Electrolyzers Market

[302 Pages Report] The global electrolyzers market is estimated to grow from USD 0.5 billion in 2023 to USD 57.2  billion by 2030; it is expected to record a CAGR of 97.7% during the forecast period. The shifts towards more sustainable and low carbon energy solutions and rising investments in green hydrogen production owing to the need to mitigate carbon emissions are few of the major drivers for the growth of the electrolyzers market. The surge in demand for the electrolyzer based green ammonia in the fertilizer production is expected to fuel the growth of the electrolyzers market.

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Electrolyzers Market Dynamics

Driver: Growing demand for green ammonia applications

Green ammonia, derived from renewable sources, is the product of ammonia gas production without carbon emissions. Excess renewable energy harnessed in remote locations can be effectively utilized to electrolyze water, yielding carbon-free ammonia. This environmentally friendly ammonia serves a dual purpose as a sustainable fuel for power generation and a feedstock for industrial applications. A notable example of this application is the collaboration between Yara International and Nel ASA in Norway. They partnered to generate carbon-free hydrogen using Nel's innovative water electrolyzer technology, intending to integrate this green hydrogen into Yara's existing plant in Porsgrunn for the production of green ammonia used in fertilizer manufacturing. Similarly, Fertiglobe in the UAE, a major nitrogen fertilizer platform, inaugurated the initial phase of a green ammonia plant in Ain Sokhna, Egypt. Anticipated to produce around 15,000 tons of green hydrogen annually, this facility will serve as a feedstock for up to 90,000 tons of green ammonia in Fertiglobe's existing ammonia plants.

Restraint: Intermittency of renewable energy sources

The variability inherent in renewable energy sources poses a notable constraint on the electrolyzer market, impacting its crucial role in green hydrogen production. Electrolyzers, essential for the conversion of water into hydrogen and oxygen, heavily rely on a consistent and dependable power supply derived from renewables such as solar and wind energy. However, the intermittent nature of these sources, influenced by factors like weather conditions, time of day, and geographical location, introduces challenges to the seamless operation of electrolyzer systems.This inconsistency in renewable energy availability presents a hurdle for maintaining a continuous and reliable electrolysis process, directly affecting the ability of electrolyzer installations to sustain a consistent output. Periods of low renewable energy generation can compromise the efficiency of electrolyzers, resulting in suboptimal hydrogen production rates or temporary shutdowns. Beyond impacting overall productivity, this intermittency challenge also complicates the integration of electrolyzer systems into broader energy grids.

Opportunities: Campaigns to achieve net zero and electrolysis installation targets

Achieving net zero involves striking a balance between the greenhouse gases emitted into the atmosphere and those effectively removed. Numerous countries, businesses, cities, and institutions have committed to attaining net-zero emissions. A noteworthy 70-plus countries, encompassing major contributors like China, the US, and the European Union, have established net-zero targets, encompassing approximately 76% of global emissions. In collaboration with the Science-Based Targets Initiative, over 3,000 businesses and financial entities are actively working to align their emissions reduction efforts with climate science. Moreover, more than 1,000 educational institutions, 1,000 cities, and 400 financial institutions have united in the Race to Zero initiative, pledging robust and immediate actions to cut global emissions by half by 2030.

In addition, nations have incorporated electrolyzer targets into their hydrogen strategies. With the spotlight on green hydrogen intensifying as a linchpin in the roadmap toward a net-zero future, electrolyzer technologies are gaining unprecedented attention.

Challenges: Lack of infrastructure to hinder hydrogen markets

In the absence of a robust infrastructure backbone, the potential impact of electrolyzers in propelling the transition towards clean energy is curtailed. With the global demand for green hydrogen on the rise, the inadequacies in support structures impede the seamless incorporation of electrolyzer technology into broader energy systems. Electrolytically produced hydrogen necessitates a well-established infrastructure that encompasses storage, transportation, and distribution networks to efficiently reach end-users. The absence of such an all-encompassing hydrogen infrastructure hinders the fluid adoption of electrolyzer technologies, limiting the scalability of green hydrogen production. As the electrolyzer market endeavors to achieve widespread adoption, closing the infrastructure gap becomes imperative for ensuring the seamless and effective integration of electrolyzer systems into the dynamic landscape of clean energy solutions.

Electrolyzers Market Ecosystem

In this market, prominent companies stand out as well-established and financially stable providers of electrolyzers products and services. With years of experience, these companies boast a diverse product portfolio, cutting-edge technologies, and robust global sales and marketing networks. Their proven track record in the industry positions them as reliable and trusted partners for customers seeking electrolyzers solutions. These companies have demonstrated their ability to adapt to market dynamics and consistently deliver high-quality products and services, making them leaders in meeting the demands of the energy and power sector. Prominent companies in this market include thyssenkrupp nucera (Germany) , John Cockerill (Belgium), Nel ASA (Norway), Plug Power Inc. (US), and Siemens Energy (Germany).

The anion exchange membrane (AEM) segment, by technology, is expected to be the fastest growing market during the forecast period.

This report segments the electrolyzers market based on technology into four types: alkaline electrolyzers (AE), proton exchange membrane (PEM), solid oxide electrolyzers (SOE), and anion exchange membrane (AEM). The anion exchange membrane (AEM) segment is expected to be the fastest-growing market during the forecast period. AEM is a potentially low-cost and sustainable hydrogen production technology that combines the benefits of the proton exchange membrane water electrolysis and traditional alkaline water electrolysis systems. Because of their ability to split water using platinum group metal-free catalysts, less expensive anode flow fields, and bipolar plates, anion exchange membrane water electrolyzers are regarded as the most promising sustainable hydrogen production technologies. Continuous research and development is enhancing the performance and cost-effectiveness of AEMs, propelling the market growth.

By application, mobility is expected to be the largest segment during the forecast period.

This report segments the electrolyzers market based on application into four segments: energy, mobility, industrial, and grid injection. Mobility application is expected to be the largest segment during the forecasted period. The growth is attributed with the increasing demand for clean transportation, supportive government policies, technological advancements, and growing hydrogen infrastructure. Moreover, increasing adoption of fuel cell electric vehicles and growing deployment of hydrogen fueling station worldwide is expected to fuel the growth of mobility segment in the global electrolyzers market.

Europe: The largest in the electrolyzers market.

Euorpe is expected to be the largest region in the electrolyzers market between 2023–2030. Europe has been leading the electrolyzers market. The regional electrolyzers market is experiencing growth due to the presence of leading electrolyzer providers like thyssenkrupp nucera (Germany), Nel ASA (Norway), Siemens Energy (Germany), Enapter S.r.l. (Italy), H-TEC SYSTEMS GmbH (Germany). Across Europe, numerous large-scale projects for electrolyzers and green hydrogen production are ongoing. These projects demonstrate the viability and scalability of green hydrogen technology, hence fostering the market growth. In Europe, sectors such as mobility, chemicals, and heavy industry are exploring green hydrogen as a viable alternative, hence generating demand for electrolyzers.

Key Market Players

The electrolyzers market is dominated by a few major players that have a wide regional presence. The major players in the electrolyzers market include thyssenkrupp nucera (Germany), John Cockerill (Belgium), Nel ASA (Norway), Plug Power Inc. (US), and Siemens Energy (Germany). Between 2018 and 2023, Strategies such as new product launches, contracts, agreements, partnerships, collaborations, acquisitions, and expansions are followed by these companies to capture a larger share of the electrolyzers market.

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Scope of the Report

This research report categorizes the electrolyzers market based on technology, application, power rating, and region.

On the basis of technology, the electrolyzers market has been segmented as follows:

• Alkaline Electrolyzer (AE)
• Proton Exchange Membrane (PEM)
• Solid Oxide Electrolyzer (SOE)
• Anion Exchange Membrane (AEM)

On the basis of application, the electrolyzers market has been segmented as follows:

• Energy
  • Power Generation
  • CHP
• Mobility
• Industrial
  • Chemical
  • Industries
• Grid Injection

On the basis of power rating, the electrolyzers market has been segmented as follows:

• <500 KW
• 500-2,000 KW
• >2,000 KW

Based on region, the electrolyzers market has been segmented as follows:

• Europe
• Asia Pacific
• North America
• Rest of the World

Recent Developments

• In October 2023, John Cockerill expanded its operations to the US hydrogen market by acquiring manufacturing space in Texas, for a new gigafactory. The facility is expected to produce 1GW per year of electrolyzers.
• In April 2023, Nel ASA entered into a contract with Hyd’Occ for the supply of 20 MW of alkaline electrolyzer equipment to Hyd’Occ for its venture in Port-La-Nouvelle, France. Nel has successfully completed and provided the front-end engineering and design (FEED) study for this project.
• In June 2023, thyssenkrupp nucera and Unipar collaborates to incorporate thyssenkrupp nucera electrolyzers in Unipar's plant in brazil
• In June 2022, Siemens Energy and Air Liquide formed a joint venture to produce industrial-scale renewable hydrogen electrolyzers in Europe.
• In March 2022, Enapter S.r.l announced the launch of a next generation EL 4.0 AEM electrolyzer. The electrolyzer will be utilized for mass green hydrogen production.

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