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3. Electrolyzers Market Size & Share - Future Growth Expectations

The global electrolyzers market size is expected to reach USD 57.2 billion by 2030 from an estimated USD 0.5 billion in 2023, at a CAGR of 97.7% during the forecast period. The major factors driving the growth of this market include 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.

The electrolyzers market has been experiencing rapid growth due to several key factors.

• Growing Need for Green Hydrogen
• Government Support and Incentives
• Cost-cutting and Emerging Market Opportunities
• Integration with Renewable Energy Systems
• Decarbonization Initiatives in Industry and Transportation
• Emerging Market Opportunities
• International Collaboration and Partnerships

To know about the assumptions considered for the study download the pdf brochure

Growing Need for Green Hydrogen:

• As clean energy sources and climate change become more pressing issues, there is a growing need for green hydrogen, which is made via electrolysis from renewable energy sources. By utilizing electricity from renewable sources like solar and wind power to split water into hydrogen and oxygen, electrolyzers are essential to the creation of green hydrogen. The demand for electrolyzers for the production of green hydrogen is anticipated to soar as nations establish aggressive goals for the reduction of carbon emissions and the deployment of renewable energy.

Government Support and Incentives:

• To encourage the use of electrolyzers and the production of green hydrogen, governments all over the world are putting laws, financial support systems, and incentives into place. The market is driven by growth-promoting subsidies, grants, tax breaks, and renewable energy targets that stimulate investment in electrolysis facilities. Additionally, by encouraging the transition to low-carbon hydrogen production, regulatory frameworks like carbon pricing and emissions trading systems open up new markets for electrolyzers.

Cost-cutting and Emerging Market Opportunities:

• Significant cost savings and performance gains have resulted from developments in electrolyzer technology, production techniques, and materials. Manufacturers are working on creating electrolyzer systems that are more dependable, efficient, and have reduced initial costs. These developments in technology give electrolyzers a competitive edge over traditional hydrogen generation techniques and propel the market by increasing the range of industries in which they can be used, such as energy storage, transportation, and industrial.

Integration with Renewable Energy Systems:

• When renewable energy generation surpasses demand or during times of low power costs, electrolyzers can be combined with renewable energy systems, such as solar and wind farms, to make green hydrogen. Power-to-gas or power-to-hydrogen is a concept that makes it possible to store renewable energy as hydrogen, which helps with grid balancing, energy storage, and sector coupling. Electrolyzers are predicted to become more and more necessary for power-to-hydrogen applications as renewable energy sources become more widely used.

Decarbonization Initiatives in Industry and Transportation:

• There is pressure on industries like steel, chemicals, and refining, which produce a lot of hydrogen from fossil fuels, to decarbonize their processes and cut back on greenhouse gas emissions. By providing a carbon-neutral hydrogen production option, electrolyzers allow enterprises to use renewable electricity to make green hydrogen. Similar to this, the need for electrolyzers for hydrogen refueling infrastructure is being driven by the growing popularity of hydrogen fuel cell vehicles in the transportation sector as zero-emission substitutes for traditional automobiles.

Emerging Market Opportunities:

• Grid balancing, energy storage, and industrial operations are just a few of the many uses for electrolyzers that go beyond the creation of hydrogen. They are also flexible and scalable. Growth in the electrolyzer industry is driven by emerging prospects such sector coupling, grid-scale energy storage, and synthetic fuel production. In addition, electrolyzers facilitate the incorporation of variable renewable energy sources into the energy system, so aiding in the shift towards a more robust and sustainable energy infrastructure.

International Collaboration and Partnerships:

• In the electrolyzer industry, collaboration between governments, industry participants, research institutions, and international organizations is fostering innovation, information exchange, and market expansion. Global demand for electrolyzers is growing faster thanks to initiatives like the European Clean Hydrogen Alliance, International Renewable Energy Agency (IRENA), and Hydrogen Council, which encourage cooperation and investment in electrolysis projects.

The electrolyzers market is expected to expand significantly as nations, businesses, and financiers realize how important green hydrogen is to reaching carbon neutrality and accelerating the energy revolution. As green hydrogen becomes more widely used as a clean and sustainable energy source, electrolyzers are anticipated to be crucial in facilitating this transition thanks to enabling regulations, technological developments, cost breaks, and market expansion.

Electrolyzers Market Share - Global Industry Landscape

The electrolyzer market is characterized by the presence of several key players competing for market share. Some of the leading companies in the electrolyzer industry include:

• Thyssenkrupp nucera (Germany)
• John Cockerill (Belgium)
• Nel ASA (Norway)
• Plug Power Inc. (US)
• Siemens Energy (Germany)

These companies operate in the electrolyzer market by providing a range of electrolyzer technologies, system sizes, and integrated solutions to address the expanding demand for hydrogen across various sectors, alongside other up-and-coming competitors and technology providers. The electrolyzer industry's market share might fluctuate depending on elements like technological efficacy, affordability, project management skills, and rapport with clients.

Thyssenkrupp nucera (Germany)

• thyssenkrupp nucera is a cleantech company and a leading provider of hydrogen and chlorine technologies. thyssenkrupp nucera, formerly known as Uhde Chlorine Engineers, is a company established as a joint venture between Industrie De Nora and thyssenkrupp AG. The company primarily deals in the supply of clean energy with green hydrogen at an industrial scale. thyssenkrupp nucera offers chlor-alkali technology and alkaline water electrolysis technology to produce sustainable aviation fuel, hydrogen, chlorine, etc. The renewable hydrogen generated from electrolyzer caters to a wide area of applications such as energy, mobility, and industries. The company also offers solutions for the integration of grid-scale renewables and industrial-scale use of hydrogen and subsequent products. Furthermore, the company is involved in the engineering, procurement, and construction activities of electrochemical plants. thyssenkrupp nucera has a major geographical presence in Japan and Germany.

John Cockerill (Belgium)

• John Cockerill, formerly known as CMI Group specializes in designing, integrating, modernizing, and maintaining equipment across various sectors like energy, defense, steelmaking, environmental solutions, and general industry. The company maintains a strong foothold in metals, heat treatment, surface treatment, and industrial project services, offering a comprehensive range of solutions tailored to diverse industrial requirements. The company offers alkaline electrolyzers through its hydrogen division that caters to various applications such as energy, industrial and mobility. The company has a global presence in 24 countries across five continents.

Nel ASA (Norway)

• Nel ASA, a Norwegian company, is one of the largest manufacturers of electrolyzers globally. The company offers a wide range of electrolyzer products, including PEM and alkaline electrolyzers, for hydrogen production, energy storage, and industrial applications.

Plug Power Inc. (US)

• Plug Power Inc. is a leading alternative energy technology provider focusing on designing, developing, commercializing, and manufacturing hydrogen and fuel cell systems. The company primarily manufactures proton exchange membrane electrolyzers and fuel cell products and is focused on green hydrogen generation. Moreover, it offers fuel cell products in stationary backup power applications. Plug Power Inc. carries out its business as a single operating segment, providing commercially viable hydrogen and fuel cell product solutions. The company's products include GenDrive, GenFuel, GenCare, GenSure, GenKey, ProGen, and GenFuel Electrolyzers. GenFuel Electrolyzer is a proton exchange membrane technology-based electrolyzer. The power rating of the Genfuel Electrolyzers ranges from 1 to 10 MW. Plug Power Inc. predominantly offers products in the North American and European markets.

Siemens Energy (Germany)

• Siemens Energy is a global provider of energy solutions, including electrolyzers for hydrogen production. The company offers PEM and alkaline electrolyzers for renewable energy integration, industrial applications, and hydrogen refueling stations.

Related Reports:

Electrolyzers Market by Technology (Alkaline, Proton Exchange Membrane (PEM), Solid Oxide Electrolyzer, AEM), Application (Energy, Mobility, Industrial, Grid Injection), Power Rating (<500 kW, 500-2,000 kW, >2,000 kW), Region - Global Forecast to 2030