Electrolyzers Market

The report "Electrolyzers Market, by Technology (ALK, AEM, PEM, SOEC), Power Rating (<500 kW, 500–2,000 kW, above 2,000 kW), Application (Energy, Mobility, Industrial, Grid Injection), Component (Stack, Balance of Plant), and Region - Global Forecast to 2031" The electrolyzers market is projected to reach USD 14.48 billion by 2031 from USD 2.08 billion in 2025, registering a CAGR of 38.2%.

Browse 220 market data Tables and 55 Figures spread through 200 Pages and in-depth TOC on "Electrolyzers Market, by Technology (ALK, AEM, PEM, SOEC), Power Rating (<500 kW, 500–2,000 kW, above 2,000 kW), Application (Energy, Mobility, Industrial, Grid Injection), Component (Stack, Balance of Plant), and Region - Global Forecast to 2031"
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An electrolyzer is a system that uses electricity to split water into hydrogen and oxygen, enabling the production of clean hydrogen for industrial, mobility, and energy applications. It consists of a stack, where the electrochemical reaction occurs, and a balance of plant that includes power electronics, gas handling, cooling, and control systems. Electrolyzers come in different technologies, including alkaline, PEM, solid oxide, and AEM, each tailored for specific scales and operating conditions. Modern electrolyzers offer high efficiency, modular design, and digital monitoring capabilities, enabling real-time performance tracking, flexible load operation, and seamless integration with renewable energy sources for reliable green hydrogen generation.

By technology, alkaline electrolyzers accounted for largest market share in 2024. 

Based on technology, the electrolyzers market is segmented into alkaline, proton exchange membrane (PEM), solid oxide, and anion exchange membrane (AEM). The alkaline segment, by technology, held the largest market share in 2024 due to its technological maturity, lower cost, and suitability for large industrial hydrogen production. Demand for PEM electrolyzers is growing rapidly due to their ability to respond quickly to variable renewable energy sources and produce high-purity hydrogen. Solid oxide electrolyzers offer high efficiency and are gaining traction in high-temperature industrial applications, while AEM electrolyzers are emerging as a low-cost alternative for distributed and small-scale hydrogen generation.

AEM electrolyzers to record highest CAGR during forecast period.

AEM electrolyzers are expected to register the highest CAGR in the global electrolyzers market during the forecast period. AEM technology is gaining rapid traction due to its potential to combine the low-cost advantages of alkaline systems with improved efficiency and compact designs similar to PEM electrolyzers. This makes AEM particularly attractive for distributed hydrogen production, small- to medium-sized industrial users, and emerging fuel applications where cost competitiveness and system flexibility are critical. The strong growth of AEM electrolyzers is further supported by increasing R&D investments, declining material costs, and the development of non-precious metal catalysts, which reduce overall system CAPEX. Their compatibility with intermittent renewable energy and lower balance-of-plant complexity makes them suitable for decentralized green hydrogen projects across residential, commercial, and industrial segments. As countries accelerate the adoption of hydrogen and support innovation-driven technologies, AEM systems are becoming one of the most promising next-generation solutions within the electrolyzer technology landscape.

Europe to be fastest-growing market for electrolyzers during forecast period.

Europe is projected to remain a key growth hub in the global electrolyzers market, driven by accelerated clean energy investments, stringent emissions regulations, and strong regional focus on energy security. The increasing deployment of hydrogen-ready industrial clusters, cross-border hydrogen corridors, and large-scale storage projects is boosting the adoption of electrolyzers across multiple sectors. The region is also advancing flagship green hydrogen initiatives linked to aviation fuels, maritime transport, and district heating. Policy mechanisms such as IPCEI funding, national tenders, and Contracts for Difference are enabling project bankability. Leading European manufacturers are scaling gigafactories, thereby reinforcing Europe’s position as a leader in technology and innovation.

Some major players in the electrolyzers market are thyssenkrupp nucera (Germany), Siemens Energy (Germany), John Cockerill, Nel (Norway), and Cummins Inc. (US). The major strategies adopted by these players include contracts, agreements, partnerships, and expansions.

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