The global electrolyzer market was valued at USD 1.57 billion in 2023, and it is expected to reach USD 90.38 billion by 2029 from USD 3.09 billion in 2024, registering a CAGR of 96.5% during the forecast period 2024-2029.
An electrolyzer is a device used to split a substance into its basic components through an electrolysis process. For example, electrolyzers can split hydrogen and oxygen from the water through the electrolysis process by emitting very few carbon emissions. This device is gaining huge popularity in various industries due to the rising prominence of producing hydrogen under a dedicated process with low emissions. The demand for this process is eventually growing all across the world based on fossil fuel technologies. Electrolysis is the main route to produce hydrogen without releasing any harmful gases, attracting industries to adopt electrolyzers. The number of electrolyzer manufacturing units is gradually increasing in the past few years. It is expected that the high number of pipeline projects may lead to high installations of electrolyzers by 2030. The electrolyzer capacity of 170-365 GW will be installed by 2030, according to a recent survey that enhances the positive scope for the electrolyzer market. The term Net Zero Emissions is being trended in many countries and may raise the significant installations of electrolyzers by 2050. To reach the Net Zero Emissions scenario, around 550 GW of electrolyzer capacity needs to be installed by 2030 to help achieve the target by 2050.
Companies are looking forward to adopting the new trend of installing devices that emit very little carbon emissions in order to reduce the effects of greenhouse gases that are influencing climatic conditions. The growing prominence of producing green ammonia from renewable sources without impacting the environment in a negative way is also surging the growth rate of the market. Green ammonia has varied applications in today’s world. It can replace diesel in locomotives and marine fossil oil in shipping. Green ammonia is an eco-friendly product that can used as a fuel for engines that emit very low carbon emissions. There are many other major benefits to the use of green ammonia, which is ascribed to propel the growth rate of the electrolyzer market. Major end-user industries are tying up with each other for green ammonia projects that surge the growth rate of the market to the extent. Companies are stepping out to utilize electrolyzers to establish a positive term for a green environment. Fortescue, a global leader in green hydrogen development and electrolyzer, partnered with the Moroccan state-owned fertilizer company OCP group to supply green ammonia, ammonia-based fertilizers, and green hydrogen to Morocco and Europe. The company shall take advantage of using high electrolyzer capacity to provide green ammonia and customized fertilizers where farmers can benefit highly across the world.
Huge support from government organizations through investments is also a factor that is gearing up the growth rate of the electrolyzers market. Government authorities are focusing on promoting the use of the electrolysis process to produce hydrogen, ammonia, and other products for various applications to lower carbon footprints globally. The concern towards the rising environmental pollution along with the growing population is eventually raising the need to adopt new technologies to combat greenhouse gas emissions that lower the risk of global warming effects. This is likely to fuel the growth rate of the electrolyzers market.
The soaring price of electricity is becoming a major threat to the growth of the electrolyzer market. As the process completely depends on utilizing electricity, the soaring prices may affect the overall productivity, which will impede the market’s growth. Along with this, huge disruptions in the supply chain activities also limit the share of the market. The disruptions in the supply chain will eventually increase the cost of the final products due to the lower availability of raw materials. The overall process needs a proper infrastructure. A proper setup is required to produce green hydrogen through the electrolysis process, where the lack of this infrastructure in many industries due to its high cost for installation and other factors is likely to limit the growth rate of the market.
On-going research and development activities to implement Fuel Cell Electric Vehicles (FCEVs) powered by hydrogen shall create huge growth opportunities for the electrolyzers market. FCEVs are highly convenient and emit no harmful emissions into the environment, which is gaining attention from the government and non-government authorities to invest huge amounts. The complete process of generating hydrogen from water depends on electrolysis, where the electrolyzer plays an important role in enhancing the activities to promote FCEVs in the future.
In addition, higher authorities around the globe are focusing on transforming the production and consumption of energy in various ways. Net zero carbon emissions by 2050 is focusing on implementing different strategies to completely make the countries pollution free. Their main focus is on the energy sector where the adoption of innovative technologies like electrolyzer has a high potential in reaching the goal of net zero emissions by 2050 which is likely to surge the market growth rate in the foreseen years.
Reluctance to adopt these changes with a lack of significant knowledge over the positive impact of the electrolyzer in a few industries may be challenging factor for the market key players. Stringent rules and regulations by government bodies in adopting the new technologies are also likely to stymie the growth rate of the market.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
96.5% |
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Segments Covered |
By Technology, Application, Power Rating, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Thyssenkrupp nucera (Germany), John Cockerill (Belgium), Nel ASA (Norway), Plug Power Inc. (U.S.), Siemens Energy (Germany), Enapter S.r.l. (Italy), Cummins Inc. (U.S.), ITM Power (U.K.), McPhy Energy S.A. (France), Topsoe (Denmark) and Others. |
The alkaline electrolyzer segment is leading with the highest share of the market. Alkaline electrolyzer operates with an efficiency of 65% in industries that can produce hydrogen gas purity of 99.5% Vol. The solid oxide electrolyzer segment is expected to showcase huge growth opportunities in the future period. Solid oxide electrolyzer is highly efficient in producing hydrogen and syngas fuel from the mixture of water and carbon dioxide. They usually operate at 600°C to 1000°C to allow electrolysis of water. It uses very little electricity when compared with other electrolyzers, which can eventually reduce the energy costs in the overall project.
The energy sector is gaining huge traction over the share of the electrolyzer market. The power generation sub-segment is likely to have huge growth opportunities over the market during the forecast period. The rising prominence of generating as much energy as possible with various technological developments is eventually creating opportunities for the adoption of electrolyzers. The industrial sector is likely to have the fastest growth rate of the electrolyzer market during the forecast period.
>2000 K.W. segment has the largest share of the electrolyzer market and shall have a steady pace during the forecast period. >2000 K.W. power rating electrolyzer have huge applications in the top industries like aerospace, chemical processing, food and beverages, and others. Thes industries requires huge amounts of hydrogen gas and adopting electrolyzers to produce the gas will make the process easy, safe, and convenient.
Asia Pacific Electrolyzers' market share is positioned at the top with increasing prominence to leverage the projects in building and construction by utilizing higher energy-efficient sources that also emit very low carbon emissions. The growing need to adopt changes in the Application by completely adopting the use of renewable resources in any possible way is anticipated to lavish the growth opportunities for the electrolyzers market in the Asia Pacific. India and China stood as the topmost countries in enhancing the growth rate of the electrolyzer market in the Asia-Pacific region. High investments and growing flexibility in launching new techniques to save energy through various applications in the food and beverages industry are solely to gear up the market growth rate in these countries.
The North American electrolyzer market is positioned next to Asia Pacific in leading the largest share owing to the adoption of environment-friendly manufacturing units that emit less or no carbon emissions during the process of producing fuel like hydrogen or natural gas. Growing per capita income and rising awareness among consumers about creating an eco-friendly environment are surging the growth rate of the market in this region. U.S. government authorities are supporting the installation of various electrolysers according to the applications used in the different applications, which is highly elevating the growth rate of the market. According to the statistics, in 2023, approximately 3.7 GW electrolyzer capacity was installed all over the U.S. The launch of innovative technologies in favor of end users also accelerates growth opportunities for the North American market.
Europe is set to showcase huge growth opportunities for the electrolyzers market. Rapid urbanization and rising prominence for the construction of buildings with environment-friendly projects in order to meet the net zero carbon emissions goal by 2050 are likely to enhance the growth rate of the European market. According to the energy security strategy, the U.K. government authority is planning to increase the hydrogen production capacity by up to 10 G.W. by 2030. The strategy plan is to produce hydrogen using electrolyzers that eventually have no harm to the environment as it does not relate to releasing harmful gases.
Companies playing a prominent role in the global electrolyzers market include ThyssenKrupp nucera (Germany), John Cockerill (Belgium), Nel ASA (Norway), Plug Power Inc. (U.S.), Siemens Energy (Germany), Enapter S.r.l. (Italy), Cummins Inc. (U.S.), ITM Power (U.K.), McPhy Energy S.A. (France), Topsoe (Denmark) and Others.
By Technology
By Application
By Power Rating
By Region
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