered the rate of adoption, resulting in moderate rather than rapid growth. In addition, the region’s electrolyzer market is currently dominated by well-established alkaline and PEM technologies, which have extensive track records, mature supply chains, and strong industrial backing, making it more challenging for AEM systems to achieve a rapid market share increase.

Industrial Gases application is moderately growing in the Asia-Pacific electrolyzer industry due to increasing industrial demand for cleaner hydrogen while adoption is restrained by cost and infrastructure limitations.

The moderate growth of the Industrial Gases application type in the Asia-Pacific electrolyzer industry is driven by the rising need for hydrogen and other gases in various industrial sectors, coupled with gradual decarbonization initiatives across the region. Industrial gases, including hydrogen, oxygen, and nitrogen, are essential inputs for a wide range of industries such as chemicals, metallurgy, electronics, and food processing. In Asia-Pacific, rapid industrialization in countries like China, India, Japan, South Korea, and Australia has fueled demand for these gases, and electrolyzer-based production provides a cleaner and potentially more sustainable alternative to conventional steam methane reforming or air separation methods. Governments and industrial players are increasingly focusing on reducing carbon emissions, which positions electrolyzer-produced hydrogen as an environmentally friendly solution to meet industrial requirements while supporting sustainability targets. However, the adoption rate is moderate rather than rapid due to several limiting factors. High upfront capital costs of electrolyzer systems, limited infrastructure for hydrogen storage and distribution, and technological uncertainties surrounding long-term operational stability pose challenges for widespread deployment in industrial applications. Moreover, most industrial gas producers already have established supply chains and conventional production facilities, which slows the shift toward electrolyzer-based systems. Despite these constraints, pilot projects, demonstration plants, and public-private partnerships across Asia-Pacific are gradually proving the viability of using electrolyzers for industrial gas production. Advances in electrolyzer efficiency, reductions in renewable electricity costs, and the growing availability of policy incentives are supporting incremental adoption.

China leads the Asia-Pacific electrolyzer industry due to its massive manufacturing capacity, strong government backing, and aggressive renewable energy expansion enabling cost-effective large-scale hydrogen production.

China’s dominance in the Asia-Pacific electrolyzer industry stems from its unparalleled manufacturing scale, strategic policy support, and rapid growth in renewable energy deployment, which together create an ideal environment for large-scale, low-cost hydrogen production. The Chinese government has positioned hydrogen as a critical pillar in its carbon neutrality roadmap, with policies such as the Hydrogen Industry Development Plan (2021-2035) outlining clear targets for electrolyzer deployment, hydrogen fueling infrastructure, and industrial adoption. Backed by substantial state funding, tax incentives, and provincial-level subsidies, Chinese electrolyzer projects are rapidly moving from pilot to commercial scale. The country’s manufacturing strength already evident in its global leadership in solar panels, wind turbines, and batteries extends to electrolyzers, where domestic companies like LONGi Hydrogen, PERIC, and Sungrow Hydrogen are producing large volumes at competitive prices, significantly lowering the cost per megawatt compared to global peers. This cost advantage not only fuels domestic adoption but also positions China as a leading exporter of electrolyzer systems to emerging markets in Asia, Africa, and Latin America. On the energy side, China is deploying massive renewable projects, especially in Inner Mongolia, Xinjiang, and Gansu, where abundant wind and solar resources are being paired directly with gigawatt-scale hydrogen production hubs. These renewable-rich regions, combined with China’s expanding ultra-high-voltage (UHV) transmission grid, enable efficient delivery of clean electricity to electrolyzer facilities nationwide.

• In October 2024, AM Green secured the largest electrolyzer order in India with John Cockerill Hydrogen for one of the globe's largest green ammonia initiatives.
• In October 2024, GreenH Electrolysis, a partnership between H2B2 Electrolysis Technologies and GR Promoter Group, officially launched its inaugural 1 MW Proton Exchange Membrane (PEM) electrolyzer at its production facility located in Jhajjar, Haryana. The 1 MW PEM electrolyzer is planned to be set up at the hydrogen production and refueling site in Jind, Haryana, aiding India’s initial hydrogen-powered train as part of the Indian Railways’ “Hydrogen for Heritage” program.
• In May 2024, The Japanese technology company Asahi Kasei opened a new hydrogen pilot plant in Kawasaki, Japan. Operation start of this commercial-scale facility was in March 2024. The trial operation of four 0.8 MW modules is another milestone toward the realization of a commercial multi-module 100 MW-class alkaline water electrolysis system for green hydrogen production. Construction and operation of the pilot plant are supported by the Green Innovation Fund2 of Japan’s New Energy and Industrial Technology Development Organization (NEDO).
• In June 2023, India's Ministry of New and Renewable Energy (MNRE) unveiled guidelines for the implementation of incentive schemes targeting green hydrogen and electrolyzer production. These schemes collectively offer substantial incentives amounting to INR 17,490 crore (USD 2 billion) over a five-year period, spanning from FY 2024-25 to FY 2029-30.

This product will be delivered within 2 business days.